{"id":161,"date":"2021-10-14T19:30:16","date_gmt":"2021-10-14T16:30:16","guid":{"rendered":"https:\/\/condala.com\/?p=161"},"modified":"2026-04-10T10:18:18","modified_gmt":"2026-04-10T10:18:18","slug":"state-of-ecommerce-in-uganda","status":"publish","type":"post","link":"https:\/\/condala.com\/blog\/state-of-ecommerce-in-uganda\/","title":{"rendered":"The state of ecommerce in Uganda in 2025"},"content":{"rendered":"<p><span data-preserver-spaces=\"true\">Uganda has one of the most vibrant eCommerce ecosystems in Africa and has shown steady growth over the past decade. The exact data and statistics about the state of eCommerce in Uganda are lacking. Still, eCommerce revenue in Uganda is estimated at $227M, with an estimated annual growth of 14.90%, resulting in a projected market volume of $421M by 2025. User penetration is also expected to hit 29.1% by 2025.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In 2020, at the helm of the COVID-19 outbreak, more businesses opened up online shops, and it is expected that the eCommerce trade will further accelerate and grow.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Ecommerce sellers in Uganda typically market their products and services online, with customers and sellers connecting first via phone and then meeting physically. Consumers prefer making payments either in cash or by mobile money. Shopping directly from a website or app is a new concept in Uganda, although it is fast growing.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">One key advantage for eCommerce in Uganda is the expanding middle class with a growing taste for European products. There\u2019s a popular belief that products for Europe are of superior quality to those made in Uganda and China.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Advertising in Uganda\u2019s eCommerce space remains largely unsophisticated and is mainly concentrated around social media platforms. Uganda\u2019s most commonly used online platforms are Facebook, Twitter, WhatsApp, TikTok and Instagram.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The Ugandan law protects intellectual property rights (IPR), but enforcement mechanisms are too weak. Uganda cannot prevent piracy and counterfeit distribution, and as a result, theft and infringement of intellectual property rights is common in Uganda and is widely spread. Uganda does not seize counterfeit goods or prosecute for IPR violations.<\/span><\/p>\n<p>Also read; <a title=\"8 Problems with Online Shopping in Uganda and their Solutions\" href=\"https:\/\/condala.com\/blog\/problems-with-online-shopping-in-uganda-and-their-solutions\/\" rel=\"bookmark\">8 Problems with Online Shopping in Uganda and their Solutions<\/a><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/condala.com\/blog\/state-of-ecommerce-in-uganda\/#Highlights_of_the_state_of_eCommerce_in_Uganda\" >Highlights of the state of eCommerce in Uganda<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/condala.com\/blog\/state-of-ecommerce-in-uganda\/#Cross-border_Vs_domestic_eCommerce_in_Uganda\" >Cross-border Vs. domestic eCommerce in Uganda<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/condala.com\/blog\/state-of-ecommerce-in-uganda\/#Cross-border_e-commerce\" >Cross-border e-commerce<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/condala.com\/blog\/state-of-ecommerce-in-uganda\/#Domestic_e-commerce\" >Domestic e-commerce<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/condala.com\/blog\/state-of-ecommerce-in-uganda\/#E-commerce_is_popular_among_millennials_cities_and_certain_products\" >E-commerce is popular among millennials, cities and certain products.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/condala.com\/blog\/state-of-ecommerce-in-uganda\/#What_are_the_drivers_for_e-commerce_in_Uganda\" >What are the drivers for e-commerce in Uganda?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/condala.com\/blog\/state-of-ecommerce-in-uganda\/#Mobile_connectivity\" >Mobile connectivity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/condala.com\/blog\/state-of-ecommerce-in-uganda\/#Online_payments_to_facilitate_transactions\" >Online payments to facilitate transactions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/condala.com\/blog\/state-of-ecommerce-in-uganda\/#Logistical_infrastructure_is_getting_in_place\" >Logistical infrastructure is getting in place.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/condala.com\/blog\/state-of-ecommerce-in-uganda\/#Future_growth_of_e-commerce_in_Uganda\" >Future growth of e-commerce in Uganda<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Highlights_of_the_state_of_eCommerce_in_Uganda\"><\/span><span data-preserver-spaces=\"true\">Highlights of the state of eCommerce in Uganda<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><span data-preserver-spaces=\"true\">Uganda\u2019s eCommerce revenue was projected at US$227M in 2021<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Annual revenue is expected to grow at 14.90% between 2021-2025, resulting in a projected market volume of US$396m by 2025<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">The market\u2019s largest eCommerce segment in Uganda is fashion, with a projected market volume of US$76M in 2021.