Welcome to Uganda

By Sudi Am mba
16.07.2023

Uganda is a country in East Africa known as the Pearl of Africa due to its natural beauty, wildlife, birdwatching, gorilla trekking, cultural experiences, and breathtaking scenery. It has cultural diversity and warm hospitality for travelers.

The country has about 47 million people, home to diverse ethnic groups. The capital city Kampala is home to over 1.7 million estimated people.

This is the home of the iconic River Nile, the longest in the world, the Nile Valley, lake Victoria, Rwenzori mountains, Mabira Rain Forest, the home of lions, elephants, giraffes, antelopes, leopards, cheetahs…It is home to fresh and organic foods such as Matoke…

Uganda is a presidential democracy, the President is elected by popular vote for a term of 4 years. The official languages include: English widely used in government, administration, education, and business sectors. Swahili is also spoken across different regions of Uganda. Other local languages include Luganda, Runyankole…

Since the liberalization of the economy in 1986, this country is one of the fastest-growing economies in the world.

According to UNCTAD’s 2022 World Investment Report, FDI flows into Uganda went up to $1.1 billion in 2021. In 2021, the World Bank reported its GDP at $97 billion. The country’s GDP average annual growth is over 6% in the past 30 years.

Uganda’s export growth is 17% to United Arab Emirates, Kenya, South Sudan, DRC Congo, and Italy.

The top export products include gold, coffee, cocoa beans, raw sugar, tea…Population Access to electricity is 42% (2020) with 20% using the internet. 

The government is making progress in improving the business climate by implementing policies to attract foreign investment.

All sectors of the economy are fully liberalized for investment with 100% foreign ownership of investment permitted.

Why Invest in Uganda?

  • Strategic location: Uganda is located in East Africa making it a gateway to the larger East African Community (EAC) market which includes countries like Kenya, Tanzania, Rwanda, Burundi, South Sudan, and Congo DRC which opens up a local market of over 283 million people with a combined GDP $305 billion (2021). It also has access to the larger African Continental Free Trade Area. 
  • Growing consumer market: Uganda offers a large and growing consumer market of over 47 million population, There are opportunities for investment in sectors such as agriculture, healthcare, infrastructure, retail, consumer goods, and services to cater to the needs of the local population.
  • Economic reforms: Uganda government is implementing economic reforms aimed at improving the business environment and attracting foreign investment. These measures help to simplify business registration, reduce bureaucracy and improve access to finance, enhance investor protection, liberalize trade
  • Skilled workforce:  Uganda has a young and growing population, providing a pool of skilled and semi-skilled labor. The country has a strong education system with several universities and technical institutions producing graduates in various fields.
  • Uganda is a member of the AfCFTA, the largest trade bloc in the world with 1.4 billion people, and a combined GDP of about $3.4 trillion expected to double by 2050.
  • Investment incentives: the Uganda government offers various tax breaks, customs exemptions, and access to land for investment projects. These incentives aim to attract local and foreign investment.

