Developing Trust-Based Digital Marketplace for Uganda's Construction
Sector.
1.0 Introduction
Uganda's construction sector is a vital engine of our national economy, with its gross value
added expanding by 4.8% in the 2022/23 fiscal year. Despite this growth, the market
remains highly fragmented, creating significant challenges for clients and service providers
alike. Clients struggle to find reliable contractors and face risks of fraud and poor
workmanship, while skilled workers in the informal sector, who make up 88% of the non-
agricultural workforce, lack a formal way to secure work. This project proposes an IT
solution that leverages Uganda's 67% mobile penetration to create a centralized, trust-based
digital marketplace. Our aim is to connect demand with verified supply, thereby mitigating
risks and fostering a more efficient and accountable construction industry.
2.0 Problem Statement
The core problem is the high cost and immense risk inherent in connecting clients with
construction service providers, a direct result of a fragmented and informal market. Clients
lack a reliable mechanism to verify credentials or assess past work quality. This leads to
financial scams and substandard projects. For service providers, the lack of a formal platform
results in underutilization of their skills and unstable incomes, ultimately stifling the sector's
growth potential and hindering national development.
3.0 Objectives
3.1 General Objective
To design, develop, and deploy a secure digital marketplace that reduces costs and mitigates
risks for clients and construction service providers in Uganda.
3.2 Specific Objectives
1. To conduct research to define the functional requirements and trust mechanisms for
the platform.
2. To engineer a scalable platform with profile verification, service discovery, user
ratings, and a secure payment gateway.
3. To pilot the platform within the Kampala metropolitan area to evaluate its impact on
user trust and efficiency.
4.0 Justification
The project is a timely response to a critical economic issue. The informal nature of the
current system is unsustainable and exposes all parties to significant risks. Our platform will
solve a key market failure by giving clients a transparent way to hire professionals and
empowering the vast informal workforce to formalize their services, secure stable incomes,
and move beyond the low average monthly wage of UGX 200,000. By using mobile
technology, we will enhance sector productivity and contribute to national economic growth.
5.0 Significance of the Study
This project holds significant value for multiple stakeholders. It will provide clients with a
secure way to protect their investments and improve project outcomes. It offers service
providers a national platform for visibility and business growth, helping them achieve
financial stability. For policymakers, the platform will serve as a model for using technology
to formalize informal sectors, with the data it generates offering valuable insights for future
policy. Finally, it provides a crucial case study for academic research on digital marketplaces
in a developing world context.
6.0 Scope
The project will develop a web and mobile application for the system. It will include core
features such as user profiles, a verification process, a search function, a rating system, and
secure messaging. The initial launch will be limited to the Kampala metropolitan area. The
project does not include on-site project management or legal arbitration, but it will facilitate
trustworthy connections and communication.
