Social Media Tax Cuts Ugandan Internet Users by Five Million, Penetration Down From 47% to 35%

By Juliet Nanfuka |

The tax which the Uganda government introduced on use of social media last July has slashed the number of internet users in the country by five million in three months, according to figures from the industry regulator, the Uganda Communications Commission (UCC). The numbers also show that revenue from the tax is far from the windfall which government had predicted the tax would add to the national treasury.

The figures released by the commission show that only half of the country’s internet subscribers were paying the Over-The-Top (OTT) service tax in the third month after its introduction. Those paying the tax fell from eight million subscribers in July to 6.8 million in September. In June 2018, a month before the introduction of the tax, the internet penetration rate in Uganda stood at 47.4% (18.5 million internet users) but three months later, it had fallen to 35% (13.5million users).

Monthly revenue from the tax was equally on a downward trend, falling from Uganda Shillings (UGX) 5.6 billion (USD 1.5 Million) in July 2018, to UGX 4.09 billion (USD 1.1 Million) in August 2018 and further to UGX 3.96 billion (USD 1.08 Million) in September 2018.

The figures from the UCC  suggest that many internet users may have stopped accessing the internet altogether since July. But they also reflect the growing number of Ugandans who are using virtual private networks (VPNs) as a means to continue accessing social media while avoiding to pay the daily  OTT tax of UGX 200 ( USD 0.05).

The figures from the regulator appear to confirm the fears expressed by many upon the introduction of the tax, that it would harm the sector by undermining internet access and affordability, while also threatening access to information and freedom of expression.

Upon the introduction of the social media taxes last July, the government had anticipated revenue collections of up to UGX 400 billion (USD 108 million) per annum, while projections from the June 14 national budget speech for the fiscal year 2018/19 had projected that up to UGX 486 billion (USD 131 million) could be collected annually by 2022. 

Earlier this month, Uganda’s ICT minister Frank Tumwebaze hinted that his ministry may have been misled by the finance ministry  into supporting the tax on the assumption that it would widen the country’s revenue base. Accordingly, parliament’s committee on Information and Communication Technology (ICT) ordered the ICT ministry to conduct an assessment on the impact of the social media tax and share their views with the finance ministry.   

Earlier studies forecast the negative impact of the tax. The Alliance for Affordable Internet (A4AI) said the tax would likely push basic connectivity further out of reach for millions, as it would disproportionately and negatively impact low-income Ugandans and their ability to affordably access the internet. It explained that, where the richest Ugandan would experience an increase of 1% in their cost to connect, this cost to connect for Uganda’s poorest would jump by 10%, resulting in just 1GB of data costing them nearly 40% of their average monthly income. According to the World Bank, the average national income stands at USD 630 per annum. 

According to the  2017/18 Uganda National Information Technology Survey, social media platforms are some of the popular avenues for citizens to engage with each other, and to  pursue businesses and education opportunities. At least 76% of the survey respondents cited the price of internet subscription as a key limitation to their internet use. This was followed by concerns over slow internet speeds and the lack of connectivity in some areas.

Image: Internet use limitations in Uganda | Source: 2017/18 Uganda National IT Survey

A study by Research ICT Solutions warned that the OTT tax could lead to lower tax revenues including costing up to UGX 2.8 trillion (USD 760 million) in forgone GDP growth and UGX 400 billion (USD 109 million) in taxes per year. The study argued that removing all excise duties across the ICT sector would lead to more tax revenues by facilitating economic growth and growing tax revenues across all sectors. It added that the more Ugandans that have broadband access, the easier it will be to serve them with e-governance, e-health, e-education and financial services while also growing tax revenues faster.

At an August 2018 multistakeholder meeting hosted by the Collaboration on International ICT Policy in East and Southern Africa (CIPESA) and the Internet Society Uganda Chapter, stakeholders called for the government to reassess its position on the taxation to ensure a more inclusive financial economy and digital society that does not discriminate or disenfranchise already marginalised and vulnerable communities, including persons with disabilities (PWDs), women, youth and rural communities. Participants at the meeting stressed that the government should instead look at available alternatives for raising government revenue without necessarily taxing citizens and suffocating Uganda’s nascent digital economy.

