Uganda Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in uganda, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Select Country Guide
Selling Factors and Techniques
Last published date:

Companies generally advertise products through billboards, newspapers, radio, television, online classifieds, and social media. Although most Ugandans speak English, ad campaigns often use local languages as well. Firms also promote their products and services at music concerts and sports events. 

Trade Promotion and Advertising

The U.S. Embassy in Uganda is a U.S. Department of Commerce Foreign Commercial Service partner post with the U.S. Embassy in Nairobi, Kenya. Investors can find more information about trade promotion services here:  Business - U.S. Embassy in Uganda - Learn about bilateral investment and trade. The Uganda Investment Authority leads the government’s efforts to promote trade and investment in Uganda.

The Uganda Manufacturers Association organizes an annual trade show. The Uganda National Farmers Federation also organizes an annual agricultural trade show that is typically held in July. 

Newspapers and Business Journal Advertisers include:

  • The East African
  • The Daily Monitor
  • The New Vision
  • The CEO Magazine 

Leading radio and television stations include:

  • Capital Radio
  • KFM
  • MultiChoice Uganda Limited
  • Radio Sanyu
  • Simba Radio
  • Uganda Broadcasting Corporation
  • NBS Television
  • NTV

Pricing

Ugandan firms importing goods use the International Chamber of Commerce trade terminology otherwise known as “Incoterms.”

Although many U.S. firms prefer to quote prices on Ex Works or Free on-Board basis, Ugandan importers generally prefer price quotes on “Cost, Insurance, and Freight Mombasa” basis. Kenya’s port of Mombasa is the primary initial port of entry for goods destined for Kampala. However, in recent years, some Ugandan traders have begun importing goods through Dar es Salaam, Tanzania. Ugandan importers generally prefer Cost, Insurance, and Freight quotes in U.S. dollars as they are familiar with customs charges, including taxes levied at the local ports/airports and brokerage and handling charges.

Uganda operates as a free market with few price controls outside of basic foodstuffs. 

Ex Works: The seller is required to make goods ready for pickup at his or her own place of business. Transportation costs and risks are assumed by the buyer. [Least risk to exporter, greatest risk to Ugandan importer]

Free on Board (FOB): The seller agrees to absorb the costs of delivering the goods to the purchaser’s transporter of choice. The term FOB is a frequent feature of contracts for the sale of goods, especially when the goods are to be delivered to a foreign destination. [Low risk to exporter, high risk to Ugandan importer]

Cost, Insurance, and Freight: The seller arranges for the carriage of goods by sea to a port of destination and provides the buyer with the documents necessary to obtain the goods from the carrier. [Moderate risk to exporter, moderate risk to Ugandan importer]

Import Costs

When calculating import costs, companies should consider the following:

  • Purchase costs, as per bill of landing net sea/ airfreight charges depending on incoterm basis

  • Insurance

  • Logistics

    • shipping agent’s fee

    • port charges

    • clearing charges (USD 150 - 250 per container)

    • forwarding charges

  • Land Transport. Despite the relatively short distance, land transportation costs from the Kenyan port of Mombasa to Kampala are substantial at $3,500 per dry container, often exceeding the price of shipping goods from the exporter port to Mombasa.

  • Customs/Excise Taxes

    • Most of the goods exported to Uganda are subject to customs/excise duty taxes. These taxes vary depending on the products. The range of customs taxes varies from zero to 60%.

    • VAT is 18%.

    • Withholding tax is 6%.

    • Infrastructure tax is 1.5%.

    • Foreign service tax is 15% withholding tax and 18% VAT.

  • Miscellaneous fees

    • Some agricultural goods including beef and dairy are subject to additional fees.

    • Some high-value consumer goods not meant for resale, including digital televisions, are also subject to additional taxes.

  • For further information on import fees, please go to the Uganda Revenue’s Authority website. 
     

Sales Service/Customer Support

Uganda’s market offers consumers limited customer support. Ugandan customers often make purchases on an “as-is” basis. Investors who offer high-quality products with superior supply chain logistics and technical support could take advantage of this market shortcoming in Uganda.

Local Professional Services

Principal Business Associations

For a more comprehensive listing of Ugandan Business Associations please go to:

Uganda Economy - Trade Associations
 

Limitations on Selling U.S. Products and Services

According to the Uganda Investment Code, the Minister of Finance, Planning, and Economic Development through a statutory instrument states the minimum capital requirements for investment thresholds for both foreign and domestic investors, based on the sector.  If the foreign investor intends to engage in any business beyond merely trading (i.e., intends to manufacture goods or provide services), the investor must acquire a license from the UIA.  There are no restrictions on the sale and distribution of products once they are allowed in the country.  Foreign companies often partner with local businesses to sell their products.

×

Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

Privacy Program | Information Quality Guidelines | Accessibility