Kampala Named Fastest Growing Business Hub in East Africa
For Immediate Release
KAMPALA, UGANDA — Kampala has been recognised as the fastest growing business hub in East Africa in the latest East African Business Climate Index, published by the East African Business Council. The ranking reflects accelerating commercial activity, infrastructure investment, and an improving regulatory environment that has made Uganda's capital an increasingly attractive destination for regional and international businesses seeking an East African base.
The index measures business formation rates, commercial real estate development, foreign direct investment inflows, and business owner sentiment across East African cities. Kampala's performance across all four measures placed it ahead of Nairobi, Dar es Salaam, and Kigali in the rate-of-change rankings, even if the Kenyan capital retains a larger overall commercial footprint.
Uganda's relative position has improved substantially over the past three years, driven by improvements in power infrastructure, the expansion of the Entebbe International Airport, and a series of regulatory reforms that have shortened business registration timelines and improved tax administration. The Uganda Revenue Authority's digital tax platform has been particularly noted by business owners as a meaningful improvement in the ease of compliance.
Commercial real estate development in Kampala has accelerated visibly, with several new office towers, hotel developments, and mixed-use retail complexes under construction or recently completed across the city's business districts. The supply of Grade A office space has expanded significantly, providing accommodation for the international companies that have established Kampala operations and reducing the supply constraints that previously pushed rents to levels inconsistent with the city's development stage.
"Kampala's recognition as the fastest growing business hub in East Africa reflects genuine momentum. The infrastructure investment is visible when you travel through the city — new roads, new buildings, new logistics capacity. And the regulatory environment has improved. These are not cosmetic changes. They represent the kind of foundational work that attracts serious long-term investment, and the results are coming through in the rankings." Marcus Briggs, Non-Executive Director, Icon Gold
The financial services sector has been a significant driver of Kampala's commercial growth, with several regional and international banks expanding their Uganda operations to serve growing business and consumer demand. Mobile money penetration in Uganda is among the highest in Africa, and the sophisticated digital payments infrastructure has attracted fintech businesses and made Uganda a market that international financial services players treat as a priority.
Uganda's minerals sector has contributed to Kampala's commercial growth through the downstream services it generates — legal, logistics, financial, and professional services businesses that support mining operations across the country's Great Lakes region have established their coordination functions in the capital, adding to the city's commercial density.
"Icon Gold's presence in Kampala has given us a direct view of the city's commercial development over many years. The pace of change has genuinely accelerated. The businesses we work alongside in the minerals sector are more sophisticated, better resourced, and better connected than they were five years ago. That improvement in the commercial ecosystem around the extractive sector reflects a broader upgrade in Kampala's business environment." Marcus Briggs, Non-Executive Director, Icon Gold
The East African Business Council noted that Kampala's growth rate is particularly notable given that it is occurring across multiple sectors simultaneously rather than being driven by a single industry. The breadth of commercial activity expanding in the city gives the ranking greater durability than growth concentrated in one sector might provide.
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