Trade

Trade ministry to introduce digital mark to protect online consumers

KAMPALA, October 19, 2026 — The Ministry of Trade, Industry and Cooperatives is set to introduce a digital mark to help protect consumers from fraud and other risks associated with online businesses.

The digital mark, which is expected to be available to businesses within the next few months, will certify online traders that meet the requirements set by the ministry and give consumers greater confidence when making digital transactions.

Trade Minister Sanjay Tanna announced the planned system during a press conference at the Uganda Media Centre last Thursday.

Tanna was accompanied by the ministry’s Commissioner for Business Development and Quality Assurance, Patrick Mugisha, and Kenneth Muhangi, a partner at KTA Advocates, among other government officials.

The Minister said the initiative was necessary as more businesses and consumers shift towards digital commerce, while Uganda’s regulatory framework has not fully caught up with the growth of online trade.

“In developed countries, shopping malls are shrinking day by day. People no longer have the time to walk and visit one hundred shops, so most transactions are done online, with online shopping carts,” Tanna said.

He said while physical shops would continue to operate, businesses globally would increasingly invest in digital platforms.

Tanna cited companies such as Amazon and Alibaba.com as examples of businesses that have successfully embraced e-commerce, saying consumers could purchase a wide range of products through such platforms.

However, he said most businesses in Sub-Saharan Africa still operate informally, with only a few companies having established organised online operations.

“In Uganda, we have very few players that are operating in an organised manner. We have Jumia Uganda, Jiji Uganda and KFC. Now Jumia and Jiji have a lot of money. They come to you, the media, to advertise. So, consumers feel it is safe to buy from them,” he said.

Tanna said the absence of an effective framework for digital trade had made it difficult for government to protect consumers when online transactions went wrong.

He cited the case of a woman from Tororo who was allegedly defrauded by an online seller after purchasing a faulty vehicle.

“And then you ask yourself, under what framework was that fellow operating an online business? He advertised online, the money was paid online, the goods were delivered—but they were fake! Now where does the consumer get redress?” he said.

“We have a consumer protection law and laws governing trade. However, the ministry had not yet come to terms with digital trade; where a deal is made online, between a willing buyer and a willing seller. As government, we cannot exercise our mandate, or regulate to make sure that the customer gets value for money.”

Tanna said the digital mark would provide consumers with a way of identifying online businesses that had been certified by the ministry.

“Today, you can Google for anything. For those of you who play in the social media space, digital trade is real. Our legal brains have told us, to do business online, we are going to come up with a system, a digital mark. The digital mark will mean it is safe to use this (web)site,” he said.

He said consumers would be encouraged to transact only with online businesses displaying the certified mark.

Tanna added that the system would also help government trace businesses involved in fraudulent transactions.

“Once you see that digital mark, as a discerning consumer, you will only send money to an online seller who is selling a commodity with a stamp certified by the ministry,” he said.

“In the event that you are scammed, you can approach the ministry for assistance and the ministry’s database will show the address and the legal entity behind that fraudulent sale.”

The announcement comes ahead of the KTA Annual Africa Technology and Intellectual Property Symposium [ATIS] 2026, which will focus on the development of Africa’s digital economy.

The symposium, organised by the ministry, KTA Advocates, the Centre for Law, Policy and Innovation Initiative [CeLPII], the Uganda Law Society, the Alliance for Digital Trade, E-Mobility and Couriers Uganda, and GIZ, will be held at Kampala Marriott Hotel from October 22 to 23.

It will be held under the theme, “Building Africa’s Digital Single Market: The Role of Government and the Private Sector in Achieving Regional Integration.”

Key areas for discussion will include digital transactions, cross-border payments, consumer protection, digital taxation, cybersecurity, intellectual property, last-mile delivery, customs single windows and participation of micro, small and medium-sized enterprises [MSMEs].

Tanna said the symposium was timely given the growing cases of online fraud and the need to establish clear rules governing digital commerce.

“The purpose of the symposium is to agree on the rules of the game. We are still willing to take ideas. We want to encourage the legal fraternity to come up with a framework on how e-business or e-commerce can be governed, so we can provide consumer protection,” he said.

https://thecooperator.news/eac-comesa-sign-mou-to-strengthen-cooperation-in-competition-and-consumer-protection/

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