The Government has unveiled its intention to slash the price of Internet bandwidth further in a bid to enhance accessibility across the country.
Godfrey Kabbyanga, the ICT state minister, revealed that the Government aims to reduce the cost to as low as $5 (approximately 19,000 Ugandan shillings) per megabit per second per month within the next year. This announcement comes in the wake of a recent reduction from $70 to $35 per megabit per second, a move that has contributed to stabilizing internet costs and increasing access, albeit not to the extent anticipated.
Speaking during the signing of a memorandum of understanding (MOU) between the ministry and global payment solution company Mastercard at the ministry’s headquarters in Kampala on Tuesday, February 13, 2024, Kabbyanga emphasized the importance of further reducing internet costs to facilitate the implementation of the parish model information management systems across over 10,000 parishes nationwide.
He highlighted that this reduction would also incentivize private sector players to adjust their pricing structures, thereby exerting downward pressure on overall internet prices in the country. The Government’s broader objective is to achieve nationwide internet coverage within the next five years, a goal contingent upon the completion of the fifth phase of the National Backbone Infrastructure.
The MOU signing ceremony saw Victor Ndlovu, Head of Business Development for East Africa at Mastercard, and Dr. Amina Zawedde, Permanent Secretary of the Ministry, sealing the agreement.
Kabbyanga commended Mastercard for its expanding presence in Uganda and expressed the Government’s commitment to facilitating the partnership. He affirmed President Yoweri Museveni’s keen interest in ICT development and reassured Mastercard of the conducive legal framework in place to support technology investment in the country.
The collaboration with Mastercard aims to create financial digital platforms to encourage greater adoption of cashless transactions among Ugandans. Additionally, the partnership will establish a Startup program to support young innovators, providing mentorship and guidance to help transform their ideas into viable commercial products.
Zawedde emphasized the program’s potential to generate tangible benefits such as job creation and support for the country’s burgeoning innovators. The MOU will be evaluated after three years to assess its impact, with anticipated benefits extending beyond measurable outcomes to include opportunities for youth empowerment and economic growth.
