Blog Post

Challenges doing business in Uganda

What are the challenges?
A number of challenges exist for UK companies intending to do business with/in Uganda. These include:

Infrastructure
Uganda’s infrastructure, particularly its systems of roads, rail, electricity and water is relatively poor. However, in recent years the government has committed relatively large funds to their development in preparation both for the East African Common market and the production of oil.

Cost of Energy
Both the cost and availability of electricity remains a challenge. Over 80% of the country does not have access to grid electricity. Measures to reduce this are underway with the construction of new hydro-electric dams and power stations.

Affordable financing
Lack of affordable financing is another impediment to business. Loans are generally short-term with interest rates ranging from 15-24%. In addition to high rates, little liquidity exists for loans over three years.

Counterfeits
The sale of counterfeit goods smuggled into Uganda is a real challenge to legitimate companies. The sophistication of counterfeits is growing and public awareness is not strong. In addition, enforcement authorities are ill equipped to fight this.

Getting Paid – Terms of Payment
Credit is an important feature of the market. All the common forms of arranging payment are in use in Uganda. The most common payment cycle is 90 or 120 days. Extended credit terms for large items of capital equipment are often critical to the success of a project. The best method of payment is a confirmed irrevocable letter of credit drawn on a reputable bank. In case of payment with order beware of cheque scams.
It is advisable to quote amounts in Uganda Shillings so as to avoid losses that may occur through exchange rate fluctuations. Nevertheless, providing quotes in dollars for foreign products is also used.
Payment and accounting systems are more advanced in the financial sector and in large businesses.
Lists of local lawyers and chartered accountants are available on request from UKTI Uganda The principal types of business enterprises in Uganda are:

  • Registered Companies (Private and Public)
  • Branch offices of companies registered outside Uganda
  • Partnerships
  • Sole Proprietorships
  • Co-operatives

Companies are registered as limited liability companies as in 1 and 2 above, and regulated by the Companies Act. Uganda’s legal system is based on English law and practice. A wide range of legal services are locally available.
Considerable investments continue to be made throughout Uganda especially in infrastructure and energy. The road networks are being upgraded and expanded to improve connections between major centres while tenders for the port and rail system have been issued so as to expand trade capacity. Privatisation of various institutions has also been ongoing.

Getting Paid
In Uganda, retailers normally receive payment for consumer goods in cash. However, exporters of capital goods or other equipment, machinery and services normally seek payment through wire transfers. Ugandans may attempt to pay by cheque, but increasing cheque fraud makes this a highly risky proposition.

The banking system
The banking system has steadily improved and is stable and well capitalised. The system includes the Bank of Uganda, 25 commercial banks and many micro deposit institutions and development banks.

Foreign exchange controls
There are no foreign exchange controls affecting legitimate trade.

Project Financing
Multilateral institutions active in Uganda include the International Monetary Fund (IMF), the World Bank, the African Development Bank as well as several European institutions. Major development projects in health, education, agriculture and infrastructure are financed by bilateral donors and/or international organisations.

Comment (1)

  1. Tumusiime Fred... 24/04/2012 at 3:07 pm

    Uganda has a new Bus…

Leave a Reply

Related Posts

Live_chat_how_can_governments_improve_energy_infrastructure_in_Africa_Global_Development_Professionals_Network_The_Guardian_-_2015-02-05_14.43.11
Access Infra Africa — $500 Million Investment Vehicle For Renewables On The African Continent

A new $500 million investment vehicle for the funding of renewable energy projects across

New_UIA_board_chair
New Uganda Investment Authority (UIA) board chair tasked to complete Industrial Park

Kampala- Mr Juma Kisaame, a banker by profession, is the new board chairperson of

Akol_Commissioner-General
Introducing Uganda’s new URA Commissioner General – Ms. Doris Akol

Greetings from Uganda Revenue Authority (URA). I am privileged to introduce to you our new Commissioner

A-number-of-youth-graduate-annually-however-unemployment-is-also-on-the-rise
New survey reveals growing war for talent in Africa

