Presentation on Uganda’s Investment
Environment
Sarah NASSIMBWA| INVESTMENT EXECUTIVE

16.03.2022

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CONTENT:
1. Uganda’s Location and Overview
2. Uganda’s Investment Climate
3. Setting up Business in Uganda
4. Uganda Investment Authority (UIA) Services
5. Investment License
6. Incentive Regime
7. Investment Opportunities
8. Priority Sectors
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Uganda’s Location and overview
Uganda is land linked country located in East Africa
Uganda’s Popn is of approximately 44 Million people .
Uganda shares borders with South Sudan in the north, Kenya inthe east, the United Republic of Tanzania in the south, Rwanda
in the southwest and the Democratic Republic of Congo in thewest.
Its capital is Kampala with 134 counties which serves asadministrative divisions.
English is the language of Instruction in the Education system.
It has an area size of 0.241 million sq km. Uganda is the thirdlargest economy in East Africa after Kenya and Tanzania.
(https://invest-in-africa.co/invest-uganda/ )3/22/22

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3Uganda’s Investment Climate

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4Uganda’s Economy

Uganda’s (GDP) grew by 6.5 percent in fiscal year (FY) 2018/2019.
(IMF) had projected 5.5 – 6 percent growth in FY 2019/2020. However,the combined impact of the COVID-19 pandemic and related restrictions,
had pressing impact on this figure
Uganda’s (FDI) surged by a whopping 80 percent of USD 1.75 billion inFY 2018/2019, driven by the construction and manufacturing
agricultural, construction, infrastructure, technology, and healthcare
sectors (Uganda Bureau of statistics: statistical abstract 2019/20)
The main sources of Uganda’s FDI are Kenya, India, United Kingdom,
South Africa, UAE, United States, France, Nigeria, China, and Japan.
Source: Financial Times, fDi Markets, 2018 . Stock of FDI in Uganda for the period
2014-2017
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5Uganda’s Regional Markets
Uganda’s population is approximately 44million people
Tripartite FTA EAC,
COMESA, SADC
Source: COMESA RIA

EAC
6 Countries
177 Million
PeopleEAC 2019
Statistics

COMESA
21 AfricanCountries
600 Million People

Source: COMESA RIAUganda: 2nd Forerunner in FDI in the EAC
OVERVIEW OF FDI INFLOWS TO THE EAC (USD MILLIONS)
4500
VALUE: USD MILLIONS

4000
3500
3000
2500
2000
1500
1000
5000Uganda

2005-2007 (Pre-crisis annual605average)
2016
626
2017
803
2018
1055
2019
1266
Source: UNCTAD World Investment Report 2020Kenya

Tanzania

RwandaBurundi

TOTAL

393

640

400

1678

679
1266
1626
1332

864
938
1056
1112

342
356
382
420

00
11

2511
3363
4150
4131

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7Uganda’s Open Economy
All sectors
liberalized forinvestment
Part of a fastgrowingCommonMarket (EAC)

100% foreign
owned
investment
permitted

Free
repatriationof profits

Free inflow &outflow ofcapital
Security ofinvestment
and person
guaranteedSetting Up Business in Uganda

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9Setting up Business in Uganda

COMPANYINCORPORATIONACQUIRE TAXIDENTIFICATIONNUMBER (TIN)

Company
incorporation is thefirst step at setting up
a business/Investment
in Uganda and takes
approximately 4hrs tohave a certificate ofincorporation issued byUganda Registartion
ServicesBureau(URSB)

STEP 1INVESTMENT
LICENSEPROJECT SITESELECTION

Uponcompany
incorporation,
thecompany
isthenrequired to apply for atax
identification
Numberfortax
payment purposed andthis issued by theUganda
Revenue
Authority and takes
about 4 hrs to get thisdone.

It is mandatory toacquire an Imvestment
Licenseissuedby
UgandaInvestment
Authority piror tosetting up in Uganda
and this take about 2days.Investment
license is issue by
UgandaInvestment
Authority and takes
about 4 working days.

Once the company has
been incorporated andissuedwiththeInvestment
license,identification oflandforproject
implement is key atthis point.

STEP 2

STEP 3

STEP 4

Setting up Business in Uganda (Cont’d)

ENVIRONMENTALCOMPLIANCE
It is a requirement forsomeprojects
toundertakeanEnvironmental Impact
Asssesement of theproject
tothe
Environment.The study
isapproved
andhandledbytheNational
Environmental
Manangement
Authority.

STEP 5REGULATORY
LICENCES
Some sectors may require
regulatory approval e.g.
Health, Pharmaceuticals,
Education,
Energygeneration, etc. All related
and regulatory licenses arehandled under the one
stop centre which houses
allgovernmentdepartments and agencies
involved in the licensing
and operationalization of
all businesses in Uganda.

