This paper provides evidence of Uganda’s emerging middle class and its potential
economic opportunities. Using various sources of information, including key informant
interviews, national household surveys data, and case studies, the paper establishes that
although Uganda’s emerging middle class is less than two decades old and is, still in
many ways inchoate, the importance of the middle class comes from the fact that it is
growing at a faster pace than the overall population. The growth in middle class both in
terms of size and its purchasing power over the past ten years has been the outcomes of
population and economic growth, tertiary education expansion, advancement in
information and communication technology, and innovation in financial services.
Middle class is defined in Uganda’s context to consist of individuals who spend between
USh1.0 million and USh5 million (i.e. approx. USD 400 – 2000) per month. They are
known by their life style and aspiration: live in 2- 3 bed room housing (secure home), like
to shop in supermarket, and aspire to own a property (a home, a car, land, and stock).
They have medical insurance, and send their children to the best schools. The middle
class comprises government civil servants and employees of the state-financed agencies,
technical and middle level managerial and administrative personnel in large companies,
owners of small business enterprises, NGO employees, and professionals (lawyers,
doctors, consultants, business professionals, etc), politicians and commercial farmers. It
also comprises over 1,000 individuals operating businesses in Owino, Kikubu, and other
busy markets around Kampala and major urban centres i.e. the ‘trading middle class’.
Many of them live in less secure homes in the middle of urban slums, but send their
children to the best schools. Majority of them do not own a car, a computer or even a
bank account and may not visit a supermarket.