Uganda’s ambition to expand its economy from approximately $50 billion to $500 billion by 2040 will depend on the ability of the private sector to drive growth in Agro-industrialisation, tourism, mineral development, and science, technology and innovation (ATMS). However, achieving these targets requires a transition from a largely informal economy to a formal, regulated, and competitive private sector.
One of the critical enablers of this transition is standard certification. Certification refers to the process through which products are tested and verified to ensure they meet established quality, safety, and technical standards by government. Once compliance is confirmed, firms are granted certification marks that signal quality assurance to consumers, regulators, and trading partners. Certification therefore plays a vital role in improving consumer confidence, facilitating market access, supporting exports, and enhancing the competitiveness of locally manufactured goods.
However, a study by the Economic Policy Research Centre (EPRC, 2026) on the role of non-fiscal Government regulatory agencies in Uganda’s informal sector found that certification systems are not functioning effectively as enablers of private sector growth. Instead, existing inefficiencies discourage compliance and limiting business formalisation among micro, small, and medium enterprises.
One of the challenges is the lengthy turnaround time involved in certification processes with product testing taking up to 25 days, while certification approval may take between 4 and 5 months, despite the operational target of approximately one month.
These delays create operational bottlenecks for micro small and medium enterprises to operate informally, undermining the objective of regulatory compliance. As a result, many firms either postpone compliance or continue operating informally, undermining the broader objective of formalisation which affects firms from accessing domestic and export markets where compliance with standards is a prerequisite for entry.
Cost is another major barrier identified during certification, with testing fees reaching UGX 1.3 million depending on the product, while certification fees range from UGX 500,000 annually for micro and small enterprises to UGX 1,000,000 for medium and large enterprises. Testing fees are charges paid for laboratory analysis and technical examination of products to determine whether they meet the required quality, health, safety, and technical standards while certification fees are charges paid after a product has successfully passed testing and compliance assessment.
Beyond these direct fees, firms invest in specialised production equipment, improved manufacturing processes, internal quality control systems, packaging requirements, and periodic compliance audits which are costly. For many small businesses, these cumulative financial demands are prohibitive and discourage participation in the formal economy.
Institutional capacity constraints at the Uganda National Bureau of Standards are significant. As of FY2024/25, UNBS was operating at 46 percent of its required staffing level, with 550 personnel against a minimum requirement of 1,200 staff. The Bureau identifies understaffing as a major constraint to trade facilitation, consumer protection, standards enforcement, and service delivery across the country.
In the same year, UNBS handled 26,145 product samples for testing, yet demand sample testing remains high, with approximately 2,000 samples received daily. UNBS reported inadequate testing equipment in regional laboratories. This mismatch between demand (sample submissions for testing and certification) and institutional capacity results in backlogs, longer turnaround times, and inefficiencies in certification. This implies informal enterprises likely remain outside the tax net due to institutional and regulatory inefficiencies which narrows an effective tax base, constraining domestic revenue mobilisation.
The certification process should focus on improving affordability, efficiency, and institutional capacity while maintaining regulatory integrity. This includes reviewing certification costs and introducing subsidies or tiered pricing structures for micro and small enterprises to support compliance, alongside streamlining certification processes through digital systems to reduce turnaround times and improve efficiency.
Therefore, improving standard certification is not only a regulatory issue, but also an economic growth strategy. An efficient, affordable, and credible certification system can support business formalisation, improve competitiveness of domestic products, expand market access, and strengthen domestic revenue mobilisation. And if Uganda is to achieve its industrialisation and private sector development goals, reforming certification systems must become a priority.
