The Uganda Tourism Board (UTB) has heightened its efforts to enforce compliance with licensing requirements for tourist accommodation facilities. Inspections resumed today across the Kampala Metropolitan Area following a six-month grace period granted to facility owners after an initial announcement on November 18, 2024. This warning indicated potential closures for unlicensed operations. Non-compliant facilities now face immediate closure, demonstrating UTB’s commitment to elevating standards within Uganda’s tourism sector.

This latest phase of enforcement follows inspections conducted in late 2024, during which UTB, in collaboration with the Uganda Police, targeted unlicensed accommodation facilities across Kampala’s 19 policing divisions, including Kawempe, Kamwokya, Rubaga, Wandegeya, Nansana, and the Central Business District. At that time, fewer than 200 of Uganda’s estimated 4,000 accommodation facilities held licenses. Consequently, UTB issued compliance notices and allowed owners time to fulfill the requirements outlined in the Uganda Tourism Act of 2008.

Starting May 6, 2025, UTB teams are revisiting these facilities to confirm adherence to licensing standards. “Non-compliant facilities will be closed,” UTB declared in a public notice, emphasizing that quality service at hotels, lodges, guesthouses, and other accommodations directly affects the experiences of tourists visiting Uganda. The board’s actions reaffirm its mission to ensure world-class standards under the “Explore Uganda – The Pearl of Africa” brand.

The Uganda Tourism Act mandates that all tourist accommodation facilities, ranging from hotels and serviced apartments to hostels and tented camps, obtain a valid tourism operating license. To qualify, owners must submit the following documents: Certificate of Incorporation, TIN Registration Certificate, Valid Operating Certificates, Approved Building Plan or Occupation Permit.

Registration is facilitated through UTB’s Quality Assurance System, and payments are processed via the Uganda Revenue Authority. The registration and inspection fee is 100,000 Ugandan Shillings, with an annual licensing fee of 200,000 Shillings, though these fees are currently under review.

The enforcement campaign has encountered challenges. In November 2024, some hotel owners criticized UTB’s approach, citing a lack of adequate prior consultation and awareness. Some critics, argued that the crackdown could negatively impact the sector and urged UTB to focus on awareness rather than punitive measures. In response, UTB spokesperson Gesa John Simplicious defended the initiative, stating that extensive stakeholder engagement had taken place and that enforcing standards is a legal obligation. The extent of non-compliance—over 95% of facilities were unlicensed in 2024, highlights gaps in awareness and instances of deliberate non-compliance. To address this, UTB has combined enforcement efforts with sensitization campaigns, offering a 48-hour grace period for unlicensed but compliant facilities to apply for licenses, and a 24-hour period for non-compliant facilities to relocate guests to licensed alternatives.

Tourism serves as a cornerstone of Uganda’s economy, significantly contributing to foreign exchange earnings. Poor service standards at unlicensed facilities could tarnish the country’s global reputation, making UTB’s crackdown a vital step toward sustainable growth. The initiative aligns with broader efforts, including hotel grading, classification, and partnerships with global brands like Emirates Airline and Absa Bank Uganda for events such as the KH3-Hills Marathon.

By enforcing licensing, UTB aims to create a conducive environment for stakeholders while ensuring tourists enjoy safe, hygienic, and high-quality accommodations. This phased enforcement, beginning in Kampala and set to expand nationwide, reflects a strategic approach to overcoming logistical challenges posed by the scale of the sector.

UTB urges accommodation owners to take immediate action to avoid closure: Register promptly through the UTB Quality Assurance System, Submit all required documentation, Ensure facilities meet minimum standards for safety, hygiene, and structural integrity, Seek assistance at +256-414-342-196/7 or qualityassurance@utb.go.ug.

As UTB continues its inspections, the tourism sector is at a pivotal juncture. The board’s commitment to enhancing hospitality standards is evident, but its success will depend on striking a balance between enforcement and stakeholder cooperation. For now, facility owners are on notice: comply or face closure.

For more information, visit www.utb.go.ug or www.qasystem.utb.go.ug. Uganda’s tourism industry is poised for transformation, and UTB’s actions signal a bold step toward a brighter, more competitive future.

Contact: Uganda Tourism Board, +256-414-342-196/7, qualityassurance@utb.go.ug

On April 2, 2025, U.S. President Donald Trump announced his “Liberation Day” tariffs, imposing a 10% levy on all imports effective April 5, with higher “reciprocal tariffs” set to take effect on April 9. For Uganda, a nation already excluded from the African Growth and Opportunity Act (AGOA) since January 2024, this policy threatens its modest $77 million trade with the U.S. However, as the American market contracts, new opportunities may emerge elsewhere, allowing Uganda to diversify its $2.5 billion export economy.

