By Nadhifah Muhammad |
On January 13, 2026, two days prior to Uganda’s general election, the Uganda Communications Commission (UCC) ordered an internet shutdown purportedly to mitigate misinformation, electoral fraud and incitement of violence. This mirrored the two previous elections in the country, each of which had economic consequences due to the disruption of digital communications and services.
In the latest disruption, some essential services were exempted, such as healthcare systems, core banking platforms, immigration and aviation systems. However, key sectors of Uganda’s digital economy, íncluding ride-hailing and delivery systems, fintech services, e-Commerce, and digital health providers, were inaccessible. Data from the Cost of Internet Shutdown Tool (COST) estimates that Uganda lost Uganda Shillings (UGX) 59.7 billion (USD 16 million) during the almost five day internet shutdown. More was lost when social media and mobile money services remained constrained beyond the five days.
Notably, the severe direct economic losses and indirect impacts are likely to persist beyond the duration of the shutdown. During the shutdown, businesses dependent on digital platforms were unable to process transactions, communicate with customers, or coordinate logistics. Beyond the immediate financial losses suffered over the days the internet was off, the disruption unsettled supply chains, interrupted livelihoods, and raised concerns among investors about the reliability of Uganda’s digital infrastructure.
This brief examines the direct and indirect financial losses of the shutdown and highlights measures to various stakeholders need to safeguard a reliable digital economy as a key driver of Uganda’s digital transformation, these include;
- Development and roll out comprehensive business continuity plans for the digital economy during elections and emergency situations.
- Adoption of digital safety and security practices for detecting and mitigating risks and optimising systems to support business continuity amidst such disruptions.
- Advocacy for an enabling legal and policy environment for the digital economy.
- Undertaking continuous capacity building for businesses in digital resilience.
- Collaboration among stakeholders – business associations, civil society, academia and the legal fraternity in challenging shutdowns through strategic litigation.
Access the full brief here.