ICT Attracts Sh590b Projects in Uganda

Mergers, Acquisitions and Financial Results

Information Communication Technology (ICT) has attracted investment projects worth $350m (sh590b) in the last six years. According to a report issued by the Uganda Investment Authority (UIA) the ICT sector attracted more than $350m worth of investment since 2001 and generated revenue estimated at sh1.22 trillion within the same period.

"In the financial year 2006/07, the combined sector contribution to Gross Domestic Product (GDP) was 9 percent up from 8.2% in the previous year, this represents a 4.2% growth contribution to GDP by the sector for the period 2001-2005," revealed the report issued on Monday. The report adds that this gives an average annual investment estimated at $70m (sh118b).

Because of its cross- cutting nature, the sector plays a big role in employment, job creation and quality in service delivery, according to the report.

"A dynamic ICT sector contributes to the national economy and development. This contribution gives an indicative measure of its size," the report adds.

UIA executive director Dr. Maggie Kigozi said for decades, the ICT sector in Uganda has been revolving around the telecommunications, postal and broadcasting services. "This has been mainly voice, very limited data handling and mail deliveries," she told The New Vision in an interview on Monday.

She said the 1996 policy framework that liberalised the telecommunication sector resulted in radical changes that have given birth to an ICT service sector.

"The sector has been growing at a phenomenal rate over the last decade, especially in the areas of mobile devices, computer applications, information processing, storage and dissemination that include broadcasting and Internet Points of Presence at district levels," Kigozi explained. She said the changes have had a profound impact on the Ugandan economy and the ICT sector has become an important part of the economy.

New Vision