CIPESA Submits Comments on Uganda’s Proposed New Digital Tax 

By Edrine Wanyama |

On April 28, 2023, the Collaboration on International ICT Policy for East and Southern Africa (CIPESA)  submitted comments on the Income Tax (Amendment) Bill, 2023 to the Committee on Finance, Planning and Economic Development of the Uganda Parliament. The comments argue that the proposed law would  undermine access to and use of digital tools and services. 

The bill, among others, proposes to impose a tax of five percent on foreign-based entities that derive income from providing digital services to customers in Uganda. The proposals are contained in clause 16 which seeks to introduce a new section, 86A.

Clause 86A provides:

  1. A tax is imposed on every non-resident person deriving income from providing digital services in Uganda to a customer in Uganda at the rate prescribed in Part IV of the Third Schedule to this Act.
  2. For the purposes of subsection (1), income is derived from providing a digital service in Uganda to a customer in Uganda, if the digital service is delivered over the internet, electronic network or an online platform.
  3. For the purposes of this section “digital service” includes—
  1. online advertising services;
  2. data services;
  3. services delivered through an online marketplace or intermediation platform, including an accommodation online marketplace, a vehicle hire online marketplace and any other transport online marketplace;
  4. digital content services, including accessing and downloading of digital content;
  5. online gaming services;
  6. cloud computing services;
  7. data warehousing;
  8. services, other than those services in this subsection, delivered through a social media platform or an internet search engine; and
  9. any other digital services as the Minister may prescribe by statutory instrument made under this Act.”

While the clause targets non-residents, if enacted it would add to the digital taxes borne by the already tax-burdened consumers of digital services in Uganda. Since July 1, 2022, web hosting, software and streaming services in the country pay a mandatory value added tax of 18% chargeable on consumers of services offered by  platforms such as Amazon, Meta (Facebook), Twitter and Zoom. 

The tax would potentially hinder inclusive access and use of digital technologies and negatively affect Uganda’s digital economy. According to the United Nations Capital Development Fund (UNCDF), Uganda’s digital economy score is low, particularly in areas such as digital inclusiveness. According to the UNCDF Score Card of 2021 the digital divide or groups most excluded from the digital economy in Uganda are the elderly (80%), rural communities (64%), persons with disabilities (74%), the youth (33%), refugees (80%) and migrants (75%). The inclusion gap such as for persons with disabilities is attributed to the high cost of technologies. 

Innovation is a prerequisite for the provision of digital services including advertising, data services, marketing, cloud computing services, and data warehousing. Most of these tools and services are developed outside Uganda, hence imposing high taxes on non-residents that provide them could   limit access to these critical tools and services. That could push Ugandans further into the margins of the global digital economy.

The enjoyment of digital rights and freedoms, including freedom of expression, access to information, and association, could also be limited by the imposition of high digital taxes. 

Accordingly, the submission by CIPESA recommends that the Committee on Finance, Planning and Economic Development:

  1. Drops the entire proposed clause 16 of the Income Tax (Amendment) Bill, 2023;
  2. Conducts wide consultations with the affected stakeholders including the tech community, innovators, the business community and civil society on the potential effects of the proposed amendment.
  3. Conducts a tax impact assessment to weigh the potential effects of the proposed tax on access and use of digital tools and services. The impact assessment should specifically spell out the anticipated positive impacts and weigh them against the anticipated negative effects.
  4. Takes into consideration and supports all the progressive policies that seek to increase and enhance accessibility and usage of digital tools and services such as tax incentives which usually lead to lowering of the costs to be borne by consumers in purchase and use of digital tools and services.

See the full submission here.

Gear Up! The 2023 Forum on Internet Freedom in Africa (FIFAfrica) is Heading to Tanzania!

Announcement |

The annual Forum on Internet Freedom in Africa (FIFAfrica) hosted by the Collaboration on International ICT Policy for East and Southern Africa (CIPESA) will be held in Dar es Salam, Tanzania on September 27-29, 2023. This year will mark a decade of the largest gathering on internet freedom in Africa, which has since 2014 put internet freedom on the agenda of key actors including African policy makers, platform operators, telcos, regulators, human rights defenders, academia, law enforcement representatives, and the media. This has paved the way for broader work on advancing digital rights in Africa and promoting the multi-stakeholder model of internet governance.

