Why Invest in Uganda?
Uganda operates in a highly secure, free-market Environment, all inclusive (for all men and women), with a youthful population, Abundant resources, fast expanding economy that automatically avails most favorable, multiple investment opportunities unlike any other country around the globe. The Government of Uganda has taken into its strategy for the economic agenda, four main areas of investment that can foster economic growth for Ugandans and ensure middle income status by 2040. These are areas of Agriculture, Infrastructure, Oil, and Technology innovations, all of which should be aligned with the Sustainable development goals.
Below are Four Key points on why you should invest in Uganda.
Favorable Legislation/Policy
The Public-Private Partnership Act of 2015 was introduced and has shown an appetite for Foreign Direct Investment (FDI) but also Local investment, and this is an opportunity that has not been fully tapped into for economic growth in Uganda.
The World Bank highlights that such strong policies will translate Uganda’s potential into an economic hub for Africa, and you want to be a part of that when it inevitably happens.
Ready Markets
Uganda provides avenues for ready good-sized market scopes both domestically and internationally and yet these are not being fully capitalized on.
Regional Integration has been fostered to further this cause. For example, through the most recently signed Africa Continental Free Trade Agreement, Uganda will have benefits of jobs created, poverty reduction, sustainable increase in the GDP, among others. It is a game changer for Uganda’s economy and Africa as a whole.
Fast growing Economy
A true definition of an economic success story, Uganda boasts of a GDP that approximately doubled every decade from 1990 to 2010. Like all economies around the world however, the past decade was purged by pandemics and wars in Europe that caused the inevitable decline in GDP recently. Fortunately, Uganda had already set in place an international trend for the private sector growth through stable macroeconomics and a broadly supportive economic environment. This has evidently kept Uganda resilient in the face of economic shocks hence providing an ample space for Investment in all sectors of development.
Investment Incentives
Uganda has got standard investment incentives for foreign investors who can qualify for incentives under the Integrated Client Account (ICA) where the investor makes a capital investment or an equivalent in capital goods worth at least $500,000 by way of capital invested. The second schedule to the ICA contains priority investment areas for which additional benefits maybe granted, which are as follows:
i. Concessional rates of import duty for
an investor who is importing any plant, machinery,
equipment, vehicles or construction materials for an
investment project.
ii. Exemption from payment of import
duty on one motor vehicle for personal use, personal and
household effects which the person owned and used outside
the East African Partner State for at least twelve months.
Such person must show that he is changing residence from a
place outside the East African Partner State to a place
within the East African Partner State.
iii. Incentives available generally for
start-up businesses under custom laws, the Income Tax Act
(Cap 340) (ITA) and the Value-Added Tax Act (Cap 349).
iv. Drawback of duties payable on
imported inputs used in producing goods for export as
provided in the laws imposing such duties and taxes.
