Over 70% of vehicles are uninsured

Uganda's transport and financial sectors face a critical infrastructure gap that presents both substantial risks and overlooked opportunities for European investors. Recent data reveals that over 70% of vehicles operating on Ugandan roads lack insurance coverage, a figure that underscores the continent's broader challenge with informal economies and regulatory enforcement. The scale of this problem is particularly acute in the motorcycle taxi sector, locally known as boda bodas, which constitute the backbone of urban mobility across East Africa. With approximately two million boda bodas operating nationwide, only 88,000—roughly 4.4%—carry active insurance policies. This staggering coverage gap reflects both the informal nature of the sector and the persistent barriers facing low-income operators attempting to formalize their operations. For European investors and entrepreneurs, Uganda's insurance landscape represents a microcosm of broader challenges across East African markets. The country's insurance penetration rate remains among the lowest globally, with formal insurance products reaching only a fraction of the population. This creates what industry analysts term a "protection gap"—the difference between actual losses and insured losses that can devastate households and small enterprises. The implications extend far beyond boda bodas. The broader vehicle insurance deficit indicates weak enforcement of regulatory requirements, limited consumer awareness of