Uganda Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in uganda, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Market Challenges
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The top challenges U.S. companies experience in Uganda are:

  1. High Levels of Corruption: Transparency International’s 2024 Corruption Perceptions Index ranked Uganda 140 out of 180 countries, unchanged from the previous year. Land-related fraud and corruption are common, especially as complex land laws lead to frequent land disputes. Foreign ownership of land is restricted to lease-hold titles only. Though government and tenders are governed by laws and regulations, in practice the tendering process can be opaque and marred by allegations of abuse.     
     
  2. Limited Infrastructure, Including Connectivity, in Rural Areas: Although the government has invested heavily in infrastructure, Uganda’s secondary road and rail systems are in poor condition outside of major towns and access to electricity is limited, with only 20% of the population using grid electricity according to Uganda Bureau of Statistics. As a result, transport costs in landlocked Uganda to the Indian Ocean export ports can be as high as the cost of port-to-port sea shipping.
     
  3. Lack of Skilled Labor Force: The UNDP’s 2024 Human Development Index ranked Uganda 157 out of 191 countries, crossing from a low human development category to a medium human development category.  Although Uganda’s adult literacy rate is 79%, the primary school dropout rate is 53%, and only 5% of Ugandans enroll in tertiary education. Per the International Labor Organization in 2021, 43% of Ugandan workers lacked the level of education required for the jobs they were holding, even though at least 80,000 Ugandans graduate annually. According to Uganda Bureau of Statistics surveys, employers report that many university graduates lack basic technical, managerial, and communications skills.
     
  4. Legal and Regulatory Environment: Some businesses struggle with legal compliance due to overlapping national and local government jurisdictions in terms of licenses, levies, fees, and permits; duplication of information obligations required for license applications; lack of coordination between government agencies; insufficient ICT solutions to integrate and streamline administrative processes; and general lack of information about licensing requirements and procedures. Further, in many industries such as agriculture and mining, government policy requires value addition before export. 
     
  5. Low wages and large informal economy: Uganda has a low minimum wage at USD 1.70 per month, set in 1984.  The Uganda Bureau of Statistics estimates that over half of Uganda’s workforce earns an average less than USD 50 per month making it a price sensitive market. Uganda’s informal economy contributes 50% of GDP and 60% of total employment. The Ministry of Finance, Planning, and Economic Development estimates that at least 40% of GDP is lost in potential tax unpaid by the informal sector. 
     
  6. Political Uncertainty: President Museveni will run for a seventh term in the January 2026 general elections, seeking to extend his stay in power beyond 40 years. Uganda has never had a peaceful transition of power since independence in 1962. The 2021 general elections were marred by instances of pre-election violence, arrest of opposition leaders, a five-day internet shutdown, four-week blockage of social media, and an ongoing ban on Facebook access. 

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