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UGANDA INVESTMENT
FORUM 2013
Driving Africa's Growth: the Role of
Information and Communications Technologies
(ICT)

By
Dr. Ruhakana Rugunda
Minister of ICT
Sheraton Hotel, Kampala –UGANDA
11-12 April, 2013
1
Presentation Outline


ICT sector structure and composition

Evolution


How ICTs revolutionize the World

ICT


of ICT

and Economic Growth

ICT and e-Government evolution

Relationship between ICT and GDP – Uganda Case
Study



National
ICT

Philosophy on ICT and Growth

contribution to socio-economic development

Developments

in ICT sector
2
Structure of ICT sector
Policy level
Ministry of Information and Communications
Technology
Regulatory level
Uganda Communications Commission (UCC)
National Information Technology Authority
(NITA-U)
Operational level
NITA-U (e.g. NBI, Information Centres)
Posta Uganda
Uganda Institute of Information and
Communications Technology (UICT)

Private sector

3
Role of Private sector
Provision of ICT infrastructure and
attendant services
Partnering with Govt to implement
programmes e.g. school
labs, Information centres, internet
Content development for TV, Radio
Investment in the sector
Generation of revenue
Job creation
4
Other sector players
Development partners
Civil Society
General Public

5
How ICTs are
revolutionizing the World?
Interconnectivity thru ICT has
enabled a “Global village”
ICTs have demystified the
essence of location & distance –
One can do business anywhere,
anytime
Completely new societies & social
relationships being created
through social networks
ICTs playing a key role in
international diplomacy
key driver to socio-economic
transformation
6
ICT and Economic Growth
Leveraging on ICT has helped many
resource-poor countries to build
competitive economies (S. Korea,
Singapore, Mauritius etc)
ICT can help developing economies to
leapfrog stages of development
Research has showed a strong positive
relationship between investment in ICT
and growth in GDP
7
Impact on GDP by increasing ICT usage
by 10%
1.38

1.5

1.21
1.12
1.0
0.81
Percentage points

0.72
0.60
0.5

0.43

Fixed
Source: Qiang, 2009, World Bank

8

0.77

Mobile

Internet

High-income economies
Low- and middle-income economies

Broadband

8
Interpretation of the figure above
The impact of increasing ICT usage to
GDP is higher in Low and Middle Income
Countries than in High- Income
economies (World Bank, 2009)
(fixed and mobile telephony, internet and
broadband)
9
Relationship between ICT and
GDP – Uganda case study

10
Impact of ICTs on per capita
income
Countries that have adopted ICTs have
experienced faster growth in per capita
income as shown in the graph below.

11
Period (Years)

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

1984

Ghana

1983

1982

1981

1980

Kenya

1979

1978

1977

Uganda

1976

1975

1974

1973

1972

1971

1970

Per Capita Income in US$

Comparative analysis of per capita
income growth

9000

8000

7000
Malaysia

6000

5000

4000

3000

2000

1000

0

12
National Philosophy on ICT
and Growth
Vision 2040

NDP 2010-2015

ICT

NRM Manifesto
2011- 2016
13

13
ICT Sector Performance
Contribution to GDP: from 2.5% in 2006 to
6.2% in 2012
Major contributor to national revenue
Employs about 1million people
Telephone subscriber base is at about 16.5
million
52 TV stations (20 are already operational)
250 FM radio stations (150 are operational)
14
Sector Performance cont’d
•

•
•
•
•

Increased use of Information systems in
Gov’t, e.g. Integrated Financial
Management System (IFMS), Automated
System for Customs Data (ASYCUDA URA)
80 District websites
1000 computer labs established in schools
and tertiary institutions
20 District Business Information Centers
(DBICs) and 74 Tele-centers established
National e-Gov’t Master Plan developed
15
Growth trend of Telephone
penetration
Fixed & Mobile Subscriptions and Penetration - 2010/11
16,000,000

