Automotive and Transport
Automotive and Transport Industry in Uganda
The automotive and transport industry in Uganda is a critical enabler of economic growth, trade, and connectivity. As a landlocked country, Uganda depends heavily on efficient transport systems to facilitate the movement of goods and people within its borders and across regional markets. The sector contributes significantly to GDP, supports commerce, and plays a central role in regional integration under the East African Community (EAC).
Road transport dominates the industry, accounting for more than 90% of passenger and freight traffic. Uganda has over 21,000 kilometers of roads, with major corridors linking Kampala to neighboring countries such as Kenya, Tanzania, Rwanda, and South Sudan. The government has invested heavily in upgrading highways, expanding urban roads, and rehabilitating rural networks to reduce transport costs and support trade competitiveness. However, challenges such as congestion, limited public transport systems, and high vehicle import costs remain.
The automotive sector is still in its early stages but shows strong potential. Uganda imports most of its vehicles, primarily used cars from Japan and Europe, due to affordability. In response, the government is encouraging local assembly and manufacturing. A landmark development is the launch of Kiira Motors Corporation (KMC), Uganda’s indigenous automotive company, which has developed electric and solar-powered buses and is setting up a production plant in Jinja. This initiative signals Uganda’s commitment to green mobility and import substitution.
Public transport is dominated by minibuses (“taxis”), boda-bodas (motorcycle taxis), and buses serving intercity routes. These play a vital role in mobility but often raise safety and regulatory concerns. Efforts are underway to modernize urban transport through organized bus systems, digital ride-hailing platforms, and stricter traffic regulations.
Rail, air, and water transport complement the road network. Uganda is rehabilitating sections of its railway to improve cargo movement to regional ports, while Entebbe International Airport has been modernized to handle increasing passenger and cargo volumes. Lake Victoria continues to support ferry services and cross-border trade.
Looking ahead, the automotive and transport industry offers major opportunities in infrastructure development, logistics, automotive assembly, and sustainable transport solutions. With growing urbanization, regional trade, and government support, Uganda is positioning itself to modernize mobility and reduce reliance on imports, creating new pathways for investment and innovation.
Deal driving expertise
If you’re buying or selling an automotive dealership, advisors with the experience and insight to support you during these complex transactions will help ensure everything goes smoothly – and that you glean the greatest possible value from the deal.
From providing letters of intent and advice on purchase agreements to asset valuation, our experts offer comprehensive, tailored services and solutions that can play a critical role in the outcome of your transaction.
Our services include:
- Mergers and acquisitions
- Valuations
- Strategic planning
- Due diligence
- Turnkey operations advisory
- Negotiation
Comprehensive industry knowledge
Our specialists have extensive experience facilitating the transaction process for both sellers and buyers, overseeing deal negotiations and asset valuation as well as mergers and acquisitions. We have built close relationships with a solid network of potential buyers and leading dealer groups throughout Uganda, including at the manufacturer level.
Our automotive industry experts stay up to date on trends and challenges affecting the sector, working closely with our clients to identify opportunities that will increase dealership sale value.
Support for sellers and buyers
After conducting an in‑depth assessment of the value of a business, we prepare a forecast for sellers that showcases the full potential of the dealership to maximize price. Our valuation process is extensive and considers both tangible and intangible assets.
For buyers, our professionals assist with every phase of the deal, from initial research and discussions to negotiations and closing. Afterwards, we liaise with your lawyers to ensure the entire transaction – including the legal process – is as smooth and efficient as possible.