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ByDr. Ruhakana Rugunda

Minister of ICT

Sheraton Hotel, Kampala –UGANDA11-12 April, 2013

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Driving Africa's Growth: the Role of Information and Communications Technologies

(ICT)

UGANDA INVESTMENT FORUM 2013

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Presentation Outline ICT sector structure and composition

Evolution of ICT

How ICTs revolutionize the World

ICT and Economic Growth

ICT and e-Government evolution

Relationship between ICT and GDP – Uganda Case Study

National Philosophy on ICT and Growth

ICT contribution to socio-economic development

Developments in ICT sector

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Structure of ICT sector Policy level

Ministry of Information and Communications Technology

Regulatory levelUganda Communications Commission (UCC)National Information Technology Authority (NITA-U)

Operational levelNITA-U (e.g. NBI, Information Centres)Posta UgandaUganda Institute of Information and Communications Technology (UICT) Private sector

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Role of Private sector

Provision of ICT infrastructure and attendant servicesPartnering with Govt to implement programmes e.g. school labs, Information centres, internet Content development for TV, RadioInvestment in the sectorGeneration of revenueJob creation

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Other sector players

Development partnersCivil SocietyGeneral Public

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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, anytimeCompletely new societies & social relationships being created through social networksICTs playing a key role in international diplomacy key driver to socio-economic transformation

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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

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Impact on GDP by increasing ICT usage by 10%

8Source: Qiang, 2009, World Bank

0.5

1.0

1.5

Per

cent

age

poin

ts

0.43

0.72

0.60

0.81 0.77

1.121.21

1.38

Fixed Mobile Internet Broadband

High-income economiesLow- and middle-income economies

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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)

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Relationship between ICT and GDP – Uganda case study

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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.

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Comparative analysis of per capita income growth

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Period (Years)

Per C

apita

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in U

S$

Uganda Kenya Ghana Malaysia

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Vision 2040

NDP 2010-2015

NRM Manifesto2011- 2016ICT

National Philosophy on ICT and Growth

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ICT Sector Performance

Contribution to GDP: from 2.5% in 2006 to 6.2% in 2012Major contributor to national revenueEmploys about 1million people Telephone subscriber base is at about 16.5 million52 TV stations (20 are already operational)250 FM radio stations (150 are operational)

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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

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Growth trend of Telephone penetration

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11Fixed & Mobile Connections 2,116,958 3,729,645 6,301,590 9,678,799 10,641,110 15,019,129 Teledensity 7.7 13.2 21.2 31.6 33.5 45.6

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2,000,000

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16,000,000 Fixed & Mobile Subscriptions and Penetration - 2010/11

Fixed & Mobile Connections Teledensity

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Growth trend in Internet Access & Usage

2007 2008 Jun-09 Jun-10 Dec-10 Jun-11

Internet Subscriptions 15,500 22,000 58,648 541,000 645,000 934,758 Internet Users 1,000,000 2,500,000 2,800,000 3,500,000 4,000,000 4,662,240

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Estimated Internet U

sers

Fixed & M

obile Internet Subscriptions

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National Backbone Infrastructure

Phase 1: Kampala MetroplitanArea (27 ministries), Entebbe, Jinja, Mukono and Bombo5 transmission sites

Key

Phase 2: Luwero, Nakasongola, Masindi,

Gulu, Nimule, Lira, Soroti, Kumi, Mbale, Tororo, Malaba, Busia, Hoima, Kyenjojo, Fort Portal, Kasese, Bushenyi, Mbarara17 transmission sitesDatacentre for NBI

infrastructurePilot for messaging & collab.

toolsPhase 3: Katuna, Kabale, Ntungamo, Masaka, Mutukula3 transmission sitesNetwork Operating Centre

(NOC)Transmission sites

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National Backbone and e-Government Infrastructure Project

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

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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 countryManaging the NBI on behalf of Govt

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Business Process Outsourcing (BPO)

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

• BPO incubation centre established

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ICT Sector Evolution & Prospects

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Areas of Investment

BPOE-GovernmentNational IT ParksSoftware and hardware industryAnalogue to Digital TV Broadcasting MigrationPostcode and addressing system

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Adequate resourcing

PartnershipsPolitical goodwill

Change Management

CRITICAL SUCCESS FACTORS

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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.

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Thank You