Uganda has witnessed a dramatic rise in household expenditure over the past seven years, with Business-to-Consumer (B2C) transactions soaring from UGX 34.2 trillion in 2016/17 to UGX 77.4 trillion in 2023/24, according to new figures released during a seminar at the Uganda Bureau of Statistics (UBOS) headquarters.
Ezra Bwambale, Senior Statistician at UBOS, attributed this explosive growth to the growing impact of digital technologies on the economy. He highlighted the significant role of digital tools in fueling economic activity, noting that digital technologies now account for around 5% of global GDP and 3% of global employment, with the Global South experiencing the fastest growth in digital adoption.
Over the course of these seven years, household spending has surged across nearly all product categories. Expenditure on food and beverages grew from UGX 15.2 trillion to UGX 26.7 trillion. Spending on non-durable goods and services saw the most substantial increase, jumping from UGX 10.8 trillion to UGX 28.2 trillion, while durable goods more than doubled, rising from UGX 9.0 trillion to UGX 22.6 trillion. These figures reflect a growing consumer confidence and purchasing power, suggesting a resilient economy with increasing household consumption.
While traditional, in-person retail remains the dominant form of shopping, Uganda’s e-commerce sector has shown impressive growth. Between 2019 and 2024, online B2C transactions nearly tripled. The share of e-commerce in total household spending grew from 0.3% to 0.8%. Online purchases of non-durable goods and services, including essentials, rose sharply from UGX 25.4 billion to UGX 115.7 billion, while sales of durable goods increased from UGX 14.2 billion to UGX 55.0 billion. Even the food and beverage category saw significant growth, climbing from UGX 1 billion to UGX 18.1 billion in online transactions.
On the international front, Uganda’s online imports have also expanded rapidly, although the volume remains small. Non-durable goods and services purchased from international platforms surged from UGX 3 million in 2019/20 to nearly UGX 5 billion in 2023/24.
Florence Nambooze, Chairperson of the UBOS e-Resource Functional Committee, addressed attendees with a caution on the ethical use of digital resources. She warned against the illegal practice of downloading and redistributing digital content for commercial gain, highlighting the need for responsible behavior in the digital age.
Economists see these trends as a sign of Uganda’s expanding domestic economy, spurred by higher consumer demand, rapid digital adoption, and shifting consumption patterns. The notable growth in spending on non-durable goods reflects greater consumption of everyday necessities, while the increase in durable goods signals a growing investment in long-term assets by households. The ongoing rise in e-commerce indicates that Uganda is embracing the digital economy, a trend that will likely continue as the country advances its national digital transformation agenda.
To maintain this upward trajectory, experts stress the importance of investing in digital infrastructure, improving logistics, and enhancing secure online payment systems to foster the growth of the country’s e-commerce market.
UBOS’s report underscores the transformative impact of digitization on Uganda’s economy, particularly in the household sector, as the country embraces its path toward modernization and economic resilience.
