Ugandan demand for defence equipment will remain strong, as the armed forces need tomodernise in order to: protect borders and resources; operate counter-terrorism missions; secure unstableareas to the north and in Rwenzori, participate in regional peacekeeping, and strengthen Kampala'sinfluence abroad. Facilitated by robust economic growth, defence expenditure will see steady annualincreases throughout the next decade, although the overall military budget size will remain small on aglobal comparison. This latter factor - combined with large operational expenses - will limit the fundingavailable for new procurement. Meanwhile, due to the local defence sector's lack of technologicallyadvanced capabilities, Ugandan defence exports will remain negligible, and virtually all Ugandan defenceprocurements will be sourced from abroad.
Defence Industry Risk/Reward Index (RRI)
Uganda scores higher for Rewards than for Risks in our Index, due to robust forecast defence spendinggrowth amid persistent internal and external security challenges. That said, local defence companies' lack oftechnologically advanced capabilities, the still-small overall size of its defence budget, high corruptionlevels and a highly limited manufacturing sector weigh on Uganda's Risks performance, resulting in a lowoverall RRI score of 38 out 100. This places the country in 13th position out of the 15 states included in ourrankings for the Middle East and Africa region.
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