Uganda is taking bold steps to position itself as a strategic logistics hub in East Africa, aiming to capitalize on its central location, improve trade competitiveness, and unlock regional integration opportunities.
As part of its broader economic transformation agenda under the Fourth National Development Plan (NDP IV), the government is investing heavily in infrastructure, transport corridors, trade facilitation, and digital logistics solutions to strengthen Uganda’s role as a connector between landlocked countries and regional ports.
Strategically located at the heart of the East African Community (EAC), Uganda borders five countries Kenya, Tanzania, Rwanda, South Sudan, and the Democratic Republic of Congo (DRC).
This geographic advantage places Uganda in a unique position to serve as a transit and distribution centre for goods moving between the Indian Ocean ports of Mombasa and Dar es Salaam and inland markets in Central and Eastern Africa.
With trade volumes increasing across the region, Uganda sees logistics as a new frontier for economic growth, job creation, and regional influence.
One of the key priorities has been upgrading transport infrastructure. Over the past five years, Uganda has invested significantly in roads, inland ports, and border facilities.
Key road corridors such as the Kampala–Malaba highway, Kampala–Gulu highway, and the Masaka–Mbarara–Ntungamo–Kabale route have undergone rehabilitation and expansion to improve access to neighbouring countries.
The government is also working on key road links to South Sudan and the DRC, which are emerging as major trade partners and high-potential markets for Ugandan goods and services.
Uganda’s efforts are also focused on reviving railway transport to reduce freight costs and road congestion.
The government has partnered with international and regional stakeholders to rehabilitate sections of the century-old metre gauge railway network, particularly the Tororo–Gulu line, which connects to South Sudan, and the Kampala–Malaba line linking Uganda to the Kenyan railway system and the Port of Mombasa.
The long-term vision includes developing a Standard Gauge Railway (SGR), which would offer faster, more efficient freight movement from the coast to inland markets, although financing remains a challenge.
Another major component of Uganda’s logistics hub strategy is the development of inland water transport and ports.
The revitalization of the Port of Jinja and Port Bell on Lake Victoria, along with investments in modern ferries, is part of a broader plan to link Uganda more closely with Tanzania’s Port of Mwanza and Kenya’s Port of Kisumu.
These connections are vital for moving bulk cargo efficiently across the lake and supporting trade with regional neighbours.
The completion and continued expansion of the Entebbe International Airport cargo terminal has also enhanced Uganda’s air freight capacity, especially for high-value exports such as flowers, fish, and fresh produce.
The new cargo centre increases Uganda’s ability to handle large volumes of exports quickly, making it attractive for regional traders and global freight companies looking to use Uganda as a base for air logistics.
In addition to infrastructure, Uganda is streamlining trade logistics through digital transformation. The Uganda Revenue Authority (URA), in collaboration with the Ministry of Trade and regional bodies, has implemented a range of electronic systems to facilitate faster cargo clearance.
The Electronic Single Window, regional electronic cargo tracking systems, and one-stop border posts at key entry points like Malaba, Busia, Mutukula, and Elegu have all reduced delays, minimized corruption, and improved efficiency at the borders.
These efforts are already yielding results. According to the World Bank’s Logistics Performance Index (LPI), Uganda has shown steady improvements in logistics efficiency over the past decade.
The cost and time of moving goods across borders have reduced, and Uganda is increasingly seen as a preferred transit route for goods heading to South Sudan and eastern DRC.
The volume of informal and formal cross-border trade has grown, creating new income streams for logistics companies, clearing agents, freight forwarders, and transporters.
Despite these advancements, challenges remain. The high cost of fuel, bureaucratic red tape, limited warehousing capacity, and delays at borders still affect the competitiveness of Uganda’s logistics sector.
Some road networks, especially in remote border areas, are still in poor condition, and security concerns along certain routes, particularly those heading toward South Sudan and eastern DRC, continue to impact cargo safety and insurance premiums.
Additionally, Uganda’s logistics workforce needs further professionalization. There is a growing need for skilled supply chain managers, freight handlers, and digital logistics specialists to support the evolving demands of regional and international trade.
Investment in training institutions, certifications, and industry standards is critical to ensure the sector keeps pace with modern global practices.
Uganda’s private sector, especially in the freight, warehousing, and transport sectors, is stepping up to meet demand. More local logistics firms are adopting digital tracking tools, expanding storage facilities, and forming regional partnerships to offer end-to-end logistics solutions.
The rise of e-commerce and cross-border trade platforms is also creating opportunities for tech-driven logistics start-ups to innovate around last-mile delivery and digital freight matching.
Looking ahead, Uganda’s success as a logistics hub will depend on sustained investment, regional cooperation, and a strong public-private partnership framework.
Initiatives under the African Continental Free Trade Area (AfCFTA) and the EAC Common Market provide further momentum for Uganda to position itself as a trade gateway and logistics nerve centre in East and Central Africa.
Uganda is making strategic moves to become more than just a landlocked country it is working to become land-linked.
Through infrastructure development, digital transformation, regional trade integration, and logistics modernization, Uganda is gradually emerging as a key player in the movement of goods across East Africa.
While challenges remain, the progress so far suggests that the vision of becoming a regional logistics hub is both achievable and essential for Uganda’s economic future.