Uganda’s Investment

Environment

Presentation Outline
 Uganda at a Glance Investment Environment
 Investment Markets
 Priority Sectors
 Setting up Investment

Land linked location
Approximately 40 million people
Tripartite FTA EAC,
COMESA, SADC
57% of Africa
612 Million

EAC
6 Countries
170 Mill People

Source: COMESA RIA

Strategically located

COMESA
19 Countries
500 Mill People
Source: UNCTAD
2016

EAC 2016
Statistics

Viable Market Accessexpanded tradeopportunities throughpreferential access to
57% of the African
continent,with about 632
million people,a potential US$ 1trillion in trade

Investment Outlook

Uganda will be one of the fastest growing economies in theworld with the growth forecasted to be 7.7% by2025.(Center for International Development at HarvardUniversity).
GDP growth averaged at 6%

The Economy is well regulated and highly liberalized. All
sectors are open for investment.

Uganda is 1st among the world’s 9 friendliest countries(Survey by InterNations 2017 among Expatriates)

Investment EnvironmentFree movement of capital to and from the country.

Full repatriation of profits after taxes, 100% foreign
ownership of private investments allowed and joint
venture partnerships with domestic investors encouraged.

Harmonized investment policies



The incentive regime is structurally included in thecountry’s tax laws which makes it non-discriminatory andaccessible to both domestic and foreign investments.

Investment EnvironmentUganda’s labour is highly trainable and yet affordable.

Internal Rate of Return on investments ranges from 19-33%
for all projects including Oil and Gas.



Established one stop border points.

Top 10 Country Sources of Investment
2016/172015/16

Source: UIA Database 2018

Country

1 Uganda2 China
3 India

Licensed % ge
projects distribution
for 2015/16
1146649

Country

32.3 Uganda
18.7 India
13.9 China

2017/18

Licensed %ge
Projects Distribution for2016/17
138
27.0
104
20.3
78
15.2
20
3.9
19
3.715
2.9

Country

Licensed %ge
Projects Distribution
for 2017/18

Uganda

32.0
79

China
54
India

4 Kenya
5 Pakistan
6 Eritrea

161211

4.5 Kenya
3.4 UK
3.1 Pakistan

7 UK

11

3.1 Egypt

13

2.5 Eritrea

8 Mauritius

6

1.7 Turkey

12

2.3 Pakistan

9 UnitedStates
10 Turkey

6

1.7 SouthSudan
1.4 Lebanon

71.4 Tanzania

521.9

Kenya
CanadaMauritius

13.8
34
966

3.6
2.4
2.4

4

1.6

4

1.6
1.6

46

1.2 Turkey

4

1.6

Agriculture & Agro-processing
 Uganda is the 3rd largest producer ofbananas in the world
 Uganda is the 8th top coffee producer inthe world and 2nd in Africa
 Uganda is the East African Community’s‘food basket’
Opportunities in Agro-industry
•
••
•
•

storage facilities
processing plants
Inputsassembly of equipment
packagingTourism• Uganda is home to 50% of theworld’s gorillas• Uganda is home to 11% of theworld's bird species• The largest fresh water lake (LkVictoria) and the source of themighty Nile river are found in
UgandaTourism• high to medium end
accommodation along thetourist circuits• Conservation areas• water and aviation transport

Mineral beneficiation• Uganda has over 50
types of minerals• Over 200 million tonnesof proven iron ore
reserves• 10 target areas foruranium• Reserves of crude oil
Mineral beneficiation• Mining andprocessing plants• oil storage,• logistics andestablishment oflaboratories

Information Communications TechnologyThe ICT sector is one of Uganda’s fastest
growing sectors, recording double digit growthover the last few years
Opportunities in ICT••••••Business Process Outsourcing
Software development and services
ICT hardware manufacturing and assembly
Data Warehousing and Data Management
Setting up certified training centres
Developing quality ICT infrastructureOther Viable Sectors for Investment
 Infrastructure development

 Packaging
 Real Estate Development
 Light Manufacturing

Investment RegimeThe incentive regime is structurally included in the country’stax laws which makes it non-discriminatory and accessible

to both domestic and foreign investments:
1.

2.

3.

4.

10 year income tax holiday among other incentives for exportoriented industry
5 year income tax holiday for developers of Industrial Parks(IPs) and free zones (FZs) - at least $ 100 million
5 year income tax holiday for operators of IPs and FZs - atleast $ 15 million (foreign) and $ 5 million (Ugandan),respectively
5 year income tax holiday for businesses outside the IPS andFZs for investments at least $ 15 million (foreign) and $ 5

Investment Regime (cont’d)
4. VAT exemption for developers of IPs and FZs and operators
outside the parks/zones on supply of feasibility studies, plant &machinery, construction materials, supply of locally produced raw
materials and inputs (capital thresholds and sectors apply)
5. VAT exemptions for the tourism and hospitality sector on supplyof services for feasibility & design, locally produced construction
materials, machinery and equipment, furnishings not available locally(Investment capital – US$ 8 million for room capacity exceeding
100 guests)
6. VAT exemptions on the health sector
7. Varied incentives in agro processing, mining & mineralbeneficiation, leather industry
8. Carry forward losses and various allowable deductions e.g.

Setting up business in Uganda••••

It takes less than a day to incorporate a company in Uganda
100% foreign ownership is allowed and Joint ventures with domestic
companies are encouraged

It is mandatory for foreign investments to acquire an investment license
Traders do not need an investment license. They require an importlicenses, standards approvals and a trading license

Requirements:
Business Incorporation and Registration Tax Registration
 Licensing Work Permits for Foreign Personnel
 Environmental Impact Assessments in some projects
 Trade Permits
 Investment LicensesInvestment Ready Projects

One Stop Centre Services
In order to ease business and improve efficiency, UIA is a One
Stop Centre (OSC) for business registration and licensing.
Services include:Investment
services andAdvisory,businessregistration,

immigration

work permit issuance, land acquisition andverification, as well as environmental compliance andapprovals, among others.
The Services save the investor both time and money to havetheir projects licensed and implemented expeditiously.

One Stop Centre-Online Services

www.ebiz.go.ug

Thank you
Arigato Gozaimaisu
Email: info@ugandainvest.go.ug
Website: www.ugandainvest.go.ug
Tel: +256 313 301000
Toll Free / Intervention issues Hotline: 0800100770