Why invest in Uganda?

Since 1991, over 2000 enterprises of various sizes have committed in excess
of US$2.5 billion in actual investment into the country for projects that range
from agriculture, manufacturing to transportation. For many investors, Uganda
is an attractive investment location in Africa for the following reasons:
 

• Strategic location at the heart of Africa that guarantees ready access to regional markets.
• A predictable and stable economic environment.
• A fully liberalized economy.
• An abundant natural resource base.
• Demonstrated Government commitment to the private sector.
• Existence of a well-trained, English speaking work force.
• Well-developed basic infrastructure, compared to other countries in the region.

Investment Climate

Uganda is strategically positioned in East and Central Africa - a region that includes some of Africa's most economically important countries. This location at the heart of Sub-Saharan Africa, gives Uganda commanding importance as a base for regional  trade and investment.

Since 1986, Uganda has implemented a radical economic program aimed at reversing the past economic stagnation in the country. As a result, the country has achieved macro-economic stability characterized by over twenty years of low inflation, stable exchange rates and consistently high economic growth.  Uganda currently ranks as the fastest growing economy in Sub-Saharan Africa and in many ways, has come to reflect the new face of emerging Africa.

The Uganda Government's Strategy is to modernize the economy through relying on the markets and the efforts of private investors as the basis for efficient and productive economic activity, while the government itself provides the necessary legal and policy framework and physical infrastructure for private investment to flourish.  The Strategy which has been in place sice 1987, is endorsed by the World Bank, donor community and the private sector. In line with the above strategy, Uganda boasts of a liberalized economic environment where the market forces determine price and where almost all economic activity is unrestricted.

The Incentive Regime

Along with an excellent macro-economic record, Uganda provides a competitive incentive regine for private sectors:

• Uniform corporation tax of 30%, which is the lowest in the region.
• Import duty exemptionsns for plant and machinery.
• Duty draw-back facility for exporters.
• A fully liberalized foreign exchange regime with no restrictions on the movement of capital in and out of the country.
•  A freely convertible and stable currency.
• Special initial allowance (accelerated depreciation) of 50-75 per cent on plant and machinery.
• 100% initial allowance for training, scientific research and mineral exploration expenditures.
• Value Added Tax (VAT) deferral facilities for plant and machinery.
• First Arrival Privileges in the form of duty exemptions for motor vehicle and personal effects to all inverstors and expatriates coming to Uganda.

Contacting the Uganda Investment Authority

The Uganda Investment Authority may be contacted by telephone, facsimile, postal mail and e-mail.
For more comprehensive information on investment opportunities in Uganda, please click this link to visit the UIA web site.