KAMPALA— In an era when global economies are racing to attract investment and build resilient institutions, Uganda finds itself at a crossroads. The World Bank’s newly released “Business Ready 2024” (B-READY) report doesn’t just rank economies—it tells a story of reform, resistance, and unrealized potential. For Uganda, and many of its sub-Saharan peers, the narrative is one of progress met with persistent drag, of systems straining to keep pace with their ambitions.
The B-READY report, which replaces the now-defunct Doing Business index, offers a more nuanced view of how countries are creating environments conducive to private enterprise. It evaluates 130 economies across eight key indicators, measuring how well institutions support business formation, regulatory implementation, and operational efficiency. Thirty of those economies are in Sub-Saharan Africa, a region rich in resources but often hindered by deep-rooted institutional limitations.
Africa: A Continent of Contrasts
Sub-Saharan Africa’s performance in the B-READY 2024 report is, in many ways, a portrait of contrasts. Countries like Rwanda and Kenya continue to lead the pack with robust reform agendas and relatively high scores. But the broader picture reveals that most African nations still cluster in the lower percentiles, weighed down by fragile institutions, inconsistent regulation, and inadequate infrastructure.
This spectrum of performance points to a common thread: while the will to reform exists in many African states, the capacity to implement and enforce reforms remains uneven. In countries affected by conflict or constrained by geography—think landlocked economies or those with legacy legal systems—the challenges multiply.
Uganda: Somewhere in the Middle
Ranked 76th out of 130 economies globally and landing in the 41st percentile, Uganda’s position in the report is emblematic of a nation with reformist intent but institutional inertia. Regionally, it is placed 12th out of 30 Sub-Saharan African economies—comfortably above the regional average, but far from a leadership position.
Uganda’s performance is best described as middling but promising. It surpasses some of its neighbors in specific categories but still grapples with foundational weaknesses that threaten long-term competitiveness.
Bright Spots: Labor and Lights On
If there is a part of Uganda’s economy that signals forward momentum, it’s in electric utility access and labor regulation.
Uganda scored 60.3 in Getting Utilities, thanks to more reliable electricity connections and shorter wait times. For many small businesses in Kampala or Jinja, this has been a game-changer. Entrepreneurs can now get hooked up to the grid faster than ever before, and recent investments in distribution infrastructure have minimized outages.
On the labor front, Uganda also scored 60.1 in Employing Workers. The country has implemented flexible hiring policies, clearer labor contracts, and protections against workplace harassment and discrimination. This makes it easier for businesses to navigate hiring processes, particularly in a region where informal employment is still the norm.
And in the area of Business Entry, Uganda’s 58.2 score reflects modest but meaningful improvements. The digitization of company registration processes has reduced red tape, although bottlenecks remain.
Stuck in the Weeds: Land, Construction, and Trade
But even as some parts of the system hum more smoothly, others sputter.
Nowhere is this more evident than in land administration. With a score of 42.8—the country’s lowest—Uganda’s outdated land laws and convoluted property rights regime are a major drag on investment. Land disputes are common, and overlapping tenure systems (customary vs. statutory) create layers of uncertainty that stall development projects and complicate foreign investment.
Building Structures, scored at 48.1, is another problematic area. Entrepreneurs seeking to construct new facilities face an unpredictable maze of permitting delays, inconsistent zoning laws, and costly compliance checks that often depend on discretionary enforcement.
And when it comes to Trading Across Borders, Uganda scored 50.5, reflecting persistent customs inefficiencies, logistical hurdles, and opaque trade procedures. For a landlocked country aiming to be a regional trade hub, this is more than a minor inconvenience—it’s a strategic liability.
The Implementation Gap: Laws on Paper, Not in Practice
One of the most telling elements of Uganda’s performance is the disconnect between policy design and policy execution. The country has made strides in modernizing its commercial laws—especially in areas like business insolvency and dispute resolution—but enforcement remains weak.
Take the example of Uganda’s land system. Despite legal reforms, the reality on the ground is that disputes over land ownership continue to clog courts and deter investors. Administrative overlap, corruption, and limited capacity in local government offices make reform implementation uneven at best.
Similarly, while the insolvency framework received a score of 55.6, many businesses still find the process expensive, slow, and riddled with delays. Dispute resolution scored 53.0, pointing to ongoing challenges in judicial backlog and the availability of commercial arbitration.
Looking Abroad: What Uganda Can Learn
The top global performers—Singapore (1st) and Denmark (2nd)—aren’t simply efficient because they have more money. They have built systems that are transparent, consistent, and well-governed. Their institutions don’t just pass laws; they implement them with discipline, predictability, and accountability. Regulations are not just rules—they are contracts that businesses can rely on.
Closer to home, Rwanda and Kenya have earned praise for digitizing land registries, streamlining trade logistics, and centralizing construction permit processes. Uganda, in contrast, has moved more cautiously and often lacks the coordination across government agencies needed to translate policy into results.
A Fork in the Road
Uganda’s current standing in the B-READY report sends a clear message: the country has done just enough to avoid falling behind, but not enough to break ahead. There is potential—real, measurable potential—in the improvements seen in utilities and labor markets. But the harder work lies in dismantling the deep-seated structural barriers that prevent reform from sticking.
The stakes couldn’t be higher. In a global economy where capital is mobile and competition for investment is fierce, regulatory inefficiency and institutional opacity aren’t just abstract policy concerns—they’re growth killers.
But the picture is not without hope. Uganda has shown it can move. The question now is whether it will move far and fast enough to keep pace with the global and regional reformers redefining what it means to be “business ready.”
