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Why Uganda?

Uganda enjoys a unique location along the equator, in the heart of the Sub-Saharan Africa within the East African Region. Uganda’s land-linked location has positioned it strategically for regional trade and investment. The people of Uganda have been ranked the most friendly and highly entrepreneurial community. The economy also offers high returns on investment thus making Uganda your preferred investment destination.

Reasons to invest 

1.Investor Facilitation

Uganda Investment Authority (UIA) is the Government agency mandated with promoting and facilitating investments in Uganda.  UIA is therefore the first point of contact for any potential investor where they can access various business registration, licensing, facilitation and aftercare services at the dedicated One Stop Center (OSC).  The OSC services are available online via www.ebiz.go.ug. The SME division of Uganda Investment Authority supports and facilitates the development of MSMEs who are majorly domestic entrepreneurs. The overall goal of the SME division is developing sustainable domestic investments & SMEs.

2.Access one of the World’s fastest growing regions

Uganda has achieved GDP growth of 6.3% on average per annum for the last 30 years. Uganda’s population is estimated to be 40 Million in 2019 and expected to increase to 45 Million by 2023.

3.Strong natural resource base

There are several unexploited mineral deposits and tourism opportunities. Confirmed deposits include Iron Ore, Phosphate, Gold, Zinc, Petroleum, Diamond, limestone, etc.

4.Uganda is open & secure for foreign investment

Uganda is the most open country to FDI within the region with all the sectors fully liberalized for investment and 100% foreign ownership permitted.

5.Industrial Parks Uganda Investment Authority was tasked to develop 27 Industrial & Business Parks around the Country with an aim of creating more jobs, ease accessibility of land for investments, introduce new research, technologies and skills development as well as boost Uganda’s exports hence increasing Uganda’s revenue base. 

6.Investor Licensing A company is eligible for an investment license after it has been incorporated in Uganda and meets the following thresholds. Foreign firms must have a capital investment that exceeds US$ 250,000 whereas domestic firms must exceed US$ 50,000. Application for an Investment License from the Uganda Investment Authority can be done online. After all required documentation is submitted and satisfactory, the license is issued within 48 hours at no cost.

Investment Opportunities

1.Agriculture 

The Agricultural Sector continues to be the most important sector in Uganda; it employs approximately 72% of the population and contributed about 32% to the GDP.  However, Productivity is limited by reliance on natural weather conditions and the still widespread use of traditional methods and equipment. Uganda is among the leading producers of coffee, bananas and oil seed crops (sesame, soybean, sunflower etc.). It is also a major producer of other crops like tea, cotton, organic cotton, tobacco, cereals, fresh foods and vegetables, nuts, essential oils, flowers, poultry and freshwater fish. 

The Ugandan Government is pushing for greater commercialisation of agriculture by encouraging the use of irrigation and mechanised farming. 

Opportunities for investment exist in: 

• Commercial farming in both crops and animal industries as well as aquaculture; 
• Value addition (agro-industries, agro food industries); 
• Manufacturing of inputs such as improved seeds, fertilisers and pesticides 
• Cold storage facilities and logistics 
• Farm machinery manufacturing and assembly 
• Packaging Irrigation schemes. 

2.Tourism 

Tourism is a fast-growing sector supported by the fact that Uganda is ranked as a top tourist destination and one of only three countries with about 50% of the world’s known population of endangered mountain gorillas. (Source: Lonely planet 2012 and CNN 2016, which ranked Uganda among the top 16 holiday destinations in the world) Game viewing is the most popular tourist activity in the country’s national parks. 

Opportunities in tourism range from :

• Constructing high quality accommodation facilities, 
• Operating tour and travel circuits (bicycle tours, air balloon travel, marine activities on Lake Victoria and river rafting on the Nile River) 
• Development of specialised eco and community tourism facilities and faith-based tourism such as pilgrimages to the Namugongo-Uganda martyrs, 
• Mahatma Gandhi statue, and Bishop Hannington landing site on the Nile. 
• Steadily growing tourist numbers are estimated to have reached 1.5 million per year, contributing 7.7% to GDP.

