KAMPALA — The courier industry in Uganda has undergone a radical transformation, shifting from a steady, predictable logistics sector to a nationwide delivery machine, according to new data that points to a fundamental change in domestic commerce.
In the three months ending in September 2025, the volume of courier items delivered across Uganda more than tripled the total seen in the previous quarter, a surge driven primarily by the rapid maturation of the country’s e-commerce ecosystem.
Data from the Uganda Communications Commission shows that operators delivered 903,233 courier items in the third quarter of 2025. This explosion followed a quieter second quarter, from April to June, when operators handled 297,767 items.
Domestic Delivery Fuels the Surge
The dramatic increase was overwhelmingly fueled by domestic shipments.
The most striking shift occurred in local deliveries, which soared six-fold to 691,581 items in the third quarter, up from 117,082 in the second quarter. Inter-city deliveries also saw substantial growth, rising from 31,545 to 103,654 items.
While international and regional shipment volumes declined during the period, the sheer momentum of the domestic market pulled total sector revenue up, increasing from 12.4 billion shillings ($3.2 million) in the second quarter to 13.5 billion shillings ($3.5 million) in the third.
Why the Explosion Happened
Experts attribute the triple-digit volume growth to several converging factors:
- Maturing E-commerce: The six-fold increase in domestic deliveries signals a massive surge in local buying. More Ugandans are placing orders not only on formal online stores but also through “social shops” operating on platforms like WhatsApp, Instagram and TikTok.
- Digital Payment Shift: Denis Kakonge, general manager for corporate services at MTN Mobile Money, noted that the trend, which was turbocharged by the COVID-19 pandemic, is now accelerated by the growing adoption of digital payments. This acceleration empowers small and medium-sized enterprises to receive payments electronically, turning an impulse to buy into an immediate “send a rider” order.
- Expanded Last-Mile Reach: The tripling of inter-city volumes suggests courier firms have significantly expanded their coverage beyond the capital, establishing stronger, more dependable delivery corridors that stitch together towns. This points to denser networks of riders, vans and sorting hubs.
- Connectivity and Trust: The broader rise in smartphone adoption and data use is directly feeding physical movement, turning every smartphone into a storefront. Furthermore, heightened regulatory visibility from the UCC during the second quarter has likely boosted public trust in the reliability and service standards of courier firms.
- Seasonality: July to September is a traditionally busy trade cycle, encompassing school reopening purchases, agricultural marketing and mid-year restocking by businesses, which likely contributed to the domestic shipping surge.
The third quarter’s data illustrates a society rapidly adapting to distance commerce, growing increasingly reliant on last-mile networks, and embracing digital channels to close the commercial loop.
