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01Jul

Uganda Blocks Access to Social Media, VPNs and Dating Sites as New Tax Takes Effect

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By Juliet Nanfuka |
As of midnight on July 1, 2018, telecom companies in Uganda blocked access to social media platforms for all users and required them to pay a newly introduced Over-The-Top” (OTT) tax before regaining access. The tax resulted from a March 2018 presidential directive for social media to be taxed to raise resources “to cope with the consequences” of social media users’ “opinions, prejudices [and] insults”.

“In a context in which social media has served as many users’ initial entry point to the internet, this tax could negatively impact the affordability and broader use of the internet, particularly by low-income Ugandans, as well as stifle freedom of expression, association and assembly online.”

Joint oral statement to UN Human Rights Commission on Social Media Taxes by APC, CIPESA,  Derechos Digitales and WOUGNET

The directive proposed that up to UGX 400 billion (USD 108 million) per annum could be collected through the taxes. Projections from the June 14 national budget speech for the fiscal year 2018/19 indicated that up to UGX 486 billion (USD 131 million) could be collected annually by 2022. Earlier in May, Uganda’s parliament passed the Excise Duty Act (Amendment) Bill 2018, which introduced a mandatory fee of UGX 200 (USD 0.05) per day of use for services that include messaging and voice calls via Whatsapp, Facebook, Skype and Viber.

The tax will likely push basic connectivity further out of reach for millions. At the USD 0.05 per day, a Ugandan user would need to fork out USD 1.5 per in monthly fees to access the OTT services. That would be hugely prohibitive since the average revenue per user (ARPU) of telecom services in Uganda stands at just USD 2.5 per month.
According to the Alliance for Affordable Internet (A4AI), at the end of 2016, a 1GB mobile broadband plan in Uganda cost more than 15% of average monthly income. The A4AI further states that with the excise duty in place, this cost to connect for Uganda’s poorest will jump by 10%, resulting in just 1GB of data costing them nearly 40% of their average monthly income.
Section 2 of the Excise Duty Amendment Act provides that the tax will apply to “the transmission or receipt of voice or messages over the internet protocol network and includes access to virtual private networks but does not include educational or research sites prescribed by the Minister by notice in the Gazette.” The Uganda Revenue Authority (URA) has listed sites such as professional networking platform LinkedIn and dating sites such as Badoo and Tinder among those that would be accessed only upon payment. The government has not stated what constitutes educational or research sites.
As of September 2017, Uganda had an internet penetration rate of 48%, in a country of 41 million people. Research shows that at least one in nine internet users in the country is signed up for a social networking site, with Facebook and WhatsApp the most popular. The introduction of the tax has accordingly elicited strong opposition from users including the limitation of payment only through mobile money, Electronic Virtual Cash (EVC) or any electronic wallet.
The Excise Duty Amendment Act also introduced a 1% tax on the value of every mobile money transaction which users will also have to pay in addition to the OTT tax. The Act also raised the tax on airtime for cellular, landline and public payphones from 5% to 12% and increased the tax on mobile money transfers from 10% to 15%.


Some users are expressing frustration with having to pay twice – first the OTT tax, then the 1% tax on every mobile money transaction – in order to access social media and other blocked sites.
Many social media users have turned to using Virtual Private Networks (VPNs) to remain online and avoid the taxes. This is a similar stance to that taken during 2016, when Uganda had social media shutdowns on two occasions, leading to a surge in VPN use. However, access to some VPN sites – particularly free ones – has also been blocked and knowledge about VPN access and use is largely limited to tech savvy users. Further, there remains concern on the extent to which VPNs will be an affordable option due to their heavy data requirements.


A poll conducted by Daily Monitor newspaper on its Twitter handle showed that 19% of the 581 tweeps who participated would spend less time on social media, 11% would stop using social media, while 70% would resort to using VPN.
Further, imposition of the tax has consequences on net neutrality which requires that the Internet be maintained as an open platform on which network providers treat all content, applications and services equally, without discrimination. The tax effectively limits access to social media sites which are a primary entry point for many new users to the internet in developing countries including Uganda. Indeed, it is in social media platforms that many have found relatable local content including avenues for knowledge exchange, civic participation and economic opportunity.


