ICT sector registers double digit growth

"The sector is very dynamic and vibrant, the investment inflows have been very strong and in 2006, the sector attracted in excess of $73 million," says the report.

It says the direct employment stands at 6,000 while over 350,000 people are also indirectly employed.

"The sector dynamism is a result of Uganda's good ICT legal and regulatory framework, a stable micro economic environment and economic reforms pursued since the early 1990s," said the report.

The telecommunications sub-sector, formerly dominated by a single national operator, has been progressively liberalised over the last 10 years and has got six mobile telephone operators that include MTN, Celtel, UTL, Warid Telecoms, Hit Telecoms and the recently licensed Reliance Telecommunications.

According to the report, infrastructure capacity is rapidly improving; most national and regional transmission links are digital and optical fibre links connect major economic centres with expansion in progress.

The report also says that in Uganda there is still an extensive use of microwave in the backbone infrastructure and Vsat Services.

"International gateways are satellite-based but connection to the world optic fibre network is imminent, although still small, export of ICT services has started generating foreign exchange inflows."

"With virtually no earnings in 2001, the sector now earns over $10 million per annum."

The report says that a wide range of opportunities are available due to Uganda's geographical location that favours business process outsourcing and low licensing and entry cost.

Other positive factors include a strong market potential across most service areas, a skilled labour force with specialized ICT training, a population that fluently speaks English, low factor costs including land, good quality support infrastructure and a young population suitable for ICTs.

The report says that the sector in the last six years has attracted more than $350 million worth of investment since 2001 and generated revenues estimated at sh1.22 trillion within the same period.

UIA's executive director Dr Maggie Kigozi said that for decades, the ICT sector in Uganda has been revolving around the telecommunications, postal and broadcasting services.

"This has been mainly voice, very limited data handling and mail deliveries," she said.

She also said that the 1996 policy framework that liberalized the telecommunications sub-sector resulted into radical changes that have given birth to an ICT service sector and have become an important part of the economy.

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