2024: Doing Business in Uganda

Part 1: Doing Business in UGANDA

What is the current business climate in your jurisdiction including major political, economic, and/or legal activities on the horizon in your country that could have a big impact on businesses? 

Uganda's business climate is characterized by a combination of political stability and sustained economic growth. The political landscape, while stable in recent years, has seen a long-standing presidency, and navigating political nuances is essential for businesses. The country offers numerous opportunities for investors and its economy is diversifying, including with respect to the agriculture, manufacturing, and services sectors. 

The country is endowed with a wide selection of minerals including precious metals like gold, silver, and platinum. Uganda also has renewable energy resources which are still untapped, especially solar, wind, and mini hydropower resources.

A number of laws and regulatory amendments in the areas of financial services, pensions and retirement benefits, competition, fisheries and aquaculture, and mineral resources, among others, have recently been passed in Uganda. These regulatory developments are aimed at eliminating barriers to certain financial products and promoting financial inclusion, continued promotion of Uganda's agricultural and natural resources, as well as strengthening regulation by various statutory authorities.

From what countries do you see the most inbound investment? What about outbound? 

Uganda receives inbound investment from the Netherlands, the United Kingdom, Mauritius, Kenya and South Africa.

In what industries/sectors are you seeing the most opportunity for foreign investment? 

Foreign investment opportunities are available in various industries/sectors, including information and communications technology, energy, tourism, electronics, construction, infrastructure, healthcare, pharmaceuticals, mineral value addition, and agriculture value addition. The agricultural sector, however, continues to be a priority sector in the country.

What advantages and pitfalls should others know about doing business in your country? 

The Ugandan Government encourages foreign investments, and there have been efforts to simplify business registration and promote a more investor-friendly environment. The oil and gas sector is subject to a national, and local content framework other investment restrictions include those relating to the employment of foreign workers and the prior registration of suppliers to the oil and gas sector.

Uganda has a fast-growing population, workforce, and domestic market. The government offers various incentives, including those promoting farming activities; tax holidays granted to an industrial park or free zone developers or operators, depending on the amount of capital invested; and incentives available within the East African Community, including duty drawback schemes and no requirement for import or export licenses within the region. Uganda's central location in East Africa makes it a hub for regional trade, offering easy access to markets in neighboring countries.

What is one cultural fact or custom about your country that others should know when doing business there? 

Decision-making through consensus is valued among Ugandan businesspeople, who also place a strong emphasis on developing relationships. It is customary to greet business associates in order of seniority and title.

Part 2: About Your Firm

What distinguishes your firm from others in your market? 

With offices in Eastern, Southern and Western Africa, we have deep expertise and the capacity to solve all our client's legal, tax, forensics, and IP requirements and help them navigate regulatory hurdles, no matter where in Africa they do business. 

Because we have many years of practical experience working on the ground throughout Africa, we have developed a proven track record and a solid understanding of local cultural, commercial and geopolitical contexts, as well as long-standing partnerships with trusted firms with whom we work. 

Our practitioners are qualified to practice English law and French law and we have extensive experience in the legal codes of OHADA used in West and Central Africa.

Our tagline at ENS is 'Original Thinking,' meaning we thrive on ingenuity and producing the best solutions for our clients and their needs.  

What are three words that describe the culture of your firm? 

Smart, Open-minded, Caring.

How does your firm participate in Corporate Social Responsibility (CSR) and/or Environmental, Social, and Governance (ESG) initiatives? 

We invest thousands of hours every year in a wide variety of pro bono work across the African continent. In South Africa, our efforts are focused on our two permanent pro bono offices—a first for a law firm. These offices are located in areas with difficult living conditions, including high levels of unemployment and numerous challenges. 

Our pro bono project has a multipronged approach which consists of the provision of advice and assistance, as well as legal education and skills development, in order to equip community members with knowledge and vital skills, thereby contributing to access to justice and the fostering of entrepreneurship and the growth of sustainable small businesses.

We run annual business management training programmes and courses in human rights and constitutional law, with the aim of empowering leaders and activists with important information which will be shared in their communities.

Are there any new and exciting initiatives, practice areas, or industry focuses in your firm? 

We have recently introduced our Public Law practice, showcasing our experience in providing opinion and advisory services, administrative law services relating to the performance of public powers and functions, transactional services relating to public-private partnerships, drafting legislation supporting investigative and reporting work, and conducting judicial reviews of decisions by organs of state and public functionaries. 

Our Public Law practice has advised clients from a number of industries, namely banking and finance, basic education, construction, electronic communications, early childhood development, energy, electricity, mining, port services, private and public higher education, transport and logistics, strategic oil reserves, telecommunications, human settlements, media, electoral issues, real estate, prisons, and pharmaceuticals.