• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
CountryFactor  -  Uganda Investment Promotion Conference London 2011- Guide to Investing in Uganda
 

CountryFactor - Uganda Investment Promotion Conference London 2011- Guide to Investing in Uganda

on

  • 1,543 views

Uganda lies astride the equator and enjoys a unique location at the heart of Sub- ...

Uganda lies astride the equator and enjoys a unique location at the heart of Sub-
Saharan Africa within the East African region. The country is bordered by Sudan in the
north, Kenya in the east, the United Republic of Tanzania in the south, Rwanda in the
southwest and the Democratic Republic of Congo in the west. This location, though
landlocked, gives the country a commanding base for regional trade and investment.

Statistics

Views

Total Views
1,543
Views on SlideShare
1,543
Embed Views
0

Actions

Likes
0
Downloads
13
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    CountryFactor  -  Uganda Investment Promotion Conference London 2011- Guide to Investing in Uganda CountryFactor - Uganda Investment Promotion Conference London 2011- Guide to Investing in Uganda Document Transcript

    • Brief Guide to Investing in UgandaUganda lies astride the equator and enjoys a unique location at the heart of Sub-Saharan Africa within the East African region. The country is bordered by Sudan in thenorth, Kenya in the east, the United Republic of Tanzania in the south, Rwanda in thesouthwest and the Democratic Republic of Congo in the west. This location, thoughlandlocked, gives the country a commanding base for regional trade and investment.Why Invest in Uganda?1. Predictable Environment: Uganda has been able to achieve macro-economic stability when clouds of uncertainty rocked many regions of the world. • Inflation rate has been controlled and managed at a single digit for over 15 years. • Strong economic growth averaging 7.7% per annum since the year 2000 making Uganda the fastest growing economy in East Africa. • Maintained a competitive real exchange rate that supports export growth.2. Fully Liberalized Economy: • All sectors liberalized for investment and marketing. • Free inflow and outflow of capital. • 100% foreign ownership of investment permitted. • Ranked the 4th freest economy in Sub-Saharan Africa by the 2009 Index of Economic Freedom.3. Market Access: • Uganda enjoys a unique location at the heart of Sub-Saharan Africa giving it a commanding base for regional trade and investment. • Uganda is a member of the Common Market for Eastern and Southern African states (COMESA), a region with a market of over 400 million people in 19 countries. • Uganda is a member of the East African Community (EAC) comprising Burundi, Kenya, Rwanda, Uganda, and Tanzania with a population of over 125 million people. • Duty and quota free access into the US (AGOA), Generalized System of Preferences (GSP) scheme and EU (EBA) markets. 1
    • 4. Strong natural Resource Base • Abundant rainfall evenly spread in two seasons, rich loamy soils, and favorable temperature which enhances the productivity of the land to support the cultivation of both food and cash crops, organically. • Unexploited mineral deposits and tourism opportunities. Confirmed deposits include Phosphate, Gold, Zinc, Wolfram, Petroleum, Diamond, Vermiculite, Silica etc. • Lush green tropical forests, inhabited by a wide variety of birds and fauna.5. Government Commitment to Private Sector • Government and private sector dialogue in policy formulation. • Continuous improvement in provision of infrastructure and other social services.6. Trainable Labor • Uganda presently produces over 15,000 University graduates per year. • Quality of labor is one of the biggest attractions.7. Security of Investment • Guaranteed under the Constitution and the Investment Code Act Cap. 92 Laws of Uganda 2000 edition. • Uganda is a signatory to major international investment related institutions such as: − Multi lateral Investment Guarantee Agency (MIGA). − Overseas Private Investment Corporation (OPIC) of USA. − Convention on the recognition and enforcement of foreign arbitral award (CREFAA). − Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). − ICSID, TRIMS, GATS, and TRIPS8. Investment Incentivesa) Investment Capital Allowances • Initial Allowance on plant and machinery 50-75% • Start up cost spread over 4 years 25% p.a. • Scientific research expenditure 100% • Training expenditure 100% • Mineral exploration expenditure 100% 2