Uganda’s exports to the U.S., primarily coffee (which generated $58.2 million in 2023), vanilla, and fish, are now subjected to the 10% tariff, increasing costs for American buyers. Coffee, the backbone of Uganda’s economy and a vital source of income for 1.5 million smallholder farmers, is feeling the pressure. Early reports indicate that U.S. buyers have begun pausing orders or demanding price reductions, with spot market prices dropping by 3% to 5% since the tariff was introduced. The Uganda Coffee Development Authority (UCDA) estimates a potential revenue decline of 5% to 10% if demand falters, which could negatively impact rural livelihoods.

In addition to coffee, the tariffs further complicate Uganda’s exclusion from AGOA, extinguishing hopes of regaining duty-free access before the program expires in September 2025. The Ugandan shilling, which had already fallen by 5% in 2024, may face additional pressure, potentially dropping by another 2% to 3% by mid-2025. This situation could exacerbate inflation (currently at 3.2%) and increase the cost of servicing $11 billion in external debt, a bitter challenge for a nation still recovering from global economic shocks.

However, adversity can also create opportunities. With the U.S. market becoming less viable, Uganda’s exporters and policymakers are looking to alternatives, capitalizing on the uneven impact of the tariffs globally (10% for Uganda compared to 46% for Vietnam or 50% for Lesotho) to pursue untapped markets.

China is emerging as a strong contender. Offering zero-tariff access to 98% of Ugandan goods, Chinese imports of Ugandan coffee grew by 20% in 2024, reaching $12 million. As U.S. demand fluctuates, Chinese buyers motivated by a 15% annual increase in coffee consumption could increase their purchases of robusta beans, especially following a $200 million loan for storage infrastructure signed in March 2025. Local traders have noted this shift, viewing China as a potential lifeline.

The European Union, Uganda’s $400 million trade partner, presents another opportunity. Under the Everything But Arms initiative, Ugandan coffee and vanilla can enter duty-free, unaffected by Trump’s tariffs. European roasters, facing their own 20% U.S. tariff starting April 9, may seek to source from Uganda to mitigate supply chain disruptions. Exporters in Kampala reported a surge in inquiries from the EU on April 4, signaling a possible windfall.

Regionally, the African Continental Free Trade Area (AfCFTA) offers tariff-free access to 1.4 billion consumers. Uganda’s $600 million in intra-African trade, primarily with Kenya and South Sudan, could expand, with coffee, maize, and processed goods like roasted blends finding local buyers. The trade ministry’s commitment to fast-track AfCFTA integration, announced on April 5, demonstrates intent, although challenges like inadequate infrastructure remain.

The Middle East, especially the UAE, also presents niche opportunities. Uganda’s coffee exports to the Gulf reached $50 million in 2023, and its robusta beans are well-suited to regional blends. A Dubai trade fair in March 2025 showcased Ugandan firms, a trend likely to gain momentum after the tariffs take effect. India, with its 1.4 billion coffee drinkers, is another potential market, although barriers to trade there are significant.

These opportunities do come with risks and challenges. Redirecting trade can take months or years, while the impacts of U.S. losses are immediate. Logistics bottlenecks, such as poor road conditions and border delays, could hinder progress, and a global trade war ignited by Trump’s policies could shrink other markets. Additionally, Uganda’s domestic response will be critical. The tariffs reveal internal weaknesses that require swift government action. Infrastructure improvements, such as the $200 million Chinese-funded coffee storage facility or overdue AfCFTA road projects, are essential to meet EU standards and fulfill African delivery timelines, as poor logistics inflate costs by 20%, according to 2024 World Bank data. Investing in value-added processing, such as coffee roasting or vanilla extraction, could significantly increase export values from $2 per kilogram to $10 or more, creating jobs and offsetting losses, albeit funding remains a challenge. Fiscal adjustments may see the Bank of Uganda tighten rates to curb inflation, while small and medium enterprises responsible for 80% of exports require credit and training to access new markets, a sentiment echoed by a Jinja vanilla SME on April 5.

The government is active in negotiating with China, promoting AfCFTA, and seeking opportunities at Gulf expos, such as the UAE’s $2 billion trade event scheduled for June 2025. For Ugandan exporters, adaptability is essential. A coffee cooperative in Kampala stated on April 6 that it is already targeting EU and Middle Eastern buyers, aiming to make the most of the tariff gap. If successful, this pivot could reduce reliance on the U.S., which currently accounts for just 3% of Uganda’s exports, and strengthen its economy.

