How Uganda’s Social Media Tax Could Undermine the Country’s Open Data Journey

Uganda began developing an open data policy in May 2017.  The initiative, spearheaded by the Ministry of ICT and National Guidance, was widely welcomed by the public and civil society as a step toward greater government openness and transparency. Having a policy in place meant that certain data held by the government would be made publicly available, with few restrictions on access. For citizens and civil society organizations, Uganda was finally becoming more responsive to public demands for access to government data.

On 29th May 2018, before the passing of the policy, Uganda’s progress toward open data faced a major setback when legislators approved a tax on social media and mobile money services. In defense of the unpopular legislation, the  State Finance Minister in charge of planning highlighted that the revenues from these taxes would be invested in the country’s social sectors, including health and education. However, both the health and education sectors have historically faced governance and accountability challenges, raising questions about how effectively new tax revenues would be used.

Is taxing social media the right policy choice?

Uganda has approximately 31.3%  internet penetration, ranking among the top fifteen countries in Africa for internet usage. Approximately 75 percent of these users are active on social media platforms. In Uganda, social media has increased information access and flow, and has also enhanced collaborative e-governance for the country.

Through platforms such as Facebook, Twitter, and WhatsApp, Ugandan citizens have increasingly demanded accountability from government institutions without the traditional barriers of distance, cost, or bureaucratic access. In many cases, government agencies have also used these platforms to respond to public concerns in real time. Citizens’ increased participation in decision-making processes and improved government responsiveness to public queries have been made easier through the use of social media.

Civil society organizations such as Evidence and Methods Lab have also leveraged internet penetration and social media growth to disseminate simplified graphics explaining Uganda’s budgeting process to the public. This approach has contributed to enhancing citizens' understanding of the budget and increasing youth participation in the budgeting processes.

As activist Martha Leah Nangalama  has noted, social media can be “an enemy to dictators.” However, with the introduction of the tax on social media, exacerbated by the expensive data bundles, citizens may be left in the dark on what transpires in their country, as well as government processes. Under the new legislation, users are required to pay a daily tax of 200 Ugandan shillings (approximately $0.05) to access platforms such as Facebook, Twitter, and WhatsApp.

Implications of the social media tax for Uganda

Social media enables individuals to create, share, and access information at relatively low cost and across wide geographic areas. The rapid growth of social media usage has led to an increasing accumulation of data, often referred to as social media “big data.” Social media platforms offer many possibilities of data formats, including textual data, pictures, videos, sounds, and geolocations.

Uganda’s social media tax risks pushing the country backwards by restricting access to digital platforms that facilitate public dialogue and accountability. Ultimately, citizens’ trust in government processes could be weakened if the taxes are perceived as a strategy to limit communication and restrict the public’s right to know.

What can Uganda do differently?

Just like Iran Open Data,  Uganda’s open data enthusiasts ought to create spaces for themselves to talk about their practices, their achievements, and the challenges they’ve had to overcome in challenging environments. Activists have to work collaboratively with government officials and ensure some sort of buy-in into their projects. They can also support the government by making information more user-friendly and disseminating it to communities since they have easier contact with them.

Ultimately, policies that restrict access to digital platforms risk undermining Uganda’s progress toward open governance and data transparency. If Uganda is to sustain its open data ambitions, policymakers must ensure that digital regulations support rather than limit citizens’ ability to access information, participate in governance processes, and hold public institutions accountable.