In an effort to increase accessibility across the nation, the government has said that it plans to significantly reduce the cost of Internet bandwidth.
The government wants to cut the price to as little as $5 (about 19,000 Ugandan shillings) per megabit per second per month within the next year, according to Godfrey Kabbyanga, the state minister for ICT. This statement follows a recent drop in price from $70 to $35 per megabit per second, which has helped stabilize internet costs and increase access, though not as much as initially thought.
Speaking on Tuesday, February 13, 2024, at the ministry’s headquarters in Kampala, during the signing of a memorandum of understanding (MOU) between the ministry and global payment solution company Mastercard, Kabbyanga stressed the significance of further lowering internet costs to enable the implementation of the parish model information management systems across more than 10,000 parishes nationwide.
He emphasized that this cut will also encourage private sector companies to modify their pricing policies, putting lowering pressure on the nation’s average internet costs. The government’s overarching goal is to establish nationwide internet coverage in the next five years, subject to the fifth phase of the National Backbone Infrastructure being completed.
Victor Ndlovu, Head of Business Development for East Africa at Mastercard, and Dr. Amina Zawedde, Permanent Secretary of the Ministry, sealed the Memorandum of Understanding during the signing event.
Kabbyanga praised Mastercard for growing its market share in Uganda and reaffirmed the government’s commitment to supporting the alliance. He informed Mastercard of the favorable legislative environment in place to encourage technology investment in the nation and reiterated President Yoweri Museveni’s strong interest in ICT development.
The goal of the partnership with Mastercard is to develop digital financial platforms that would promote a higher level of cashless transaction adoption among Ugandans. The collaboration will also create a Startup program to assist young inventors by offering mentorship and advice to help them turn their concepts into successful commercial goods.
Zawedde highlighted the program’s capacity to produce observable advantages like the creation of jobs and assistance for the nation’s up-and-coming entrepreneurs. After three years, the MOU will be reviewed to determine its effectiveness. Prospective advantages are expected to go beyond quantifiable results to include chances for youth empowerment and economic development.
