Aid Freeze: A wake-up call to embrace technology and secure our future

US President Donald Trump recently made a big decision that affects many Ugandans. Right after taking office for his second term on January 20, 2025, he signed an order to stop foreign development aid for now.

This order, which puts programs run by the United States Agency for International Development (USAID) on hold, has left thousands of Ugandans worried about losing their jobs and livelihoods.

This aid freeze is painful for many, but it also sends us an important message. We cannot depend on help from other countries to build our nation. Instead, we must use our own resources and talents to grow stronger. This means we need to invest in our education system and, very importantly, in technology.

Technology: Our Path to Prosperity

The world is changing fast, and the most exciting changes are happening in the field of technology. Information and Communication Technology (ICT), you can as well call it the Digital Economy is one of the fastest-growing areas in Uganda, and it holds the key to our future. Imagine technology as the new gold, oil, coffee, cotton, copper, tea, and milk for Uganda. Among these, artificial intelligence (AI) is emerging as the most valuable resource.

Right now, countries around the globe are investing billions of dollars in AI. For example:

- The United States has announced a $500 billion investment in AI infrastructure.

- The European Union has pledged over $200 billion.

- China is investing $137.5 billion.

- France has set aside $114 billion, and even the UK and Canada have made significant investments.

Tech giants like Amazon, Microsoft, Google, and Meta are together spending more than $300 billion to boost their AI projects. These huge sums of money show just how important AI is becoming.

The recent World Economic Forum, Future of Jobs Report 2025, reveals that AI could create up to 170 million new jobs worldwide by 2030! As a country, we urgently need to position ourselves and harness this emerging economic reset.

AI: Uganda's Cash Cow for a Bright Future

For decades, Uganda’s economic success has been tied to natural resources like coffee, cotton, gold, tea, maize, fish, cement, copper, timber and milk as our traditional exports.

These commodities have long been considered the backbone of our economy, providing employment and foreign exchange earnings. But the world has changed.

In today’s digital age, artificial intelligence (AI) is emerging as the new gold, the new oil, and the new economic powerhouse that nations are scrambling to dominate. Uganda cannot afford to be left behind.

Across the globe, countries and multinational corporations are pouring hundreds of billions of dollars into AI because they recognize one undeniable truth: AI is the future.

It is reshaping industries, revolutionizing business models, and unlocking economic opportunities on a scale never seen before. If Uganda harnesses AI early and strategically, it could be the greatest economic transformation in our history far more profitable than any of our past or present exports.

1. AI Can Skyrocket Uganda’s GDP

AI has the power to drive Uganda’s Gross Domestic Product (GDP) to unprecedented levels. Countries that invest in AI today will see exponential economic growth tomorrow. Look at China, their AI investments are projected to contribute an additional $7 trillion to their GDP by 2030. The United States is on a similar trajectory. Why can’t Uganda achieve the same in its own capacity?

By integrating AI into key industries like agriculture, healthcare, finance, education, manufacturing, and logistics. Uganda could boost productivity and efficiency across all sectors. AI-powered automation can increase production, reduce waste, improve service delivery, and create new market opportunities. If we act now, AI can be the driving force that propels Uganda into an era of unprecedented economic expansion.

2. AI Will Significantly Increase Uganda’s Per Capita Income

Uganda’s youthful population is one of our greatest assets, but without high-paying, future-proof jobs, many remain underemployed or trapped in low-wage work. AI presents a game-changing opportunity. The global AI industry is expected to create over 170 million jobs  by 2030, and these aren’t just any jobs, they are high-value, well-paying positions that can uplift entire families and communities in Uganda.

From AI engineers and data scientists to AI-driven entrepreneurs and digital innovators, Ugandans have the potential to claim a substantial share of these opportunities. With proper training in AI, our young people can earn salaries that are ten times higher than the current average earnings in Uganda, all without having to leave the country.

Imagine a Uganda where young graduates no longer have to seek low-paying jobs abroad but instead build thriving AI-driven businesses from home, earning in dollars and euros while staying in their respective home districts. This is the reality AI can create.

3. AI Can Be Uganda’s Greatest Foreign Exchange Earner

Today, Uganda earns foreign exchange mainly through exports like coffee, tea, and tourism. But AI has the potential to become our biggest foreign exchange earner without us having to ship anything out of the country. AI services, such as software development, data analysis, automation solutions, and AI consulting, can be exported digitally to global clients earning Uganda billions.

Think about India, a country that earns over $250 billion annually from IT and software exports. Uganda can do the same with AI. Our youth, if properly equipped with AI skills, can serve global clients while working from home, bringing in vast amounts of foreign exchange. This digital revolution can uplift the entire economy without the need for expensive physical infrastructure or raw materials.

4. AI Can Transform Uganda into a Global Tech Hub

Uganda has the chance to position itself as a leader in AI innovation for Africa. Countries like Kenya, South Africa, and Nigeria are already making strides in the AI space. If we take the lead now, Uganda can become the “Silicon Valley of Africa.”

We must invest in AI research centers, create AI-focused universities, and encourage startups that leverage AI to solve local and global challenges. With the right policies, incentives, and investments, Uganda can attract global tech companies and AI innovators to set up in Kampala. This will create even more high-value jobs, stimulate the economy, and establish Uganda as a force to be reckoned with in the global AI revolution.

Many parts of the world are setting up universities and research centers to train the next generation of AI experts. So, the big question for us is: Who is preparing our youth to be tomorrow’s AI leaders? Are we ready to be creators, or will we remain just consumers of technology developed elsewhere?

Rethinking Our Priorities for a Self-Reliant Future

This aid freeze shows us that depending on foreign assistance is risky. We need to build our own internal capacity and reduce our reliance on external partners. While aid from organizations like USAID has helped in the past, it has also sometimes led to dependency rather than true, sustainable growth.

Many local non-governmental organizations (NGOs) start with expatriates leading the way, living a lifestyle that is hard to maintain once they leave. This often results in short-term fixes instead of long-lasting development. We must change this pattern by focusing on training local talent and building institutions that can support long-term, technology-driven growth.

At the same time, our government must examine its budget carefully. In June 2024, Finance Ministry permanent secretary Ramathan Ggoobi announced that 1.7 trillion shillings were saved from austerity measures like cutting down on unnecessary purchases of vehicles, furniture, and supplies. This shows that we can redirect funds to more important areas like education and technology.

The Road Ahead

By putting technology, especially AI, at the heart of our development strategy, Uganda can create thousands of new jobs, add more value to our natural resources, and build a future where we are not waiting for help from abroad. Instead, we will be leading the way, innovating from our own ideas and driving our economy to new heights.

We are in the midst of an AI revolution, and this is our chance to take charge. Embracing AI is not just about keeping up with the rest of the world, it’s about securing a prosperous future for Uganda. If anyone still doubts that AI is the new gold or oil for the world, just look at the enormous investments being made by countries and companies alike.

Now is the moment for us to re-focus our priorities, invest in our people and technology, and ensure that Uganda moves from being a recipient of aid to becoming a leader in innovation and sustainable development.