UgandaDownload Full Scorecard
Goal – An efficient institutional framework that balances the rights of the public, owners, lenders and borrowers in the event of a dispute or loan default
Core Question: Do all market participants abide by the rule of law and have confidence in the courts and the ability of police to control crime? No – Weak, the continued prevalence of customary law and weakness of the courts leads to disputes.
4.1.1 What is the confidence level of the strength and impartiality of the police, courts and contract enforcement? Weak – Percentile Ranking – 43.7 Trend ↑
Source: Governance Matters 2011, World Bank, www.govindicators.org
4.1.2 Can members of the judiciary be held accountable for their actions? Yes– Score 79 out of 100 – Strong
Source: Global Integrity Report 2011 – https://new.globalintegrity.org/
Costs of Crime
4.1.3 What are the business costs of crime and violence? High costs – Ranking 126th out of 144 – Very Weak
Source: The Global Competitiveness Report 2012-2013, World Economic Forum
Core Question: Are systems in place for timely and efficient enforcement of contracts?
Commercial – No – Weak
Residential – Yes – Strong
4.2.1 – Judicial Enforcement
Commercial – Weak – Ranking 117th out of 185 Trend ↓
22.214.171.124 What is the number of procedures involved in resolving a commercial dispute? 38
126.96.36.199 What is the time between the filing of a lawsuit and resolution in judicial enforcements? 490 days
188.8.131.52 What is the cost of judicial enforcements as a percentage of debt value? 44.9%
Source: Doing Business 2013– www.doingbusiness.org/ExploreEconomies/?economyid=193
Residential – Strong
SQ 12 What is the time between notice of intent to foreclose and loan collection in judicial enforcements? See below for power-of-sale
SQ 13 What is the cost of judicial enforcements as a percentage of property value? See below for power-of-sale
4.2.2 – Summary Proceedings
SQ 14 Summary proceedings are alternative dispute resolution processes where creditors can apply for a direct court order in property disputes. What is the time between notice of intent to foreclose and loan collection in summary proceedings if available to lenders? See below for power-of-sale
SQ 15 What is the cost of summary proceeding if available to lenders as a percentage of property value? See below for power-of-sale
4.2.3 – Power-of-Sale
SQ 16 Power-of-sale agreements give creditors to power to sell properties after notice to the borrower without court intervention. What is the time between notice of intent to sell and loan collection for power-of-sale agreements if available to lenders? 235 days – Strong
SQ 17 What is the cost of power-of-sale agreements if available to lenders as a percentage of property value? 5.28% – Very Strong
Core Question: Can commercial disputes be resolved efficiently and fairly without exorbitant expense and delay? Yes – Strong, despite a lack of funds and space, the commercial courts dispose of disputes within about seven months, as opposed to the several years it used to take litigation to wind through the Ugandan judiciary.
SQ 18 Do specialized commercial courts exist for the handling of property disputes and foreclosures? Yes – Strong, High Court – Commercial Division, all cases must first have a mediation session before a magistrate.
Source: Judiciary of the Republic of Uganda www.judicature.go.ug/
Alternative Dispute Resolution
SQ 19 Are alternative dispute resolution mechanisms in place including commercial arbitration, private mediation and community based processes? Yes – Strong – a member of the New York Convention. 80% of commercial disputes are settled through arbitration.
Civil Society Resource: Centre for Arbitration and Dispute Resolution
SQ 20 What bilateral, regional and international commercial treaties exist concerning business between countries? Strong – a member of WTO and the East Africa Community with a Trade Investment Framework with the U.S. and Economic Partnership with the E.U.
Source: Uganda Investment Authority www.ugandainvest.com/
FQ 7.To what extent do practitioners report contracts as enforceable?
Real estate contract enforcement is questionable and none of the practitioners interviewed had a great deal of confidence in the legal system of the country.
Source: IRPF Assessment August 2008