    • • Initial Allowance on hotel, hospitals and Industrial buildings 20% • Deductible annual Allowances (depreciable assets) • Depreciation rates of assets range. 20-40% • Depreciation rate for Hotels, Industrial Buildings and Hospitals 5%b) Investors who register as investment traders are entitled to VAT refund on building materials for industrial/commercial buildings.c) Duty and Tax free import of Plant & Machinery.d) First Arrival Privileges in the form of duty exemptions for personal effects and motor vehicle (previously owned for at least 12 months) to all investors and expatriates coming to Uganda.e) Export Promotion Incentives and Facilities • Manufacturing Under Bond. • Duty exemption on plant and machinery and other inputs • Stamp duty exemption • Duty draw back – a refund of all or part of any duty paid on materials, inputs imported to produce for export • Withholding tax exemptions on plant & machinery, scholastic materials, human & animal drugs and raw materials. • Ten year tax holiday – duty remission scheme for exporters involved in value addition.Investment OpportunitiesAgribusinessUganda is among leading producers of coffee and bananas. It is also a major producer oftea, cotton (including organic cotton), tobacco, cereals, oilseeds (simsim, soya,sunflower, etc), fresh and preserved fruit, vegetables and nuts, essential oils, orchids,flowers and sericulture (silk). Opportunities include commercial farming and valueaddition, as well as the manufacture of inputs and supply of agricultural machinery.FisheriesUganda’s fish processing sector has expanded greatly in recent years and current exportearnings for the year 2006 were close to US$146 million. Large fresh water expansesare home to a wide variety of fish products. Opportunities are available for fish farmingand establishment of more fish processing factories on other lakes other than LakeVictoria. Uganda’s fish is a delicacy in Europe and has recently penetrated the USmarket.ForestryWith over 4.9 million hectares of rich forest vegetation, Uganda possesses abundantpotential in areas like timber processing for export, manufacture of high quality 3
    • furniture/wood products and various packaging materials. There are also opportunitiesin afforestation and reforestation especially of medicinal trees and plants, soft woodplantations for timber, pulp & poles.ManufacturingUganda’s manufacturing output has been expanding by more than 10% annually overthe last eight years. Opportunities exist in virtually all areas ranging from beverages,leather, tobacco based processing, paper, textiles and garments, pharmaceuticals,fabrication, ceramics, glass, fertilizers, plastic / PVC, assembly of electronic goods, hi-tech and medical products.MiningUganda has large under-exploited mineral deposits of gold, oil, high grade tin,tungsten/wolfram, salt, beryllium, cobalt, kaolin, iron-ore, glass sand, vermiculite andphosphates (fertilizer). A discovery of petroleum wells in the Lake Albert region hasenhanced the sector’s joie de vivre. There are also significant quantities of clay andgypsum. Uganda provides special incentives to the mining sector with some capitalexpenditures being written off in full.InfrastructureAlthough significant efforts have been made to develop and rehabilitate the existingphysical and non-physical infrastructure, potential investment opportunities stillabound. In particular, transport & logistics and energy sectors still require furtherinvestment. With less than 10% of the mainstream capacity of 2,700 megawatts ofpower exploited, Uganda has the potential to be a major supplier of hydro electricpower to the entire East African region.Financial ServicesOpportunities for investment exist for international multinational banking groupsparticularly promoting new or innovative financial products (i.e. Mortgage finance,venture capital, merchant banking and leasing finance) and also micro finance savinginstitutions, which propose to operate in rural areas. Insurance, in particular, is still arelatively young sector and offers several opportunities for investment.TourismThe distinctive attraction of Uganda as a tourist destination arises from the variety of itsgame stock and its unspoiled scenic beauty. Within a relatively limited space of justover 240,000 square kilometres, Uganda offers an interesting contrast ranging from thewide East African plains and expansive savanna grasslands to the impenetrable,mountain rain forests and snow peaked mountains in the south western parts of thecountry.Uganda offers a wide range of bird species for viewing in addition to numerous sportingopportunities such as mountain climbing and water sports including white water rafting. 4
