For many years Uganda was on the World Bank`s list of the ten poorest countries on the planet. But policies of economic liberalisation and a firm dedication to Thatcherite ideals (Margaret Thatcher is essentially the spiritual figurehead of Uganda`s economy) have radically altered the status quo. The country has emerged, under the guidance of President Yoweri Museveni, to assume the moniker of the economic `African Tiger`.
Remarkably for a country in its region of Africa, Uganda posted a growth rate of 7% in 1997 - with very respectable inflation statistics. Although the rate has slowed in the last two years and the majority of Ugandans remain desperately poor, the government remains committed to following the principles of decentralised economic development.
The Ugandan Economic Recovery Programme was launched in 1987, shortly after Museveni`s election to Presidential office, and is based upon two simple truths of economic success in the developing world: firstly, reduction of the direct role of government in the economy and promotion of a correspondingly greater role for the private sector; and secondly, improvement of the efficiency and performance of public enterprises that remain under the ownership and control of the government.
In accordance with these principles a policy framework for the Ugandan telecommunications sector was promulgated in 1996. The previously monopolistic national operator is undergoing a process of privatisation and is gearing up to compete in what is legally a duopolistic fixed line market. An independent regulator was set up in September of 1998 with the expectation that it would oversee the process, as well as contribute to the positive growth of the wireless and ISP sub-sectors.
The following is an analysis of the Ugandan telecommunications industry in greater detail:
Fixed line
The current statistics, taken at face value, indicate a low level of development. With only 65 000 lines in the country, Uganda`s teledenisty is hovering around 0.3 percent. In September 1998 the figures showed that capacity existed for an extra 25 000 lines which, for various typically African administrative reasons, were left unused. Furthermore, the fixed line growth rate from 1997 to 1998 was calculated at only 0.1 percent.
Nevertheless, for those who place great import on figures, there are some positive ones as well. From 1997 to 1998 the waiting list for fixed lines dropped from 30 000 to just over 8 000. Granted, this specific indicator opens itself up to skeptical interpretation - one may argue that many people simply got tired of waiting and removed themselves from the list. But the truth is more positive. Although the uptake in fixed lines that year was only 5 000, the number of cellular subscribers rose from zero in December 1997 to 12 000 in September 1998. One must assume that this accounts for the bulk of the disparity.
Looking beyond the figures, extensive liberalisation of the sector is a strong argument for the health of Ugandan telecommunications. The former national Public Telephone Operator (PTO) - the Uganda Posts and Telecommunications Corporation - has been restructured as Uganda Telecom Ltd (UTL). UTL was formally incorporated in February 1997, and it is this entity that the government is in the process of privatising. At present the government owns 49 percent of UTL, with the remaining 51 percent belonging to an international consortium made up of Detecon and WorldTel.
In September 1998 the government appointed commissioners to the independent regulator of the sector, the Uganda Communications Commission (UCC). The body is still in the process of finalising its operational responsibilities, but the chief concern is already the granting of licenses - almost all market segments have been licensed to multiple operators. One of the most significant licences granted was the PSTN (fixed line) licence given to MTN Uganda in 1998.
The UCC also operates the Fund for Rural Communications Development (FRCD), which is likely to require telecom operators to provide 2.5% of their gross revenues for rural communications. Because the development of telecommunications infrastructure is heavily skewed to the capital region (80% of the digital telephone lines and the most modern switching technology are located in Kampala), telecommunication operators also have an obligation by legislation to deliver telecommunication services to the Local County level.
Mobile
CelTel, the oldest cellular network, commenced operations in 1995. A Second Operators License (SNO) was awarded to MTN in 1998 and the operator is completing the process of its network rollout. On the day MTN commenced operations, in October 1998, Celtel cut tariffs by a drastic 33 percent - a major vilification of UCC and the liberalisation policy.
Excluding UTL, which also has a cellular licence, there are five smaller operators providing cellular telephone, mobile radio communication, paging services, mobile trunked radio services and public phone, and leased line services. Wilken AFSAT offers VSAT hubbing services and mobile radio is provided by Starlight.
The cellular networks interconnection policy stipulates interconnect at any feasible point, although CelTel and MTN have had some disputes regarding interconnection of calls arising from complaints by customers. The policy also stipulates exchange of accounts at mutually agreed tariffs.
Internet
Uganda was one of the first countries in sub-Saharan Africa to obtain a full Internet connection. Privately owned company InfoMail was the first supplier, establishing a VSAT-based service via the US. The ISP has since merged with the second ISP to start up, Starcom, in a new company called InfoCom (www.imul.com). Infocom has maintained the original Infomail link, running at 128Kbps, and currently there is only a point of presence in Kampala. Uganda still has no public switched data network.
Swift Uganda (www.swiftuganda.com) established service shortly after the formation of Infocom, also running on a 128Kbps link. Uganda Online (www.uol.co.ug) has been the most recent entrant, setting up service in November 1998. The provider`s fido and UUCP services provide connectivity to upcountry sites and locations with particularly troublesome telephone lines.
BushNet (www.bushnet.net), mainly supplying services to large development agencies with field operations in the region, established an HF radio-based service providing email links in `97. The HF e-mail system prototype was specifically developed by Bushnet team members for the UN environment and for WFP`s Regional Emergency Operation in the Great Lakes region.
The Internet Society of Uganda (ISUGA) (www.wolfnet.com/isuga) is a networking organisation representing the interests of the online community in Uganda. It seeks to extend connectivity in common with the aims of the global Internet Society. The major content providers include Uganda Online (www.uol.co.ug) and Uganda Home Pages Ltd. (www.uganda.co.ug).
Looking forward
Although the policies and developments seem to have placed Uganda on the right path, one cannot look into Uganda`s future without taking into account its past. In this region of Africa anything can - and usually does - happen. The country was Winston Churchill`s "Pearl of Africa", and has a history arguably more complex and mysterious than any other in Africa. It`s beauty - from the lakes, banana trees and lush vegetation around the capital Kampala to the enigmatic `Mountains of the Moon` in the north - made it the posting of choice during the years of British colonial rule. But it`s savagery - in the form of mutilations, sacrifices and horrible tortures - gave it a reputation as bloodthirsty and lawless. In the nineteenth century it was a hub of the slave routes; in the twentieth it was home to Idi Amin.
Recently, relations between Rwanda and Uganda have worsened, endangering the alliance between the two countries that has driven the war against Laurent Kabila`s regime in the neighbouring Democratic Republic of Congo. As shown in Liberia and Sierra Leone, war can start in sub-Saharan Africa without warning and quickly decimate any chances of development. Still, with Museveni at Uganda`s helm, this seems unlikely. One must remember (thanks to Museveni) that Uganda is one of only five countries on the continent with a legitimate and workable constitution - a fact which is probably the most persuasive argument in favour of Uganda`s continued growth and prosperity.
Share