Ony13 percent of Ugandans use Internet for business – report

KAMPALA, October 28, 2024 – Only 13 percent of Ugandans use the Internet for business, according to research by the International Telecommunication Union [ITU] on consumption and usage of communication services.

The research conducted worldwide established a burst of businesses using the Internet during and post-COVID-19 pandemic, following the prolonged lockdowns and the eventual business collapse, although innovations led to the increased use of the Internet.

The research further reveals that more businesses engaged in the services industry leveraged internet usage, but the trends have since had a negative trajectory owing to the global economic slump.

The report also adds that with an increasingly digitalised business world, where connectivity is essential for innovation and operational efficiency, the low figures for internet use underscore the urgent need to address internet access challenges.

Several African economies are reportedly blamed for hiking data rates as a deterrent to political activism, but also constraining business growth and development.

According to the ITU report conducted in 2024, only 63 percent of the global population had internet access, with this figure dropping to a mere 28 percent in least-developed countries [LDCs].

This stark disparity stifles individual potential but also hampers business growth, blaming the trend on inadequate infrastructure.

According to the report, particularly rural and underdeveloped regions, lack the necessary telecommunications networks to support reliable internet access.

The World Bank report indicates that approximately 1.7 billion people worldwide remain unconnected, often due to geographic isolation or the high costs associated with laying down internet infrastructure.

The ITU report states that with low internet uptake, companies struggle to adopt digital tools that enhance efficiency, streamline operations, and expand market reach.

The research reports also suggest that businesses fully embracing digital technologies in selected Sub-Saharan African countries like Kenya, Zambia, Uganda, and Mozambique were able to boost productivity by up to 40 percent.

Richard Irumba, an IT officer at ATACAM, underscores the critical role of internet connectivity in fostering business innovation. “In many regions, the lack of internet access stifles creativity and prevents businesses from exploring new markets,” he explains. “Without the ability to connect with suppliers, customers, and collaborators online, businesses cannot compete effectively in today’s global economy.”

“The effects of low internet uptake are particularly detrimental to small and medium-sized enterprises [SMEs]. These businesses often rely on affordable digital marketing strategies to reach customers, but without internet access, they miss out on vital opportunities,” the report reads in part.

A survey by a regional Fintech company, Global SME Finance Forum indicated that 70 percent of SMEs in developing countries identify unreliable internet connectivity as a significant barrier to their growth.

In Uganda, where start-ups are emerging rapidly, the lack of internet access can stifle innovation and limit market reach.

Dr. Edward Kato, an economist who lectures at Makerere University says the Internet is not just a tool, but a lifeline for start-ups.

“In a competitive landscape, connectivity enables entrepreneurs to access markets, secure funding, and collaborate effectively,” he says.

 https://thecooperator.news/headteachers-ask-govt-to-connect-lango-schools-to-the-internet/

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