A growing war for talent is emerging in Africa as some 70% of African

Dr Richard Sezibera, the East African Community secretary general
Intra-trade growth prospects good – EAC secretary general

The East African Community (EAC) secretary general, Dr Richard Sezibera, has given a positive

uganda-road
President Yoweri Museveni will on October 20 travel to London to showcase 14 projects for funding at the Global African Investment Summit

The summit, chaired by former Nigerian president Olusegun Obasanjo, is seeking to direct funds

AmosNzeyi
Mr Amos Nzeyi at the Ugandan Convention in London on 13th Sept 2014

Amos Nzeyi is a successful Ugandan Businessmen, Entrepreneur and Industrialist, He is best known

Skills Centre- Ruhanga SW Uganda
Charity: Why Sanitation Matters to girls in Uganda

Having access to a toilet is something that we in the West take for

Convention2014
Buganda Kingdom woos UK investors

A delegation from Buganda Kingdom showcased the vast potential investment opportunities that exist within

ucu2014
The race to become the new India: East Africa plunges into BPO

Summary: East Africa is hoping to turn itself into an outsourcing hub with a

commodities01pix
Uganda: 9,000 farmers to benefit from WFP warehouse partnership

Kampala- More than 9,000 smallholder farmers will gain better market access for their produce

cattles
Uganda to get US$40 million to support Pastoralists

The World Bank’s Board of Executive Directors today approved a total of US$122 million

Fabian-Kasi
Mr. Fabian Kasi MD Centenary Bank, transforming the bank into a Ushs1trillion institution

Taddewo Senyonyi Much has been said about the failure by Ugandans to rise to the

apartment
Reasons to attend the 2014 Ugandan UK Convention

The forum bring together experts, business leaders, professionals and representatives from prominent organisations based

ugandainvestment copy
Potential investors have viable opportunities and incentives

Uganda's geographical diversity and wide range of flora and fauna makes it a unique tourist

apartment
Strengthening access to human and physical capital

Human capital is a key asset of entrepreneurs. It includes not only formal education,

eaflags
Why invest in East Africa

Fifteen good reasons why you should choose East Africa as your investment destination: Market access

northernUganda
Investing in Northern Uganda should not be only about building factories, tourist lodges and mining minerals.

It should also be about investing in its people, and in particular its youth.

3rd Ugandan Convention Conference632
Factors inhibiting the Development and Growth of Ugandan Diaspora’s Enterprises and Entrepreneurship

The Uganda Diaspora has the potential to actively participate in enterprise development and entrepreneurship

Dr Frank B Sebbowa
Executive Director of the Uganda Investment Authority
Investors to get licences in 24 hours, says UIA boss

by Milly Kalyabe - Editor, Uganda Economy   In the past few years Uganda’s economy has

UCU2014
Representing Uganda abroad: Ugandans missing opportunities due to fear

Jun 5, 2011. BY SHAMILLA KARA “Sri Lanka’s remittance inflows during 2010 were $4.1b.

3rd Ugandan Convention Conference669
10 common mistakes doing business in Uganda

Lack Of Market Research Poor Record Keeping And Administration Over Investing In The Right

Ugandan-UKExpo2
Uganda Market Entry Strategy

Market Entry Strategy Uganda has signed a Common Market Protocol with other members of East

pig farming
Ugandans in the Diaspora; urged to invest in Agriculture to reduce rural poverty and boost food security in Uganda

Mr Willy Mutenza, Chairman Ugandan Convention UK has called for the introduction of initiatives

Bitature00_595
Patrick Bitature – Businesses should go for social impact

Patrick Bitature is the Chairman Uganda Investment Authority and the CEO of Simba Group

Opportunities-in-Real-Estate-and-Manufacturing
INVESTING IN UGANDA | UGANDA INVESTMENT

Uganda Investment Authority (UIA) is a One-Stop facilitator for investors, mandated by an Act