Telecommunications companies had previously sought  to tap into the popularity of OTTs by offering competitive social medias data packages – such as such as MTNs SWIFT (Snapchat, WhatsApp, Instagram, Facebook and Twitter) and WTF (WhatsApp, Twitter, Facebook) – resulting in what was popularly referred to as “data price wars” that led to a drop in the price of access.
Meanwhile, the state also found value in the use of social media as an avenue for engaging with citizens and required all Ministries, Departments and Agencies (MDAs) to pursue a social media strategy to promote state-civic interaction which aimed at “improving effectiveness of communication, sharing of information and open engagement and discussions with the Public.” Results of the Uganda national IT survey 2017/18 indicated that 92% of MDAs have a social media presence with most using Facebook, Twitter and WhatsApp as their primary platforms for information dissemination and engagement with citizens.

Source: National IT Survey 2017/18

The Uganda government did not conduct any public consultations before introducing the OTT tax, which is testament to the absence of a multi-stakeholder model of internet governance that would enable the perspectives of diverse stakeholders to support more informed policy decisions. This tax comes on the heels of a directive last March by the communications regulator for registration of online content providers. Uganda is potentially setting a worrying trend for the region, as neighbours Tanzania and Congo have similarly issued stringent online content regulations that threaten citizens’ rights to privacy and freedom of expression and promote self-censorship.
 

25Jun

Oral Statement Delivered At The United Nations Human Rights Council

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Joint Statement |
Thank you, Mr. President.

This statement is delivered on behalf of the Association for Progressive Communications (APC), the Collaboration on International ICT Policy for East and Southern Africa (CIPESA), Derechos Digitales, and the Women of Uganda Network (WOUGNET).

As organisations committed to maintaining the use of the internet for human rights, social justice and sustainable development, we are concerned about the increase in threats to freedom of expression online. Attacks on freedom of expression online are taking many forms, including internet shutdowns, regressive cybercrime laws, and privatisation of censorship, among others.

We wish to highlight for the attention of the Council the following situations of concern:

In Uganda, the government adopted a “social media tax” in May, which will require users of over-the-top (OTT) services, including messaging and voice calls via WhatsApp, Facebook, Skype and Viber. to pay a mandatory fee of USD 0.05 per day of use. In a context in which social media has served as many users’ initial entry point to the internet, this tax could negatively impact the affordability and broader use of the internet, particularly by low-income Ugandans, as well as stifle freedom of expression, association and assembly online. Similarly, the recent introduction of stringent online content regulations in Tanzania, Uganda and the Democratic of Republic of Congo threaten citizens’ rights to privacy and freedom of expression and promote self-censorship.

In Latin America, we observe a trend by governments in the region to regulate online expression that is critical of dominant political forces or that amplifies dissident voices of traditionally discriminated groups, under the guise of “online hate speech” or “cybersecurity”. Examples can be found in Brazil, Ecuador, Guatemala, Honduras, Paraguay and Venezuela, among others. In some cases, legislative reforms have been introduced just before the start of electoral processes or the rise of social movements; in others, restrictive measures are administratively established, bypassing democratic legislative processes entirely. We also observe efforts in the region to criminalise expression and to require private companies to moderate online content, an issue addressed in detail by the recent report of the UN Special Rapporteur on freedom of opinion and expression. This implies an undermining of due process, as required by international human rights standards, by delegating the function of the judiciary to the private sector. At the same time, it incentivises companies to err on the side of caution and take down content to avoid facing high fines or, in the case of Venezuela, the threat of revocation of authorisation to operate.

We urge the Council with its bi-annual resolution on the promotion, protection and enjoyment of human rights on the internet to condemn and call for the end to such restrictions on online expression, and to adopt human rights-based approaches to internet access and regulation.

Thank you, Mr. President.

Source: Information.

