Uganda spend up large on technology

May 20, 2015

It’s not just smartphones Ugandans are buying but according to data available from an American research company the ‘Pearl of Africa’ brothers and sisters are spending up large on the technology to use them according to the latest statistic.Sales in the information and communication technology sector have increased nine per cent since same period in 2014, making the industry worth $110 million in 2014, figures released this week show.Although the increase in overall sales was small, there have been changes within the sector with sales of goods falling while the amount of money spent of software and services has increased with banks and telecoms being the leading buyers.”Sales by the ICT sector are the equivalent of around 1.5 percent of 2013 GDP figures,” business performance manager at the American research company told your blogger. “While sales of ICT goods are generally falling, we are seeing strong growth in software and ICT services.”Services pushed the increase in total sales, with information technology services leading the way. Sales in Internet access and Internet telecommunication services were up 47 percent since 2011, to reach $200 million.

This increase offset a similar decrease in more traditional communication services such as fixed landline connections that were a a preserve of struggling Uganda Telecom.”The smartphone revolution is not only about more people buying smartphones, but also about them using these devices to run more of their day-to-day business and life,” according to one of the researchers. “Sales are increasing with Telecom companies like MTN, a subsidiary of MTN Group South Africa and Airtel Uganda, a subsidiary of Airtel Group India reporting increased sales of Tablets, Phablets and Smartphones.The ways in which phones are being used is changing, with more Ugandans on data plans and the data plans being larger”. Although the value of total goods sales has decreased over the three years, sales of published software and telecommunication equipment, such as cellphones, have increased. Trade data shows that imports of cellphones have been steadily increasing from $170 million in 2012 to nearly $430 million in 2014.Published software including apps, online software, games, and off-the-shelf software sales increased 24 percent which was the largest increase for goods.

Contador Harrison