With the global digital economy surging ahead, Uganda finds itself at a crossroads: poised for growth, yet hampered by underdeveloped trade in ICT goods and digital services. In her presentation at the 2nd ICT National Summit, Dr. Martina Ferracane laid out a compelling case for why the country must both diagnose its current challenges and act decisively on regulatory reforms.
Martina began by inviting startups, companies, and ICT professionals to participate in a targeted survey—accessible via a QR code she shared—to inform her recommendations to the government. “If you are in a startup involved in digital trade in any way, please stand with the QR code for this survey,” she urged. The questionnaire’s first page gathers basic company data, the second assesses which restrictions apply, and the third explores enabling policies such as data protection and consent frameworks.
“You can just say whether a restriction applies to your company or not. If you don’t know, or just don’t have time, skip the page,” Martina assured her audience, emphasizing that every response—yes, no, or ‘I don’t know’—adds valuable insight.
Underperformance in ICT goods and digital services
Martina argued that Uganda lags behind peer African nations in exporting ICT goods and digital services, noting that while countries like Morocco, Egypt, South Africa, and Tunisia have significant ICT goods exports, Uganda’s remain negligible. In digital services, Uganda earns about US$360 million annually, with such services making up only 20% of its exports, below the African average of 26% and far from the global benchmark of 50%.
“This is a problem, but behind every problem there are always opportunities,” Martina reminded her listeners. Indeed, the country has ample room to innovate, develop local talent, and scale services for international markets.
The power of academic research
Martina underscored the role of rigorous research in crafting effective policies. She manages a global database covering regulatory environments in 150 countries—including all 54 African nations—providing free, open-access data on restrictions and enablers of digital trade. This resource, she explained, can pinpoint which policy levers drive growth and which barriers stifle it.
“Academic research can support the identification of good policies and recommendations,” stated Martina.
Using this database, Martina presented a global map of digital trade regulations: darker countries impose more restrictions, while greener nations have more enabling policies. Africa, she noted, falls below the global average in policy enablers, despite hosting some leading performers—including Uganda, which ranks highest on the continent for implementing enabling measures.
Regulatory realities in Uganda
Diving deeper, Martina reviewed Uganda’s regulatory landscape, distinguishing enabling policies from restrictive barriers. On the enabling side, Uganda has Data Protection and Consumer Protection laws modeled after the EU’s GDPR, as well as frameworks for electronic commerce and signatures, and it participates in international ICT agreements. However, she stressed that enforcement is the critical gap, with many regulations existing in theory but lacking effective implementation in practice.
Restrictive Barriers
- Infrastructure & Cost
- The internet remains relatively expensive despite telecom liberalization.
- Government-collected levies on infrastructure need greater transparency: “There’s concern about how funds are used to improve infrastructure.”
- Tariffs & Taxation
- The average import tariff for ICT goods is 2 %, higher than the already-high African average.
- A ban on used computers, intended to curb e‑waste, has instead driven illegal imports. A licensing scheme for refurbished devices could balance environmental and business needs.
- Transparency & Customs
- Complex public procurement and customs processes breed instability and, according to interviewees, corruption.
- Data Localization & Restrictions
- Strict rules mandate that financial data be stored domestically, inflating compliance costs.
- Periodic internet shutdowns —“politically motivated” in Martina’s words—halt all digital trade, causing companies to lose bids and revenue on blackout days.
- Content Access & Platform Licenses
- While licensing fosters trust, smaller firms find the processes cumbersome. Martina suggested bolstering regulatory bodies with more staff to streamline approvals.
Turning insight into action
“More can always be done,” Martina concluded. She advocated for:
- Targeted tariff reform to lower costs on critical ICT imports.
- Refined waste-management policies, introducing licenses for quality-used equipment.
- Greater enforcement of existing data protection and e‑commerce laws.
- Transparency initiatives, to ensure public funds and customs procedures support rather than hinder digital trade.
- Safeguards against shutdowns, perhaps via legal protections or automated review mechanisms, to guarantee uninterrupted connectivity.
She closed with a final call to action: “If you haven’t answered the survey, please do so—your insights will shape the report we publish later this month.”
By combining data-driven research with stakeholder input, Martina’s work charts a path toward unlocking Uganda’s digital trade potential, transforming current underperformance into a springboard for innovation, export growth, and economic resilience.
