Broken links: Why Uganda’s supply chains struggle to deliver value

__________________

OPINION

By Dr Jeanpo Olowo

Every business, from a small grocery shop to a multinational manufacturer, depends on one thing: a functioning supply chain. It is the invisible system that moves goods from producers to consumers, connects farmers to markets, and links factories to retailers. When that system works, economies grow, jobs are created, and citizens prosper. But when it fails, as it often does in Uganda, everyone feels the impact.

Uganda’s supply chains are like cracked bridges, overloaded, underdeveloped, and unreliable. They carry the weight of national production, yet they are riddled with inefficiencies that increase costs and reduce competitiveness. From poor infrastructure to bureaucratic delays and weak coordination, the entire chain is under strain.

Infrastructure remains the biggest obstacle to an efficient supply chain. Many rural roads, especially feeder routes connecting farms to markets, are in poor condition. This makes transport costly and unreliable. A farmer in Mbale or Mbarara, or Kapchorwa may lose up to half of their produce before it reaches Kampala, not because of poor quality, but because of poor logistics.

Inadequate storage and lack of cold-chain facilities further compound the problem. Without proper warehousing or refrigeration, perishable goods like fruits, milk, and fish spoil before they reach consumers. For industries dependent on raw materials, unreliable delivery schedules disrupt production and raise operating costs. Rail and water transport, which could reduce dependence on road networks, remain underutilised.

While the government has made strides through the rehabilitation of key corridors, investment gaps persist. Without a multimodal transport system, integrating road, rail, and lake transport, Uganda’s trade competitiveness will remain limited.

Beyond infrastructure, logistics management is another weak link. Many Ugandan businesses still operate using manual systems, paper invoices, phone calls, and guesswork to track shipments. This lack of visibility leads to misplaced goods, inaccurate inventory records, and delivery delays.

In global trade, efficiency is driven by information. Companies in advanced economies use real-time data to track shipments, predict demand, and manage inventory dynamically.

Uganda’s private sector must embrace such technologies, from barcoding and warehouse management systems to integrated digital tracking tools, if it is to remain competitive in regional and global markets.

The third obstacle is bureaucracy. Importers and exporters routinely face long delays at border points due to multiple clearances from different agencies.

Customs procedures, inconsistent documentation, and duplicative inspections increase the cost of doing business. According to the World Bank’s “Doing Business” indicators, border compliance for trade in East Africa can take several days and cost hundreds of dollars per shipment.

For small and medium enterprises, such delays can cripple cash flow and discourage participation in cross-border trade. Streamlining these processes through single-window systems, harmonised documentation, and better inter-agency coordination would significantly improve efficiency. Institutions such as URA and UNBS have made progress, but more needs to be done to ensure that compliance does not become a barrier to commerce.

To fix Uganda’s broken links, we must modernise our supply chain thinking. This begins with digital transformation, using technology to increase transparency, efficiency, and accountability across all stages of the chain. Digital tracking, real-time inventory management, and integrated logistics platforms can reduce losses and improve decision-making.

Equally important is strengthening local supplier networks. Uganda’s industrialisation agenda depends on inclusive supply chains where small and medium enterprises can participate meaningfully. When local suppliers are trained, financed, and linked to larger value chains, productivity and job creation rise.

No single sector can fix the supply chain alone. Collaboration is essential. Government must invest in infrastructure and policy reform; the private sector must adopt innovation and ethical business practices; and development partners must support capacity building and technology transfer.

A well-functioning supply chain is not just an economic necessity — it is a national asset. It determines how fast goods move, how much they cost, and how much value stays in the country.

When the supply chain breaks, farmers lose income, industries lose competitiveness, and consumers pay more. But when it works efficiently, transparently, and collaboratively, it becomes a powerful engine for national growth. Uganda has the potential to be a regional logistics hub. The question is whether we can fix our broken links in time to deliver that promise.

The writer is an advisor: Finance & Business Operations