market intelligence
Uganda’s economic boom thanks to powerful projects and oil discoveries
Uganda, officially known as the Republic of Uganda, is a landlocked East African nation, celebrated for its natural beauty and strategic importance in the region. With a population of approximately 49 million (as of 2024) and a vibrant, diverse economy, Uganda offers promising opportunities for business and investment. Its capital, Kampala, serves as a dynamic hub for trade, finance, and innovation. Governed as a unitary presidential republic, Uganda’s political stability under President Yoweri Museveni has enabled significant strides in economic development, despite ongoing challenges.
Economic landscape Uganda’s economy is a mosaic of agriculture, services, and industry, each playing a critical role in its development. Agriculture remains the backbone, employing 70% of the workforce and contributing significantly to exports. Coffee, Uganda’s flagship crop, stands as a leading foreign exchange earner, alongside tea, cotton, and sugarcane. The country is also seeing a surge in industrial activity, including manufacturing, construction, and mining, which together account for roughly 25% of GDP. The services sector dominates Uganda’s economy, contributing 44% to GDP, driven by trade, transport, and a burgeoning tourism industry. The country’s diverse geography, ranging from volcanic mountains to vast savannas, provides the foundation for a thriving eco-tourism sector. Uganda’s oil reserves, estimated at 1.4 billion barrels, are set to transform its economy. Projects like the East African Crude Oil Pipeline (EACOP) and the Tilenga Project are expected to make Uganda a key player in regional energy markets, with oil production slated to begin by 2025. Combined with ongoing infrastructure projects, Uganda’s economy is poised for robust growth, with GDP projected to expand by 6% in 2024.
Major development projects 1. The Malaba-Kampala Standard Gauge Railway (SGR) Uganda is undertaking an ambitious rail infrastructure upgrade with the construction of the Malaba-Kampala SGR. This 273-kilometer railway will connect Uganda to the Kenyan SGR network, facilitating access to the Port of Mombasa and enhancing regional trade. The project, valued at €2.7 billion and led by the Turkish firm Yapı Merkezi, is expected to be completed by 2028. Designed to transport 25 million tonnes of freight annually, it is anticipated to reduce transportation costs and improve trade efficiency, reinforcing Uganda’s role in East Africa’s logistics network. 2. Oil and Gas Development - The discovery of significant oil reserves has ushered Uganda into a new era of energy production. The Kingfisher Field, operated by China National Offshore Oil Corporation (CNOOC), and the Tilenga Project, managed by TotalEnergies, are at the forefront of this development. These projects aim to produce over 270 000 barrels of oil per day at their peak. Complementing upstream production, the East African Crude Oil Pipeline will transport crude oil from Uganda to the Tanzanian port of Tanga. This pipeline, coupled with the
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Issue 4 – 2024
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