Why courts power Uganda’s $500b economic future

___________________

OPINION

By Riziki Nambuya

In today’s global economy, no serious investor separates law from money or courts from foreign policy. In Uganda, the Judiciary has increasingly become a key but often under-acknowledged actor shaping the country’s international credibility, investment attractiveness and regional legal influence. Its decisions directly affect trade confidence, capital flows and Uganda’s position in regional and global economic governance.

President Yoweri Kaguta Museveni has consistently promoted Uganda as an investment destination, emphasising stability, industrialisation, agro-processing and regional trade integration. His ambition of building a $500b economy places significant expectations on institutions that sustain investor confidence, particularly the Judiciary. Without predictable legal systems and enforceable contracts, ambitious economic transformation remains difficult to achieve.

The Commercial Division of the High Court of Uganda sits at the centre of this legal-economic interface. It handles between 3,000 and 5,000 new business-related disputes annually involving banking, contracts, taxation, insolvency, land transactions and cross-border commercial claims, making it one of the country’s busiest economic justice hubs. Court-annexed mediation has also resolved approximately 40% to 60% of eligible commercial disputes in recent years, reducing litigation costs and improving business recovery.

Uganda’s Judiciary is also increasingly embedded within regional legal governance. A significant milestone is the appointment of Justice Monica Kalyegira Mugyenyi to the Court of Justice at the Common Market for Eastern and Southern Africa (COMESA) this year. The COMESA Court serves 21 member states and over 600 million people, interpreting regional trade law and adjudicating cross-border disputes. Uganda’s representation strengthens its contribution to regional jurisprudence and reinforces investor confidence in predictable trade and investment dispute resolution mechanisms across Eastern and Southern Africa.

Justice Monica Mugyenyi is also a respected figure within the International Association of Women Judges (IAWJ) – Uganda chapter, where she supports judicial leadership, gender inclusion in the justice sector and the advancement of rule-of-law values across judicial systems. Her engagement at both regional and international levels reflects the growing recognition of Ugandan judicial expertise and the increasing role of judges in contributing to global legal dialogue and norm development.

The link between judicial performance and foreign policy is also evident in Uganda’s investment performance. Uganda attracted approximately $3.5b in foreign direct investment in 2025, particularly in oil and gas, infrastructure, manufacturing and telecommunications. These sectors depend on strong contract enforcement, reliable dispute resolution and a stable legal environment. A professional and independent judiciary, therefore, remains a key pillar in sustaining investor confidence and supporting Uganda’s economic diplomacy agenda.

The Judiciary further strengthens Uganda’s international credibility by upholding the rule of law, a core benchmark used by financial institutions, development partners and credit rating agencies. A stable judicial system is consistently associated with reduced investment risk, improved sovereign reputation and stronger participation in global trade and finance systems.

Ongoing reforms, including digital case management, expanded mediation and specialised commercial courts, continue to enhance efficiency and access to justice, reinforcing the Judiciary’s role as a reliable foundation for Uganda’s economic transformation and global engagement.

Ultimately, the Judiciary is no longer only a dispute resolution institution operating in the background of governance. It has become a central pillar of Uganda’s foreign policy architecture and economic strategy. As Uganda pursues its $500b economy vision, judicial efficiency, commercial certainty and legal predictability will determine whether investment flows expand or contract.

In the modern global economy, diplomacy does not end in embassies, and economic strategy does not end in ministries. Increasingly, both converge in courtrooms where law quietly determines the direction of national development and international confidence. 

The writer is a grade 1 magistrate of Bukedea Court, lecturer of Law at IUIU and a member of the International Association of Women Judges – Uganda Chapter