Smartphone adoption remains relatively low in Uganda. According to the latest official statistics, the country has 16.7 million smartphones for 38.5 million active mobile subscribers.

The Uganda Communications Commission (UCC) has launched an initiative in partnership with the Federation of Small and Medium Enterprises (FSME) to equip owners of micro, small, and medium enterprises (MSMEs) with smartphones. The initiative aims to reach 2,720 beneficiaries by the end of the year, with a target of distributing 60,000 devices over three years.

“The government covers 50% of the cost of each phone, while the FSME covers the remaining balance. The sh50,000 contribution by recipients is to ensure a sense of ownership.  We don’t want them to sell off the phones,” explained John Walugembe, Executive Director of FSME.

This initiative comes at a time when Ugandan MSMEs are struggling to access smartphones and lack digital skills, despite the fact that, according to Mr. Walugembe, “digital technology has the potential to transform businesses.” Smartphone adoption remains low across the general population. According to the latest UCC data, Uganda has 16.7 million smartphones for 38.5 million active mobile subscribers.

The program is expected to boost the productivity of MSMEs in Uganda. For example, Aisha Nalule, a hairdresser benefiting from the initiative, believes her smartphone will help her promote her services on platforms like Facebook, X, and TikTok.

t Uganda has 1.1 million MSMEs, according to data from the United Nations Conference on Trade and Development (UNCTAD). These businesses account for 80% of the country’s GDP and 90% of its private sector, according to the same source.

Isaac K. Kassouwi