Internet Shutdown Drains Uganda’s Economy
Uganda’s four-day Internet shutdown has cost the country an estimated Shs57 billion. According to data from the Cost of Shutdown Tool (COST), the blackout, imposed 24 hours before the elections, drained nearly Shs15 billion from the economy every day. The shutdown disrupted digital services that millions of Ugandans depend on daily, including mobile money, e-commerce, and social media platforms.
The Impact on Mobile Money and Digital Transactions
The shutdown severely affected mobile money services. MTN MoMo alone handles more than Shs430 billion in daily transactions, mostly for low-value payments. These transactions are vital for informal traders and low-income households. The disruption also impacted agent banking services, which handle about Shs80.5 billion per day. These services provide crucial access to banking for remote communities.
E-Commerce and Livelihood Losses
E-commerce companies like Jumia Uganda also faced huge setbacks. Jumia’s Managing Director, Steven Lamony, said the shutdown stopped transactions, affecting over 4,000 daily sellers, many of whom are low-income earners. Lamony added that the entire supply chain, including distribution and logistics, was brought to a halt. This disruption went beyond lost sales, harming thousands of livelihoods.
Social Media and Communication Disruptions
The shutdown cut off access to social media platforms like WhatsApp, Facebook, and YouTube. COST estimates show that Facebook and YouTube alone accounted for Shs3.5 billion in daily losses, while WhatsApp losses exceeded Shs7 billion. The disruption affected communication and the flow of information, further harming businesses and individuals who rely on these platforms.
Government Justification and Criticism
The Uganda Communications Commission (UCC) justified the shutdown, saying it was necessary to stop online misinformation that could cause electoral violence. However, analysts and industry players argue that the shutdown’s economic consequences were not considered. Lamony and others believe the government should have taken a more targeted approach, allowing essential services like mobile money and banking to continue.
The Public Holiday Debate
Some analysts suggested the impact was lessened because the shutdown coincided with a public holiday period. Lamony disagreed, saying online platforms usually see higher activity during holidays as people rely more on convenience and delivery services.
Legal Action Against the Shutdown
Two lawyers, Michael Aboneka and Raymond Amumpaire, have filed a suit against UCC and telecom companies like MTN Uganda, Airtel Uganda, and Lyca Mobile. They argue the shutdown violated constitutional rights and caused unnecessary disruption. The petitioners contend that the decision lacked transparency and legal justification. They claim the shutdown affected millions of Ugandans who depend on digital platforms for work and communication.
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Uganda’s Internet shutdown highlights the country’s increasing reliance on digital infrastructure. As the economy goes digital, the government must balance national security with economic needs.