Kabaale, Hoima District, Uganda – On Saturday, March 29, 2025, Uganda took a significant step toward energy independence and industrialization by signing a landmark oil refinery agreement with Alpha MBM Investments LLC, a firm based in the UAE. The agreement was finalized during a high-level ceremony at State House in Entebbe, attended by President Yoweri Kaguta Museveni. This deal establishes the foundation for a state-of-the-art crude oil refinery in Kabaale, Hoima District, with a capacity of 60,000 barrels per day.

Under the terms of the agreement, Alpha MBM Investments LLC will hold a 60% stake in the refinery, while the Uganda National Oil Company (UNOC) will retain a 40% share. The project is expected to revolutionize Uganda’s economy by improving energy security, creating thousands of jobs, and supporting industrial growth.

President Museveni described the deal as a pivotal moment for Uganda, highlighting its potential to transition the country from a consumer-based economy to a production powerhouse. “This oil refinery is not just about fuel; it is about Uganda producing and exporting refined products instead of importing,” he stated. “We must stop exporting raw materials and instead add value to everything we produce.”

The President expressed gratitude to His Highness Sheikh Mohammed Bin Maktoum and the UAE delegation for their investment, drawing a contrast between their success and Uganda’s untapped potential. “People in the desert, where there is no rain, have built an economic empire, while some Ugandans, blessed with fertile land and natural resources, remain poor. We must change this mindset,” he urged.

Museveni also reflected on Dubai’s transformation, recalling his initial impressions of its rapid development. “When we returned from fighting Amin, I had never heard of Dubai. It was only a few years ago that I visited and saw very active people. Work with them—they are not bringing loans but investments,” he said.

The refinery project includes several key components:

• A 60,000-barrel-per-day refinery complex in Kabaale, Hoima, designed to process Uganda’s crude oil reserves.
• A modern storage terminal in Namwabula, Mpigi District, ensuring a steady fuel supply for national consumption.
• A 212 km multi-product pipeline connecting the refinery to the storage terminal, facilitating efficient distribution of refined products across Uganda and beyond.
• The Mbegu Water Abstraction Facility, featuring an advanced pipeline system to support refinery operations sustainably.

President Museveni reaffirmed his administration’s commitment to creating a business-friendly environment and cautioned government officials against bureaucratic delays. “Those who stand in the way of progress will be swept aside,” he declared. “We are here to work with serious investors who bring capital, knowledge, and long-term benefits to Uganda.”

Minister of Energy and Mineral Development, Hon. Ruth Nankabirwa, echoed this sentiment by stating that the refinery aligns with Uganda’s National Oil and Gas Policy (2008) and the East African Refineries Development Strategy. “The refinery will create thousands of jobs, develop local expertise, and serve as a springboard for industries such as petrochemicals and fertilizer production,” she noted. The project will also comply with international environmental, health, and safety standards while incorporating cutting-edge technologies to minimize its ecological footprint.

In addition to the refinery deal, Uganda and the UAE investors signed five other agreements in various sectors, including:

• Aviation development
• Tree planting initiatives
• A digital land management system
• Logistics cargo hubs and storage chain facilities
• A comprehensive digital payment system for government transactions aimed at streamlining tax collection and financial services

His Highness Sheikh Mohammed Bin Maktoum, leading the UAE delegation, expressed his personal commitment to Uganda’s growth. “As long as I am in Uganda, I consider myself Ugandan. My team and I are here to support the nation and its people because our greatest happiness comes from seeing communities thrive,” he said.

Reflecting on his nearly two-year collaboration with President Museveni, Sheikh Maktoum praised Uganda’s investment-friendly climate. “I have never given up on this vision. I deeply appreciate Your Excellency’s support, and this is just the beginning of our journey together. What lies ahead is even greater, and the possibilities are limitless,” he added.

The signing ceremony gathered key figures, including Hon. Matia Kasaija (Minister of Finance, Planning & Economic Development), Hon. Jackson Kafuuzi (Deputy Attorney General), Mr. Ramathan Ggoobi (Permanent Secretary and Secretary to the Treasury), and Ms. Proscovia Nabbanja (CEO of UNOC).

As Uganda embarks on this ambitious project, the oil refinery deal stands as a testament to the nation’s determination to harness its natural resources, drive economic transformation, and establish itself as a regional leader in energy production and industrialization.