3.Minerals

More than 80% of the country has been surveyed for mineral quantities and locations. New geo-data shows that Uganda has large underexploited mineral deposits of gold, oil, high grade tin, tungsten/wolfram, salt, beryllium, cobalt, kaolin, iron ore, glass sand, vermiculite, phosphates (agricultural fertiliser), uranium and rare earth elements. There are also significant quantities of clay and gypsum. Investment opportunities exist in mining and mineral processing with special incentives provided to the mining sector, including writing off capital expenditures in full.

4.Energy 

Energy is the prime mover of any country’s economic growth and prosperity. Uganda needs adequate, reliable and affordable energy to enhance sustainable development. It is for this reason that energy is a priority sector for development in the Country. 

Uganda is well endowed with enormous natural resources such as Minerals, hydro, geothermal, petroleum resources, solar thermal yet only a small fraction of this potential has been harnessed. 

Power Generation Projects in the Medium Term Government is making effort to develop the following power generation projects through Public-Private Partnership (PPP). 30MW cogeneration from bagasse by 2020. 450MW geothermal power 

Oil & Gas The sector has significant potential to contribute to inclusive growth in the country as it expected to bring in investments between US$15 to US$20 billion in the next three to five years. With the discovery of 6.5 billion barrels of oil, 1.2 billion barrels of it recoverable, it is anticipated to spur two major investments: An oil refinery that will process 60,000 barrels per day and the 1,445km oil pipeline from Hoima in Uganda to Tanga port in Tanzania. Opportunities exist in community development, upgrading transport infrastructure and the development of a petroleum-based industrial park in Kabale Hoima. Uganda’s policy on local content will unlock many opportunities for investors and Ugandans

5.Edible Oil Production 

Uganda combines a rapidly growing market of nearly 40 million people with access to the EAC market of 175 million people. With the lowest cost and fastest growing labour force in the region, suitable land availability, and an investor-friendly environment, Uganda is a good location for edible oils. 

Uganda has a large domestic market with demand for edible oils expanding rapidly (Uganda’s imports of edible oils increased more than five-fold to over $ 30 million in 2017). Member of EAC, which had recorded ever imports of edible oils in 2017, with 50% growth reaching nearly $1 billion. 

6. Electronics 

Uganda provides an unrivalled and largely untapped opportunity for electronics assembly operations. Uganda combines first-rate labour availability, the most competitive labour and overall operating costs in the EAC, an attractive and stable investment and working environment, an attractive incentives package and major market access. 

7. Information Communication Technology (ICT) 

Uganda’s ICT sector is one of the most vibrant within the region and a fast-growing sector in the economy, offering many opportunities. Growth in this sector is supported by solid legal and regulatory frameworks. It is also connected to the three marine fiber optic cables off Africa’ east coast in the Indian Ocean. The newly developed and quantitative ICT infrastructure is ready to accommodate new investment. Uganda is positioning itself as a hub for business processing and management outsourcing in East Africa. The main opportunities for business process outsourcing and ICT services exist in agriculture, health, tourism, banks, insurance and public administration.

8. Pharmaceuticals

Uganda combines a growing pharma market with access to the EAC market of 175 million people. With relatively high levels of skills and education and an investor-friendly environment, Uganda is a burgeoning pharmaceuticals centre.

9. Opportunities in Infrastructure

Infrastructure is a key priority of the Ugandan Government. During the past few years, infrastructure development has contributed immensely to increased productivity by facilitating efficient connectivity and easing the movement of goods and the provision of services. 

Infrastructure funding currently comprises about 32.8% of the Government’s total annual expenditure. 

Uganda Investment Authority:

General line:  0414301000

One Stop Centre: 0417788300

Ebiz Call Center: +256 06300968

Email: info@ugandainvest.go.ug