Device Financing Set to Boost Smartphone Access as Uganda Goes Digital

As Uganda accelerates efforts toward digital integration, device financing is emerging as a critical solution to bridge the digital divide and empower more individuals and businesses to participate in the connected economy.

While mobile phone use in Uganda has surged in recent years, smartphone penetration remains low, primarily due to high costs.

Smartphones, which typically range from Shs400,000 to Shs 1,200,000, remain out of reach for many Ugandans, particularly those in rural areas.

This affordability gap limits access to critical digital services, including mobile banking, e-commerce, online education, and telemedicine.

To address this challenge, several asset financing companies are offering solutions that allow customers to purchase smartphones on credit.

This “Buy Now, Pay Later” model involves a down payment and spreading the remaining balance over several months.

Payments can be conveniently made via mobile money platforms, making the process seamless for customers.

Armands Supstiks, Deputy Country Director of Watu Uganda, explained how asset financing provides a flexible and accessible way for Ugandans to acquire smartphones.

He noted that low-interest financing options make quality devices affordable even for low-income earners.

“For small business owners, smartphones are more than just communication tools; they are essential for conducting online transactions and using business support apps that streamline operations. Our goal is to ease the upfront cost burden and make smartphones accessible to those who need them most,” Supstiks said.

He also pointed out that as the Ugandan government prioritizes digital inclusion, Watu is aligning its policies to boost smartphone penetration, enabling more Ugandans to engage in the digital economy.

This, in turn, is creating new opportunities for growth and innovation.

Supstiks reiterated the pivotal role of asset financing in equipping Ugandans with the tools they need to thrive in a digital economy.

“By increasing smartphone penetration and investing in internet infrastructure, Uganda is steadily moving toward becoming a fully connected nation. At Watu, we are proud to be part of this journey, offering affordable solutions that empower individuals and businesses,” he said.

However, despite its success, asset financing still faces significant challenges, particularly in raising awareness about available options.

Many potential customers remain unaware of financing programs that could make smartphones more affordable.

Nyombi Thembo, Executive Director of the Uganda Communications Commission, noted that low smartphone penetration is a major obstacle to realizing the country’s digital transformation goals.

He acknowledged that while internet access is expanding, urban areas are reaping the most benefits.

Nyombi stressed the importance of integrating technology into key sectors such as agriculture, education, and healthcare to enhance service delivery and productivity across the nation.

“The number of mobile internet subscribers in Uganda has increased from 14 million in 2020 to 16 million in 2023, a clear indication of the growing importance of digital services,” Nyombi said, adding that this surge highlights the need for continued investments in internet infrastructure to extend digital benefits to all Ugandans.

Dr. Chris Baryomunsi, Minister of Information and National Guidance, also highlighted the transformative impact of ICT on Uganda’s economy, noting that the sector provides over 1.5 million jobs and attracts investments averaging $180 billion annually.

He pointed to ongoing efforts to integrate ICT into government service delivery to improve efficiency, combat corruption, and enhance national competitiveness.

“We have already completed four phases of laying fibre infrastructure, and with additional funding from the China Exim Bank, we are expanding our network to complete the last-mile connections,” Baryomunsi said.

As Uganda continues to invest in ICT infrastructure and embrace innovative solutions like device financing, the country is poised to unlock the full potential of a digitally connected economy, paving the way for inclusive growth and prosperity.