Agriculture-and-Horticulture
Making agriculture work for jobs

There is a jobs cow waiting to be milked in Africa. It is agriculture

Ida Horner...MD...Ethnic Supplies.
Ida Horner Let Them Help Themselves Out Of Poverty

Founded by Ida Horner of Ethnic Supplies, Let Them Help Themselves Out of poverty

1stLady
First Lady defies protestors, impresses at Ugandan UK Convention 2012

by Norman Miwambo,  the Observer   London – The First Lady, Janet Museveni’s presentation, backed by

exhibition-fstall2
2nd Ugandan Convention UK- who are the real Ugandans?

by http://www.africaontheblog.com That was one of the points of discussion at the recently concluded Ugandan

exhibition
Opportunity Uganda

Business and investment is fundamental to the Ugandan UK Convention. This is the second

MetierHomes
Opportunities in Real Estate and Manufacturing

Housing constructionin Uganda is steadily growing at the rate of about 15% annually and

YouthForum-12
Youth Forum: Motivating and Empowering Uganda’s future

Motivating and Empowering Uganda’s future We welcome you to the second Ugandan UK youth forum

Kitafunda2
Uganda UK Convention, welcome Prof Kikafunda Uganda’s new High Commissioner to London

On behalf of all the Ugandan Convention UK we welcome Professor Joyce Kikafunda Uganda’s

HaveUregistered2
Exiled from Uganda as teen, New Westminster doctor returns to help children

Dr. Shafique Pirani, an orthopedic surgeon, is one of the speakers at a Simon

AshishThakkar
Envoys told to market country

Uganda’s heads of foreign missions have been urged to market the country as an

rzd_Munyonyo-private-estate-wipII-420x315
Real estate grew faster in 2011

Despite the challenges, the real estate industry continued to attract the attention of more

UWA logo
Tourism and Travel

Uganda lies at the Equator in East Africa where the weather throughout the year

ugandainvestment copy
Uganda’s investment climate improves

UGANDA has moved up seven places to the 122nd position out of 183 economies

diasporabond
Investing in Uganda’s Financial Markets – (Diaspora Bond)

At this year's Convention, we have put together a team of experts to discuss

Agriculture-and-Horticulture
Opportunities in Health, Agro- and Horticulture in Uganda for Diasporas

One of the most successful Diasporans is Paul Sembeguya who decided to go back

northernUganda
“Tourism is a profitable investment in Northern Uganda”, advised Ugandan Diasporas

One measure of Northern Uganda's return to normalcy, is the way most people that

UgandaConvention064
Volunteer wanted

Do you want to make a difference? We are looking for enthusiastic and pro-active community

venue
The 2nd Ugandan UK Convention is here – 15th Sept 2012

On  15th Sept2012, some 2500 delegates will assemble at the Luxurious Troxy Arena in

mediapartner
Become our Media Partner

By becoming a media partner  you will: Brand your media organization with an event whose

marketingCampaign
Marketing Campaign

Every available piece of marketing armoury will be deployed in reaching prospective visitors including

fashionShowFeature
2011 Conventions photos

[imagebrowser id=23] [slideshow id=23]

uganda_diaspora_events
The First Ugandan Diaspora Social Networking Gala Held at Kampala Serena Hotel A Big Success!

By Ugandan Diaspora News Team and Agencies, KAMPALA ~ In what was dubbed as

DiasporaSummit
UIA attracts professionals back home

By Raymond Baguma The Government plans to establish a system to sell bonds and attract

HE-Joan-Rwabyomere
Letter From Uganda High Commissioner to the UK HE Joan Rwabyomere 2011

Before the NRM government coming to power in 1986, Ugandan's economy was in ruins

venuebanner
Thank you to all those who attended the 1st Ugandan UK Convention

The Uganda UK Convention wishes to express its deepest thanks to Rt Hon Rebecca

Passports
Dual Nationality in Uganda

The law permitting Dual Nationality in Uganda is now fully operational and came into

opportunityinAfrica2
OPPORTUNITY AFRICA CONFERENCE

WHAT IS OPPORTUNITY AFRICA? Opportunity Africa is an International Conference to be held in