In several African countries, it is becoming increasingly challenging to utilise the internet to defend human rights, strengthen independent media, support democratisation, and demand accountable and transparent governance, or to freely access information and contribute content in the diversity of African languages. This is undermining the core principle of the internet as a free and open platform. 

The decision to host the 2023 edition of FIFAfrica in Tanzania is in recognition of the country’s progressive shift to advance digitalisation for sustainable development. Under the leadership of its first female President, Samia Suluhu Hassan, a proponent for civil rights and women’s rights, the country has undergone political and legal reforms aimed at enhancing civic space and digitalisation agenda. Notably, a data protection law has been enacted, the law governing media operations is being revised, and the  Online Content Regulations 2020 were revised to make them more supportive of online speech, privacy and access to information. 

It is upon this backdrop that FIFAfrica 2023 will offer a platform for critical engagement of diverse stakeholders in identifying the most pressing internet rights-related issues and challenges that have to be addressed at national and regional levels. Over the years, FIFAfrica has identified opportunities for bringing the debate on the importance of digital rights to national, regional and global fora. In particular, the Forum supports the development of substantive inputs to inform a wide range of conversations at organisational, national, regional, continental and global levels, including at the African Union, the African Commission on Human and Peoples’ Rights (ACHPR), the United Nations Human Rights Council, the African Internet Governance Forum (IGF), sub-regional IGFs and at the global IGF.

The growth in diversity of participants and discussions at FIFAfrica reflects the evolving trends and concerns in access and usage of the internet and related technologies.  Topics have included access to information, mass surveillance, turning policy into action, internet shutdowns, content regulation, cyber security, digital economy, online violence against women, data protection and privacy, cyber governance, open source investigative journalism, online movement building and civic building, business and big data, building research capacity in internet measurements, innovation and security in conflict territories, as well as gender-sensitive approaches to ICT Policy and decision making. 

Overall, FIFAfrica is helping to grow the community advancing digital rights in Africa, increasing awareness about and advocacy for internet freedom, while forging new alliances that advance digital rights. It elevates new voices including those of often marginalised groups such as the youth, persons with disabilities and women, and enables state and non-state actors to develop evidence-based interventions that guide policy and practice

FIFAfrica has previously been hosted in Uganda, South Africa, Ghana, Ethiopia and Zambia, with the last edition attended by up to 1,000 individuals (online and offline) from 47 countries.
A call for proposals and travel support applications will be announced soon. For updates, follow CIPESA social media (@cipesaug) accounts  on Twitter,Facebook and LinkedIn.

Digital Democracy in Africa: What Has the Law Got to Do With It?

By Edrine Wanyama |

With digital freedoms continuing to take a hit amidst a wider democratic regression across Africa, the role of laws in curing what ails democracy in the region warrants scrutiny. In a number of countries, the laws that regulate how citizens use digital platforms and exercise their digital rights are retrogressive and fail to offer sufficient protection to citizens. Many of them are broadly worded, give extensive powers to state agencies to interpret the laws and to interfere with citizens’ rights.

In turn, the legal and regulatory framework has become central in shaping digital rights and digital democracy in Africa. Governments have enacted regressive and draconian laws that variously empower state agencies to limit the digital civic space. As a result, rights such as freedom of expression, access to information, and data privacy continue to come under threat due to the high-handed and often excessive control measures. 

In many countries laws have been weaponised to silence critics, notably those that use digital and social media to organise or express opinions critical of governments and state officials. Various laws are being used to arrest, persecute, detain and prosecute individuals over online communication, as have been witnessed in the Democratic Republic of Congo (DRC), Mozambique, Kenya, Rwanda, South Sudan, Tanzania, Uganda, Zambia, Zimbabwe and several other countries. These measures curtail press freedom and other digital rights that are at the root of democratic participation.

