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Transport and logistics comprise between 35 percent and 42 percent of production costs in Uganda, according to a report by Standard Bank, which trades as Stanbic in Uganda.

The report - Africa Trade Barometer - which measures performance of trade in 10 African countries including Uganda, Angola, Ghana, Kenya, Mozambique, Namibia, Nigeria, South Africa, Tanzania, and Zambia, notes that the cost of transport and logistics in Uganda is too high to enable production of competitive products with countries in Asia, majority of which have an input of only 8 percent on transport and logistics.

“This poor infrastructure undermines the competitiveness of Ugandan exports and significantly increases the costs of receiving imports. An improvement in the transport and logistics infrastructure in Uganda may, therefore, be an important enabling factor that allows Ugandan businesses to realise the benefits of increased intra-African trade,” the report reads in part.

Data from Uganda National Roads Authority indicates that Uganda has a national road network of 21,000 kilometers, of which about 8,588 kilometres are tarmacked.

The state of the road network remains a big component in the cost of transport, which is exacerbated by the lack of alternative means such as water and railway.

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