Uganda’s informal economy seeks strength in numbers

What the report says

Uganda’s United Informal Sector Forum (UISF) and Union Transport Alliance (UNION) have formed a partnership aimed at uniting informal businesses and improving their access to bigger commercial opportunities. The initiative, launched under the slogan “Tuliwamu: Building Uganda’s Invisible Economy Together,” brings together UISF’s network of 84 associations across 18 informal sector categories and UNION’s transport operators, including taxi and boda boda riders, truck drivers and bus operators.

The Observer reported that the move comes as the informal economy dominates Uganda’s job market. Citing the Uganda Bureau of Statistics Labour Market Survey 2025, the article said 87.6% of workers are in informal employment, rising to nearly 90% when agriculture is included. Of the 11.8 million people employed, more than 7.3 million work in informal establishments. Despite that scale, many small operators still face weak market access, limited technology use, and compliance and regulatory hurdles.

Informal sector representatives said the partnership could help businesses organise more effectively, speak with a stronger voice and reach wider markets. A seller of charcoal briquettes and UISF leaders said the sector has long been overlooked and that collective action could improve advocacy and business growth. UNION also argued that organised numbers can give informal workers greater economic influence, though it stressed that discipline, organisation and digitalisation would be needed for lasting results.

The development matters because it highlights efforts to turn Uganda’s large but fragmented informal economy into a more coordinated force in trade and policy discussions.