Uganda to launch first neutral internet exchange to cut data costs, improve connectivity

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The Government has announced plans to launch Uganda’s first neutral and open internet exchange point in a move aimed at lowering data costs, improving internet speeds, and strengthening the country’s digital independence.

The new platform, known as the National IP Peering Exchange (NIPX), will be unveiled by the Ministry of ICT and National Guidance together with the National Information Technology Authority-Uganda (NITA-U) this Friday (April 17) during an awareness and engagement workshop at Speke Resort Munyonyo, Kampala.

This is part of efforts to modernise Uganda's digital infrastructure and reduce dependence on costly international internet routing.

NIPX will allow internet service providers, content providers, and government networks to exchange local internet traffic directly within Uganda for the first time through a neutral platform.

Previously, much of Uganda’s domestic internet traffic was routed through international carriers abroad before returning to the country — a costly and inefficient process that increased delays and pushed up internet prices.

Godfrey Sserwamukoko, the Chairperson Internet Service Providers Association addressing journalists during a press conference at the Uganda Media Centre on April 14, 2026. (Photo by Nancy Nanyonga)

Richard Obita, NITA-U’s director of technical services, said in a statement on Tuesday that the new exchange has been built to international standards and comes with a peering capacity of 400 gigabits per second.

“Instead of routing local traffic through expensive international carriers, networks can now interconnect directly within Uganda. This delivers three immediate benefits: significantly lower latency, reduced operational costs, and greater reliability,” he said.

He added that the development will improve internet quality for businesses, schools, government institutions, and ordinary consumers.

According to officials, users should expect smoother video calls, faster access to online content, improved reliability of digital public services, and enhanced online learning experiences.

Government also expects reduced operating costs for internet providers, savings it hopes will eventually translate into more affordable data packages for consumers.

Another key feature of the NIPX is its neutral ownership model, under which the exchange is not owned or controlled by the government or any single operator.

Instead, it is collectively owned by participating members to ensure equal access and trust among competitors, including major telecommunications companies, smaller internet service providers, and other network operators.

Officials said the arrangement is intended to create a level playing field and encourage broad industry participation.

The Minister of State for ICT and National Guidance, Godfrey Kabbyanga, described the launch as a landmark step in Uganda’s digital transformation journey.

“This is a bold and historic milestone that strengthens Uganda’s digital sovereignty and positions our country as a competitive ICT hub in the region,” Kabbyanga said.

Godfrey Kabbyanga, the State Minister for Ministry of ICT, addressing journalists during a press conference at the Uganda Media Centre on April 14, 2026. (Photo by Nancy Nanyonga)

He noted that the NIPX is a strategic deliverable under the Digital Uganda Vision and Vision 2040 frameworks, which seek to expand digital inclusion and build a knowledge-based economy.

The development comes as Uganda continues to pursue broader investments in digital infrastructure, e-government services, and ICT innovation to support economic growth.

Officials also said the local exchange will improve network resilience by ensuring that domestic digital services remain accessible even during disruptions to international subsea cables or external connectivity links.

NITA-U has urged all eligible networks to connect to the exchange and begin peering immediately in order to maximise the benefits of the new infrastructure.

(R-L): Godfrey Sserwamukoko, Chairperson Internet Service Providers Association, Richard Obita, the Director Technical Services NITA-U, Godfrey Kabbyanga State Minister for Ministry of ICT and other officials pose for a photo after a press conference at the Uganda Media Centre on April 14, 2026. (Photo by Nancy Nanyonga)

However, analysts say the success of the initiative will depend largely on how many operators join the platform, adding that if widely adopted, it could mark a major turning point for Uganda’s internet ecosystem.

Background

The concept of a neutral Internet Exchange Point (IXP) is a global standard and has served as a backbone of the internet for decades.

Some of the world’s largest and most successful internet hubs operate on this exact neutral model, including DE-CIX in Germany, AMS-IX in the Netherlands, and LINX in the United Kingdom.

This model offers several key benefits. By keeping local internet traffic within the country, it reduces latency, making services such as video calls, online learning, and streaming significantly smoother.

It also lowers costs by reducing dependence on expensive international carriers for local data traffic, cutting operational expenses for internet service providers and potentially leading to more affordable data packages for consumers.

In addition, the model enhances network reliability and resilience, allowing local internet services to continue functioning even when international submarine cables or external links are disrupted.