Learn about barriers to market entry and local requirements, i.e., things to be aware of when entering the market for this country.
Last Published: 7/21/2019

The top five challenges U.S. companies experience in Uganda are:

  1. High Levels of Corruption:  Transparency International's (TI) 2018 Corruption Perceptions Index ranked Uganda 149 out of 180 countries.  Land-related fraud and corruption are common, especially as complex land laws restrict foreign ownership and lead to frequent land disputes.
    Limited Infrastructure, Including Connectivity, in Rural Areas:  Although the government is investing heavily in infrastructure, outside of the major towns, Uganda’s road and rail systems are in poor condition, and access to electricity is limited. 
    Lack of Specialized Skills:  The UNDP’s 2018 Human Development Index ranked Uganda 162 out of 189 countries.  Although Uganda’s adult literacy rate was 73 percent, it had a 75 percent primary school dropout rate, and only 4 percent of Ugandans were enrolled in tertiary education.  Per the International Labor Organization (ILO), 73 percent of Ugandan workers lacked the level of education to meet job requirements for available jobs. 
  2. Inefficient Government Services:  The World Bank’s 2018 Doing Business Report ranked Uganda 127 out of 190 countries, seven positions lower than the previous year.  Uganda ranked below the average for sub-Saharan Africa in multiple evaluation categories, including: Starting a Business, Dealing with Construction Permits, Trading Across Borders.            

Political Uncertainty:  Uganda faces an uncertain mid-to-long-term political environment that may increase risk to foreign businesses and investors.  With 80 percent of the population under age 30 and anxious to see the first significant political change of their lifetime, Museveni may face his biggest political challenge yet in the 2021 election.  As Museveni feels challenged, the government will likely rely on mass bribery and coercion to suppress political opposition, creating tension and intermittent violence throughout much of the country. 

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.