The Uganda National Budget for the 2025/26 Financial Year, themed “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding Services, Digital Transformation, and Market Access,” underscores technology as a cornerstone for economic modernization.
With a total budget of approximately UGX 72.4 trillion, the government has strategically allocated significant resources to science, technology, and innovation (STI), information and communication technology (ICT), and the creative industry.
These sectors are pivotal in driving Uganda’s ambition to become a digitally empowered, industrialized economy under the Fourth National Development Plan (NDP IV) and the Tenfold Growth Strategy.
Technology’s share in the Budget
The budget allocates UGX 835.98 billion to STI, encompassing ICT and the creative arts industry, representing a substantial investment in Uganda’s digital future. Within this, UGX 388.23 billion is specifically earmarked for ICT and creative industry initiatives, highlighting the government’s commitment to leveraging technology for economic transformation.
Additionally, UGX 256.66 billion is dedicated to innovation, technology development, and transfer, aimed at fostering research and the adoption of cutting-edge technologies. Digital transformation, a key pillar of the budget’s theme, receives UGX 191.83 billion to enhance connectivity, digital infrastructure, and service delivery. Smaller, targeted allocations, such as UGX 12.7 billion for ICT-related projects, further complement these efforts.
While the total technology-related allocation of UGX 835.98 billion constitutes roughly 1.15% of the UGX 72.4 trillion budget, its impact is amplified by its integration across multiple sectors.
Technology is not confined to standalone projects but is embedded in agriculture, health, education, and infrastructure, aligning with the ATMS cluster (Agro-Industrial Development, Tourism Development, Mineral-Based Development, and STI, including ICT and the Creative Industry). This cross-sectoral approach ensures that technology acts as a catalyst for broader economic growth.
Key technology priorities
Digital Transformation: The allocation of UGX 191.83 billion for digital transformation underscores its role in modernizing public services and private sector operations. Initiatives include expanding broadband infrastructure, promoting e-governance, and enhancing digital literacy. These efforts aim to bridge the digital divide, particularly in rural areas, and support Uganda’s goal of becoming a knowledge-based economy.
ICT and Creative Industry: The UGX 388.23 billion for ICT and creative industries reflects a dual focus on technological infrastructure and cultural innovation. ICT investments target improved connectivity, cybersecurity, and the development of tech hubs to nurture startups. The creative industry, encompassing digital content creation, media, and the arts, benefits from programs that integrate technology to enhance global competitiveness.
Innovation and Technology Transfer: The UGX 256.66 billion for innovation and technology transfer supports research institutions, technology parks, and partnerships with the private sector. This funding facilitates the adoption of technologies like artificial intelligence, blockchain, and precision agriculture, which are critical for boosting productivity and market access.
STI Ecosystem Strengthening: The overarching UGX 835.98 billion for STI aims to create a robust innovation ecosystem. This includes funding for science education, research grants, and incubators to support young innovators. The budget also emphasizes linkages between agriculture and non-agricultural sectors, using technology to drive value addition and industrialization.
Implications for Uganda’s economy
The technology allocations in the 2025/26 budget align with Uganda’s long-term vision of achieving a tenfold economic growth trajectory. By prioritizing digital transformation, the government seeks to enhance efficiency in public service delivery, reduce transaction costs, and attract foreign investment in tech-driven industries.
The focus on ICT and creative industries positions Uganda to tap into the global digital economy, creating jobs for its youthful population and fostering entrepreneurship.
Moreover, the emphasis on innovation and technology transfer is poised to strengthen Uganda’s competitiveness in regional and global markets. For instance, technology-driven agricultural innovations can increase yields and reduce post-harvest losses, while digital platforms can expand market access for smallholder farmers.
In the creative sector, technology enables Ugandan artists and content creators to reach international audiences, boosting cultural exports.
Challenges and opportunities
Despite the promising allocations, challenges remain. The 1.15% share of the budget for technology, while significant, may be insufficient to address systemic gaps in digital infrastructure, particularly in underserved regions.
Limited internet penetration and high data costs could hinder the impact of digital transformation initiatives. Additionally, the success of innovation programs depends on effective coordination between government, academia, and the private sector to translate research into practical applications.
However, opportunities abound. The budget’s integration of technology across sectors amplifies its transformative potential. Partnerships with international tech firms and development agencies can supplement domestic funding, while the growing tech startup ecosystem in Kampala offers a platform for scaling innovations. The creative industry, buoyed by digital tools, has the potential to become a significant economic driver if supported by robust policies.
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