    • The opportunities in tourism range from constructing high quality accommodationfacilities, operating tours and travel circuits to the development of specialized eco-tourism.Printing and PublishingIn the printing and publishing sub-sector, opportunities exist for the printing oftextbooks for schools. Currently, imports supply over 90% of Uganda’s textbookrequirement (estimated at over U$7 million a year). Investment opportunities thereforeexist in the various type of printing including flexography, screen printing, off-setprinting and digital printing. Other opportunities include electronic printingmagnetography, thermographic printing, ion deposition printing and direct chargedeposition printing.EducationUganda runs high quality courses at a relatively cheaper cost than other educationdestinations and is dedicated to making investment in the country’s knowledge hub aunique experience and a win-win situation for both investors and students. Investmentopportunities therefore exist in Uganda for setting up of independent privateuniversities, branch universities and offshore campuses. Other areas of investmentinclude technical & vocational training, technology-based education & distanceeducation and student financing.Information Communication TechnologyUganda’s Information and Communication Technology (ICT) sector is one of the mostvibrant within the region. This vibrancy hinges largely on the good legal and regulatoryframeworks. The supportive investment climate therein has exposed numerousopportunities in ICT innovation services leading to maximum utilization of the existingyouthful human resource base quite suitable for the ICT work. The newly developed andhighly qualitative ICT infrastructure is also ready to accommodate more futureinvestments.Opportunities in the ICT include establishment of information and communicationinfrastructure and broadband services, business process outsourcing services, computerand related equipment hardware assembly, high level ICT training facilities oninternational standards, ICT business services incubation, hardware repair trainingfacilities, software development niches, setting up information technology virtual zones(ITVZ), and setting up Internet service provider facilities in other parts of Uganda. 5
    • Uganda in Brief (Basic Country Data) AREA Land Area 199,808 Sq. Km. Water and Swamps 41,743 Sq. Km Total Area 241,551 Sq. Km. LOCATION Latitude 4012’N and 1029’S Longitude 29034’E and 3500’W ALTITUDE Minimum (above sea level – Albert Nile) 620 metres Maximum (above sea level – Mt. Rwenzori) 5,110 metres CLIMATE Kampala: Annual Mean Temperature 17.00C Kampala: Annual Rainfall 1436.0 mm LAND USE Arable Land 25% Permanent Crops 9% Permanent Pastures 9% Forests and Woodland 28% Other 29% DEMOGRAPHICS Total Population (2009 mid year)* 30.7 million Female Population 15.66 million Male Population 15.04 million Percentage Urban (2009mid year)* 14.8 % Population of Kampala City (2009 mid year)* 1.53 million Population/Aged under 18 Years (2007 mid year) 56% Population/Aged 65+ (2007mid year) 4.6% Population Density (2002) 123 persons/km2 Inter-Censal Annual Population Growth Rate 1991- 2002 3.2% per year Infant Mortality Rate (2002 census)* 76 per 1000 Life Expectancy at birth (2002 census)* 50.4 years Male 48.8 years Female 52.0 years Population per Physician (Doctor) 18,575 MAJOR LANGUAGES English, Luganda and Kiswahili EDUCATION Literacy Rate (2006) 69 % Male 76% Female 63% RELIGIONS Roman Catholic 33% Protestant 33% 6
