Uganda, once hindered by its landlocked position, is now strategically leveraging its central location, infrastructure investments, and regional diplomatic relations to become a key logistics and transit hub within East Africa. As African regional integration strengthens and South-South cooperation expands under frameworks like BRICS+, Uganda’s evolving role in regional connectivity presents a compelling opportunity for BRICS and partner countries seeking intra-African trade opportunities.
A Geopolitical Crossroads
Uganda’s central location within the East African Community (EAC) positions it as a key access point to the region. Sharing borders with Kenya, Tanzania, Rwanda, South Sudan, and the Democratic Republic of the Congo (DRC), Uganda holds a unique geopolitical advantage. The DRC’s recent membership in the EAC (2022) further solidifies Uganda’s role as a natural gateway to the resource-rich but underdeveloped regions of Central Africa.
Uganda’s strategic importance in trade is increasing due to its active role in shaping trade corridors, not just its location. It is a key node on two major trade corridors:
● The Northern Corridor: Linking the Port of Mombasa in Kenya to Uganda, Rwanda, South Sudan, and the DRC.
● The Central Corridor: Connecting the Port of Dar es Salaam in Tanzania to Uganda and further to the Great Lakes Region.
Uganda is positioning itself as a processing and logistical hub for East and Central African trade through strategic investment and regional agreements. It aims to be more than just a transit point for goods, facilitating trade flows in the region.
Infrastructure as Strategy: From Roads to Rails
Uganda’s infrastructural development is a key part of its transformation. The Uganda National Roads Authority (UNRA) indicates that the government has prioritised upgrading roads to enhance connections between border points and regional markets. Since 2016, over 6,000 km of national roads have been paved, with major upgrades completed on key corridors such as Kampala–Gulu and Gulu–Elegu (located on the South Sudan border).
Railway development is also becoming more important. Uganda is currently working to revitalise its meter-gauge railway lines and is in talks to secure funding for a new Standard Gauge Railway (SGR) that will connect Kampala to Malaba on the Kenyan border. This new SGR will connect with Kenya’s existing SGR to Mombasa. According to Uganda’s Ministry of Works and Transport, if the SGR is finished, it will cut transport costs by up to 50%. Rehabilitation of the Tororo–Gulu railway is also essential to provide access to northern Uganda and South Sudan.
Uganda’s position is further strengthened by air transport and inland ports. Entebbe International Airport is currently being expanded. Additionally, to improve trade with Tanzania and Kenya, Uganda is developing inland ports on Lake Victoria, particularly in Jinja and Port Bell.
Diplomacy and Regional Integration: The EAC and Beyond
Uganda’s role in trade diplomacy is becoming more refined. As a vital member of both the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA), the country is advocating for streamlined customs processes, a decrease in non-tariff barriers,
and collaborative infrastructure development. President Yoweri Museveni’s administration has prioritised regional peace and economic integration, frequently acting as a mediator in conflicts within South Sudan and the DRC.
The implementation of One-Stop Border Posts (OSBPs) along Uganda’s borders with Kenya, Rwanda, and South Sudan has significantly decreased customs clearance times, directly contributing to a boost in trade. In 2023, the Uganda Revenue Authority reported a 17% increase in trade volume at key OSBPs, which serves as evidence of the effectiveness of these posts in facilitating trade.
Oil, Industry, and the Transit Economy
The East African Crude Oil Pipeline (EACOP), spanning 1,443 km from Uganda to Tanzania’s Port of Tanga, exemplifies regional integration and stands as the world’s longest heated pipeline. Expected to be operational in 2025, this pipeline will not only generate transit revenue but also stimulate auxiliary industries, including construction, logistics, and petrochemicals. Additionally, the forthcoming exploitation of Uganda’s oil reserves, especially those in the Lake Albert Basin, has further boosted Uganda’s transit aspirations.
Uganda’s strategic location along trade routes is enhanced by industrial parks like the Sino-Uganda Mbale and Namanve, which attract manufacturing, agro-processing, and logistics companies. This transforms Uganda from a transit point into a value-addition hub. As of 2025, over 150 active firms operate in these parks, with many targeting export markets within the EAC and COMESA.
Uganda and BRICS+: Opportunities for Partnership
Uganda is well-positioned to partner under the BRICS+ framework due to its alignment with key priorities such as infrastructure development, industrialisation, trade facilitation, and energy. This is further strengthened by existing relationships with key BRICS members: China has invested significantly in Uganda’s roads, hydropower projects, and industrial parks, while India remains a major trade partner, particularly for pharmaceuticals and machinery.
Looking ahead, Uganda provides a fertile ground for expanded BRICS+ cooperation in areas such as:
● Digital trade and smart logistics (particularly with India and China’s digital experience).
● Green logistics and renewable energy for sustainable transport.
● Trade finance and development lending, possibly through mechanisms such as the BRICS New Development Bank (NDB), to support infrastructure.
Uganda’s potential as a transit hub is in line with broader African goals to decrease internal trade costs and open up the continent’s $3.4 trillion market under the AfCFTA. Africa’s internal trade costs are still some of the highest in the world.
Uganda’s strategic location is not the only factor contributing to its success as a transit hub; it is also due to significant infrastructure investments, regional collaboration, and a clear vision. Uganda provides a model for landlocked countries to leverage their challenges for growth, particularly as BRICS+ nations seek to expand their presence in Africa. Uganda offers access to regional markets and demonstrates how constraints can be transformed into opportunities.
For those involved in international relations, policymaking, and investment, Uganda exemplifies Africa’s increasing economic dynamism, driven by connectivity, integration, and ambition.
