The principal types of business enterprises in Uganda are:
- Registered Companies (Private and Public)
- Branch offices of companies registered outside Uganda
- Sole Proprietorships
Companies are registered as limited liability companies as in 1 and 2 above, and regulated by the Companies Act. Uganda’s legal system is based on English law and practice. A wide range of legal services are locally available.
Considerable investments continue to be made throughout Uganda especially in infrastructure and energy. The road networks are being upgraded and expanded to improve connections between major centres while tenders for the port and rail system have been issued so as to expand trade capacity. Privatisation of various institutions has also been ongoing.
In Uganda, retailers normally receive payment for consumer goods in cash. However, exporters of capital goods or other equipment, machinery and services normally seek payment through wire transfers. Ugandans may attempt to pay by cheque, but increasing cheque fraud makes this a highly risky proposition.
The banking system
The banking system has steadily improved and is stable and well capitalised. The system includes the Bank of Uganda, 25 commercial banks and many micro deposit institutions and development banks.
Foreign exchange controls
There are no foreign exchange controls affecting legitimate trade. Project Financing
Multilateral institutions active in Uganda include the International Monetary Fund (IMF), the World Bank, the African Development Bank as well as several European institutions. Major development projects in health, education, agriculture and infrastructure are financed by bilateral donors and/or international organisations.