New Vision (Kampala)

Uganda: ICT Sector Brought in Sh256b in 2007

David Muwanga

17 January 2008


Kampala — THE information and Communication Technology (ICT) sector attracted projects worth sh256b ($150m) last year, the Uganda Communications Commission (UCC), has announced.

"Investment in the sector for the year 2007 was estimated at $150m and its contribution to the gross domestic product is approximately 9%," Patrick Masambu, the head of UCC, said on Monday.

Masambu was speaking at a function where MTN, uganda telecom and Celtel handed in a combined contribution of sh5.1b to the rural communication development the fund.

The telecom operators give a conditional 1% of their annual gross earnings to fund.

Masambu explained that more than 300,000 jobs were created directly and indirectly.

"This is an increase of one hundred times following the restructuring of the sector and this is likely to increase as a result of the new service providers recruitment drive as well as indirect employment," he said.

He disclosed that over 20 companies had been licensed to provide voice telephony and data services.

"A wide range of modern postal products including easy mail track and trace, electronic money transfer are now available in the market and the public should utilise them," Masambu said.

He said the customer base had also grown from 50,000 in 1998 to 4.7m, representing a tele-density of about 16%.

Masambu, however, warned of several challenges the fund faces, including infrastructure limitations in rural areas and insecurity.

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