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Uganda offers a wealth of natural resources and investment opportunities for the discerning investor in sectors such as agriculture, minerals, oil and gas as well as ICT and Tourism.
Nestled within the heart of Sub-Saharan Africa, Uganda is bordered by South Sudan in the north, Kenya in the east, the United Republic of Tanzania in the south, Rwanda in the southwest and the Democratic Republic of Congo in the west. This provides the country with easy connections to most of sub-Saharan Africa.
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What makes Uganda an ideal investment destination:
Uganda has the fastest rising economy in Africa due to its political stability and economic policies. Since the liberalisation of the economy in 1986, Uganda′s economic growth has accelerated with an average annual growth of over 6 per cent in the past 30 years. The country′s economy is projected to grow by 6.2 per cent in 2019/20. In addition, Uganda has one of the most open investment climates for FDI, offering government funding, and allowing hundred per cent foreign ownership of investment in most sectors. Uganda also offers a large skilled workforce, fluent in the English language. With a population forecast to reach 200 million and GDP (in PPP) to reach US$ 0.75 trillion, Uganda offers one the most economical skilled labour costs in Africa.
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Main sectors for investment
Agriculture:
Agriculture dominates investment sectors in Uganda with coffee bringing at least 80 per cent of its export earnings. Uganda is also among the leading producers of bananas, tea, and cotton (including organic cotton). Other major agricultural exports include tobacco, cereals, oilseeds, fresh and preserved fruit, vegetables and nuts, essential oils, orchids, flowers and silk. Public-Private Partnership investment opportunities exist in the commercial production of cereals and beans, food processing and cold storage solutions.
Energy:
The electricity generated in the country is from three main sources: hydro power, thermal and biomass with hydro power contributing 77 per cent, thermal 20 per cent and biomass 3 per cent. According to US aid, Africa, Uganda is one of the few African countries to have liberalised and financially viable energy markets. Thus, opening up a large potential market for micro hydropower and solar energy in Uganda and the region.
Minerals
Uganda has a large number of mineral deposits of gold, oil, high-grade tin, tungsten/wolfram, salt, beryllium, cobalt, kaolin, iron-ore, glass sand, vermiculite, phosphates (fertilizer), Uranium and rare earth elements. According to the Invest in Uganda authority, gold reserves occur in many areas of the country, including Busia in the east, Buhweju and Kigezi in the west, Mubende - Kiboga in the central region and significant occurrences in Karamoja in the northeast. In addition, the demand for iron and steel is rising to an increase in development and infrastructure projects.
ICT
Uganda is now connected to three marine fibre optic cables. According to the Invest in Uganda website, Uganda′s ICT sector is one of the most vibrant within the region due to a good legal and regulatory framework. This, in turn, has opened up numerous opportunities in ICT innovation services.
India and Uganda
India′s ties with Africa go back to 1965and are based on shared values of democracy, development and people-to-people ties, largely thanks to a large number of Indian diaspora present in Uganda. India has been actively engaging with Uganda as part of its larger diplomacy efforts to establish sustainable and mutually beneficial partnerships with African countries. India -Uganda relations hit a roadblock in the 1970′s when the then President Amin expelled around 60,000 citizens of Indian origin, seizing their assets. However, since1986, several proactive steps have been taken under the administration of President Gen Yoweri Kaguta Museveni in repairing ties with India, along with inviting previously expelled citizens and returning properties seized from them. Ugandan President Gen Yoweri Kaguta Museveni has also visited India twice on October 1992 and April 2008 along with another visit in 2015. In 2018, during Prime Minister Modi′s visit to Uganda, several MoUs were signed on bilateral defence cooperation, exemption from visa requirement for official and diplomatic passport holders, Cultural Exchange programme and establishment of Regional Material Laboratory in Uganda were signed.
More recently, India gifted eleven containers of various medicines worth $1.4 billion to Uganda as part of its ongoing humanitarian and diplomacy efforts in Africa. And only last week, 36 Indian vehicles including ten buses, ten troop carriers, two ambulances and fourteen motorcycles were sent to Uganda for the use of civilians as well as Ugandan Peoples Defence Forces (UPDF). Bilateral trade between the two countries remains strong but still under potential. However, with India′s increasing engagement with Uganda and other African countries, this is soon expected to change, opening up more opportunities for Indian businesses in Uganda and vice versa.