Uganda Plans Internet Connectivity Expansion with $150 Million Chinese Loan

The Minister noted that 10 major border points have been connected to internet services, easing cross-border activities like customs clearance, immigration, and e-Visa processing.

The Minister for Information, Communication, Technology, and National Guidance, Hon. Chris Baryomunsi, has unveiled ambitious plans to extend internet connectivity to all sub-counties across Uganda. This initiative, funded by a $150 million loan from the Exim Bank of China, aims to ensure comprehensive access to the National Backbone Infrastructure (NBI) and promote digital inclusivity.

Hon. Baryomunsi highlighted that the government has already laid 4,298.87 kilometers of optical fiber cables, connecting 1,567 ministries, departments, agencies (MDAs), hospitals, and district headquarters. The new funding will extend connectivity to sub-counties, targeting the underserved and rural areas.

“This is vital for ensuring that all regions benefit from the digital economy. Last-mile connectivity, connecting the NBI to end-users, is essential for accessing e-Government services and empowering communities,” Baryomunsi told Parliament during a session chaired by Speaker Anita Among on November 26, 2024.

The $150 million Phase V NBI project, launched in 2023, complements the Uganda Digital Acceleration Project (UDAP), a $200 million World Bank-funded initiative, which includes a $60 million grant.

Planned Milestones Under UDAP

The government aims to:

Extend optical fiber to 63 additional districts.

Build 21 transmission sites.

Enable last-mile connectivity for 2,800 sites nationwide.

These efforts will connect rural areas to high-speed internet, fostering access to e-services like the Integrated Financial Management Services (IFMS), Health Management Information System (HMIS), and the Parish Development Model Online System (PDMIS).

Achievements and Border Connectivity

The Minister noted that 10 major border points have been connected to internet services, easing cross-border activities like customs clearance, immigration, and e-Visa processing. This connectivity strengthens Uganda’s regional integration and trade facilitation efforts.

Parliament Raises Concerns Over Wi-Fi Hotspots

Despite progress, MPs expressed concerns over non-functional public Wi-Fi hotspots. Hon. Helen Nakimuli (Kalangala District Woman MP) called for better maintenance of the 300 hotspots currently available and the planned 800 new ones.

“I want the minister to look for MyUg Wi-Fi hotspot and see if it connects. It is not working, yet it is one of the hotspots meant to serve urban centers,” Nakimuli remarked. She also commended the government for prioritizing connectivity in island districts with poor networks.

Hon. Dickens Kateshumba (Sheema Municipality) emphasized the importance of tracking the economic and social impact of the projects. “Increased internet connectivity should translate into higher production, better access, and affordability. Parliament is interested in understanding the benefits realized from these investments,” he stated.

Enhanced Coordination and Affordability Goals

MPs urged the government to coordinate ICT infrastructure development with other ministries, particularly in road construction, to streamline the installation of cables and masts.

Baryomunsi assured Parliament of the government’s commitment to reducing internet costs, enhancing service efficiency, and achieving economies of scale as connectivity expands.

Future Outlook

The projects aim to position Uganda as a leader in the region's digital economy by creating a robust internet infrastructure that supports e-services, economic growth, and innovation. With rural and underserved areas as the primary focus, Uganda is set to achieve greater inclusivity in its digital transformation journey.