e-Commerce and Payments in Uganda
Rapid economic growth due to mobile money.
Uganda's e-commerce sector is predicted to soon overtake Kenya as the second-largest online market in the East Africa region. This is mostly due to the rapid increase in telecommunications users and the widespread usage of mobile money payments.
Market Overview
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Population
48.6 million
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Online Population
11.7 million
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Currency
UGX
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e-Commerce Market Value
$349.5 million
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GDP
$169.9
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GDP per Capita
$1,105
Available Local Payment Method
Mobile Money
Type
e-Wallet
Regions
Africa
Key Takeaways
- The emergence of digital payments has driven the expansion of e-commerce in Uganda, allowing businesses to access the vast online market. According to Jumia, one of Africa’s top e-commerce platforms, the number of online buyers in Uganda rose by 60% in 2020.
- Large, well-capitalized global banks dominate Uganda’s financial sector. Mobile money transactions are used by far more Ugandans than traditional bank accounts.
- Retailers in Uganda often accept cash payments for consumer products. Open accounts, letters of credit, and documented collections are also used for transactions. Normally, exporters of capital goods or other equipment, machinery, and services seek payment via wire transfers.