Investment opportunities in Uganda

  • Tourism potential: the Pearl of Africa is known due to its stunning landscapes, national parks, wildlife, and diverse cultural heritage.This sector is a key driver of the economy within Uganda Vision 2040. More growth is expected in the next 5 years in line with the National Development Plan III 2020/21-2024/25 and complements the Uganda Tourism Master Plan.
  • Attractions such as the endangered mountain gorillas in Bwindi Impenetrable National Park, Murchison Falls National Park, and the source of Nile offer opportunities for investment in eco-tourism, hotels, lodges, and related services. The government of Uganda has five priority areas: marketing and promotion, human resource development, product development, natural and cultural resource conservation, and tourism management and regulation.
  • Medical tourism: unique natural attractions, such as national parks and scenic landscapes combined with healthcare facilities, create opportunities for medical tourism. Investing in resorts, hotels or specialized medical tourism services can tap into this potential.
  • Agriculture and Agribusiness: Agriculture is one of the most important sectors and the largest source of export earnings. Around 53% per annum and employing 73% of Uganda’s population. The country has favorable agro-climatic conditions for different crops such as coffee, tea, cocoa, bananas, and various horticultural products. There are investment opportunities in the production, processing, and export of agricultural products. Value addition will play a crucial role in the development of the agriculture sector but there are challenges in terms of technical skills, lack of energy, standards, and storage. 
  • Value addition is mainly in ginning, tea processing, coffee hauling, tobacco handling and processing, beverages, wheat products, fast-growing dairy, fruit processing, fruit drying, grain milling, meat processing, milk production and processing, leather tanning, fish processing…
  • Infrastructure Development: the government has launched initiatives to attract private sector participation in infrastructure development, creating opportunities for investors in the construction, engineering, and transportation sectors. There are projects for road networks, railways, airports, energy…
  • Real Estate: this sector is an emerging and safest market for investment in Uganda. There are opportunities for residential homes, business premises, offices, and shopping malls in major cities such as Kampala. 
  • Mining: Uganda is rich in natural resources and presents opportunities to add value to its minerals such as gold, copper, and limestone. The country has oil and gas reserves as well. There are investment opportunities for the 300 million tons of iron ore in South Western Uganda. 3 billion tons of rare earth minerals such as alumnus clays, 300 million tons of bentonite used for the production of drilling mud for oil production, 30 million tons of glass sand for manufacturing of sheet glass to be used for building purposes, 3.4 billion tons of graphite, 100-200 million tons of vermiculite in Eastern Uganda, other minerals include wolfram, copper, zinc, cobalt, nickel, gold…A lot of local companies have great investment projects and are looking for partnerships to implement them.
  • Renewable Energy: Uganda has potential particularly in hydropower, solar, and biomass. The country aims to increase electricity access and reduce reliance on fossil fuels. The electricity demand is growing at an annual rate of 10-12%. There are opportunities in the development of renewable energy projects and the provision of energy-related services. The potential of the country includes an estimated 2000 MW of hydropower, 450 MW of geothermal, 1650 MW of biomass co-generation, 1650 MW of biomass with a sustainable annual yield of 50 million tons, an average of 5.1 kWh/m2 of solar energy and 250 million tons of peat (800 MW). The overall energy power generation potential is around 5300 MW
  • Information and communications technology: ICT play a big role in economic development with opportunities for e-business transactions. The government is making efforts towards e-governance, e-education,…There are opportunities for mobile phone operators, internet service providers, postal service providers…
  • Industrialization: the Uganda government plans to establish and service a regional network of 23 industrial business parks across the country. The country would like to accelerate industrialization through serviced industrial-business parks to promote investment for economic transformation and employment creation through value addition, technology, and knowledge transfer.
  • Health: there are opportunities to improve the healthcare infrastructure such as hospitals, clinics, and diagnostic centers. While the country relies on imported pharmaceutical products, investing in medical equipment and supplies, pharmaceutical manufacturing facilities can help meet the local demand for essential medicines and reduce dependence on imports. 
  • There are opportunities for healthcare training and education institutions such as nursing schools, and medical universities to contribute to the development of a skilled healthcare workforce.
  • Oil and gas: There are 6.5 billion barrels of oil confirmed in the 21 oil and gas discoveries made in the Albertine Graben out of 1.4 billion barrels estimated as recoverable.
  • Trade:  The country boasts a stable and investor-friendly business environment, making it an ideal destination for trade partnerships. Take advantage of well-connected road networks, bustling border points, and efficient customs procedures to expand your market reach and grow your business. With a diverse range of export products including coffee, tea, cocoa, agricultural commodities, minerals, and handicrafts, Uganda offers a wealth of trade opportunities.

It’s worth noting that investments in any field require proper research and due diligence. There are lots opportunities but not without risk. The potential returns on investment may not always be guaranteed.

 How to travel to Uganda?

  • Entry Requirements:Check the visa requirements for your nationality. Contact the nearest Ugandan embassy or consulate to obtain information on visa application procedures, required documents, and any specific entry requirements.
  • Flight:Look for international flights to Entebbe International Airport, which is the main international gateway to Uganda. Various airlines offer flights to Entebbe from major cities around the world.
  • Vaccinations and Health Precautions:Check the recommended vaccinations for travel to Uganda. Yellow fever vaccination is mandatory, and other vaccines such as malaria may also be advised. Consult with a healthcare professional or travel clinic before your trip.
  • Travel Insurance:It is recommended to obtain travel insurance that covers medical emergencies, trip cancellations, and other unforeseen events.
  • Transportation within Uganda:Upon arrival at Entebbe Airport, you can use various modes of transportation within Uganda. Taxis and private cars are available for hire at the airport. Domestic flights are also available for traveling to different regions of the country. Buses and minibusses (matatus) , and bikes (boda-bodas) are common for transportation between cities and towns.
  • Safety and Security:while Uganda is generally safe for tourists, it is important to take necessary precautions. Stay updated on the current security situation, follow travel advisories issued by your government or international organizations, and be aware of any specific safety guidelines or warnings for certain areas or activities. It is advisable to hire reputable local guides or use trusted tour operators for activities like wildlife safaris.
  • Accommodation:Uganda offers a range of accommodation options including hotels, guesthouses, lodges, and campsites. Choose accommodation that suits your preferences and budget. Major cities like Kampala and tourist destinations like Jinja and national parks have a variety of lodging choices.
  • Language:English is the official language in Uganda. Knowledge of English or local languages such as Swahili or Luganda can be helpful for communication.

It’s important to gather up-to-date information on travel requirements, safety guidelines, and local conditions in Uganda before you travel. Consult with travel agencies, official government websites or contact the nearest Ugandan embassy or consulate for the most accurate and current information for a safe journey.

UIC (UGANDA INVESTMENT CENTER): a one-stop shop for investors, offering services such as investment promotion, investment facilitation, and aftercare support. It facilitates contacts with relevant government agencies for your business formation, work permits, visas, licenses, …