Franchise opportunities in Uganda

Attractiveness of Uganda for the development of franchise business

Uganda is a country located in East Africa. It is a predominantly rural country (84% of the population live in rural areas) with one of the highest poverty levels in the world. The average net salary is $176 per month. Nevertheless, the country is now demonstrating a steady economic growth and a functioning market-based economy. The leading economic advantages of the country are agriculture and one of the largest oil reserves in the region. Uganda’s GDP in 2015/2016 was $23.1 billion with the service sector, industry, agriculture and fishing being the key contributors.

As it is a rural country large cities are not numerous. Kampala, the capital of Uganda, is the only large city with the population over 1.3 million people. Other significant cities include Gulu, Lira, Mbarara and Jinia, but the population in these cities does not even reach 200,000 dwellers.

Franchising is relatively new and underdeveloped in Uganda. Mostly international franchising companies are present on the Ugandan market. The majority of operating franchises are food chains. Also, petrochemical franchise units operate actively within the country.

As a currently developing country Uganda provides wide opportunities for foreign franchisers and offers liberal environment for setting up the business. However, the absence of specific franchise law may be viewed as a minor hindrance to this.