A study released by Pollicy indicated that many social media users have found the OTT tax frustrating  despite 56% of respondents indicating that they pay the tax compared to the 38% who opt to utilise VPN and the 3% who  access social media platforms through free Wi-Fi. 

CIPESA and OpenNet Africa Join Public Call Against  Internet Shutdown in Zimbabwe

By Juliet Nanfuka |
Zimbabwe has experienced a shutdown of social media platforms and major websites as of January 15, 2019 following public protests against a 150% increase in fuel prices. The protests have resulted in the death of at least eight people and arrest of up to 200 others. The disruptions to online communications were reported on social media and also confirmed by network measurements conducted by Netblocks.


The Collaboration on International ICT Policy for East and Southern Africa (CIPESA) and its internet freedoms initiative OpenNet Africa have joined over 20 civil society organisations in calling for the restoration of internet access in the country. A letter sent to Kazembe Kazembe, the Minister of Information Communication Technology and Cyber Security, implores the government to “ensure the stability and openness of the internet in Zimbabwe.” The letter was delivered as part of the #KeepItOn coalition, which represents more than 175 organisations in 60 countries.
As at time of writing, no statement on the shut down had been released by the government, telecommunications companies, or the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ).
The shutdown is doing little to alleviate the economic crisis in Zimbabwe. Projections show that the country can lose at least USD 5.7 million per day in direct economic costs, according to estimates using the COST tool by NetBlocks and the Internet Society. The tool references a framework for calculating the economic impact of shutdowns developed by CIPESA.
Further, the economic impact of the shutdown is likely to persist far beyond the days in which access is disrupted due to systemic effects which harm efficiency throughout the economy. Internet shutdowns, however short-lived, undermine economic growth, and erode business confidence as global and national perceptions on the offending country are also affected.
The joint letter notes that the UN Human Rights Committee, the official interpreter of the International Covenant on Civil and Political Rights (ICCPR), emphasises in General Comment no. 34 that restrictions on speech online must be strictly necessary and proportionate to achieve a legitimate purpose.  Shutdowns, by contrast, disproportionately impact all users, and unnecessarily restrict access to information and emergency services during crucial moments. Shutdowns are neither necessary to, nor effective at, achieving a legitimate aim, as they often spread confusion and encourage more people to join public demonstrations.
CIPESA research recommends that governments should desist from ordering shutdowns because they have a high economic impact at micro and macro levels, adversely affecting the livelihoods of citizens, undermining the profitability of business enterprises, and reducing the Gross Domestic Product (GDP) and competitiveness of countries that implement them. This is also why CIPESA is part of the global campaign #ForTheWeb aimed to get governments, companies and the public to stand up for a  free, open and fair web that works for everyone, everywhere.
See the joint letter here.