50
45

14,000,000

40
12,000,000
35
10,000,000

30

8,000,000

25
20

6,000,000

15
4,000,000
10
2,000,000

Fixed & Mobile Connections
Teledensity

5

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2,116,958

3,729,645

6,301,590

9,678,799

10,641,110

15,019,129

7.7

13.2

21.2

31.6

33.5

0

45.6

Fixed & Mobile Connections

Teledensity

16
Growth trend in Internet Access &
Usage
4,500,000

800,000

4,000,000

700,000

3,500,000

600,000

3,000,000

500,000

2,500,000

400,000

2,000,000

300,000

1,500,000

200,000

1,000,000

100,000

500,000

Internet Subscriptions
Internet Users

2007

2008

Jun-09

Jun-10

Dec-10

Jun-11

15,500

22,000

58,648

541,000

645,000

2,500,000

2,800,000

3,500,000

4,000,000

-

934,758

1,000,000

Estimated Internet Users

5,000,000

900,000

Fixed & Mobile Internet Subscriptions

1,000,000

4,662,240

17
National Backbone Infrastructure
Key
Phase 1: Kampala Metroplitan
Area (27
ministries), Entebbe, Jinja, Muk
ono and Bombo
5 transmission sites
Phase 2:
Luwero, Nakasongola, Masindi,

Transmission sites

Gulu, Nimule, Lira, Soroti, Kum
i, Mbale, Tororo, Malaba, Busi
a, Hoima, Kyenjojo, Fort
Portal, Kasese, Bushenyi, Mba
rara
17 transmission sites
Datacentre for NBI
infrastructure
Pilot for messaging & collab.
Phase 3:
tools
Katuna, Kabale, Ntungamo, M
asaka, Mutukula
3 transmission sites
Network Operating Centre
18
(NOC)
National Backbone and eGovernment Infrastructure Project
•
•
•

30 MDAs connected for voice, video and data
1600kms of fibre laid countrywide
3rd phase to link Uganda with Rwanda and Tanzania

19
Private sector contribution to the
backbone infrastructure
Laid over 3000 km of fibre optic cable,
connecting Uganda to neighbors (Rwanda
an Kenya), as well as many towns in the
country
Managing the NBI on behalf of Govt

20
Business Process Outsourcing
(BPO)
•
•

IT-enabled Services and BPO identified as key priorities for job
creation especially for the youth
BPO incubation centre established

21
ICT Sector Evolution & Prospects

22
Areas of Investment
BPO
E-Government
National IT Parks
Software and hardware industry
Analogue to Digital TV Broadcasting
Migration
Postcode and addressing system
23
CRITICAL SUCCESS FACTORS

Partnerships

Political
goodwill

Adequate
resourcing

Change
Management
24
Conclusion
ICT is pivotal to the socio-economic
development of Uganda by increasing
job and wealth creation. To achieve this,
we need to invest heavily in the Sector
with particular emphasis on the following
areas: BPO; E-Government; IT Parks;
Software and hardware development.
25
`

Thank You

26

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Information and communications technologies

