KAMPALA, Uganda — A series of high-stakes corporate consolidations and the introduction of rigorous new competition laws redefined Uganda’s business landscape in 2025, shifting the market toward a more regulated and corporate-heavy environment.
The year was characterized by strategic mergers that created dominant market leaders, particularly in the insurance and financial services sectors. The union of Sanlam General Insurance and Jubilee Allianz to form Sanlam Allianz General Insurance served as a benchmark for 2025, highlighting a trend of established players scaling up to improve efficiency and capital resilience.
In the beverage industry, the market was shaken by Diageo’s agreement to sell its 65 percent stake in East African Breweries Limited. This divestment, alongside the Granada Hotels Group taking over management of the Pearl of Africa Hotel, underscored a year of significant shifts in ownership and management across the hospitality and manufacturing sectors.
However, the defining feature of 2025 was not just the deals themselves, but the new rules governing them. The passage of the Competition Regulations, 2025, introduced stricter notification thresholds to the Ministry of Trade. This regulatory update, combined with the East African Community Competition Authority’s move to require mandatory cross-border filings as of Nov. 1, added layers of complexity to the deal-making process.
Analysts noted that while these regulations aim to protect market competition, they have significantly extended transaction timelines. The increased compliance costs contributed to a cooling of the regional market, with East Africa recording 77 deals worth $810 million in 2025, a sharp decline from the $1.35 billion seen in 2023.
Despite the slower regional pace, Uganda maintained a steady course with transaction values averaging $3.3 million. The year also saw the rise of artificial intelligence as a magnet for capital, with fintech firms like SafeBoda and Agent Banking Company leading the charge in AI-driven transaction security and digital payments.
As the year concludes, the focus is shifting toward 2026, with investors eyeing the $15 billion to $20 billion clean energy investment pipeline. The transition toward environmental, social and governance goals suggests that while 2025 was the year of regulation and consolidation, the coming year will be defined by sustainability and green growth.