KAMPALA – As Uganda accelerates its efforts towards digital integration, device financing is emerging as a critical solution to bridge the digital divide and empower more individuals and businesses to participate in the connected economy.
The high cost of smartphones has been a major barrier to digital inclusion in Uganda. While mobile phone use has surged in recent years, smartphone penetration has remained low, primarily due to high costs. Smartphones, which typically range from UGX 400,000 to UGX 1,200,000, remain out of reach for many Ugandans, particularly those in rural areas.
This affordability gap has limited access to critical digital services, including mobile banking, e-commerce, online education, and telemedicine. To address this challenge, several asset financing companies are leveraging asset financing solutions that allow customers to purchase smartphones on credit.
“For small business owners, smartphones are more than just communication tools; they are essential for conducting online transactions and using business support apps that streamline operations,” said Armands Supstiks, Deputy Country Director of Watu Uganda. “Our goal is to ease the upfront cost burden and make smartphones accessible to those who need them most.”
Supstiks pointed out that as the Ugandan government prioritizes digital inclusion, Watu is aligning its policies to boost smartphone penetration, enabling more Ugandans to engage in the digital economy. This, in turn, is creating new opportunities for growth and innovation.
“By increasing smartphone penetration and investing in internet infrastructure, Uganda is steadily moving toward becoming a fully connected nation,” Supstiks said. “At Watu, we are proud to be part of this journey, offering affordable solutions that empower individuals and businesses.”
However, despite its success, asset financing still faces significant challenges, particularly in raising awareness about available options. Many potential customers remain unaware of financing programs that could make smartphones more affordable.
“Low smartphone penetration is a major obstacle to realizing the country’s digital transformation goals,” said Nyombi Thembo, Executive Director of the Uganda Communications Commission. “While internet access is expanding, urban areas are reaping the most benefits. We need to work together to address the affordability gap and ensure that all Ugandans have access to the digital economy.”
Dr. Chris Baryomunsi, Minister of Information and National Guidance, highlighted the transformative impact of ICT on Uganda’s economy, noting that the sector provides over 1.5 million jobs and attracts investments averaging $180 billion annually.
“We have already completed four phases of laying fibre infrastructure, and with additional funding from the China Exim Bank, we are expanding our network to complete the last-mile connections,” Baryomunsi said. “ICT is a major driver of economic growth, contributing to more than 1.5 million jobs, both directly and indirectly, and generating an estimated $180 billion annually for Uganda’s economy.”
As Uganda continues to invest in ICT infrastructure and embrace innovative solutions like device financing, the country is poised to unlock the full potential of a digitally connected economy, paving the way for inclusive growth and prosperity.