Laws that regulate state surveillance are among those that have a profound chilling effect on digital rights and citizen participation. Anonymous communication in the digital domain is crucial for citizens, journalists and political actors to operate without fear of reprisals, particularly in authoritarian countries. Yet the conduct of surveillance in the region is enabled by laws that give broad powers to state agencies to conduct surveillance amidst limited oversight and transparency, and strenuous demands on intermediaries to facilitate communications monitoring and interception.

Equally concerning is that various governments have weaponised disinformation laws to silence critical voices, rather than utilising them to counter the ills of disinformation. Similar to the purposes that state surveillance often serves, laws on countering disinformation have in many cases been used to target political critics.

In turn, those laws (which tend to be vague and ambiguous and fail to distinguish between disinformation or falsified information, making their enforcement open to the subjective interpretation of law enforcement agencies) are being used to stifle legitimate expression and to hamper access to critical and pluralistic information. This has been common in countries like Burkina Faso, Ethiopia, Kenya, Nigeria, Tanzania and Uganda where laws criminalising disinformation and false news, such as  those on computer misuse, are often deployed to silence government critics.

Governments have also relied on different laws to order internet disruptions, which create information blackouts, deny citizens their right to access information, associate and express themselves. Mostly ordered during elections and public protests, the network disruptions also undermine electoral credibility and hinder the ability of citizens to record and disseminate incidents of rights violations by security agencies and other actors.

Many observers around the continent, as well as the United Nations, have repeatedly urged states to refrain from ordering shutdowns, which they say are often not necessary or proportionate to address the threats that prompt governments to order them. However, such network disruptions continue unabated in parts of Africa, with governments and communications regulators citing various laws to justify them. According to the KeepItOn coalition, at least four of the region’s nine shutdowns during 2022 took place alongside reported human rights abuses, both in the context of violent crackdowns on protests and active conflict.

There are other ways still in which the law is undermining the protection of freedom of expression and access to information and data privacy. Many African countries have enacted access to information laws to facilitate public access to information in possession of the state. They include Kenya (enacted in 2016), Rwanda (2013), South Sudan (2013), Tanzania (2016), Uganda (2005), Malawi (2017), Mozambique (2014), and Zimbabwe (2020). On the other hand, countries like the DRC, Burundi, and Zambia do not have specific laws on access to information.

However, many of the existing laws have wide exemptions and limitations to the kinds of information that citizens can access. These limitations are primarily based on national security, official secrecy laws, individual privacy and confidentiality justifications. Proactive disclosure of information is rare in most countries, and information of vital importance to citizens is in short supply online. This undermines accountability and transparency of governments, which are key ingredients for citizen participation in democracy. 

At another level, proliferation of technology has led to a need to protect individual privacy. Previously, countries collected personal data in absence of enabling legislation, for such purposes as immigration, issuance of driving permits and SIM card registration. This has, in turn, necessitated the adoption of laws to protect privacy: Uganda (2019), Kenya (2019), Rwanda (2021), Tanzania (2022), South Africa (2013), Zambia (2021) and Zimbabwe (2021). Still, countries like South Sudan, DRC, Malawi, and Mozambique are yet to enact specific laws. 

Despite the adoption of laws, they generally fall short of the ideal practices. Many countries do not have independent data protection authorities and there is inadequate oversight and enforcement of personal data protection standards and mechanisms. Moreover, only 13 of Africa’s 55 countries have ratified the African Convention on Cyber Security and Personal Data protection. These are Algeria, Cape Verde, Congo Brazzaville, Ghana, Guinea, Mozambique, Mauritius, Namibia, Niger, Rwanda Senegal, Togo and Zambia. Reluctance to endorse this lead guiding instrument on data protection, privacy and cyber security is telling of countries’ commitment to respecting privacy.

Meanwhile, numerous data protection laws facilitate governments’ access to personal data without adequate safeguards, thereby enabling undue surveillance and interception of communications and unlawful use of private information. They fail to adequately regulate the mass collection of individuals’ personal data, including biometrics, for issuance of national identity cards, immigration documents, voters’ cards and driving permits. Furthermore, the laws often restrict the transfer of personal data outside national borders but do not put sufficient checks on governments’ access to this data.