13Jun

2018 Edition of the Forum on Internet Freedom in Africa (FIFAfrica) Set To Take Place In Ghana

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Announcement |
The Collaboration for International ICT Policy in East and Southern Africa (CIPESA) is pleased to announce the fifth edition of the Forum on Internet Freedom in Africa (FIFAfrica). This year, the Forum will be hosted in partnership with the Media Foundation West Africa (MFWA) and will take place on September 26–28, 2018 in Accra, Ghana.
The Forum is a landmark event that convenes various stakeholders from the internet governance and online rights arenas in Africa and beyond to deliberate on gaps, concerns and opportunities for advancing privacy, access to information, free expression, non-discrimination and the free flow of information online on the continent.
Since inception, FIFAfrica has also served as a platform to mark the International Day for Universal Access to Information (IDUAI). Engagements at the Forum aim to reflect current trends and concerns in access and usage of the internet and related technologies on the continent. As such, each year has seen us launch themed research on the State of Internet Freedom in Africa. Last year, we also launched a key report on Calculating the Economic Cost of Internet Disruptions in Sub-Saharan Africa.
While the 2014, 2015 and 2016 editions of FIFAfrica were hosted in Uganda, in 2017, the Forum was hosted in Johannesburg, South Africa in partnership with the Association for Progressive Communications (APC), an international network and non-profit organisation that works towards a free and open internet.
Indeed, spreading the physical footprint of FIFAfrica across different regions of the continent ensures that the Forum lives up to its goal of unpacking internet freedom challenges and opportunities in sub-regions of Africa and developing responses that are collaborative, and informed by insights from the experience of other sub-regions of the continent. Hosting the Forum in in west Africa for the first time will not only open up the space to more west African civil society, private sector and public sector actors to contribute their experiences to the regional discussion, but will  also give life to the Forum’s commitment of ensuring broader regional representation and deepening conversations across the continent.
At a practical level, skills development among participants is prioritized. Previous Forums have seen our partners AccessNow and DefendDefenders host digital security clinics. In 2017, The Localisation Lab hosted a localization sprint aimed at advancing the adoption of internet freedom tools in East and Southern Africa through translation of technologies and creation of key resources to support the education, training, and adaptation of digital security and circumvention tools in the region. This included the translation of tools into languages like Shona, Luganda, and Ndebele.
Other skills development events at the Forum have in the past included a workshop on Strategic Digital Rights Litigation hosted in partnership with the Berkman Klein Center for Internet & Society at Harvard University, and the Media Legal Defence Initiative (MLDI) and a workshop on human rights review mechanisms, which took participants through African and United Nations (UN) Universal Periodic Reviews processes which was hosted by APC, CIPESA and Small Media.
With strategic linkages to other internet freedom forums and support for the development of substantive inputs to inform the conversations on human rights online happening at national level, at the African Union and the African Commission on Human and People’s Rights (ACHPR), the African Internet Governance Forum (IGF), subregional IGFs, the global IGF, Stockholm Internet Forum (SIF), the Internet Freedom Festival (IFF), the Internet Freedom Forum (Nigeria) and RightsCon, among others, FIFAfrica provides a pan-African space where discussion from these other events can be consolidated at continent-wide level, drawing a large multi-stakeholder audience of actors.

See the evolution of the Forum on Internet Freedom in Africa (FIFAfrica)

Share your thoughts on your vision for Internet Freedom in Africa using #InternetFreedomAfrica  This year, the event hashtag is #FIFAfrica18
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07Jun

Tanzanian Court Acquits Jamii Forums Founders on One of Three Charges

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By Ashnah Kalemera |
A Tanzanian court has acquitted the founders of popular online discussion platform Jamii Forums, who were charged over failure to comply with a police order to disclose the identity of two users of their platform.
The magistrate’s court at Kisitu in the capital Dar es Salaam found that Maxence Melo and Micke William had no case to answer in the case, in which the two were alleged to have obstructed investigations in contravention of Section 22(2) of the Cyber Crimes Act, 2015 by refusing to comply with an order to disclose their platform users’ data. The ruling cuts the number of cases against Melo and William to two.
Reacting to the June 1, 2018 decision, Melo stated that it was a “victory for anyone who would like to see freedom of expression flourish” in Tanzania. He said he was glad to have only two outstanding cases, having recently endured four court appearances over five days.
In December 2016, Melo was charged with three offences: two counts of not complying with a disclosure order under Section 22(2) of the Cyber Crimes Act (2015) and one count of managing a domain that is not registered in Tanzania under Section 79(c) of the Electronic and Postal Communications Act (2010). Melo was initially charged alone but William was subsequently added to the cases as a co-accused, since he is a shareholder in Jamii Media, the legal entity under which Jamii Forums is run.
Section 22(2) of the Cyber Crimes Act relates to unlawful interference with investigations and refusal to comply with an order under the Act. The penalty, upon conviction, is a fine of three million Tanzania Shillings (USD 1,300) or imprisonment for one year, or both. Meanwhile, Section 79 of the Electronic and Postal Communications Act (2010) provides for the regulation of all electronic communication numbering and electronic addresses by the Tanzania Communications Regulatory Authority (TCRA). Part C of the section mandates the authority to perform oversight role of management of .tz – the country’s code Top Level Domain (ccTLD).
The charges stemmed from Jamii Forum’s refusal to comply with police disclosure notices to reveal the Internet Protocol (IP) addresses, email and phone numbers of users, whose identities authorities sought after whistleblowing corruption scandals in the oil and banking sectors.
Initially, Jamii Media, went to court challenging the disclosure orders and specifically provisions of Section 32 and 38 of the Cybercrime Act. However, the petition was dismissed in a ruling that dealt a blow to intermediary liability rules in Tanzania.
During court proceedings in the now dismissed case, prosecutors called four witnesses including two officials from the Tanzania Police cybercrime department. Court also heard testimony from the Human Resource Manager of CUSNA Investment LTD, the company which made a defamatory report to police regarding the information disclosed by the whistleblowers. The fourth witness called by the prosecutor was the Acting Deputy Registrar of Intellectual Property at Tanzania Business Registrations and Licensing. Proceedings then stalled with the prosecution indicating that it had no further witnesses to call.
Since its enactment in 2015, state authorities in Tanzania have used the Cyber Crimes Act to arrest and prosecute individuals for expressing critical opinion. Reportedly passed in the middle of the night, the Act is one of many recent laws in Tanzania that have been criticised for disregarding free speech and access to information, among other citizens’ constitutionally guaranteed rights.
Hearings in the remaining two cases against Melo and William are scheduled to continue during June.

