Research and consulting in Uganda

Country overview:

IOA has undertaken in-depth research consulting work in Uganda to amass data on all aspects of Ugandan life. Economically, IOA researchers have noted commercial and industrial activity is held captive to the dictates of a government run by an autocrat who has been in power since 1986. To distract from governance failures, the Museveni regime in power for 38 years has provoked a human rights crisis and international condemnation by attacking LGBTQ+ peoples. This will impact investment and tourism at a time when the country relies on both for foreign exchange earnings.

One out of five Ugandans struggles to earn a living through small-scale agriculture. Although natural resources abound and game parks are beloved by tourists, government corruption has ensured most Ugandans do not benefit. However, with economic activity forecast to grow significantly from now through 2025, poverty will most certainly be lessened.

Key opportunities in Uganda:

With proper management, small-scale farming has a potential to become export-driven commercial agriculture
A beautiful landscape and wildlife reserves support a lucrative tourism sector
Considerable mineral resources ensure a future for the mining industry

Key concerns/risks in Uganda:

A virtual dictatorship that runs the country is positioning itself for hereditary rule
Human rights abuses have accelerated with government attacks on LGBTQ+ individuals
Women’s lack of rights is a societal failing

Find out about how IOA can help you with research and consulting services in Uganda

Tips on doing business in Uganda:

Starting a business:

Uganda is similar to the rest of the African continent in terms of ownership rights. The local ownership laws for business are liberalised and foreigners may now own 100% of locally incorporated business without the requirement of a local partner
There is a threshold of US$100,000 for foreign investors to obtain an investment licence. Foreigners may own property, but only through lease purchases, and not freehold ownership
(Read more at: https://www.ugandainvest.go.ug/)

Doing business:

Businesses that qualify for an investment licence are entitled to a number of tax incentives. These include concessional rates of import duty for an investor who is importing any plant, machinery, equipment, vehicles or construction materials for an investment project, as well as deductions on import duties for goods used as industrial inputs
Uganda is generally rated as one of Africa’s more difficult business environments due to a variety of factors including high taxes, inefficient bureaucracy, corruption, and utility outages

Culture and society:

English is widely spoken in Uganda, which expedites the investment process for investors from other Anglophone markets. Local culture favours face-to-face interaction over indirect digital communication and investors should therefore expect a protracted period of face-to-face engagement and rapport building before negotiations can begin
A premium is placed on respect for elders and seniority, and public displays of intimacy are generally frowned upon as a taboo
Visitors should take note Ugandan law discriminates strongly against LGBT individuals and same sex sexual activity is considered a criminal offense. Travel along the countries western and northern border regions should be avoided for security reasons