Uganda Launches National Internet Exchange to Cut Costs and Improve Connectivity

Uganda has unveiled a national internet exchange platform designed to keep local data traffic within its borders, a move expected to lower bandwidth costs, improve speeds, and strengthen the country’s digital infrastructure.

The National Information Technology Authority – Uganda has unveiled the National IP Peering Exchange (NIPX), a major infrastructure project aimed at reducing internet costs and improving connectivity by keeping domestic data traffic within the country.

Officials say the platform will allow internet service providers, telecom companies and other institutions to exchange data locally rather than routing it through international networks, a process that has long driven up costs and slowed access speeds.

Richard Obita, director of technical services at NITA-U, said at the launch on Friday that the exchange as a critical system that connects local networks on a single platform to enable more efficient data sharing.

“The National IP… Internet Protocol… exchange is a facility or infrastructure that will interconnect our local ISPs within the country,” Obita said during the launch in Kampala.

He explained that Uganda has historically relied on international routes to access even locally hosted content, creating unnecessary delays and increasing bandwidth expenses.

“This is to keep our traffic local, to keep our data local here,” he said, adding that the initiative will “improve connectivity… lower the cost of bandwidth.”

According to Obita, much of Uganda’s digital content, including cultural and locally generated material, is already hosted within the country but is often accessed through servers abroad, creating inefficiencies the new system is designed to eliminate.

“If you want content about Uganda, say culture, this content is actually resident here in our country… you don’t have to make a request… to Europe and then back for the same content,” he said.

The exchange will also cache frequently accessed content locally, improving speeds and enhancing user experience for consumers and businesses.

“That content will be stored in this facility… to give our citizens a faster connection… good response times… and a better experience in terms of connectivity,” Obita added.

Beyond speed and affordability, officials say the NIPX will strengthen network resilience by creating multiple pathways for data exchange among service providers.

“This also provides resilience… you have multiple options, because all the service providers… are all connected within the same place, and they’re sharing data,” Obita said.

Project leaders say the system will also address inefficiencies caused by duplication of data collection across networks.

Deborah Agumeneitwe, projects tech lead at NITA-U, said the platform enables institutions such as banks, telecoms and internet service providers to directly exchange data, reducing redundancy.

“We are hoping that this infrastructure will lower internet costs in the long run,” she said.

Agumeneitwe explained that peering allows networks to share information instead of sourcing the same data independently, a process that often leads to higher operational costs.

“You have information, I have information, so we exchange it. So this prevents data silos… If I already have it, you just exchange it. That also brings down the internet costs eventually,” she said.

The infrastructure has been established with two major exchange points in Kampala and Jinja, a move aimed at decentralising access and improving efficiency across different regions of the country.

Agumeneitwe said the Jinja facility is expected to ease congestion in the capital while enhancing regional connectivity, including cross-border data exchange with neighbouring Kenya.

“We have one in Kampala, and then we have one in Jinja… so if we want to peer with providers from Kenya, they don’t have to come all the way to Kampala,” she said.

Industry stakeholders have welcomed the development, citing its potential to lower operational costs and improve service delivery.

Godfrey Sserwamukoko, Chairman of the Internet Service Providers Association of Uganda, said the exchange offers a neutral and open platform for traffic exchange.

“The NIPX provides a neutral and open platform that holds great potential to optimise local traffic exchange and bring meaningful cost efficiencies to the industry,” he said.

Officials say the NIPX forms part of Uganda’s broader digital transformation agenda under Vision 2040 and is expected to support innovation, attract investment and expand opportunities for digital entrepreneurs.

The infrastructure is now fully operational and open for eligible networks to connect, marking a significant step toward a faster, more reliable and more affordable internet ecosystem in Uganda.