    • Muslim 16% Indigenous Beliefs 18%Note: *Demographic estimates were based on the census 2002 final results.The Role of Uganda Investment AuthorityUIA is the agency set up by an Act of Parliament (Investment Code 1991) to promoteand facilitate private sector investment in Uganda. The agency serves to: 1. Provide first hand information on investment opportunities in Uganda; 2. Issue Investment Licenses; 3. Assist in securing other licenses and secondary approvals for investors; 4. Help investors to implement their project ideas through assistance in locating relevant project support services; 5. Provide assistance in the acquisition of industrial land; 6. Help to obtain work permits and special passes for investors and their expatriate staff; 7. Arrange contacts for potential investors and organize itineraries for visiting foreign missions in the country; 8. Assist investors in seeking joint venture partners and funding; 9. Review and make policy recommendations to Government about investment.Financial Support/AssistanceForeign investors can apply for loans from the local banking sector. Investors can alsolist their companies on the local stock exchange. A number of financial supportinitiatives exist to support investors in given sectors. UIA can advise potential investorson the how and where to access existing financing options for their plannedinvestments.Getting Started – A Brief GuideForeign investors require a minimum of US$100,000 in planned investment in order tosecure an investment license from the Uganda Investment Authority, whereas for localinvestors, the minimum planned investment requirement is US$50,000. Local investors,however, may proceed with their investment without licensing with the UgandaInvestment Authority. The license is very crucial to foreign investors as it is theinstrument that legalizes their investment in Uganda. Traders do not require a licensefrom UIA but must demonstrate operating capital of US$ 100,000 before tradinglicenses and entry permits are issued by local authorities. 7
    • Steps to Register your Investment in UgandaStep 1 – Register your company in UgandaRegister your company in Uganda at the Uganda Registration Services Bureau (URSB)and obtain the Memorandum and Articles of Association, and a Certificate ofIncorporation.Step 2 – Get your Investment LicenseApply for an investment license using UIA Form 1 and attach the documents in step 1plus a brief Business Plan. Normal processing time for an investment license is 2 – 5days.Step 3 – Secure necessary secondary clearancesCertain sectors require other secondary licenses e.g. for mining activity, air transport,banking, forestry. UIA will assist you to secure these licenses within reasonable time.UIA shall also assist you in obtaining suitable industrial land and work permits for yourexpatriate staff. Utilities like telephone, electricity and water can easily be secured fromthe relevant offices.One–stop-shop – The one-stop-shop has now been implemented permitting investorsto obtain all these services at the UIA. This initiative saves the investors both time andmoney to have their projects licensed and implemented expeditiously. Representativesfrom Uganda Revenue Authority, Department of Immigration and Ministry of Lands arealready housed at the UIA for this cause.Visitors GuideAccommodation: In Kampala, there are several high-class hotels to choose from. Achain of hotels and lodges of a consistent standard, which are well distributed in majortowns and in national parks, exist. Reservations should be made in advance wheneverpossible.Airlines: Main ones are; British Airways, Ethiopian Airways, Emirates, Kenya Airways, SNBrussels, Air Tanzania, Egypt Air, and Dairo Air (Cargo).Banking: There are several local and foreign owned commercial banks under thesupervision of the Central Bank. The banks are open to the public from 8.30 am to 3.00pm every Monday to Friday. Foreign currency may be exchanged at different banks andforex bureaus. No limitation on the amount of foreign currency traded.Clothing: Light summer clothes throughout the year around. Jacket and tie ordinarilyrequired in official meetings.Drinking Water: We recommend that you drink previously boiled water or bottledwater.Food: A wide range of restaurants exists including continental, Chinese, English, Italian,Japanese, French, Lebanese, Korean, Indian and several other cuisines. 8
