Uganda continues to maintain its standing as one of East Africa's relatively successful economies and has experienced rapid economic growth over the last few years. In a drive to increase fiscal independence, the government has been attempting to increase tax revenues by boosting more revenue from small companies and by incorporating more of Uganda's large informal sector. President Yoweri Museveni won his fourth term in office in the February 2011 presidential elections amid international and opposition claims of voter intimidation and widespread election fraud. The government declared a policy of 'zero-tolerance' towards corruption in 2006. However, although the law penalises official corruption and the government has increasingly begun to investigate offenders, officials continue to engage in corrupt practices with impunity, and corruption remains a serious problem in the country.

Positive developments in relation to corruption and investment:

• The Public Procurement and Disposal of Public Assets Authority (PPDA) was established in 2003, and has been playing an active role in assuring compliance with procurement guidelines, leading to fewer losses due to corruption in procurement processes.
• The government has developed a long line of anti-corruption strategies as well as the Inter Agency Forum (IAF) to coordinate the activities of governmental anti-corruption institutions.
• The Anti-Corruption Act 2009 is intended to support the Prevention of Corruption Act 1970 and to set strict punishments for both public and private sectors corruption, including imprisonment for up to ten years.
• The Whistleblowers Protection Act was enacted into law in April 2010 providing high prison terms for people disclosing whistleblowers' identities, as well as including monetary incentives for reporting on corruption.

Risks of corruption:

• Corruption in Uganda is manifested by grand scale theft of public funds as well as petty corruption involving public officials at all levels of society, and widespread political patronage systems reaching into the private sector continue to be strong.
• Bribery is common in obtaining basic health care, in encounters with the traffic police and in large-scale procurement projects involving international companies.
• Uganda's implementation and enforcement of the existing legislation is weak, and several sources point to a lack of political will as the major obstacle in the fight against corruption.