Experts are calling on government to eliminate import tariffs on entry-level smartphones, warning that high device costs remain one of the biggest barriers to digital inclusion in Uganda—particularly for women, youth, and persons with disabilities.
Stakeholders say that while improvements have been made in digital infrastructure and literacy, affordability remains the most significant obstacle to smartphone ownership and internet access.
Data from the Uganda Communications Commission shows that Uganda has approximately 47.3 million mobile handsets in circulation, but only a fraction are internet-enabled smartphones.
Ibrahim Bossa, Head of Public and International Affairs at the Commission, said smartphone penetration remains low compared to feature phones.
“Out of the 47.3 million mobile handsets in Uganda, only 18.2 million are smartphones, while about 29.1 million are feature phones,” Bossa said.
He noted that the majority of feature phone users are women, youth, and persons with disabilities—highlighting a persistent access gap in digital connectivity.
A 2023 policy brief by the Economic Policy Research Centre further underscores the divide, showing that men are significantly more likely to own smartphones than women.
Rehema Kahunde, a Research Fellow at the Centre, said income inequality is a key driver of the gap.
“Our findings indicate that about 80% of men own smartphones compared to just 64% of women,” she said.
She added that earnings disparities make smartphone ownership harder for women, noting that average monthly incomes remain far below the cost of even entry-level devices.
Kahunde also pointed to Uganda’s tax regime, which includes a 10 percent import duty and 18 percent Value Added Tax (VAT) on smartphones, as a major cost driver.
“These taxes are a classic example of a blanket tax policy that does not take into account the socio-economic realities of different groups,” she said.
Tax policy experts say reforms could significantly improve affordability and access.
Trevor Lukanga Bwanika, Associate Director Tax at PricewaterhouseCoopers, said targeted tax relief could accelerate digital inclusion.
“From a tax perspective, there is a strong case for reducing or completely removing import tariffs on entry-level smartphones,” he said.
“This would lower costs and accelerate digital inclusion, particularly for underserved populations.”
The regulator says it is already working with partners to bridge the gap through infrastructure expansion, awareness campaigns, and targeted digital access programmes, including provision of solar-powered tablets and other shared solutions.
However, stakeholders argue that such interventions need to be complemented by structural reforms on device affordability.
Bbosa added that lowering or removing taxes on basic smartphones would be a more direct way of expanding access and ensuring inclusion from the ground up.
Experts further point to regional examples such as Kenya and Rwanda, where tax adjustments on digital devices have been used to expand access and accelerate uptake.
They argue that similar measures in Uganda would not only narrow the gender digital divide but also support broader national ambitions for a more inclusive digital economy.
As Uganda advances its digital transformation agenda, stakeholders say ensuring equitable access to devices will be critical in preventing further exclusion of already vulnerable groups.