    • Inoculation: Inoculation requirement of yellow fever and cholera are mandatory inUganda. Anti- malaria medication is necessary in most parts of Uganda, though malariais rare in most highland areas.Languages: The official language is English. Luganda and Swahili are commonly spokenin most parts of the country.Sport: There are a variety of sports available in the city centre - squash, golf, tennis,badminton, football etc.Transport: The roads are generally in good condition. Four-wheel drive vehicles areonly necessary in the game parks or up country during the rainy season. Publictransport is readily available.Visa/Entry (Work) Permit: A visitor is given a single journey visa to Uganda and onarrival he/she is issued with a visitor’s pass for purposes of either spending a holiday,traveling, or investigating the possibilities of carrying on any business, trade orprofession in Uganda. Please bring spare passport photographs.Multiple entry visas can be granted to business executives, who expect to makenumerous visits either for business meetings or organization.Entry Permit Classes:A1 Persons in Government services, UN organizations, OAU, PTA and other Institutions approved by the minister.A Contracting companies of the for said organizationsB-F Investors in various disciplinesG EmployeesInvestors and employees are required by law to execute a security bond equivalent tothe cost of a single economy class ticket to their country of origin. The money ifnecessary, is used for purposes of defraying expenses incurred or may be incurred bythe Government in connection with maintenance and/or repatriation of the person ofwhom the deposit has been made.No entry permit fee is charged for class A1.For all other classes, the payments at published rates are made in foreign currency or itsequivalent in local currency. Renewals of entry permits are provided at annual rates.VisasEffective March 1, 1999, Government of Uganda introduced visa requirements for allvisitors entering Uganda. Underlying the Uganda Visa Policy is the principle ofreciprocity, that is, all countries that require visas for Ugandans are also visa prone inUganda. 9
    • Therefore; - • Foreigners travelling to Uganda will be required to obtain visas from Uganda Diplomatic and Consular missions abroad prior to their travel. • Visas can be obtained at entry point in cases where foreign nationals cannot access a Uganda Diplomatic and Consular missions abroad.Visa FeesFrom the 2007/2008 budget, the following fees are being charged:Single entry visa US$ 50The fees structure for the multiple entry visa (6 months) and multiple entry visa (12months) are currently under review.Note: - Multiple Visas are obtainable only from Uganda Missions Abroad.Exempt CountriesVisa requirements for countries are based on a reciprocal arrangement.The following countries are exempt: • East African citizens • Nationals of COMESA countries (Angola, Comoros, Eritrea, Kenya, Malawi, Mauritius, Madagascar, Rwanda, Seychelles, Swaziland, Tanzania, Zambia, Zimbabwe. • Other countries e.g. Antigua, Bahamas, Barbados, Belize, Fiji, Gambia, Grenada, Jamaica, Lesotho, Malta, Sierra Leone, Singapore, Solomon Islands, St Vincent & The Grenadines, Tonga, Vanuatu, Italy (only diplomatic passports) and Cyprus. 10
    • Useful ContactsUganda Registration Services BureauPlot 5 George Street, Amamu House 4th floorP.O. Box 6848 Kampala, UgandaTel: +256-41-4235915/233219/345727Fax: +256-41-4250712Uganda Tourist BoardP.O.Box 7211 Kampala, UgandaTel: +256-41-4342196/7Fax: +256-41-4342188E-mail: info@visituganda.comhttp:// www.visituganda.comImmigration DepartmentMinistry of Internal AffairsJinja RoadP.O.Box 7165 Kampala, UgandaTel: +256-41-4231031/231641Fax: +256-41-4231188E-mail: immigi@infocom.comhttp://www.immigration.go.ugUganda National Bureau of StandardsPlot M217 NakawaP.O. Box 6329 Kampala, UgandaTel: +256-41-4286123, 262688/9, 222367Fax: +256-41-4286123E-mail: unbs@infocom.co.ughttp:// www.unbs.orgBank of Uganda37/43 Kampala RoadP. O. Box 7120 Kampala, UgandaTel: +256-41-4258441/6, 341223Fax: +256-41-4231549http:// www.bou.or.ugUganda Manufacturers AssociationLugogo Show GroundsP.O. Box 6966 Kampala, UgandaTel: +256-41-4221034/220831Fax: +256-41-4220285E-mail: information@uma.co.ug 11
    • Uganda Export Promotion BoardConrad Plaza, 5th FloorP.O. Box 5045 Kampala, UgandaTel/Fax: +256-41-4259779E-mail: uepb@starcom.co.ugNational Environment Management AuthorityNEMA House, 3rd FloorPlot 17/19/21 Jinja RoadP. O. Box 22255 Kampala, UgandaTel: +256-41-4251064/5/8Fax: +256-41-4257521http:// www.nemaug.orgFor further information, contact: -Uganda Investment AuthorityTWED PlazaPlot 22B Lumumba AvenueP. O. Box 7418 Kampala, UgandaTel: +256-41-4301000Fax: +256-41-4342903E-mail: info@ugandainvest.comhttp:// www.ugandainvest.com; 12