Strong macroeconomic management and general political stability have helped this fast-growing country of 37 million improve its business environment over the past decade. However, high levels of corruption, poor infrastructure, a shortage of human capital and a dearth of affordable financing remain significant hurdles for businesses in all sectors.
In general, Uganda's economy remains small, with a gross domestic product (GDP) of about $21 billion in 2012 ($589 per capita), and 24.5% of the population living on less than $1 per day. It is also highly dependent on foreign aid. Direct budgetary assistance from donor governments made up about 19% of the Ugandan budget in the 2012/2013 fiscal year.
Uganda’s private sector has expanded significantly in recent years, and Uganda's GDP, trade, and foreign direct investment, while slowed by the effects of the 2008 global financial crisis, have remained strong. Major investments were made in construction, banking and financial services, telecommunications, and petroleum exploration.
The service sector was the largest contributor to GDP in 2012 at 50% and industry contributed about 26%. The agriculture and fishing sectors continue to dwindle, contributing23% of GDP in 2012 while providing approximately 66% of employment in Uganda.
At the top of the Ugandan government's agenda is strengthening the country's road, rail, water, energy, and communications infrastructure. In FY 2013/14, the Ugandan Government plans to invest nearly $1 billion in road construction and improvement
For more details on Doing Business in Uganda, read the Uganda Country Commercial Guide, at this link: Country Commercial Guide
Economic & Commercial Officer
U.S. Embassy Kampala
Tel: +256 414 306 102
U.S. Commercial Service
U.S. Embassy, Nairobi
Tel: +254 (20) 363-6424
Fax: +254 (20) 363-6065