Ugandan firm launches locally made smartphone

Investors have appealed to consider lowering taxes on smartphones, especially Ugandan-made telephone devices, to expand the country’s digital economy. 

The investors believe lowering taxes on locally made phones will stimulate the growth of the local manufacturing sector and create more jobs for the country.

According to businessman Patrick Bitature, a boom in the local electronic manufacturing sector could also facilitate a much faster digital transition for Uganda as the country embraces the information, communication, and technology (ICT) age.

He said phone gadgets are some of the items that attract high taxes from the government. He explained that the taxes on smartphones are ‘almost 30 percent of the value of the phone’, which he said is too high.

Luke Wang (in dark blue Tshirt), Bitature (in white) and Cho (in orange) during the launch.

Bitature, who owns several high-profile businesses in Uganda, including electronic gadget outlets under the Simba Telecom name, made the call during the launch of the first Ugandan-made smartphone in Kampala on Tuesday.

Uganda's government had, in the third National Development Plan (NDPIII), planned to reduce the unit cost of the internet from $237 to $70 and the unit cost of low-end smartphones from sh100,000 to sh60,000. 

Dubbed the MiOne phones, the gadget is the brainchild of Uhome, a Chinese investor that manages the 619-acre Sino-Mbale Industrial Park in Mbale city. According to Uhome, the MiOne phones are manufactured in Mbale City. 

President Yoweri Museveni launched the facility in 2020, and its target is to create at least 15,000 jobs over five years.

Bitature forecast that phone prices could go down following Uhome's entry into the market.

He said despite being of good quality, the phones manufactured in Mbale "are incredibly cheaper compared to those imported from abroad”. 

He thanked Uhome for agreeing to bring its phone-making technology to Uganda. This is not only good for the economy but also the country's youth, he said. 

“All students will be learning off their phones because that (the phone) will become the device of choice. You will get your lectures or the homework on your phone, and you will be able to communicate on the phone,” he said.

He said, however, that the latest development would make little sense unless there were reforms in the tax regime. 

Cho (in orange), Bitature (in white) and Luke Wang (in dark blue Tshirt) during the launch.

"In my view, phones manufactured elsewhere should be taxed much more. Those phones manufactured here should be encouraged so that we can create jobs for our young people. We have so many brilliant young Ugandans who are trainable in a very short time, who can be able to do this work. Changing those barriers will encourage local investment and skill transfer, so our youth will not only manufacture phones in Uganda but also service and maintain them here. This is how we can become more creative and build potential,” Bitature suggested

Luke Wang, the Uhome vice chairman, noted that it would not have been possible to reach the milestone had it not been for the conducive investment provided by the current government.

Bitature (in white) speaking with investors during the launch.

“Our families and partners are here to work together with our sisters and brothers of Uganda. That is why we are working at Mbale Industrial Park. We want to create jobs and help with the industrialization of this country. We are supporting the BUBU (Buy Uganda, Build Uganda) policy,” he said.

According to Bitature, with the latest development, Uhome can now “create real value for Ugandans and beyond”.

“Now we can tap into the market in South Sudan, Eastern Congo, Rwanda, Burundi, and Tanzania. We are right around people, even in Kenya, they will be taking these products,” he said.

He noted that the MiOne products they have tried out at Simba Telecom have “sold out and that customers are happy about the product.”

“There have been zero complaints. The quality is very good at this point, and I want to encourage Ugandans to embrace this product called MiOne,” he said.

Andrew Chow, the general manager of MiOne, said in addition to the phones, they are producing IPads and smartwatches.  

Smartphones in Uganda continued to grow, rising from 8.1 million to 10.4 million (as of August 2022 according to the Uganda Communication Commission) backed by a growing digital economy, and internet usage.