CIPESA Advances the Digital Rights Debate at re:publica Accra

By Simone Toussi |
The first African edition of Europe’s largest internet and digital society festival – re:publica – was held in Accra, Ghana, December 14-15, 2018 and drew in hundreds of participants to showcase and discuss how politics, the arts, innovation, and digital rights have been affected by an increasingly digitised society.
Co-organised by Impact Hub Accra, the German Federal Ministry for Economic Cooperation and Development (BMZ), and with the support of several partners including the Collaboration on International ICT Policy for East and Southern Africa (CIPESA), re:publica Accra aimed to strengthen Afro-German dialogue about digital issues, and to explore the intersection between digitalisation and collaborative developmental efforts.
With support from BMZ and the German Society for International Cooperation agency (GIZ), CIPESA hosted a Digital Rights Lounge throughout the duration of re:publica, organised workshops on civic participation and online content regulation, and also participated in sessions on the work of investigative journalists and activists, among others.
The Digital Rights Lounge
To reflect its multi-disciplinary nature, re:publica Accra featured four lounges on health, digital creation, digital rights, and hardware innovation. The CIPESA hosted Digital Rights Lounge featured organisations sharing experiences and showcasing work related to advancing digital rights in Africa.
The lounge featured an exhibition on the state of digital rights in Africa including visuals on press freedom, the gender dynamics of internet usage, access to information, data protection and privacy, affordability, non-discrimination, and network disruptions. This was complemented by research publications and videos on the ongoing efforts to engender progressive internet policies and practices that support human rights, innovation, and development.
Also presented at re:publica were key action areas that emerged from the 2018 Forum on Internet Freedom in Africa (FIFAfrica), which was held in Accra, Ghana, at the end of September 2018. Since 2014, CIPESA has held this annual forum that brings together various stakeholders to deliberate on gaps, concerns and opportunities for advancing privacy, free expression, non-discrimination and the free flow of information online on the continent. Previous FIFAfrica editions have been held in Uganda (2014-2016) and South Africa (2017).
Sessions held around the lounge included conversations on involving more girls in tech, privacy challenges, regulating emerging technologies, hands-on skills session on steganography, and online content creation. There was also a session on the work of the Freedom Online Coalition (FOC), which groups 30 governments who have committed to work together to advance human rights and fundamental freedoms online.
Advancing Civic Participation through Digital Technologies
Re:publica served as a platform to also share insights on the role of technology in social accountability, civic engagement, transparency and accountability, during a session titled ‘Advancing Civic Participation through Digital Technologies’. The session explored the opportunities and gaps in responsive solutions/platforms for civic participation and for transparency and accountability. Panellists presented cases studies on technology in governance including political mobilisation through print, broadcast and online media in Kenya; public finance tracking in Nigeria; parliamentary monitoring in Ghana; creating an enabling environment for civic technology in post-conflict Somalia; and service delivery monitoring and human rights reporting through ICT in East Africa.   
The session also interrogated how the legislative landscape affects access and infrastructure, cybercrime, and access to information; and how, content regulation and taxation in the respective countries weaken the potential of technology-based initiatives to advance democratisation.
Impact of Online Content Regulation on Digital Rights in Africa
In this session, panellists discussed the online content regulation landscape in Africa with a focus on countries such as Tanzania, Uganda, DR Congo, Burundi and Zambia which in 2018 proposed or passed laws and regulations that undermine freedom of expression and access to information online.
These controls are undermining public confidence in the use of online platforms, and could lead to self-censorship and complete withdrawal from online discourse by ordinary citizens and by vocal bloggers and other social media enthusiasts. They are also leading to arrests of some journalists and social media users, including those that express legitimate.
The session comprised digital rights experts and researchers from Benin, Cameroon, Ghana, Tanzania, Uganda, Zambia and Zimbabwe who shared ideas on alternative approaches aimed at enhancing adoption and use of online platforms as well as content generation for advancing digital rights in Africa.
The panel noted that there was limited citizens’ consultations in coming up with the laws and regulations around internet control and online content regulation, and stressed the need for campaigns to have internet regulation that promotes individuals’ rights and livelihoods and not just the narrow interests of powerful actors such as governments and ruling party officials.
However, for such campaigns to work, it is crucial for civil society and other actors to conduct research to generate evidence to inform advocacy and decision-making; and to proactively offer alternative positions to governments rather than only offering criticism. In addition, the need to involve more actors in promoting digital rights – not least traditional human rights organisations, women’s rights organisations, and private sector actors – was emphasised. The need for digital security training and digital literary campaigns, and for increased use of tools of anonymisation and circumvention tools, was also emphasised.
The support of the German Federal Ministry of Economic Cooperation and Development and GIZ enabled CIPESA to support the participation at re:publica of 13 individuals from 10 African countries. The support also went towards the hosting of a Digital Rights Lounge throughout the duration of the event alongside organising workshops on civic participation and online content regulation, and participation in sessions on the work of investigative journalists and activists, among others.

Is the future of the internet in Africa fractured?