STEP 6PROJECT
IMPLEMENTATION
UgandaInvestment
Authority hand holds theinvestor throughout theproject
lifecycle,
intervening with issues
ranging from access toutilities,
andtax
incentives topolicyadvocacy for a more
enabling
environment
across all sectors ofinvestment

STEP 7

AFTERCARESERVICES
UgandaInvestment
Authority offers aftercare services where
they follow up andmonitor all forms ofrunninginvestments/projects
to ensure compliance.

STEP 8

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:
n Business Incorporation and RegistrationnTax Registrationn Licensing
n Work Permits for Foreign Personnel
n Environmental Impact Assessments in some projects
n Trade Permitsn Investment Licenses

Uganda Investment Authority(UIA) Services

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13UIA One Stop Centre Investor Services
Utility
Providers(NWSC andUmeme)

BusinessRegistration(URSB)

Trade
registration
and building
approval in
Kampala(KCCA)

Lands
verification(LandsRegistry)Standards
Certification

UgandaInvestment
Authority(Investment
promotion,facilitation andmonitoring)(UNBS)
Banking
Facilities(DTB)
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Tax Advisory &registration(URA)
Free Zones(UFZA)

Immigration(DCIC)

Environmental
Advice &Compliance(NEMA)
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Conservation
TourismOpportunities(Space forGiants)
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UIA Services
1. Provide Information on investment opportunities
2. Issues Investment Licenses
3. Assist in Securing Secondary Approvals
4. Assist in Finding Joint Venture Partners
5. Handhold Investors through inter agency requirements
6. Assist in the provision of industrial or agricultural land (bothGovernment and Private)
7. Guide SME to Partner with Multi-Nationals
8. Enhance and develop SMEs through market development,linkages skilling and
9. Entrepreneurship training
10.Advise Government on Investment Enabling Policy
11.Provide One Stop Centre services to registering and existing
investors
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Investment license

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Importance of the Investment license• Assistance in acquiring secondary licenses or approvals except in thefollowing sectors, where the regulator issues the primary license(mandatory) i.e. Energy generation, Mining, Air Transport, etc• Assistance in recommendations for various services e.g. loans fromcommercial banks, project development assistance from Development
Partners etc.
• Assistance in recommendations and the follow up on the acquisitionof work permits
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Importance of Investment license cont’d• Assistance in access to land for investment. Investors can be allocatedland in the operational and planned Industrial and Business Parks.
• Possibility of Joint Venture Partnerships through the Match making of
the licensed domestic investors with foreign investors.
• Participation in outward missions and organized international fora, at
which licensed investors (domestic and foreign) get exposure, markets• Provision of aftercare services in relation to specific challenges such as
tax disagreements, closures for various reasons, and support innegotiations with other parties e.g. Government Departments.
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Basic requirements for application of investment license (It’s free of charge)
1.

2.
3.

4.

Legal status (Copy of Certificate of Incorporation & Articles and Memorandum ofAssociation from URSB
Company Tax Identification Number (TIN) Certificate from URA
A brief Business Proposal on the project (Not less than 5 pages, clearly indicating
the Company Overview. Executive Summary, Product / Service Description, MarketAnalysis, Human Resource Plan and financial plan) Submitted Documents should bein English. (Translation should be done by Maker ere University School ofLanguages, Literature & Communication)
Evidence of availability of financing for the project, (which could be a Bank
statement for the company / Directors OR any other evidence of financing.

For Domestic Investors – Minimum threshold is USD 50,000 For Foreign Investors– Minimum threshold is USD 250,000
1.

2.

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Proof of location for the Project (Attach a copy of the land title or a tenancy
agreement to confirm location of the project).
Electronic copy of Passport / National ID for Shareholder
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Qualification for incentives
meets the minimum investment capital: US$ 250,000 (FDI) and US$ 50,000(DDI)• engages in any of the 26 priority areas specified in the investment code
https://www.ugandainvest.go.ug/resources/• exports a minimum of eighty percent of the goods produced••

provides for substitution of thirty percent of the value of imported products•

seventy percent of the raw materials used are sourced locally•

directly employs a minimum of sixty percent of citizens; or•introduces advanced technology or upgrading of indigenous technology

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General Investment Incentive Regime
Gov’t has provided various
fiscal incentives through therespective tax laws whichmakes it non-discriminatory
and accessible to both
domestic and foreign
investments.
There are also sector specificespecially in agriculture,transport, education,
manufacturing and energy
sectors in order to encourage
investment in those sectors
and generate employment fornationals
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Criteria for specialincentives
outlined in theInvestment Code201922

Key Incentives include:
Agricultural Sector

Manufacturing Sector

Tourism Sector§ 10 years Tax Holiday forAgro processors operating
in industrial park, freezone (export oriented)§ 10 years income tax
holiday for exporters offinished consumer andcapital goods (80% ofproduction)
outsidedomestic market. VAT is
exempt on raw materials§ VAT deferment on plantandmachinery
atimportation§ 0% import duty on plantand machinery utilized forsetting up industry§ Tourism specific vehicles
are exempt from importtaxes§ Hotel equipment , fixturesand furniture are exempt
from taxes at importation§ Vatisexempt
on
Accommodation in tourist
hotels and lodges locatedup-country§ 0% import duty on
importation of Plant andMachinery for use in Agro
Processing.

