Digital economy players want budget to deliver skills and innovation
For many, the digital economy should no longer be treated as a standalone technology agenda, but as a central pillar of Uganda's development strategy.
Finance Minister Henry Musasizi arriving at Kololo ahead of presenting the budget. (Photo by Mari Wamala)
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As Uganda prepares to implement the 2026/27 national budget, players in the digital economy are urging government to move beyond infrastructure investments and make deliberate choices that position technology as a driver of jobs, innovation and economic growth.
For many, the digital economy should no longer be treated as a standalone technology agenda, but as a central pillar of Uganda's development strategy.
Addressing unemployment through digital transformation
"Uganda's recent period of economic performance is marred by rising unemployment pressures, high living costs and unstable income in many sectors, raising critical questions about digital transformation facing the nation," Kagame says.
To grow the economy and create jobs, he believes government should prioritise sectors that can benefit from digital commerce, including retail, fashion, beauty, travel, education and on-demand services.
According to Kagame, e-commerce platforms need to evolve beyond transactions and provide businesses with tools that support marketing, customer engagement and personalised shopping experiences.
However, he notes that technology adoption remains constrained by several structural challenges.
"The government ought to improve the business environment by removing unnecessary obstacles that prevent driving digital adoption, for example, growing smartphone usage," he says.
"In Uganda, the main constraints are trust, logistics and geography of growth. A trust-driven ecosystem is lacking, and consumers' willingness to pay more for quality is still a challenge. Brand assurance needs address."
Turning digital potential into jobs
For Kenneth Twesigye, CEO of TechBuzz Hub, Google Digital Skills Trainer and Startup Policy Volunteer at the Ministry of Trade, Industry and Cooperatives, the digital economy represents one of Uganda's biggest untapped opportunities for job creation.
"The digital economy should be viewed not merely as a technology agenda, but as a national jobs and competitiveness strategy," Twesigye says.
He points to Uganda's young population and growing ICT sector as evidence that the country can become a regional hub for software development, digital services, innovation, remote work and business process outsourcing.
"With one of the youngest populations in the world, Uganda has an opportunity to become a hub for software development, digital services, innovation, remote work, or everything Business Process Outsourcing (BPO)," he says.
Twesigye notes that ICT has already emerged as one of Uganda's significant exports, but believes its contribution to the economy could be much greater with deliberate investment.
"Given the potential of the digital economy in the global market, for ICT to take the lead in contributing to Uganda's GDP, it will require deliberate investment by the government, schools and the private sector."
He argues that every young Ugandan should have access to foundational digital literacy and digital tools, alongside specialised training in coding, software engineering, cybersecurity, artificial intelligence and data analytics.
"Government must prioritise affordable internet access, modern digital tools, digital infrastructure and practical technology education from primary school to university," he says.
Building trust in e-commerce
The growth of Uganda's digital economy will also depend on strengthening the systems that support online trade, according to Steven Lamony, Managing Director of Jumia Uganda.
"As with e-commerce, the foundation starts with infrastructure. A functioning e-commerce ecosystem goes far beyond a website; it depends on reliable internet access, digital payment systems, warehousing, delivery networks and clear addressing," Lamony says.
While Uganda's Digital Transformation Roadmap recognises ICT adoption among small businesses as an important growth driver, Lamony says implementation now requires greater investment.
"While demand is strong in urban centres, deliveries become costly and unpredictable outside major towns. Poor addressing systems, low order density and fragmented last-mile networks all drive up the cost of reaching customers."
He says companies have had to develop alternative solutions to bridge these gaps.
"Platforms like Jumia have responded by introducing pickup stations, allowing customers anywhere in the country to collect orders at their convenience."
Consumer trust remains another major hurdle.
"Shoppers worry about whether products will match their descriptions, whether deliveries will arrive on time, and whether payments are genuinely safe," Lamony says.
To build confidence, he says businesses must invest in seller verification systems, transparent returns policies, product reviews and secure payment mechanisms.
"Security must run through the entire value chain to make online platforms more secure."
He also emphasises the importance of data protection.
"Customers share personal and financial information, and any mishandling destroys trust instantly."
Funding innovation, not just infrastructure
For Gilbert Buregyeya, Programs Lead at Makerere Innovation and Incubation Centre, government should place greater emphasis on supporting innovators themselves.
"First, establish a dedicated Software Development Fund that directly supports youth-led open-source projects, local AI tools and cybersecurity startups, not just infrastructure."
He also wants government to introduce innovation vouchers that would help young developers access cloud services, APIs and advanced computing resources.
To stimulate demand for locally developed solutions, he proposes setting aside part of government procurement for young innovators.
"Mandate that 5% of all government ICT procurement be reserved for software solutions built by Ugandan youth under 30, creating a guaranteed market pull."
He further recommends embedding innovation fellowships within government ministries, departments and agencies to allow young developers to build practical solutions to public sector challenges.
Finally, Buregyeya calls for the creation of a specialised intellectual property and commercialisation unit focused on technology innovations.