Infrastructure plays a major role in the movement of goods and services as well as factor inputs from places of supply to places of demand. Therefore the absence of adequate infrastructure facilities including roads, airports, railway lines, water transport among others greatly constrain production of goods and services in many sectors of the economy. The current situation in the infrastructure and transport sectors is summarised as follows:
Roads
| Transport | Cargo freight | Paved /functional |
| Road Sector | 96.4% | 4% |
| Rail network | 3.5% | 26% |
The country mainly depends on road transport for transportation of good s and services. The cost of cargo freight by road is 3 times more than the cost of using rail. There are no functional wagon ferries. Transport costs remain a significant trade barrier, equivalent to effective protection of over 20 per cent and imposes an implicit tax on exports of over 25 per cent (and up to 50 per cent on air freight). As a result, the cost of doing business in Uganda is high, undermining economic competitiveness
Rail Network
The Rail network is not longer functioning because of lack of maintenance and improvement. A private sector operator, Rift Valley Railways, has already been contracted to rehabilitate the rail network but not so much progress has been achieved.
Airport
The country has only one international airport, Entebbe International Airport and a few domestic airports. The government through the Civil Aviation Authority is the process of looking for funds to modernise both the international and the domestic airport.
Telecommunication
The Communication infrastructure has improved significantly following liberalization of the sector that has attracted substantial private sector investments.
Energy sector
Substantial investment has gone into the energy sector. An additional power dam has been built and installed and a number of private sector players have been attracted into the sector. Of recent power load shedding has greatly reduced. Negotiation are in the process of being concluded for the construction of Karuma Dam.
Uganda has already discovered substantial deposits of oil and gas and the process of putting the necessary infrastructure for commercial exploitation is underway. Uganda is expected to join the club of oil producing countries within the next five years.