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The Relationship Between Transport Infrastructure and Business Economic Impact in Uganda


Authors : Kariisa John Bosco Koy

Volume/Issue : Volume 11 - 2026, Issue 3 - March


Google Scholar : https://tinyurl.com/3zw79aam

Scribd : https://tinyurl.com/4v3dbnja

DOI : https://doi.org/10.38124/ijisrt/26mar2040

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.


Abstract : Background: Transport infrastructure plays a fundamental role in shaping economic performance and business growth in developing countries through enhanced mobility, improved access to markets and reduced transaction costs. In Uganda, persistent challenges such as road congestion, poor infrastructure quality and limited connectivity significantly affect business operations and economic outcomes. These challenges increase transportation costs, delay deliveries, and reduce overall business productivity.  Method: This study adopted a mixed-methods review approach, synthesising evidence from Uganda’s National Transport Master Plan, Uganda Bureau of Statistics (UBOS), Kampala Capital City Authority (KCCA) datasets, and empirical literature. Quantitative indicators such as travel time, congestion levels, and logistics costs were analysed alongside qualitative insights from business operators.  Results: Findings reveal a strong positive relationship between transport infrastructure and business economic impact (r = 0.65, p < 0.01). Poor infrastructure was associated with increased operational costs, reduced profit margins, and limited business expansion. Businesses operating in well-developed transport corridors reported improved revenue performance, reduced logistics costs and enhanced productivity.  Conclusions: Transport infrastructure significantly influences business economic outcomes in Uganda. Improving road quality, reducing congestion and investing in integrated transport systems are essential for enhancing business profitability and national economic growth.

Keywords : Transport Infrastructure; Economic Impact; Business Performance; Uganda; Logistics; Infrastructure Development

References :

  1. O. Skorobogatova and I. Kuzmina-Merlino, ‘Transport Infrastructure Development Performance’, Procedia Engineering, vol. 178, pp. 319–329, Jan. 2017, doi: 10.1016/j.proeng.2017.01.056.
  2. J. Muvawala, H. Sebukeera, and K. Ssebulime, ‘Socio-economic impacts of transport infrastructure investment in Uganda: Insight from frontloading expenditure on Uganda’s urban roads and highways’, Research in Transportation Economics, vol. 88, p. 100971, Sep. 2021, doi: 10.1016/j.retrec.2020.100971.
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  10. H. Meersman and M. Nazemzadeh, ‘The contribution of transport infrastructure to economic activity: The case of Belgium’, Case studies on transport policy, vol. 5, no. 2, pp. 316–324, 2017.
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Background: Transport infrastructure plays a fundamental role in shaping economic performance and business growth in developing countries through enhanced mobility, improved access to markets and reduced transaction costs. In Uganda, persistent challenges such as road congestion, poor infrastructure quality and limited connectivity significantly affect business operations and economic outcomes. These challenges increase transportation costs, delay deliveries, and reduce overall business productivity.  Method: This study adopted a mixed-methods review approach, synthesising evidence from Uganda’s National Transport Master Plan, Uganda Bureau of Statistics (UBOS), Kampala Capital City Authority (KCCA) datasets, and empirical literature. Quantitative indicators such as travel time, congestion levels, and logistics costs were analysed alongside qualitative insights from business operators.  Results: Findings reveal a strong positive relationship between transport infrastructure and business economic impact (r = 0.65, p < 0.01). Poor infrastructure was associated with increased operational costs, reduced profit margins, and limited business expansion. Businesses operating in well-developed transport corridors reported improved revenue performance, reduced logistics costs and enhanced productivity.  Conclusions: Transport infrastructure significantly influences business economic outcomes in Uganda. Improving road quality, reducing congestion and investing in integrated transport systems are essential for enhancing business profitability and national economic growth.

Keywords : Transport Infrastructure; Economic Impact; Business Performance; Uganda; Logistics; Infrastructure Development

Paper Submission Last Date
30 - April - 2026

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