15/07/2026
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๐ ๐๐๐ ๐จ๐๐๐๐๐๐ ๐ฌ๐๐๐๐๐๐๐ ๐ฎ๐๐๐๐๐ ๐๐๐๐ ๐๐ ๐๐ ๐ณ๐๐๐๐๐๐๐๐๐๐ ๐๐๐ ๐ฌ๐๐๐๐๐๐
Uganda's trade regime is characterised with limited liberalisation, principally through its strategic adoption of import substitution policies. The government's current approach, including the stepped-up import substitution agenda, is designed to replace foreign imports with locally manufactured goods to retain foreign exchange and foster industrialisation. This is implemented through instruments such as high import tariffs, import licensing, and local content requirements, restricting the free flow of goods.
While the government has achieved notable export growth, reaching $13.4 billion in 2025, its economic strategy remains focused on protectionism. To accelerate growth, Uganda should pursue broader trade liberalisation. This involves reducing non-tariff barriers, which are estimated to cost Africa $9 billion annually, and streamlining customs procedures to eliminate delays that hinder exports. As evidence shows, trade openness has a positive long-run relationship with export growth. A shift from inward-looking policies toward a more liberalized regime would enhance competitiveness and attract investment, aligning with the goal of a $500 billion economy.