Human Capital Development
100% tax allowable on trainingcosts
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Industrial Park Development
10 Year Tax holiday on income
derived for letting out facilities
of Industrial Park

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Investment Regime
The incentive regime is structurally included in the country’s tax
laws which makes it non-discriminatory and accessible to bothdomestic and foreign investments:• 10 year income tax holiday for companies/ industries exporting
80 % of their products• 10 year income tax holiday for developers of Industrial Parks(IPs) and free zones (FZs) - at least $ 50 million for foreigners and$ 10m for domestic investors.
• 10 year income tax holiday for operators of IPs and FZs - at least$ 10 million (foreign) and $30,000 (EAC members)• 10 year income tax holiday for businesses outside the IPS and FZs
for investments at least $ 10 million (foreign) and $ 30,000(domestic)Investment Regime• 10 year tax holiday for investor who uses at least 70% of locally sourced raw

materials, and employs at least 70% EAC citizens who must take up at least 70% of
the wage bill.

• 100% deduction of training expenditure for Employers who train permanent
residents or provide tertiary education not exceeding in the aggregate 5 years• VAT exemptions on the health sector• Tax exemption on importation of Plant and machinery , inputs that cant be locallysourced for agro processing, mining & mineral beneficiation, leather industry• Carry forward losses and various allowable deductions e.g. construction and set up
set backs.

Investment opportunities

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Investment Opportunities at a GlanceGDP
US$ 35.17 Billion
Agro-processing &(2019)

Agribusiness

Tourism
infrastructure &Accommodation

Infrastructuredevelopment & Housing

Renewable
EnergyElectronics

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Pharmaceuticals

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Minerals Value
Addition

ICT

Health27

Links to other Investment Opportunities•Visit Uganda Investment Authority Website forCompendium of 79 Bankable Projects and Regional Investment
Opportunities:
https://www.ugandainvest.go.ug/resources/

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Priority Sectors

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Agriculture / Agro-processing
Value Addition in:

Post Harvesting / Manufacturing / Trade§Coffee§Processing plants§Cotton§Abattoir§Cocoa§Storage facilities (Silos, Cold Storage)§Maize§Transport and logistics§Bananas§Farm Inputs§Grains§Plant and machinery§Vegetables§Assembling of equipment§Milk§Agricultural laboratories§Meat§Veterinary drugs

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Mining / Mineral Processing
Key Mining Opportunities:§Establishment of a Salt Processing Factory§Limestone Mining in North Western Uganda§Redevelopment of Copper and Cobalt Mines in Kilembe (Deposits predominantly occur inKilembe and marginal occurrences in Mbarara and Karamoja)§10 identified Uranium Sites (Arua and Packwach in the North and East, respectively) as
well as the West in Hoima, Kabarole and Mbarara)§Iron and Steel Processing (The largest deposit of iron ore in Muko in Kabale and Kisoro
districts(SW Uganda) with total resources of over 50 www.ugandainvest.go.ug
million tons
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Infrastructure and Services
Infrastructure development is a priority for Government ofUganda under the Vision 2040 and NDP III
Several opportunities exist in:•Transport infrastructure (Roads, Railway, Water)•Bridges e.g. Budiiba bridge in Ntoroko district; to facilitatecross border trade•ICT Parks (Incubation centres, BPO, Innovation centres)•Upcountry airports (Upgrading of Kasese Airport)•Industrial Parks•Free / Special Economic Zones

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Human Capital Development

Key opportunities:§Establishment of vocational training institutions§Establishment of hospitals across the country andEAC region§Incubation Centres3/22/22

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COVID -19 Information in Uganda• Any Traveler to Uganda Must have a negative PCR Certificate validfor 72 hours. No need for test on arrival required.
• The economy is fully open both (day and night economy)Schools are
all operational.
• Total number of vaccines administered: 16,672,9436,672,943• 16,672,943
Further information on COVID -19 Uganda: Ministry of health website:
https://www.health.go.ug/covid/

Wear your mask in all public places.
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Some of the Japanese Origin Companies in Uganda

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Domo arigato
gozaimasu:
info@ugandainvest.go.ug+256 301000 / 301100
https://www.ebiz.go.ug/ebiz-services/

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