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The Government has announced plans to cut the price of Internet bandwidth further as it moves to increase access.

According to ICT state minister Godfrey Kabbyanga, the Government's target is to reach a low of $5 (shillings 19,000) per megabit per second per month in the next year from $35 (about shillings 135,000).

He made the revelation during the signing of a memorandum of understanding between his ministry and global payment solution company Mastercard at the ministry’s headquarters in Kampala on Tuesday, February 13, 2024.

Kabbyanga said although the recent Internet reduction from $70 (about shillings 270,000) per megabit per second to $35 (about shillings 135,000) per megabit per second has helped stabilise internet costs in the country and increase its access, this is not having the projected impact.

“We feel a further reduction is what will help, especially in stimulating our parish model information management systems which we are implementing across the over 10,000 parishes in the country,” he said.

Kabbyanga added that the move will also encourage private players to cut their prices which is going to have a ripple effect on the overall prices of internet in the country.He said the Government's overall goal is to ensure that in the next five years, the whole country is covered with internet outlets, which will be possible when they complete the fifth phase of National Backbone Infrastructure.

The MOU

During the event, MasterCard head of Business Development for East Africa Victor Ndlovu signed for MasterCard while ministry permanent secretary Dr Amina Zawedde signed on behalf of the ministry.

Kabbyanga commended MasterCard for growing its portfolio in Uganda, adding: “I love your commitment and I would like to assure you that we are committed to this agreement and we are going to offer all the assistance that you need”.

He told Ndlovu that President Yoweri Museveni has a unique passion for ICT. He added that the ministry has put in place the right legal framework which can help MasterCard and more technology players to invest in the country.

What MOU entails

According to the ministry, the partnership with Master Card will help create financial digital platforms so that more Ugandans will be able to embrace cashless technology in their day-to-day transactions.

“With the MOU we are also developing a programme called the Startup which will support our young people and innovators. We have a lot of innovators for many startups but they need to be helped to grow their products into commercial products,” Zawedde said.

She added that the programme will help to give a lot of guidance to the innovators through mentorship so they can know how to plan for their businesses better and identify where opportunities are.

Zawedde said after the three years of the MOU, they will be able to assess what it has achieved, adding that the intangible benefits are going to be immense. Some of these include jobs and support for the country’s young innovators.