  • 1. UGANDA INVESTMENT FORUM 2013 Driving Africa's Growth: the Role of Information and Communications Technologies (ICT) By Dr. Ruhakana Rugunda Minister of ICT Sheraton Hotel, Kampala –UGANDA 11-12 April, 2013 1
  • 2. Presentation Outline  ICT sector structure and composition Evolution  How ICTs revolutionize the World ICT  of ICT and Economic Growth ICT and e-Government evolution Relationship between ICT and GDP – Uganda Case Study  National ICT Philosophy on ICT and Growth contribution to socio-economic development Developments in ICT sector 2
  • 3. Structure of ICT sector Policy level Ministry of Information and Communications Technology Regulatory level Uganda Communications Commission (UCC) National Information Technology Authority (NITA-U) Operational level NITA-U (e.g. NBI, Information Centres) Posta Uganda Uganda Institute of Information and Communications Technology (UICT) Private sector 3
  • 4. Role of Private sector Provision of ICT infrastructure and attendant services Partnering with Govt to implement programmes e.g. school labs, Information centres, internet Content development for TV, Radio Investment in the sector Generation of revenue Job creation 4
  • 5. Other sector players Development partners Civil Society General Public 5
  • 6. How ICTs are revolutionizing the World? Interconnectivity thru ICT has enabled a “Global village” ICTs have demystified the essence of location & distance – One can do business anywhere, anytime Completely new societies & social relationships being created through social networks ICTs playing a key role in international diplomacy key driver to socio-economic transformation 6
  • 7. ICT and Economic Growth Leveraging on ICT has helped many resource-poor countries to build competitive economies (S. Korea, Singapore, Mauritius etc) ICT can help developing economies to leapfrog stages of development Research has showed a strong positive relationship between investment in ICT and growth in GDP 7
  • 8. Impact on GDP by increasing ICT usage by 10% 1.38 1.5 1.21 1.12 1.0 0.81 Percentage points 0.72 0.60 0.5 0.43 Fixed Source: Qiang, 2009, World Bank 8 0.77 Mobile Internet High-income economies Low- and middle-income economies Broadband 8
  • 9. Interpretation of the figure above The impact of increasing ICT usage to GDP is higher in Low and Middle Income Countries than in High- Income economies (World Bank, 2009) (fixed and mobile telephony, internet and broadband) 9
  • 10. Relationship between ICT and GDP – Uganda case study 10
  • 11. Impact of ICTs on per capita income Countries that have adopted ICTs have experienced faster growth in per capita income as shown in the graph below. 11
  • 13. National Philosophy on ICT and Growth Vision 2040 NDP 2010-2015 ICT NRM Manifesto 2011- 2016 13 13
  • 14. ICT Sector Performance Contribution to GDP: from 2.5% in 2006 to 6.2% in 2012 Major contributor to national revenue Employs about 1million people Telephone subscriber base is at about 16.5 million 52 TV stations (20 are already operational) 250 FM radio stations (150 are operational) 14
  • 15. Sector Performance cont’d • • • • • Increased use of Information systems in Gov’t, e.g. Integrated Financial Management System (IFMS), Automated System for Customs Data (ASYCUDA URA) 80 District websites 1000 computer labs established in schools and tertiary institutions 20 District Business Information Centers (DBICs) and 74 Tele-centers established National e-Gov’t Master Plan developed 15
  • 16. Growth trend of Telephone penetration Fixed & Mobile Subscriptions and Penetration - 2010/11 16,000,000 50 45 14,000,000 40 12,000,000 35 10,000,000 30 8,000,000 25 20 6,000,000 15 4,000,000 10 2,000,000 Fixed & Mobile Connections Teledensity 5 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2,116,958 3,729,645 6,301,590 9,678,799 10,641,110 15,019,129 7.7 13.2 21.2 31.6 33.5 0 45.6 Fixed & Mobile Connections Teledensity 16
  • 17. Growth trend in Internet Access & Usage 4,500,000 800,000 4,000,000 700,000 3,500,000 600,000 3,000,000 500,000 2,500,000 400,000 2,000,000 300,000 1,500,000 200,000 1,000,000 100,000 500,000 Internet Subscriptions Internet Users 2007 2008 Jun-09 Jun-10 Dec-10 Jun-11 15,500 22,000 58,648 541,000 645,000 2,500,000 2,800,000 3,500,000 4,000,000 - 934,758 1,000,000 Estimated Internet Users 5,000,000 900,000 Fixed & Mobile Internet Subscriptions 1,000,000 4,662,240 17
  • 18. National Backbone Infrastructure Key Phase 1: Kampala Metroplitan Area (27 ministries), Entebbe, Jinja, Muk ono and Bombo 5 transmission sites Phase 2: Luwero, Nakasongola, Masindi, Transmission sites Gulu, Nimule, Lira, Soroti, Kum i, Mbale, Tororo, Malaba, Busi a, Hoima, Kyenjojo, Fort Portal, Kasese, Bushenyi, Mba rara 17 transmission sites Datacentre for NBI infrastructure Pilot for messaging & collab. Phase 3: tools Katuna, Kabale, Ntungamo, M asaka, Mutukula 3 transmission sites Network Operating Centre 18 (NOC)
  • 19. National Backbone and eGovernment Infrastructure Project • • • 30 MDAs connected for voice, video and data 1600kms of fibre laid countrywide 3rd phase to link Uganda with Rwanda and Tanzania 19
  • 20. Private sector contribution to the backbone infrastructure Laid over 3000 km of fibre optic cable, connecting Uganda to neighbors (Rwanda an Kenya), as well as many towns in the country Managing the NBI on behalf of Govt 20
  • 21. Business Process Outsourcing (BPO) • • IT-enabled Services and BPO identified as key priorities for job creation especially for the youth BPO incubation centre established 21
  • 22. ICT Sector Evolution & Prospects 22
  • 23. Areas of Investment BPO E-Government National IT Parks Software and hardware industry Analogue to Digital TV Broadcasting Migration Postcode and addressing system 23
  • 25. Conclusion ICT is pivotal to the socio-economic development of Uganda by increasing job and wealth creation. To achieve this, we need to invest heavily in the Sector with particular emphasis on the following areas: BPO; E-Government; IT Parks; Software and hardware development. 25