Digital trade across the East African Community (EAC) has surged to $11b (Shs41.47 trillion), underscoring the region’s growing role in the global digital economy.
At the heart of this transformation, Uganda is emerging as a significant player, recording a digital trade value of $1.39b (Shs5.251 trillion) in 2024.
A report from the Eastern Africa Regional Digital Integration Project highlights Uganda’s rapid progress in e-commerce and digital services.
While the country ranks second only to Kenya in regional digital trade, the findings also reveal a heavy reliance on imported digital services, a reminder that Uganda’s digital economy is still more consumer-driven than producer-led.
The Eastern Africa Regional Digital Integration Project report offers a detailed picture of how Uganda and the wider region are positioning themselves within the fast-growing global digital economy.
For Uganda, the report by e-commerce expert Sammy Mulanga highlights both major progress and significant challenges as the country seeks to strengthen its role in regional e-commerce and digital trade.
Mulanga report shows that Uganda recorded digitally delivered service exports worth $285m (1.074 trillion) in 2024, while imports stood at $1.11b, giving the country a total digital trade value of $1.39b (Shs5.251 trillion).
These figures place Uganda among the leading digital economies in East Africa, second only to Kenya.
However, the large gap between exports and imports underscores Uganda’s growing dependence on imported digital services, showing that the country remains more of a consumer than a producer.
Digital transformation
Uganda’s digital economy is being driven by increased internet penetration, rapid fintech growth, mobile money adoption, and investments in ICT infrastructure.
Government has intensified efforts to align digital transformation with the country’s broader socio-economic development agenda.
A key policy framework supporting this transition is the Digital Transformation Roadmap, launched in August 2023 by the Ministry of ICT with support from the United Nations Development Programme.
The roadmap sets ambitious targets, including achieving a 90 percent digital literacy rate and nationwide broadband coverage by 2040.
ICT permanent secretary Aminah Zawedde says the framework is aligned with the Fourth National Development Plan, the Ten-Fold Growth Strategy, the 2026/27 Budget Strategy, and the Digital Uganda Vision 2040, demonstrating government’s intention to integrate digital transformation into Uganda’s long-term economic development strategy.
To support this vision, Uganda’s digital infrastructure has seen significant growth in recent years.
Data from Uganda Communications Commission (UCC) indicates that the national fibre capacity increased from 28,353 km in 2021 to over 62,900 km in 2025.
Additionally, mobile subscriptions surged to 57.3 million, and mobile internet users reached 18.5 million. It’s also important to note that fixed internet connections have continued to expand, especially among businesses.
Uganda’s digital payments landscape is experiencing significant growth, with over 35 million active mobile money users and annual transaction values nearing sh70 trillion.
This expansion has laid a solid groundwork for e-commerce and digital trade, especially through social media platforms such as WhatsApp, TikTok, Facebook, Instagram, and YouTube.
The Eastern Africa Regional Digital Integration Project report also highlights regional trends, showing that Eastern Africa’s digital economy is expanding rapidly, largely driven by mobile money adoption.
‘By 2023, the region had more than 294 million registered mobile money users and nearly 100 percent SIM penetration, positioning Eastern Africa among the world leaders in digital financial inclusion,’ reads the report in part.
To address challenges, the Eastern Africa Regional Digital Integration Project is focusing on harmonising regional digital trade frameworks under the African Continental Free Trade Area Protocol on Digital Trade.
Regionally, Kenya remains the digital leader, recording exports worth $1.8b and imports worth $2.17b, pushing it to a total trade value of $3.9b.
Uganda follows, followed by Tanzania with exports of $472m and imports of $629m, giving a total of $1.1b. Rwanda, South Sudan, Burundi, Somalia, and DR Congo follow.
Rwanda registered total digital trade worth $163m, while South Sudan posted $191m, Burundi $102m, and Somalia $1.04b (entirely imports).
DR Congo recorded one of the region’s largest imbalances, with exports of just $4m against imports of $3.12b.
UCC head of public and international relations Ibrahim Bbosa says Uganda’s digital economy has evolved beyond basic connectivity to enable real digital transactions and active participation in regional trade.
He stresses that integration between regional systems will be essential for seamless cross-border transactions with markets.
Digital barriers
Despite notable progress, Uganda’s private sector continues to highlight obstacles slowing digital adoption.
High smartphone taxes and costly internet remain major hurdles, limiting participation in e-commerce, especially among young people who depend on entry-level devices. Reducing these costs is seen as vital for building a more inclusive digital economy.
Digital policy experts warn that taxation and regulatory fragmentation could undermine Uganda’s ambitions.
CIO-CxO Digital Leadership Forum executive secretary Gideon Nkurunungi argues that reverse taxation has quietly stifled marketplace growth by shifting compliance costs onto platforms and consumers.
He suggests that Uganda should prioritise tax incentives, lower transaction levies, and stronger infrastructure support to allow platforms to scale before imposing heavier taxes.
Cybersecurity is also a critical concern. Johnson Tumusiime, the National Information Technology Authority manager of governance and risk, says Uganda’s national framework is designed to integrate Small and Medium Enterprises (SMEs) into the digital ecosystem.
This, he notes, is essential for building resilience and trust in the country’s expanding digital economy.