KAMPALA — Behind every mobile money transaction, livestream, online search and digital service in Uganda lies a vast and often invisible ecosystem of infrastructure—one that depends as much on electricity and public utilities as it does on telecommunications networks.
That was the central message from Uganda Communications Commission (UCC) Executive Director George William Nyombi Thembo, as attention turned to MTN Uganda’s Shs54.27 billion contribution to the Universal Service and Access Fund (UCUSAF).
Nyombi said the levy, paid by telecom operators as a statutory requirement equivalent to two percent of gross annual revenue, is more than a compliance obligation. Instead, it is a financing mechanism that sustains the wider ecosystem powering Uganda’s digital economy.
“We are currently just scratching the surface, using the mere tip of the iceberg when it comes to artificial intelligence (AI) and automated systems, yet these technologies are already consuming massive amounts of energy,” Nyombi noted.
His remarks underscored a growing concern within Uganda’s digital transformation agenda: that the country’s connectivity ambitions are increasingly tied to its energy capacity.
Nyombi explained that MTN Uganda’s Shs54.27 billion contribution is split into two equal parts, each serving a distinct national function.
Half of the funds are remitted to the government’s Consolidated Fund, where they support broader public expenditure, including infrastructure and utility systems that enable communications networks to function efficiently.
The other half is retained under UCUSAF, administered by the UCC, to finance targeted interventions that expand access to communications services in underserved and rural communities.
“These funds are not just about telecom expansion. They are about building the invisible backbone—electricity, infrastructure, and access systems—that make connectivity possible,” he said.
This year’s contribution rose from Shs50.55 billion to Shs54.27 billion, reflecting continued growth in Uganda’s telecommunications sector.
Nyombi also commended MTN Uganda for what he described as an exemplary compliance record, noting that the company has consistently remitted its statutory obligations without the need for enforcement action.
Nyombi warned that Uganda’s ambition to achieve universal connectivity by 2030 will depend heavily on the reliability of its energy systems.
While telecom infrastructure such as base stations, fibre networks and data systems remain central to digital expansion, he stressed that they cannot function without stable and sufficient electricity supply.
Large-scale digital services—including cloud computing, financial platforms, government systems and artificial intelligence applications—consume significant amounts of energy and require uninterrupted power to remain operational.
His remarks highlighted a structural reality: Uganda’s digital future will depend not only on expanding internet coverage, but also on strengthening the national power grid and alternative energy systems.
Nyombi said UCUSAF-funded projects continue to play a critical role in bridging Uganda’s digital divide, particularly in rural and underserved communities.
The fund supports initiatives such as community ICT centres, broadband expansion, digital connectivity for schools and health facilities, and ICT literacy programmes.
Increasingly, these projects incorporate renewable and hybrid energy solutions, including solar-powered systems, to ensure digital infrastructure remains operational in areas beyond the national electricity grid.
Such investments, he noted, are essential for ensuring that Uganda’s digital transformation is inclusive and sustainable.
Nyombi’s comments also pointed to an emerging challenge: the rising energy demands of advanced technologies.
As Uganda gradually integrates artificial intelligence and automated systems into its digital ecosystem, he said the country must prepare for significantly higher energy consumption levels.
His warning reflects a broader policy concern—that digital infrastructure planning can no longer be separated from energy planning if Uganda is to build a resilient and future-ready economy.
The UCC maintains that UCUSAF investments will continue prioritising infrastructure that supports universal connectivity, while also shifting focus toward digital resilience, cybersecurity, energy efficiency, and emerging technologies.
As Uganda pushes toward its 2030 connectivity targets, Nyombi said the challenge is no longer simply connecting citizens to the internet, but ensuring the systems that power that connectivity remain stable, scalable and sustainable.
The message from the regulator is increasingly clear: Uganda’s digital economy will rise—or stall—not just on bandwidth and infrastructure, but on the strength of its energy foundation.
