Uganda’s economy had improved a lot and is continuously improving. Experts believed that the country’s economy has great potential as it has several major resources like mineral deposits, lots of natural resources, fertile land and regular rainfall. A number of natural resources and manmade attractions make Uganda the greenest and most scenic of all the African countries. The country has lots of friendly people too. There are lots of quality medical facilities, first class hotels and restaurants, resorts and beaches and entertainment facilities can be found here. With these, the country will experience rapid economic growth and development.

To start a business in a country, you need to know about its economy first. You will also need to have a primary idea of the whole process of starting the business. And we are here for you to help.

1. Access to one of the fastest growing regions in the world

Uganda and the East African region are growing steadily in both population and GDP. East Africa is one of the world’s fastest growing regions with an economy approaching USD $1 Trillion.

Uganda has achieved an average GDP growth of 6.3% per annum for the last 30 years. Uganda’s GDP is forecast to grow by 6% p.a. from 2019-2023 (IMF, 2018). Uganda has the highest percentage of exports going Sub-Saharan Africa ( World Bank, 2017)

2. Uganda is open and secure for foreign investment

Uganda is the most open country in the region for Foreign Direct Investment (FDI). All sectors of the economy are fully liberalised for investment. 100% foreign ownership of investment is permitted.

Uganda ranks highly across many key business climate indicators for inward investors. Uganda’s comparatively strong public finances help to create a lower risk and more stable business environment for foreign invesors.

3. Highly Competitive labor costs

Uganda offers the lowest cost workforce in the region. Labour costs in Uganda are also forecast to grow more slowly than other countries in East Africa, reflecting Uganda’s faster growing labour force and skills availability. The average yearly wage in Uganda for an unskilled production operative was $440 in 2017 (excluding social security costs). Benefit from the lowest cost workforce in the region.

4. Skilled work force

Benefit from a large and growing workforce. Uganda is very highly rated for recruitment potential, workforce trainability and women and youth engagement in the labour force. (Global Competitiveness Report, 2017/18 and WEF, 2017) The cost of labor in Uganda is relatively low compared to other countries in the region. This makes it a good place to set up manufacturing or other labor-intensive businesses.

5. Growth of the Economic and Social Infrastructure

You should consider investing in Uganda because of the rapid development of the country’s economic and social infrastructure. For instance, the government allows free 100% foreign ownership of private investments.

Such measures are great for attracting FDIs to the country who contribute significantly to the country’s GDP. What this means for you as an investor in Uganda is that you’ll find it easy and profitable to conduct business in such a region.

To create a conducive environment, the Government of Uganda created a One Stop Center (OSC) that handles all business-related issues, including registration and licensing through the Uganda Investment Authority (UIA). Not only that, but this center also helps clients with queries regarding tax, advice, work permits, registration, land acquisition, and immigration, just to mention a few.

Therefore, you will find it easy to carry out business and invest in Uganda. However, it is worth mentioning that the country only allows FDI investment from foreigners with a minimum security of $100,000.

6. Uganda has a strong natural resource base

Uganda has several unextracted mineral deposits & tourism opportunities. It is rich in natural resources, including oil, gold, and copper. This provides opportunities for investment in the mining and energy sectors.

7. Foreign Market Access through Agreements and Other Trade Treaties

Investing in Uganda is worth it as the country has positioned itself to become an essential member of various trade groups, including COMESA, the EAC, and SADC, just to mention a few. Take COMESA (Common Market for Eastern and Southern Africa), for example, a trade treaty that gives the Sub Saharan country access to a market of over 400 million people spread across 19 countries. Trade in such regions is free, reaffirming the claim to invest in Uganda.

8. Government incentives.

The Ugandan government offers a number of incentives to attract foreign investment. These include tax breaks, duty waivers, and land grants.

Here are some incentives and subsidies available for investors in Uganda;

• There are ‘tax holidays’ on finished consumer or capital good exports for no more than ten years
• Zero Value Added Tax on certain goods and supplies
• Withholding tax on the importation of certain capital goods or raw materials, including plant and machinery.
• Subsidized depreciation rates.

9. Political stability

Uganda is a relatively stable country with a strong government. This makes it a good destination for investment, as there is less risk of political instability or conflict. Uganda did not face any major conflic for more than two decades.

10. Favourable investment opportunities

Uganda has some of the best investment opportunities in Africa. It is thriving in many sectors like agribusiness, tourism, hospitality etc. Therefore, these make a fair reason to invest in Uganda.

Conclusion

Uganda has been a reliable and popular place for foreign investors. You can try your luck to get benefits from opportunities here. This place has great potential. With all the government incentives, it makes a favourable place for investment. So, grab the opportunity and make your best investment.