Overview:
Uganda’s digital economy lost an estimated 357 billion shillings daily during a recent four-day internet blackout. FITSPA officials report that poor coordination among service providers prevented essential fintech services from operating despite government exemptions.
KAMPALA, Uganda — A four-day internet shutdown in Uganda stalled an estimated 1.4 trillion shillings in digital payments, exposing the country’s heavy reliance on financial technology and leaving businesses without liquidity.
The Financial Technology Services Providers Association, or FITSPA, reported that the digital economy lost approximately 357 billion shillings in transactions for each day the internet remained disconnected. By the fourth day, the association said the impact had become systemic, affecting households, small businesses and major financial institutions.
FITSPA Chairman Vincent Mwijukye said the disruption hit fintech operators and payment service providers especially hard. Bank of Uganda records from June 2025 show that these providers process about 325 trillion shillings annually, averaging 893 billion shillings in daily digital transactions.
FITSPA estimated that 40% of that daily volume, or 357 billion shillings, could not be processed during the blackout.
For each of the four days the internet was off, close to 357 billion shillings could not move through the system, Mwijukye said.
Although the Uganda Communications Commission granted exemptions to allow digital financial services to remain online, Mwijukye said the directive was implemented abruptly. He noted that lack of coordination among internet service providers meant many fintechs were shut down despite the exemptions.
By the second day, partial restoration of USSD services allowed users to check balances or save, but phones remained nonfunctional for withdrawals or deposits.
People could see their money, but they could not use it, Mwijukye said, noting that the situation created a severe liquidity crisis.
The disruption affected a wide range of users, including traders and transport operators. Many informal businesses with thin profit margins were forced to close entirely during the shutdown.
FITSPA officials said the event highlighted vulnerabilities in how critical digital infrastructure is protected during periods of government restriction. The association called for better coordination with regulators to ensure essential financial services are preserved.
The Bank of Uganda did not immediately respond to requests for comment. Telecom operators MTN and Airtel said it was too early to determine the full impact of the shutdown on their revenues.