Africa -  Uganda - Kampala

Uganda is one of the fastest growing economies in Africa, with a GDP growth estimated at 6.2% in 2017. Yet a small country, Uganda has nothing to envy to other African countries; it has more of its fair share of beautiful landscapes and wildlife. After two decades of instability, the government has prioritized spending on key sectors and focused on financial liberalization. Uganda is one of the most economically and politically stable countries in Africa. With an urban growth rate estimated at 5.2%, Kampala generates 60% of the GDP of Uganda and the government aims to make sure that the capital will continue to be a key economic driver and a sustainable future city. The business community is very strong in the capital and an increasing number of entrepreneurs chose Kampala to settle.

However, Kampala faces many challenges along the way. Infrastructure is a key issue. Being built on seven hills, the capital has no airport and the road’s network is very poor, with only one road connecting the city to the rest of the country; heavy traffic is a problem. The government is working on multiple roads in order to ease the traffic and improve accessibility, which is key for tourism.

Tourism in the capital is driven by corporate and MICE. Apart from a couple of branded hotels, the capital does not offer much quality hotels, limiting the potential growth of tourism in the country. Yet, Carlson Rezidor and Hilton announced the opening of properties in the next few years and the market is thus likely to mature further.

REVPAR in Kampala has increased by 6% in 2015 and 2016 mainly boosted by an increase in occupancy. That resulted in an increase in value of 6.6%. Uganda, led by Kampala, offers huge opportunity for business and tourism in the next few years.

Exchange Rate:

Exchange Rate 2015 Exchange Rate 2016 Change 2015/2016 Exchange Rate 2017 Change 2016/2017
US$ 1 1 0
Uganda - Kampala 0.140838 0.13747 -2.4% 0.138921 1.1%

Change In Value For Market:

Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Uganda - Kampala RevPAR Change

Uganda - Kampala RevPAR

Year RevPAR
2014 56.73
2015 60.58
2016 64.60
2017 67.01

For more information, please contact:

Tim Smith, MRICS
[email protected]
  • +27 797 342296 (w)
Laura Dutrieux
[email protected]
Laura Dutrieux
[email protected]