Market Research in Uganda, Africa

Market Research in Uganda, Africa

The COVID-19 pandemic caused Uganda to stagnate. It also caused many companies to go bankrupt, and a large number of Ugandans lost their jobs. Meanwhile, a locust invasion and flooding destroyed crops across the country. As a result, Ugandans have less purchasing power, so they are buying fewer goods. Is an investment in Uganda worthwhile? Read on to find out.

Key Industries

Cotton, cement, sugar, tobacco, breweries, and steel production are Uganda’s primary industries. Other exports include tea, coffee, gold, plant products, and fish. Large companies dominate this sector through their local branches. Yet, it is small compared to that of more developed countries. The power supply is spotty, which makes production difficult. Rwanda and Kenya are Uganda’s main export partners.


Uganda’s capital is Kampala, which is also the largest city. Located at the north end of Lake Victoria, Kampala is one of the fastest-growing cities in the world. Some people consider it to be East Africa’s best city.

Entebbe is another of Uganda’s largest towns, located south of Kampala. Entebbe is the gateway to some of the country’s tourist attractions. Like Kampala, its location is close to Lake Victoria. This city also has an airport.

Jinja is also close to Kampala and is famous as the source of the White Nile. The travel guides refer to it as East Africa’s Adventure Capital. It’s easy to access from Kampala – you can get there by road or by air.


The Ugandan economy is on a downward spiral caused by COVID-19. The outlook is bleak, especially if the virus continues its spread. A prolonged pandemic will make it harder for Uganda’s exports to recover. It will also harm tourism, and Ugandans abroad won’t be able to send money home.

Uganda has a high birth rate but too many infants die at birth. Poverty is widespread. The pandemic is also rolling back recent gains in human capital and health.

On the positive side, Uganda will start oil production in a few years.

Benefits and Strengths in the Market

Uganda has many strengths. For example, it has oil fields, fertile land, and hydroelectric power potential. Another benefit to investing in Uganda is the support it gets from donor countries. These countries help with the building of roads, bridges, and the like. They help make it easier for investors to get their products to market. Uganda also has a strategic location. Finally, the country has been stable over the last few decades, which is always a plus.

Consumer Base

Only a few Ugandans have Internet access, although many have mobile phones. Ugandans rely on mobile phones to stay connected. Text messaging is the most popular activity, especially among teenagers. Most Ugandans also own a TV. Most of them also live in rural areas, but the urban figures are growing fast.

Half of all Ugandans are between the ages of 15 and 64. Thus, there is a vast consumer base.

Reasons to Grow Your Business in Uganda

Besides a large number of people of working age, per capita income is low. It means that labor costs in Uganda are also small. Meanwhile, Uganda has a high trade deficit. Hence, the goods it produces are not enough to meet local demand. Thus, foreign investors can fill the gaps.

The Government of Uganda has taken measures to improve the ease of doing business. For example, it has a “One Stop Centre” for starting a business.

Market Research in Uganda, East Africa

Quantitative and Qualitative Research is crucial before starting your business in Uganda. Such research offers critical data about your market and business scene. Strategy Research is also essential. It can help you to come up with your products and services. Finally, Focus Groups, Surveys, and Interviews also make a difference. They allow you to market your products to the right Ugandan consumers.