Projections by Uganda Communications Commission (UCC) indicate continued growth for courier services in Uganda, driven by a surge in e-commerce and digital trade.
The market is expected to expand annually, with a significant increase in demand for last-mile delivery services for both domestic and international shipments, fueled by the growing e-commerce sector and a young, tech-savvy population.
Speaking during the opening of EHS’ official courier partner of Fedex, Ms Julianne R. Mweheire, the director of content at UCC, said increasing use of smartphones and digital marketplaces is fuelling a greater need for delivery services, as consumers expect convenience and fast delivery.
‘Companies are adapting to meet evolving customer demands for faster, more reliable, and cost-effective delivery, even as they face challenges like varied geography and the need for efficient last-mile solutions,’ she said.
Ms Mweheire noted that the entry of new licensees and the increasing compliance with regulations from the UCC are contributing to the growth of the formal courier sector.
A report by the Information Communication and Technology ministry has revealed that the e-Services market in Uganda is projected to reach 6.4 million users by 2029, with user penetration at 8.8 percent at the end of 2025.
The report shows that e-Services market revenue is projected to grow from an estimated $50.12m (Shs173.8b) in 2025 to $78.87m (Shs273.5b) by 2029, at an annual growth rate of 12 percent.
Dr Chris Baryomunsi, the ICT minister, says that, as e-commerce expands, the need for efficient and reliable last-mile delivery services will continue to grow, creating new opportunities for courier companies.
‘It is also projected to increase from $50.12m in 2025 to $78.87m by 2029 and expected to be 12.00 percent for the period 2025-2029,’ Minister Baryomunsi said.
Mr Baryomunsi added that e-commerce is forecasted to reach 6.4 million by 2029, with Average Revenue Per User (ARPU) projected to be $11.05 (Shs38,331) in 2025.
Mr Jimmy Kutosi, managing director EHS Uganda, said many landlocked African countries, including Uganda, face challenges due to higher transport costs and longer transit times compared to the global average.
‘There is a push to improve connectivity by integrating multimodal systems like rail, road, and ports to help countries like Uganda shift from exporting raw commodities to producing higher-value goods,’ he said, adding that, despite challenges, the logistics sector in Uganda presents an opportunity for companies like EHS to grow by addressing the region’s logistics needs.