By Daniel Mwesigwa |
At its founding, in the late 80s, the internet promised to democratize information, level uneven grounds, and the destroy barriers associated with distance, space, and time. Through promoting communication, coordination, integration at a pace and scale beyond the ability of any government to halt, the connectivity set a foundation for dichotomies so often aligned with colonialism, imperialism, and globalization.
Today the internet is not just about inscrutable abstracts on the potential merits of its ubiquity but rather its impact and probable effects on a global scale. If anything, the weaponization of algorithms, speech, objectivity, and people has been pronounced in the recent past. For example, Facebook and Cambridge Analytica have accepted responsibility for abetting electoral malfeasance in America and other states by enabling the manipulation of electorates through an à la carte of sensational news and unsubstantiated political advertising only meant to swing and tilt public opinion.
That is why it might be hard to assess whether governments will continue to sit back and watch powerful technology companies from the west continue to prowl over strategic industries in their backyards, or whether they will take to the ‘commanding heights’ to steer the internet’s governance, at the expense of an open and decentralized internet, within their jurisdictions.
But how did we get there? An Xiao Mina’s instructive take on the potential effects of censorship on the future of the global internet and the attendant effects on the public sphere predicts not only deeper digital divides but also bolder and even more daring abuses to democracy by nation-states. She’s not alone, Google’s former chairman, Eric Schmidt, and internet theorist and scholar Evgeny Morozov have made similar pronouncements: the internet is splintering due to policy dilemmas in the realms of sovereignty and globalization.
In spite of all; bad laws, technical upheavals, spam, and disruptions, the popular narrative is that we could not kill the “global” internet even if we tried. However, through technical disruptions (covert and overt) and an array of legal and regulatory guises, governments in Africa have institutionalized attacks on the internet at a level not experienced before.
Censorship is arguably one of the leading factors threatening the future of the internet. And China is the pariah. It has been particular to institutionalize censorship through remodelling its own internet reality in what the Communist party president, Xi Jinping, calls ‘internet sovereignty’. The Republic augmented her stringent controls on free speech and tightened media regulations in the real world onto the internet through even tighter controls on content, privacy and security. Through ambitious projects like the infamous “Great Firewall” and the more recent proposal to create a dystopian future where citizens are assessed for the good and bad through a “national social rating system”, China has asserted her position on her internet governance despite the internet’s original ideals on openness and decentralization. Indeed, China’s ethos on “internet sovereignty” are being evangelized and promoted in fragile, and weak nation-states. Zimbabwe is reported to be in the process of adopting a Chinese sanctioned facial recognition system to surveil high traffic areas such as airports and malls. For its renowned poor human rights record, such surveillance capabilities pose a danger to a free society.
Further, African governments have been renown for clandestinely shutting down the internet for all sorts of reasons—twice in Uganda during the 2016 presidential elections and over three months in the English-speaking region of Cameroon—usually in defence “national security”. Such censorships have been arbitrarily executed despite the punitive economic costs associated. Some governments have even flirted with the idea of developing local alternatives to popular social networking sites such as Facebook and Twitter so as to have full control over the knobs of social media must the need arise.
But also the censorship has been effected through particularly prohibitive laws meant to derail social media use and charge social critics and other dissenting voices. For example, the cybercrime laws of countries such as Tanzania give the police the mandate to arrest anybody they deem in breach of cyber laws without the necessary legal oversight. Tanzania has introduced a $900 tax for bloggers, Uganda has slapped a “gossip tax” on social media use and other OTT services, Zambia has levied a cost on internet voice calls. If the feel of the contours is anything to go by, censorship has taken unique and complex forms. It seems like many African governments are operating from the same template.
Meanwhile, if we might on what the future of the internet might look like, despite the attacks, we know it will largely be multimedia and highly, rather unsurprisingly, localized. The internet in the past faced severe infrastructural deficits. For example, before the first landfall of transatlantic fibre optic cables at the coast of East Africa in 2009, the internet was not only accessed through more expensive options such as satellite links, generally suffered lower speeds and was inaccessible with the greater part of the region.
The global interconnection through the fibre and terrestrial optic cables enabled further access and connectivity within the region. Most remarkably, local peering and Content Delivery Networks (CDN) increased internet capacity. Loosely defined, local peering means that instead of a webpage directly loading from some server located in an obscure location in North Carolina, a local copy of the same data would be stored on servers hosted locally, in Africa. This bolsters the user experience and also enables the reduction of costs associated with extending the internet to the last mile.
Of course, such developments are welcome but technology companies and giants predominantly from Silicon Valley have taken over these alternative connectivity methods to further affordable internet access to the “last mile”. However, they also have deep financial and corporate interests at heart. In fact, content companies such as Facebook are laying more fibre optic cables than traditionally renowned telecommunications carrier/infrastructure companies. Facebook has laid its first fibre in sub-Saharan Africa, in Uganda at a cost estimated at $100 million. Google had previously done the same in Uganda and Ghana. Overall, major countries seem to have some sort of connectivity experiment going on involving the use of low frequency, wifi hotspots, rockets and other novel technologies—again, spearheaded by Western tech giants. Such moves have raised concerns on issues regarding net neutrality, data protection and privacy, local content, among others. Technology companies seen through the lenses of benevolence might appear as benign catalysers of internet access. Yet by mere ownership of the plumbing that powers the internet effectively makes their services synonymous with the open internet itself. Indeed, it would not be surprising to find people who think Facebook is the internet. Technology companies could not only influence the internet’s direction but also act as a chokepoint, especially when deciding what geographical areas or income groups to serve or not.
While globalization was mostly lauded for is the discovery of previously unchartered territories and the opening of new frontiers, a lot of how it happened was characterized with pillage and violence—often at the expense of conquered states’ sovereignties. The globalization of the world through the internet promised trade and commerce, education and research, government and service delivery through instantaneous communication, on levelled grounds. But many of the paradigm shifts have enabled good use of the internet insofar as they have enabled abusive, problematic use. Now governments seem to have taken centre stage in steering what directions their internet takes, powerful corporations, on the other hand, have grown so powerful since they can algorithmically control and mediate the internet’s content, and emotions, that they threaten democracy and other virtues of good governance, especially in fragile states. As for the users, disparate realities of the internet look not so far away, some Facebook (through Free Basics) is touted to better than no Facebook (or internet) at all. Balkanization of the internet is at rather happening at an unprecedented pace. Is the future of the internet in Africa fractured?
This article was first published on December 19, 2018, African School on Internet Governance

