Business owners in eastern and northern Uganda have called on the government to urgently address persistent challenges affecting the private sector, following the release of the latest Business Climate Index (BCI) by the Economic Policy Research Centre (EPRC).
During recent stakeholder engagements, the EPRC presented findings from the January–March 2025 BCI, which surveys over 1,000 businesses across Uganda. The index recorded a decline in business confidence, dropping from 91.1 in the previous quarter to 88.8. The downturn was attributed to reduced business activity, lower sales turnover, and declining profitability.
Business leaders in both regions emphasised that continued inaction on these issues would not only harm individual enterprises but also hinder national efforts to boost revenue and improve service delivery.
Timothy Nabongo, a trader from Tororo, highlighted the need for targeted capacity-building initiatives to address gaps in financial literacy and business management. Margaret Auma, a trader from Mbale Central Market, raised concerns about unfair competition from wholesalers benefiting from cheaper imports, larger capital bases, and tax incentives. Recurring issues raised across EPRC’s regional consultations—including in Mbarara, Mbale, and Gulu—include multiple taxes and fees, unreliable and costly electricity, and aggressive competition from wholesalers engaged in door-to-door marketing.
BCI January to March 2025 report: Uganda’s Business Climate Slightly Declines but Optimism Remains
Mr. Gessa Peter, a mill operator from Tororo, reported that frequent power outages have disrupted production and increased operational costs due to reliance on generators. Participants urged the EPRC to share survey findings with district and municipal planning authorities to inform local planning and budgeting processes. They also called for regular feedback forums to ensure that data-driven insights translate into meaningful policy reforms.
Meetings took place at Wash and Wills, Mbale and Churchill Courts Hotel, Gulu. EPRC seeks to drive up outreach activities for business and communities that participate in our research to benefit from discussing outcomes.
The EPRC team pose for a picture with Mbale City Commercial Officer Ms. Kharono Lorna Milly (2nd L). As part of the effort to engage key stakeholders, EPRC team paid a courtesy call to Mbale City commercial officer who shared, among other things, opportunities and challenges business community in eastern Uganda faces.
About the EPRC Business Climate Index
The Uganda Business Climate Index is a quarterly perception-based index that assesses the economic outlook and business operating environment across three sectors: manufacturing, agriculture, and services. It captures real-time business sentiment from formal enterprises across Uganda’s four regions through a perception survey.
A total of 1,152 formal businesses were surveyed from all four regions of Uganda. The index monitors changes in sales, profitability, employment, and sector-specific challenges, providing government and stakeholders with timely evidence for responsive policymaking. An index score below 100 indicates that business conditions are below potential, 100 signifies potential, and a score above 100 indicates above-potential performance.
