Uganda Plans Tax Cuts on Smartphones and Expanded Innovation Hubs to Boost Digital Economy

The Ugandan government is making strategic moves to accelerate the nation’s digital transformation by lowering taxes on affordable smartphones and broadening the reach of innovation hubs. This initiative aims to ensure that all Ugandans can participate in and benefit from the expanding digital economy.

During the third edition of the State of the Digital Economy (SODE 2026) conference, Dr. Aminah Zawedde, Permanent Secretary at the Ministry of ICT and National Guidance, emphasized that digital technologies are being positioned as key drivers for economic advancement, job creation, and innovation. The focus is shifting from merely increasing internet access to generating tangible opportunities for citizens.

Affordable devices have been identified as a significant barrier to digital inclusion, especially for the youth. To address this, the government is finalizing a proposal to cut taxes on entry-level smartphones. This move is expected to make these essential devices more accessible, enabling broader participation in online education, e-commerce, and other digital services.

Complementing the push for affordable devices, the government is also decentralizing innovation by establishing new hubs in regional universities, including Lira University, Mountains of the Moon University, and Gulu University. This effort ensures that young innovators across the country have access to the resources and support needed to develop digital solutions.

Furthermore, Uganda is nearing the completion of its National Artificial Intelligence Strategy, which will provide a framework for the ethical adoption and governance of AI technologies. The government has also approved a Business Process Outsourcing (BPO) Policy, aiming to position Uganda as a competitive hub for global digital services and create new employment opportunities.

These policy shifts underscore a deliberate approach to leverage digital infrastructure for national development, ensuring that technological advancements translate into improved livelihoods and economic prosperity for all Ugandans. The government is also actively engaging with global digital platforms to help Ugandan creators monetize their content.

Source: Nile Post