NetBlocks and the Internet Society Launch Tool to Calculate the Cost of Internet Censorship Worldwide

News Update |

A new tool to support internet freedom is being launched by NetBlocks and the Internet Society, a global non-profit organisation dedicated to the open development, use and evolution of the Internet.

Launch COSTRun the Cost of Shutdown Tool

The organisations have partnered up to build COST, a tool that seeks to measure the economic cost of internet disruptions to support the adoption of rights-based internet governance around the world.

The Cost of Shutdown Tool (COST) launches today to mark the 70th Anniversary of the adoption of the Universal Declaration of Human Rights enacted by the United Nations on December 10, 1948.

COST is a data-driven policy tool that automates the task of assessing the economic impact of internet shutdowns, mobile data blackouts and social media restrictions including throttling.

COST performs calculations by country, type of disruption and length of time, combining thousands of development indicators in real time to offer insights into the impact of internet governance and misgovernance on sustainable development, human rights and digital prosperity.

“This tool will empower the next stage of data-driven advocacy. By calculating numbers in real time, COST will allows us to communicate to governments and technology companies on how much revenue they’re losing when they disrupt the internet. We hope by the tool will make governments think twice before threatening internet freedom, ” Hannah Machlin, Global Advocacy Manager for the NetBlocks Group, said.

“ We believe the opportunities brought by the Internet should be available for everyone and a tool such as COST can help governments understand the economic impact of shutting down or blocking the Internet.  While we can’t quantify the human cost of switching off the Internet, this helps quantify the economic cost,” explains Constance Bommelaer de Leusse, Senior Director Global Internet Policy for The Internet Society.

The COST tool is built upon established research papers published by the Brookings Institution for global coverage and a specialised model by CIPESA for sub-Saharan Africa, taking into account indirect economic factors and informal economies that play a major role in the region. Economic indicators are integrated from open data sources including the World Bank, ITU and Eurostat.

You can read more about it here.