Ugandan youth embrace tech in business, fall short on digital rights

Ugandan youths have readily embraced the opportunities presented by digital transformation, but a growing body of evidence suggests that many remain unaware of the laws governing business and digital rights.

With unemployment standing at 12.2 per cent, young people continue to bear the brunt of limited formal employment opportunities. Many have turned to entrepreneurship, using digital tools such as WhatsApp Business to engage customers, Facebook (albeit still officially banned) to market their products, product photography and storytelling to build brands, and digital payment platforms to manage orders.

For many, mobile phones have become business tools, helping expand market reach, increase customer numbers, improve incomes and build confidence.

However, despite their growing reliance on digital platforms, many young entrepreneurs remain unfamiliar with the legal obligations that come with operating online.

During the High-Level Multistakeholder Dialogue on Business and Digital Rights, Mark Peter Sseggiriinya of Bounderless Minds said findings from a survey on young entrepreneurs’ and workers’ understanding of digital rights revealed significant knowledge gaps.

The survey, conducted among 130 businesses in Kampala operated by people aged below 25 and employing up to five workers, found that only 29 per cent, about 38 businesses were familiar with the laws governing their online operations.

Although young entrepreneurs are generally perceived to be more digitally savvy, Sseggiriinya said many were unaware of the legal requirements surrounding data collection, protection and privacy, despite running businesses that rely heavily on online transactions and deliveries.

He noted that many participants did not know that sharing another person’s mobile phone number without consent contravenes Uganda’s data protection laws. The survey also identified several barriers to responsible participation in the digital economy, including limited digital skills, social and cultural restrictions, fear of online risks and scams, high data costs, poor internet connectivity and low awareness of digital rights.

“The majority of these young people don’t put in place systems to protect the data. Even us as individuals, oftentimes when we place or make orders, we give these people ideas of where we stay, our mobile money details. This information, the people that we interviewed, first of all, did not think it was important that this information is kept private. What happens is that they involve a lot of third parties. So you order, and the person is giving another person, a boda boda rider, to deliver to your home, and they did not think this was important to them,” said Sseggiriinya.

He added that many business owners were unfamiliar with key legislation governing digital operations, including the Computer Misuse Act, 2011, Data Protection and Privacy Act, 2019, and Electronic Transactions Act, 2011.

Luarianne Comard, Uganda programme officer at the European Union Delegation to Uganda, said that while the EU has committed at least Shs 20 billion in direct financial support towards promoting human rights and labour rights, businesses must also understand their digital corporate responsibilities as the digital economy expands.

She said these responsibilities include data protection, cybersecurity, online safety, digital inclusion and the responsible use of technology. According to Comard, businesses can no longer be separated from the digital age, where transparency, accountability and safety are integral components of the digital ecosystem.

In neighbouring Wakiso district, for example, the growing popularity of TikTok among schools has raised concerns among parents whose children have appeared in promotional videos without their consent. Yet many school administrators remain unaware that such practices may contravene the law.

Wakiso District Human Rights Committee chairperson Elly Kasirye said community engagements conducted over the past eight months revealed that awareness of digital rights remains extremely low, with many residents saying they were hearing about the concept for the first time.

During engagements with leaders in Katabi Town Council, discussions on digital rights were reportedly dismissed on the grounds that other community needs were more pressing.

He cited examples where residents asked whether taxes could be paid through online platforms, only to discover that such services already existed but were largely unknown to them.

Kasirye said Makindye Division had resolved to incorporate digital rights provisions into its future by-laws, adding that local councils in Wakiso and Mukono had agreed to pursue similar measures.

Meanwhile, Ambrose Ruyooka, assistant commissioner at the ministry of ICT and National Guidance, said the rapid adoption of artificial intelligence is exposing new digital rights challenges that existing laws do not adequately address.

He said government faces the difficult task of balancing innovation with regulation, noting that excessive regulation could stifle technological growth while inadequate oversight leaves citizens vulnerable to emerging risks.

Ruyooka said a national taskforce has been established to domesticate continental and regional artificial intelligence strategies and ensure Uganda develops an appropriate national framework.

He added that government may also be considering amending existing legislation to accommodate emerging technologies and AI. Whether through legislation, policy or strategy, Ruyooka said Uganda’s approach should align with ISO/IEC 42001, the world’s first artificial intelligence management systems standard, whose development Uganda participated in through the Uganda National Bureau of Standards (UNBS).

He cautioned against rushing to adopt an AI strategy without adequate consultation, citing South Africa’s experience of withdrawing its strategy shortly after publication.

Ruyooka said organisations adopting AI should establish structured AI governance systems to promote responsible use while addressing emerging concerns such as ethical considerations, transparency and continuous learning.

He noted that AI differs significantly from conventional information technology because of its capacity for autonomous decision-making, continuous learning and evolving capabilities.

At the same time, he warned that AI systems can reproduce and amplify bias, contribute to climate degradation and threaten fundamental human rights if deployed without adequate safeguards.

In November 2021, UNESCO’s 193 member states adopted the first global standard on AI ethics through the Recommendation on the Ethics of Artificial Intelligence. It is anchored on principles such as transparency, fairness, environmental sustainability and human oversight of AI systems.

Lydia Nabiryo, assistant commissioner for equity and rights at the ministry of Gender, Labour and Social Development, said there is a need to strengthen awareness of digital rights within the business community so that companies integrate business and human rights principles into their policies and practices, contributing to global efforts to uphold fundamental freedoms and human dignity in the digital space.

She noted that in 2016 Uganda accepted recommendations to develop a National Action Plan on Business and Human Rights. Nabiryo said a multisectoral team has since been engaging stakeholders in the oil and gas sector in the Albertine region, Karamoja, fishing communities and gold mining areas as part of developing a five-year action plan on business and human rights.

The plan seeks to strengthen corporate responsibility to respect human rights while providing remedies for violations such as environmental pollution and child labour.

During a panel discussion, Ronald Mugisha, senior cyber and fraud risk officer at the Uganda Bankers Association, said other sectors could learn from the banking industry’s rapid adoption of emerging technologies.

He said that when the government announced its ten-fold growth strategy, the banking sector aligned its priorities accordingly, with one of the key initiatives being the adoption of artificial intelligence to support functions such as credit decision-making and expanding access to finance. However, he noted that these innovations have also created new risks, including increased fraud involving digital identities.

Mugisha said the association’s 34 member banks had adopted a collective strategy to advocate for Digital Public Infrastructure (DPI), describing it as critical for business growth and solving fundamental service delivery challenges.

He, however, expressed concern over persistent integration challenges between banks and the National Identification and Registration Authority (NIRA), despite banks integrating with the national identification system four years ago.

He noted that although more than 12 million national identity cards have since been issued, newly issued IDs are not always seamlessly integrated into the system. He also warned that AI systems are increasingly profiling potential borrowers, sometimes producing inaccurate or biased outcomes.

He said establishing a national switch would significantly improve interoperability across digital platforms, allowing seamless transactions between banks and mobile money platforms based on a common national identity infrastructure.

Mugisha also criticised the fees charged by NIRA for access to citizens’ data, arguing that individuals should not pay to access information that belongs to them. He further argued that reforms are needed to remove the cost of accessing citizens’ data.

“Statutory fee is Shs 100 for providing the NIN and Shs 500 for access and use. Ideally from the financial services point, we want that to be free. Why are paying to access citizen data when we’re providing service? I mean, NIRA is a custodian; they don’t own the data,” added Mugisha,

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