ScreenNationsAwards2007039300x250
Resounding success at the Uganda UK Convention

Harnessing the Potential of the Ugandan Diaspora The Uganda UK Convention, London The theme of the

chocolate
Chocolate Manufacturing / Sweet Distribution business opportunity

You have a opportunity to start your own business manufacturing chocolates under you own

sponsorachild
Awakening philanthropic mind in the Ugandan Diaspora

The Uganda UK Convention 2011 was not all about investing in businesses only, but also

Tom-Buringuriza
Message from the Executive Director Uganda Investment Authority

Tom Buringuriza Ag. Executive Director UGANDA INVESTMENT AUTHORITY It gives me great pleasure to be part

doingbizinjuba
Doing Business in Juba 2011 report

Doing Business in Juba 2011 measuresbusiness regulations and their enforcement in Juba, Southern Sudan.

Bitature00_595
Mr. Patrick Bitature named Australia’s first Honorary Consul to Uganda

Australian Consulate opens for business in Kampala Australia’s already strong relationship with Uganda will be

un_flag
UNDP offers Uganda $50m

The United Nations Development Fund has offered $50m to Uganda to improve on the

408
Mobile phone could solve banking challenge

Recently I read a newspaper article about remittances from Ugandans living in the diaspora

afr_remitt_2004-12
Remittances to Africa hit $40b

By Roselynn Karatsi IN Africa, migration is a vital lifeline for the continent and

mainimg
What are our embassies doing to promote Uganda’s tourism?

I have been asking myself lots of questions over the years about the influence

professionals
African governments must find lasting solution to brain drain

Much as our continent wallows in poverty, have you readers ever pondered the number

0065
Diaspora to build Luweero hospital

Luweero District authorities have stepped up mobilisation for funds towards the proposed district hospital

prosper003px
Uganda bursts with unexplored beauty

Tourism was allocated a full ministry this financial year. As the minister in charge,

Updated_uganda_events_news_00
Ugandan UK Convention a Success! ~ Entertainment and Fashion Show Photos

The Ugandan community in the United Kingdom and the greater European region held their

unaatimes_AD_new
The Ugandan Diaspora Social Networking Event 2011 ~ 29th, December 2011

Celebrating Ugandans in the Diaspora ~ The Ugandan Diaspora Social Networking Event 2011 ~ 29th,  December

GhanaPartyinthePark2010-20
Youth minister asks for labour export funds

By David Ssempijja THE Government has been asked to create a special fund to

issueWebbannerOutnow
The Promota magazine is out – Convention’s Special Edition

Early this year when I had the idea to organise the Ugandan Convention, the

northernUganda
Peace Recovery and Development Plan for Northern Uganda (PRDP)

After nearly 20 years of continuous conflict in Northern Uganda, the Government of Uganda

UgandanConventionUK2011-162
Music of Uganda

Ugandan music is as diverse as the ethnicity of its people. The country is

IMG_0067300x250
How to start and run a succesfull business in Uganda

Uganda's Top Entrepreneurs Patrick Bitature, Sudhir Ruparelia, Sylvia Owori and Robert Ahimbisibwe telling their

Land-Rights
Government’s Computerization Efforts to Simplify Land Registration for Ugandans

Currently the Land Registries in the country run manual systems of records keeping which,

DiasporaSuccessStoryn
MY KYEYO CASH GAVE MY BUSINESS A PUSH

ACHIEVER – Siraje Sserunjogi, 37 owner of Kikonge Investments Siraje Sserunjogi walks with an easy

jomayi logos
AFRICA STILL FEELING THE CREDIT CRUNCH

The housing market is being stymied by continuing borrowing problems, says Akinola Olawore, Executive

solar-africa
TURNING BURDENS INTO OPPORTUNITIES

If Africa is to undergo an energy surge, it needs to break from monopolies,

JOMAYI-Banner
FLATPACK HOMES FOR THE FUTURE OF UGANDA

The answer to Africa’s chronic housing shortage could be an innovative new design system,