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Uganda unveils national internet exchange to cut costs, boost speeds

Uganda has taken a major step toward strengthening its digital infrastructure by announcing the National IP Peering Exchange (NIPX), a platform expected to reduce internet costs and improve connectivity nationwide significantly.

The National Information Technology Authority–Uganda (NITA-U), in partnership with the Ministry of ICT and National Guidance, confirmed that the NIPX will be officially launched during an awareness and engagement workshop scheduled for April 17 in Kampala.

Officials described the initiative as a turning point in Uganda’s digital transformation, addressing long-standing inefficiencies in how internet traffic is handled. For years, local internet data has often been routed through international networks before returning to Uganda, a process that increases costs and slows down connectivity.

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Speaking at a press briefing, the Minister of State for ICT and National Guidance, Godfrey Kabbyanga, said the new system marks a significant milestone.

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“Today marks a bold and historic milestone in Uganda’s digital journey. With the launch of the National IP Peering Exchange (NIPX), Uganda is taking a decisive step toward achieving true digital sovereignty,” he said.

The NIPX will allow Internet Service Providers, government networks, and digital platforms to exchange data locally, improving efficiency and reducing reliance on costly international bandwidth.

Richard Obita, Director of Technical Services at NITA-U, explained that the platform is designed to fundamentally change how internet traffic flows within the country.

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“Without a national exchange point, internet traffic is often routed through international carriers overseas, only to return to Uganda. This inefficient routing leads to unnecessary delays and increased costs,” he said.

He added that the new system “will enable local networks to interconnect and exchange traffic directly within Uganda,” making internet services “faster, more efficient, and far more cost-effective.”

According to Obita, the exchange has been built on a neutral ownership model, meaning it is not controlled by the government or any single entity. Instead, it is collectively governed by its participants to ensure fairness and transparency.

“The NIPX has been deliberately designed under neutral ownership where it is neither owned nor controlled by the government… creating a genuine level playing field for all participants,” he said.

The platform is expected to deliver immediate benefits, including lower latency, reduced operational costs, and improved network reliability. With a peering capacity of 400 Gbps, officials say the system is built to meet the demands of Uganda’s growing digital economy.

Industry players have welcomed the development, with the Chairman of the Internet Service Providers Association of Uganda, Godfrey Sserwamukoko, praising the initiative as a boost for the sector.

“On behalf of the internet service industry, we commend the Ministry of ICT and NITA-U for this initiative. The NIPX provides a neutral and open platform that has the potential to optimise local traffic exchange and bring meaningful cost efficiencies,” he said.

Officials say the benefits will extend beyond the industry to ordinary citizens, who are expected to experience faster browsing, smoother video calls, improved access to e-government services, and more affordable data in the long term.

“As Internet Service Providers realise cost savings through local peering, we anticipate that these benefits will gradually be passed on to consumers,” Obita noted.

The NIPX is a key component of Uganda’s Digital Uganda Strategy and Vision 2040, aimed at positioning the country as a competitive ICT hub in the region while driving innovation and economic growth.

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