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Most revenue is generated from China.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">User penetration is at 19.5% in 2021 and is expected to hit 29.1% by 2025<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">The average revenue per use (ARPU) is expected to amount to US$24.69%<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">The total number of eCommerce users is expected to amount to 15.2m users by 2025.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Cross-border_Vs_domestic_eCommerce_in_Uganda\"><\/span><span data-preserver-spaces=\"true\">Cross-border Vs. domestic eCommerce in Uganda<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">In Uganda, eCommerce is largely categorized into two segments, i.e., domestic eCommerce when a trade occurs within the country\u2019s borders or cross-border eCommerce when a trade occurs across the international borders.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cross-border_e-commerce\"><\/span><span data-preserver-spaces=\"true\">Cross-border e-commerce<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">There is a huge demand for products that are not accessible in Uganda. These products are mainly ordered via international eCommerce shopping platforms like Amazon, eBay, AliExpress, Banggood and many more. Also, there\u2019s a global demand for authentic African products made in Uganda. These products are mainly demanded in Europe and Asia and are predominantly exported through eCommerce platforms such as Etsy.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Domestic_e-commerce\"><\/span><span data-preserver-spaces=\"true\">Domestic e-commerce<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">The domestic e-commerce ecosystem in Uganda has been steadily growing for the last couple of years, attracting hundreds of local players that have launched\u00a0<\/span><a class=\"editor-rtfLink\" title=\"Online shopping websites in uganda\" href=\"https:\/\/condala.com\/blog\/top-online-shopping-sites-in-uganda\/\"><span data-preserver-spaces=\"true\">online shopping websites in Uganda<\/span><\/a><span data-preserver-spaces=\"true\">. Similarly, traditional brick-and-mortar stores have been actively involved in eCommerce since most now accept online orders through social media platforms like Facebook and Instagram.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">E-commerce in Uganda has, however, been a challenging space in Uganda, largely due to infrastructure gaps and customer reluctance. Besides the huge success of mobile money, tangible goods need to be delivered, which requires good logistic infrastructure.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Logistic infrastructure in Uganda is still lacking, restricting eCommerce to only large cities like Kampala and Wakiso. Ecommerce retailers concentrating on selling Fast-moving consumer goods face fierce competition from informal retails and markets in Uganda.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">B2C e-commerce has been flourishing in Uganda for the past 5 years. Domestic players such as Jumia, Kikuu and Ubuy are leading the game. All these players are active in Kampala and other major cities of Uganda, such as Mbarara, Arua, Moroto, Gulu, Jinja and Mbale. Some of these players also target rural areas and have built powerful networks of pickup stations around the country.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"E-commerce_is_popular_among_millennials_cities_and_certain_products\"><\/span><span data-preserver-spaces=\"true\">E-commerce is popular among millennials, cities and certain products.<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">According to the 2019 Jumia report, the largest eCommerce shoppers in Uganda are youths aged 25-34 who live in urban areas. The report listed Fashion and Electronics as Ugandan shoppers\u2019 most popular product categories. However, due to the lack of accurate industry data, one cannot make strong conclusions based on this Jumia report.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_are_the_drivers_for_e-commerce_in_Uganda\"><\/span><span data-preserver-spaces=\"true\">What are the drivers for e-commerce in Uganda?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Mobile_connectivity\"><\/span><span data-preserver-spaces=\"true\">Mobile connectivity<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">UCC estimates that 46% of Ugandans are now connected to the internet, with 60.3% accessing it through mobile phones. In 2021, the GSMA estimated that Uganda had a smartphone adoption of 16%. This growth was due to performance on two enablers: infrastructure and affordability. The former was driven by improved network coverage, with 65% of the population covered by 3G and 17% by LTE\/4G.