Investment in Uganda
The government of Uganda provides the necessary legal policy and physical infrastructure for private investment to flourish. The government has privatised most of the parastatals and revised regulations to promote foreign investments. The law permits 100 per cent ownership of investments and with very few exceptions, investors can invest in any economic activity.
Uganda Investment Authority (UIA) is the agency set up by government to promote investment in Uganda and also to market Uganda’s investment opportunities to targeted investors all over the world..Uganda Investment Authority is a one stop for investors in Uganda. An investor is provided with all the information necessary in all sectors to make it easier for investor to make decisions. The Authority also assists investors during the registration process including identification of land required by the investor.
UIA also advises government on appropriate investment policies.
The Uganda Investment Authority can provide first-hand information on;
- Investment opportunities in Uganda.
- Issue investment licences.
- Secure other licences and secondary approvals for investors
- Help investors to implement their project ideas through assistance in locating relevant project support services.
- Provide assistance in the acquisition of industrial land.
- Obtain work permits and special passes for foreigners
- Arrange contacts for investors and organize itineraries for visiting foreign missions within the country
The Constitution of the Republic of Uganda 1995 (as amended), the supreme law in Uganda recognises and gives protection to private property. Under Article 26 (1) it is provided that every person has a right to own property either individually or in association with others.
Incorporation and registration of Companies in Uganda
Promoters of new businesses have to register them with Registrar of Companies for the businesses to be issued with a certificate of incorporation.
A local investor with US$ 30,000 or a foreign investor with an investment of $100,000 or more is eligible to an investment licence with the exception of investors in professional service sectors.
Investment challenges in Uganda
With a strong economy, open markets and abundant resources Uganda provides a lot of opportunities for investors. Uganda has, however, to address the following challenges in order to rank among the top investment destination countries:
- Inadequate infrastructure in areas of roads , airport, telecommunication and other support services
- High cost of finance
- High energy costs
- The narrow tax base which increases the tax burden of the businesses operating in Uganda
- High production costs caused by factors which can be addressed.
- The extra cost of doing business as a result of the corruption in the country
- The fast tracking of the legal and policy reforms in the various sectors.
- Lack of skilled manpower despite the many unemployed graduates.
- Lack of clear policies in some sectors
- Capacity building to the rural farmers who are key to the economic growth of the country.
Information on Investment in Uganda
The key information on investment in Uganda is organised as follows