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Countries / Territories

Uganda: export development of IT and IT enabled services

  • A FAVORABLE CONTEXT

    In the years before the Covid19 crisis, the ICT Sector in Uganda has been growing at an average rate of around 20% per annum resulting in an average contribution to GDP of 2.5%. This number has decreased in 2020 due to the Covid19 crisis, by how much is not known yet. Uganda's real gross domestic product (GDP) growth in 2020 is projected to be between 0.4 and 1.7% compared to 5.6% in 2019.

    The sector is one of the most competitive and fastest growing sectors in the country, largely driven by the telecommunications subsector. Both as a sector and as an enabler for other sectors, the growing use of ICTs in Uganda has created widespread demand for IT products and services, as well as IT enabled services (ITES).

    Uganda's IT & ITES market growth has been supported by the country's favourable time zones and large pool of skilled, inexpensive labour. There are a reasonably high numbers of undergraduates and graduates coming out of the local institutions each year with an IT background, and more with skills applicable to ITES. As a result, Uganda has a good level of entry-level skills in IT and abundant resources for business process outsourcing.
    Together with the country's liberal business environment, the sector's growth and competitiveness has already attracted global players such as Microsoft, Cisco, Samsung, and TechnoBrain all of which have set up operations in Uganda and operate alongside growing local enterprises with some international experience. Ugandan SMEs in the IT&ITES sectors have potential to grow and further internationalise.

    OBJECTIVES AND PLANNED OUTCOMES

    The NTF IV Uganda aims at strengthening SMEs, and it seeks to influence policy makers and regulators, Trade and Investment Support Institutions and private trade/business support providers, as well as international private sector market partners in creating a supportive environment for enterprises in IT and IT enabled services sector.
    The intermediary outcomes of NTF IV are as follow:

    • Policy makers and regulators monitor and coordinate the implementation of the endorsed Sector Export Plan and Country Marketing Plan in the IT&ITES sector.
    • TISIs (ATIS, ICTAU, and UBPOA) extend and improve their export-related services for IT&ITES businesses.
    • SME and start-up company owners/managers implement business decisions that raise their competitiveness.
    • Beneficiary companies and supported private sector associations develop international linkages and build partnerships.
  • Partners

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