Prospects for investment in Agri- Industry in Uganda By Hon. Aggrey Bagire Minister of state (Agriculture) Ministry of agriculture, animal industry and Fisheries The republic of Uganda
Presentation lay out1. Introduction2. Strategies to increase Agricultural productivity3. Emerging commercial products for value chains4. Investment opportunites in Agribusiness5. Investment incentives - domestic tax regime
1. Introduction• Agriculture contributes 77% for Uganda population (mainly rural• Contributes 22% of country’s GDP• Contributes 48% of the country’s export earnings• Uganda is one of the few net food exporting countries in the region despite raw fertiliser utilization• In the last eight years government has invested in agriculture through Plan for mordernization of Agricuture (PMA) which is part of the PEAP
2. Strategies to increase agricultural productivity in Uganda .• Government puts emphasis on Agriculture as priority and resource allocation on the rise• Through the National Agricutural Advisery Services (NAADS) government has targets over $70 million annually to organise small holders, provide advisory services as well provision and promotion of modern technology adoption• Government supports the development of rural finance services (Micro Finance Institutions) in order to enhance small farmer access to credit.
Strategies to increase agricultural productivity in Uganda. cont…• Through National Agricultural Research Organization (NARO) there have been break through in the development of improved high yielding and disease resistant varieties for -- cassava,- Rice- maize,- G/nuts,- millet,- fruits & vegetables
Strategies to increase agricultural productivity in Uganda cont….• The Government Prosperity for all program (PFA)- Target interventions to over 30,000 individual farmers per anum on top of NAADS organised farmer groups- They are provides new technologies, advisory services and other support services for commercial production.
3. Emerging Commercial Production of Enterprises• New high value have joined the past traditional exports of (3 Cs & 2Ts)i.e. Coffee, cocoa, cotton, tea, & tobacco for commercial production i.e.- Fish,- Rice- Maize- Fruits & vegetables(Citrus)- Poultry- Dairy- Piggery- Goats- Vanilla- Floriculture
4. Investment opportunities in Agribusiness• Dairy and dairy products processing:- Powder milk production- Flavored and UHT Milk- Butter, ghee and chees production- Cream and ice production- Investment in could storage and delivery infrastructure
Investment opportunities in Agribusiness• Meat & meet products- Slaughter houses and beef packaging plants for cattle corridor- Leather processing industry- Goat meet processing for export to middle east- Feed processing industry- Commercial breeding and production of semen for both local and export to region and local markets
Investment opportunities in Agribusiness• Fisheries and aquaculture:- Fish processing packaging and export- Promotion of aquaculture industry- Leather processing for export
Investment opportunities in Agribusiness• Fruits and vegetables:- Regional fruit storage and processing facilities in Teso region (currently producing over 450,000 mt)- Pulp processing plant for export to regional plans making fruit juices
Investment opportunities in Agribusiness• Floriculture:- Expansion of Rose industry- Manufacture of green house plastics and packaging material
Investment opportunities in Agribusiness• Agribusiness services- Cold chain infrastructure- Packaging industry- Cargo freight- Manufacture/Bulk importation of farm inputs, equipment and agro processing machinery- Agricultural insurance- Agricultural Bank
Investment opportunities in Agribusiness• Other Opportunities:- Honey processing- Starch factory - Cassava- Packaging plant for beans & pulses- Gum Arabic production and processing plant
5. Investment incentives under domestic tax regime1. Capital allowance• on plant and equipment on industries between 50% - 75% depending on location• 25% allowable on actual cost first four yea• 100% allowance on scientific research, training & minor repairs on equipment2. Deductible allowances:40% computers35% - Light automobiles50% - Heavy automobiles20% all other depreciable assets
Investment incentives under domestic tax regime• Other Annual depreciation allowances- 5% on industrial buildings- Interest on debentures allowed- Losses can be carried forward- Exemption for with holding tax on plant & equipment- Agreements to mitigate double taxation- Exempt goods under EAC protocol- Export promotion Schemes
Investment incentives• Investment Climate:- Single inflation digit- Sound Macro economic environment- Peace & stability- Governance- Decentralization- Membership to big economic blocks and emerging marketing e.g. EAC, COMESA, AGOA, EBA, Southern Sudan e.t.c.
ConclusionAll above said I invite you all to take up thechallenge to take advantage of vast investmentopportunities in the Ugandan Agricultural sector