THE COMMUNICATIONS BLOG

October 26, 2024 – Tororo, Uganda: The Uganda Communications Universal Service and Access Fund (UCUSAF) is continuing its efforts to promote digital inclusion by rolling out its phone distribution campaign to support small and medium-sized enterprises (SMEs) in Tororo district. Over the past few days, more than 300 SMEs have received subsidised smartphones, enabling these businesses to digitise their operations and enhance their competitiveness.

This campaign is part of a broader UCUSAF initiative to bridge the digital divide across Uganda. Similar to UCUSAF’s prior interventions, such as the provision of solar-powered tablets to rural households, the SME-focused campaign in Tororo aims to increase access to affordable digital tools. By empowering SMEs with smartphones, UCUSAF is helping these businesses improve efficiency, access vital market information, and utilise digital payment solutions.

Enhancing Digital Connectivity for SMEs

Uganda’s mobile connectivity landscape has seen significant growth in recent years. According to the UCC’s 2023 sector report, there are currently 45 million registered mobile subscriptions in the country, with 16 million active mobile internet subscriptions. This represents a substantial increase in mobile internet access, which has grown from 14 million subscriptions in 2020 to 16 million in 2023.

Despite this growth, many SMEs still rely on basic or feature phones, which limits their ability to fully engage with the digital economy. The introduction of subsidised smartphones through UCUSAF’s distribution campaign in Tororo is designed to address this gap, enabling SMEs to access advanced business tools and e-commerce platforms. With smartphone ownership in Uganda reaching 15 million devices in 2023, UCUSAF’s efforts are timely and vital for improving the digital literacy and competitiveness of rural businesses.

Driving Economic Growth Through Digital Skills and Access

In addition to providing smartphones, UCUSAF’s initiative includes a comprehensive digital training component. Business owners receive basic training on how to use digital tools effectively for tasks such as mobile banking, online marketing, and managing customer relationships. This training ensures that the distributed phones are used to their full potential, enhancing business operations and contributing to economic growth in the region.

To ensure consistent and reliable internet access, UCUSAF has partnered with local telecom operators to improve network coverage in Tororo. This collaboration has resulted in improved network infrastructure, including the installation of new telecom towers. In 2023, Uganda’s total number of telecom towers reached 5,064, marking a 66% increase from 2019. This expansion is crucial in providing SMEs with the reliable connectivity needed to fully engage with digital tools.

A Future of Digitally Empowered SMEs

UCUSAF’s smartphone distribution campaign aligns with Uganda’s broader efforts to increase smartphone penetration across the country. As of 2023, smartphone penetration among adults in Uganda stands at 67%, a significant increase from previous years​. This growing access to smart devices is expected to have a transformative impact on Uganda’s economy, particularly for SMEs in rural areas like Tororo.

By digitising their operations, these businesses will be better equipped to participate in e-commerce, improve customer relations, and access new markets. UCUSAF’s initiative not only addresses the immediate needs of SMEs but also sets the stage for long-term economic growth and digital inclusion across Uganda.