Indeed, the place of the legal and regulatory framework in promoting and protecting fundamental freedoms was in focus at a regional convening on March 13-14, 2023, by the International Senior Lawyers Project (ISLP) in partnership with the Media Institute of Southern Africa (MISA) and Southern African Institute for Policy and Research (SAIPAR) in Harare, Zimbabwe. 

The workshop identified advocacy, capacity building, analysis of laws and proposed legislation, engagements with parliaments on law reform, and litigation at national and regional courts, as key to promoting the digital civic space. Yet, as CIPESA noted at the meeting, political interference, long periods taken to determine cases, and non-compliance of states with decisions of regional courts have hampered the effectiveness of litigation.

The convening made recommendations to governments, civil society, and the private sector:

  1. Governments
  • Sign and ratify key international human rights instruments on data protection and privacy especially the African Union Convention on Cyber Security and Personal Data Protection.
  • Ensure a favourable environment for the exercise and enjoyment of digital rights and freedoms by among others enacting progressive laws and repealing draconian legislation.
  • Promote accountability and transparency by proactively disclosing information in a timely manner and expeditiously responding to information requests from citizens.
  1. Civil Society, the Private Sector and Tech Communities
  • Jointly push for the amendment of regressive laws that undermine digital rights, and contribute to law-making processes by analysing bills and making proposals for reform, repeal or amendment. 
  • Advocate for compliance with the United Nations Guiding Principles on Business and Human Rights to ensure that violations of human rights are minimised in the course of doing business.
  • Engage in strategic and collaborative litigation to challenge all measures by governments which curtail digital rights and undermine digital democracy. 
  • Build capacity of stakeholders including the media and the general public to protect and promote digital rights and to demand accountability and transparency from governments and their agencies.
  • Use human rights monitoring mechanisms such as the Universal Periodic Review (UPR) to hold their states to account.
  • Advocate for states to ratify key human rights instruments such as the AU Convention on Cyber Security and Personal Data Protection.

Building Cyber Smart Women Entrepreneurs in Nigeria

By CIPESA Staff Writer |

According to the Global Entrepreneurship Monitor, Nigeria is among the countries with the highest number of women entrepreneurs, most of whom conduct their business online. However, with the increasing prevalence of cyber attacks and fraud, the success of women-owned Small and Medium Enterprises (SMEs) in the country is under threat. In Nigeria, Africa’s largest economy, Sophos reports that 71% of businesses were hit with ransomware attacks in 2021.  

In 2021, cybercrime caused an estimated USD 4 billion loss for African economies, equivalent to 3.5% of the continent’s USD 115 billion digital economy. Despite significant threats such as online scams, digital extortion, email compromise, ransomware and botnets, Interpol figures indicate that over 90% of businesses on the African continent operate without the necessary cyber security protocols in place. 

In a bid to counter such threats, Tech Hive Advisory in partnership with Ikigai Innovation Initiative implemented the Cyber Smart Woman project to build a sustainable digital ecosystem for women entrepreneurs in Nigeria. The three-phase project featured 12 focus group discussions on data governance, cybersecurity challenges, and digital security needs of the women-owned SMEs, followed by four knowledge and skills workshops, and the development of a toolkit on data protection and cyber security practices for sustainability and competitiveness.

Tech Hive Advisory and Ikigai Innovation Initiative were one of ten initiatives awarded grants in the sixth round of the Africa Digital Rights Fund (ADRF). The supported initiatives focused on promoting effective data governance in Kenya, Nigeria and Senegal; countering gendered and election-related misinformation and disinformation in Kenya, South Sudan and Uganda; building digital resilience within the media fraternity in Ghana, Nigeria and Uganda; promoting digital inclusion in Uganda and Kenya; and building grassroots-based movements for internet freedom in South Africa.

The focus group discussions featured participants from various online business sectors, many of whom revealed that they lacked adequate digital protection for their businesses. Up to a quarter of the participants had been direct victims of device theft and cyber attacks such as scams and hacking. As a result, their businesses had suffered monetary loss, reputational damage, and, in extreme instances, loss of online assets such as social media accounts and client databases. 

