By Leonard Kamugisha Akida,
KAMPALA
Government has launched the National Internet Protocol Peering Exchange (NIPX), a major infrastructure aimed at keeping Uganda’s internet traffic within its borders, reducing costs and improving digital services.
Speaking at the launch, ICT state minister Godfrey Baluku Kabbyanga described the development as a “bold and historic milestone” in Uganda’s digital journey, saying it would advance the country’s push for digital sovereignty.
“With the NIPX, we are ensuring that the vast majority of Ugandan-generated data remains within our borders rather than being routed through foreign infrastructure,” Kabbyanga said.
He noted that data has become one of the most valuable global commodities, and retaining it locally would enhance national security, protect sensitive information and reduce reliance on external networks.
The project, implemented by the National Information Technology Authority-Uganda (NITA-U) in collaboration with the ICT ministry, is expected to address inefficiencies that have long forced local internet traffic to pass through international routes before returning to Uganda.
“This has been a hidden cost on businesses and consumers, inflating internet prices and slowing services,” Kabbyanga said.
According to government, the exchange will significantly cut operational costs for internet service providers, savings that are expected to trickle down to end users through cheaper internet and improved speeds.
NITA-U Director Technical Services Richard Obita said the infrastructure will enable direct interconnection between telecom operators, content providers and institutions, eliminating delays caused by international routing.
“This will improve speed, reduce latency and enhance user experience across services such as e-government, education and online payments,” Obita said.
He added that the exchange, built with a capacity of 400 gigabits per second, is based on global standards and designed to be secure, scalable and resilient.
Private sector players have welcomed the initiative, describing it as a game changer for the country’s digital economy. Godfrey Sserwamukoko, chairperson of the Internet Service Providers Association of Uganda (ISPAU), said the platform would eliminate unnecessary costs incurred when accessing local data through foreign networks.
“If you need information hosted in Kampala, there is no reason to route through Nairobi. This initiative ensures we keep both our data and our money within Uganda,” he said.
Government also revealed that internet costs are already declining, from about $70 to $35 per megabyte per second, with a target of $5 in the next two years, driven by increased competition and infrastructure expansion.
Kabbyanga further disclosed ongoing discussions with SpaceX to introduce Starlink satellite internet services, which are expected to widen access, especially in underserved areas.
Officials say the NIPX positions Uganda as a competitive ICT hub in East Africa, is expected to attract investment, spur innovation and create opportunities for youth in the digital economy.
