Provides advice on how to perform due diligence and in what areas it is necessary for a U.S. company. Includes information on the U.S. Commercial Service International Company Profile service.
Last Published: 7/21/2019

Fraud is rampant in Uganda, and becoming increasingly sophisticated.  Investors interested in entering the Ugandan market must exercise caution and conduct due dilligence prior to finalizing any transactions with a potential Ugandan business partner.  While many legitimate Ugandan entities seek to source goods with U.S. firms, the U.S. Embassy commercial section regularly receives reports of fraud or attempted fraud. 

U.S. businesses are advised to collect cash upon or before delivery, or use an escrow service, as well as collateralizing all loans.  U.S. vendors should never agree to accept third-party checks as payment for goods to be shipped to Uganda.  Gold should never be accepted in lieu of payment – it is often fake or sourced from conflict regions.  U.S. firms should check document veracity with financial institutions or through a commercial law firm.  Similarly, firms should also conduct reference checks of potential Ugandan partners, especially other foreign customers or suppliers.

The American Chamber of Commerice in Uganda offers a due diligence service:  manager@amchamuganda.co.ug  Please see the Embassy’s list of commercial lawyers to contact for due diligence services:  https://ug.usembassy.gov/business/getting-started-uganda/ [Select – List of Commercial Lawyers]
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.