06Jun

Uncertainty Over How Uganda’s New Social Media Tax Will be Collected

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By Juliet Nanfuka |
On May 30, 2018, Uganda’s parliament passed the Excise Duty (Amendment) Bill 2018, which will see users of Over-The-Top (OTT) services that include messaging and voice calls via Whatsapp, Facebook, Skype and Viber pay a mandatory fee of UGX 200 (USD 0.05) per day of use. In another move that could hit affordability, stifle innovation, and undermine the role digital technologies play in socio-economic transformation, the amendment will also introduce a one percent fee on each mobile money transaction. However, it remains unclear how the tax on social media use would be collected.
The amendment bill was first introduced last April and was met with criticism over the new taxes, which many observers believe would make Information and Communication Technologies (ICT) inaccessible to majority of Ugandans. The taxes were proposed in response to a letter president Yoweri Museveni wrote to the finance ministry wherein he stated that the government needed resources “to cope with the consequences” of social media users’ “opinions, prejudices [and] insults”. Without mentioning mobile money, Museveni proposed a levy of UGX 100 (USD 0.025) per day per OTT user, but proposals by the finance ministry, since passed by parliament, doubled this figure.
Further, days after parliament passed the amendments bill, the finance minister reportedly stated that the tax rate on mobile money transactions should be 0.5% and not 1% and suggested that the bill could need revisiting.


As of September 2017, Uganda had an internet penetration rate of 48%. Meanwhile, there were 23 million mobile money subscribers in a country of 37.7 million people, and their more than 340 million transactions during the third quarter of 2017 alone totalled UGX 18.1 trillion (USD 4.7 billion).
Mobile money has been a primary avenue of financial inclusion particularly for the unbanked. According to the Bank of Uganda, in 2015, only 16% of the population had a bank point of service within one kilometre of a home, whereas 54% of the population had a mobile money point of service within one kilometre.
Meanwhile, social media has served as many users’ initial entry point to internet use in many developing countries such as Uganda. This is among the reasons why OTT packages have been popular with telecommunications companies as tools to attract more clients. Introducing taxes on the use of these platforms could therefore negatively impact local content development and civic participation tools that rely on these services.
The proposals passed by Uganda’s parliament also include raising tax on airtime on cellular, landline and public payphones from 5% to 12% and the increase on the tax on mobile money transfers from 10% to 15%. .
The passing of the bill attracted various reactions on Twitter:


In 2016, social media and mobile money services were shut down twice during the electioneering period.


As a result of the shutdown of social media platforms, Virtual Private Networks (VPNs) became popular as users sought alternative avenues to remain online. There were no alternatives for mobile money users but the impact of the shutdown was felt by mobile money service providers such as the Airtel Uganda mobile money platform which at the time was  used by around 650,000 unique users per day and processed around 30 billion Ugandan shillings (USD 8.8 million) according to FSD Uganda.
At a private sector dialogue hosted by the Collaboration on International ICT Policy in East and Southern Africa (CIPESA) a day after the passing of the bill, participants noted that the move to tax mobile money services could potentially force users to explore other alternatives for transactions, including reverting to cash or to new financial transaction models such as blockchain which is emerging as a  potential alternative avenue for financial transactions in Uganda.


According to a 2017/18 Uganda National Information Technology Survey, social media platforms including OTT services are some of the popular avenues through which civic engagement has been pursued by the state. It remains to be seen how access to government services will be incorporated in the new tax model.


With the taxation expected to come into effect as early as July 1, 2018, uncertainty remains over whether, if signed into law by the president, the tax would be executed given the limited public consultation and the absence of guidelines.

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