The discussions further revealed that despite the SMEs collecting various personal data, the majority did not include online security or data protection measures within their business strategies. Meanwhile, many clients did not invoke their rights as data subjects, which made their data more susceptible to abuse. Indeed, one participant admitted that she had  shared a client’s contact information without permission. 

Most of the focus group participants believed that with the appropriate knowledge and skills, business owners, just like data subjects, would be able to minimise vulnerability to cyber attacks  and data breaches. Accordingly, four capacity building workshops were convened in four regions – Abuja, Ibadan, Kaduna and Lagos –  benefiting 167 SME owners. Topics covered included data protection rights and obligations; compliance with data protection regulations; and cybersecurity best practices.  

To complement the training workshops, a toolkit for data protection and cybersecurity was developed and disseminated. The toolkit outlines Nigeria’s data protection frameworks as well as the obligations and compliance requirements for business owners. It also provides tips and resources for data subject access procedures, privacy policies, records of processing activities and retention periods. The second section of the toolkit focuses on cybersecurity, also outlining the prevailing legal and regulatory frameworks, common vulnerabilities, best practice guidelines and resources. 

Ayodeji Sarumi, the Co-Founder of Tech Hive Advisory, says the project has equipped female-owned businesses in Nigeria with better approaches to handling data protection and cybersecurity issues,  which could be essential for their survival in a highly digitised world where cyber fraud is rampant.

Pushing Back Against Gendered Disinformation in Uganda

By Loyce Kyogabirwe |

Across Africa, a gender-inclusive digital society remains largely elusive. Beyond the challenges related to the gender digital divide and online gender-based violence, the growth in form and prevalence of online disinformation in Africa is also taking on a gendered lens. Pushback against gendered disinformation is thus critical to  combating online harms against women and attaining gender equity.

In Uganda, there has been a notable upward trend in gendered disinformation, with attacks targeted at organisations working on sexual and reproductive rights. This, against a backdrop of offline attacks such as the August 2022 suspension of the operations of Sexual Minorities Uganda (SMUG) on allegations that the organisation had failed to register with the National Bureau for Non-Governmental Organisations.

During the second half of 2022, the activist group Her Internet implemented a project to create awareness and understanding of gendered disinformation including its effects and perpetrators in Uganda. With a focus on sexual minorities and sex workers, the project supported by the Africa Digital Rights Fund (ADRF) also worked to build alliances and networks as support systems for mitigation of impact and countering false narratives.

HER Internet convened an interactive dialogue in Uganda’s capital Kampala to share real life experiences as well as strategies on how to avert the negative effects of gendered disinformation. Targeting 20 individuals from communities of structurally marginalised women, the dialogue also covered aspects of fact-checking and safety online.

Extract from HerInternet handbook on understanding gendered disinformation

The dialogue called for non-discriminatory enforcement of current cyber laws and the need for diverse narratives to eliminate biased reporting, amongst other measures. In addition to the dialogue, Her Internet also conducted a campaign on its social media platforms on the key concepts of gendered disinformation, its manifestations and counter strategies. The project also compiled and disseminated a handbook on understanding gendered disinformation as a go-to guide for communities to understand and further engage beyond the campaign and dialogues.

According to a 2020 report by  UN Women,  women  with  multiple identities, such as sexual and ethnic minorities, are often targeted online through discrimination and hate speech, which often forces them to  self-censor  and  withdraw  from  debates and online discussions. Similarly, the UN Special Rapporteur on violence against women, its causes and consequences, has stated that some  groups  of  women, including women belonging to ethnic minorities, indigenous women, lesbian, bisexual and transgender women, and women with disabilities are particularly targeted by technology-facilitated violence.

Research by the Collaboration on International ICT Policy for East and Southern Africa (CIPESA) has found that cyberstalking, online sexual harassment, blackmail through non-consensual sharing of personal information, promotes and normalises violence against women and girls who use the internet in Uganda. Her Internet’s project builds on ADRF’s gender and sexual inclusivity portfolio. The ADRF has previously supported digital literacy and safety programmes for sexual minority refugees from the Democratic Republic of Congo, Eritrea, South Sudan and Sudan, living in Uganda.