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Online_payments_to_facilitate_transactions\"><\/span><span data-preserver-spaces=\"true\">Online payments to facilitate transactions<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">Debit\/Credit cards have low penetrations in Uganda since only 9% of the population is banked. The most popular domestic payment methods for eCommerce are:<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">MTN MoMo<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Airtel Money<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">According to UCC, Ugandans performed UGX 525bn mobile commerce transactions in 2020. Although online payment infrastructure is in place, several eCommerce players have not underestimated cash payments. Companies like Jumia Uganda provide Cash on Delivery (COD) as one of their payment options.<\/span><\/p>\n<p>Also read; <a title=\"Top 7 Payment Methods for Online Shopping in Uganda\" href=\"https:\/\/condala.com\/blog\/top-payment-methods-for-online-shopping-in-uganda\/\" rel=\"bookmark\">Top 7 Payment Methods for Online Shopping in Uganda<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Logistical_infrastructure_is_getting_in_place\"><\/span><span data-preserver-spaces=\"true\">Logistical infrastructure is getting in place.<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">Uganda\u2019s postal system is very ineffective and cannot be compared with postal systems in more established markets. However, in the last couple of years, several private logistics companies in Uganda, such as CourieMate, have come up and are providing the crucial last-mile delivery. Recently, DHL introduced DHL Express, a platform that provides a standard for organizing logistics for e-commerce in East Africa.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Future_growth_of_e-commerce_in_Uganda\"><\/span><span data-preserver-spaces=\"true\">Future growth of e-commerce in Uganda<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">To accelerate the future growth of eCommerce in Uganda, four key hold-ups need to be taken care of:<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">Trust among consumers<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Lack of reliable data<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">High shipping and delivery costs<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">High import duties by URA<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">Ecommerce opportunities not only lay in Uganda but everywhere in Africa at large. According to <a title=\"Brookings\" href=\"https:\/\/www.brookings.edu\/research\/intra-african-trade-a-path-to-economic-diversification-and-inclusion\/\" target=\"_blank\" rel=\"noopener\">Brookings<\/a>, intra-African trade is only at 17% compared to 59% in Asia and 69% in Europe. There\u2019s a lot to win here. Implementing the Africa Continental Free Trade Agreement (AfCFTA) is expected to boost intra-Africa trade by up to 52%. The agreement will eliminate import duties and reduce other trade barriers.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Although the uptake of e-commerce in Uganda has remained low compared to more developed countries, there\u2019s an expectation that eCommerce in Uganda will advance further and develop its model based on market demand. Uganda\u2019s e-commerce ecosystem will be an interesting thing everyone must watch.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Uganda has one of the most vibrant eCommerce ecosystems in Africa and has shown steady growth over the past decade. The exact data and statistics about the state of eCommerce in Uganda are lacking. Still, eCommerce revenue in Uganda is estimated at $227M, with an estimated annual growth of 14.90%, resulting in a projected market [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":212,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[3],"tags":[],"class_list":{"0":"post-161","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-insights"},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/condala.com\/blog\/wp-json\/wp\/v2\/posts\/161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/condala.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/condala.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/condala.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/condala.com\/blog\/wp-json\/wp\/v2\/comments?post=161"}],"version-history":[{"count":2,"href":"https:\/\/condala.com\/blog\/wp-json\/wp\/v2\/posts\/161\/revisions"}],"predecessor-version":[{"id":1018,"href":"https:\/\/condala.com\/blog\/wp-json\/wp\/v2\/posts\/161\/revisions\/1018"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/condala.com\/blog\/wp-json\/wp\/v2\/media\/212"}],"wp:attachment":[{"href":"https:\/\/condala.com\/blog\/wp-json\/wp\/v2\/media?parent=161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/condala.com\/blog\/wp-json\/wp\/v2\/categories?post=161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/condala.com\/blog\/wp-json\/wp\/v2\/tags?post=161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}