The Executive Director of the Federation of Small and Medium Enterprises Uganda (FSMEs), John Walugembe, has called on government to scrap taxes on electronic gadgets, particularly smartphones, to make them more accessible to low-income Ugandans.
Walugembe made the appeal during a digital transformation dialogue organised by the Uganda Communications Commission (UCC) and its partners in Kampala.
Walugembe said digital tools have the potential to transform small and medium enterprises by improving transparency, streamlining logistics, easing payments, and widening market access, but many businesses have not fully embraced the shift due to several constraints.
“The digital revolution can uplift thousands of small businesses, but many SMEs are not benefiting from it,” he said.
“Some lack digital literacy and awareness, while others are affected by poor network coverage that makes it hard to use available digital tools.”
He stressed that smartphones—key entry points to digital services—remain unaffordable for many Ugandans because of taxes imposed on them.
Most smartphones on the Ugandan market currently cost between Shs200,000 and Shs300,000, a price he said is beyond the reach of many low-income earners.
“If government removes taxes on smartphones, more Ugandans will be able to buy them, and that automatically expands participation in the digital economy,” he said.
Walugembe also called for the reopening of Facebook, which has remained restricted in Uganda for nearly five years.
He welcomed reports that President Museveni may consider lifting the ban after the elections but argued that the wider population should not continue being penalised for misuse by a few individuals.
“Many entrepreneurs lost customers when Facebook was blocked. If someone abuses the platform, punish the individual, not the millions who depend on it for their livelihood,” he said.
Meanwhile, UCC’s James Beronda underscored the importance of digital transformation in enhancing SME competitiveness and resilience.
He said smartphones, reliable internet access, and digital payments are critical tools for business growth.
“Our goal is to help SMEs understand how digital technologies can improve their operations,” Beronda said.
“That is why we hold these dialogues to equip business owners with the knowledge they need to take advantage of the digital economy.”
The dialogue is part of UCC’s ongoing efforts to promote digital inclusion and help entrepreneurs tap into emerging opportunities in Uganda’s evolving digital landscape.
