Services Sector Keeps Uganda’s Economy Afloat Amid Political Uncertainty
Kampala, Uganda
Uganda’s services sector is emerging as the country’s strongest economic pillar as political uncertainty grows ahead of the 2026 elections. Industries such as telecommunications, transport, retail and hospitality have shown steady expansion, helping to stabilise growth despite disruptions in manufacturing and agriculture.
Mobile money, e-commerce and digital platforms have driven new forms of urban employment, especially for young people. Kampala has experienced a rise in delivery services, ride-hailing and online retail, creating a fragile but important economic buffer.
However, business leaders have warned that growing political tension, protest activity and unpredictable security measures could quickly derail this momentum. Several regional investors have reportedly paused expansion plans as they monitor the political climate.
Why It Matters
The services sector employs millions of Ugandans and underpins daily urban life. Any disruption could trigger job losses, rising living costs and greater economic inequality.
What to Watch
Investors and citizens are closely watching signals of political stability, changes in consumer confidence and shifts in digital and mobile payment activity.
