Uganda rapid e-trade readiness assessment

Summary

E-commerce in Uganda is strenghted by widespread ICT access, mobile payments, and innovative delivery logistics. The government prioritizes e-commerce in the National Development Plan II, fostering ICT service access and foreign company entry. The forthcoming Digital Uganda Vision highlights ICT’s role in e-government and e-commerce. However, domestic digital content and productive capacities need more support.

Despite significant ICT infrastructure investment, rural areas remain underserved, lacking Internet and electricity. Uganda’s landlocked status necessitates efficient regional transport for trade logistics, with improvements in postal services and last-mile delivery. Mobile payments are prevalent, with mobile money transactions accounting for half the national GDP, yet electronic payment mistrust persists.

Uganda benefits from regional cyberlaw frameworks and has enacted key e-commerce laws, though awareness and updates are needed. Skills gaps in digital marketing and online content management hinder local firms, which rely on foreign companies. Government initiatives aim to boost ICT literacy in education and develop IT skills through innovation hubs.

Financing remains a major obstacle, especially for start-ups and MSMEs, limiting online business growth. To realize e-commerce’s full potential, Uganda should enhance local production capacities, increase exports, and integrate into regional and global value chains, ensuring inclusive opportunities for all.