[vc_row][vc_column][vc_single_image image=”30729″ img_size=”full”][/vc_column][/vc_row][vc_row][vc_column][vc_row_inner][vc_column_inner][vc_column_text]Download World bank’s report on doing business in Uganda
Uganda is a landlocked independent republic with a democratic government. It lies between the Democratic Republic of Congo (formerly Zaire), Sudan and Kenya and forms part of the East African Region. It also shares a border with Rwanda. The capital city is Kampala and other major towns are Jinja, Mbale, and Masaka. Uganda has a year-round agricultural season and a location in the centre of a regional trading network. The official language is English but Swahili is widely spoken. The local currency is the Ugandan shilling.
In 2009 Uganda’s GDP was $14.5bn. The UK is Uganda’s largest Foreign Direct Investor with investments worth $1.1bn.
Uganda’s GDP has grown by more than 6% on average for the last decade, and by 7.4% in the 2008/9 financial year.
Major investments were made in mobile communications, petroleum exploration, banking, construction, agro-processing and manufacturing.
Strengths of the market
- Stable, liberalised economy
- Strong Natural Resource Base
- Government commitment to private sector
- Low-cost and trainable workforce
- Investment Incentives and security with total repatriation of profits
- Re-export Support Schemes
Opportunities in Uganda
With new stability in Southern Sudan and demand increasing in the DRC and Rwanda, Uganda has seen its regional trade grow strongly.
Uganda’s traditional agricultural exports continue to present opportunities. Coffee, tea and cotton, Uganda’s largest exports have increased both by quantity and value over the past several years. Non traditional goods such as fish, flowers and vanilla now account for significant shares of Uganda’s Exports. Uganda’s agricultural potential and untapped mineral resources have also attracted foreign investment.
The banking industry has also seen strong growth recently. Financial services are becoming more efficient with the presence of major banks and an increasing number of new commercial banks.
Opportunities by Sector:
Oil & Gas: New but fast growing – commercial viability of reserves is confirmed and reserves are estimated at 2bn barrels. Production will begin in late 2010 or early 2011 with an early production scheme of 3000 – 5000 bpd, building up to 150,000 bpd in 5 – 10 years. The government is in talks to build a refinery and pipeline to the Indian Ocean coast. Important opportunities lie in both upstream and downstream activities including exploration, refinery, engineering consultancy and services, construction and civil works and training
Non Oil & Gas Energy: Comprising of hydro-electric power, new and renewable energy sources. Important areas are the design and construction of hydro electric power stations, consultancy and engineering, and generators
Education: The education sector has undergone rapid transformation from government funding to private investment. With this development Uganda is becoming a regional hub for education
Trade between the UK and UgandaBilateral trade between the UK and Uganda in 2009 was: UK exports to Uganda £50m (goods) and £59m (services) while imports were at £12m (goods) and £42m (services).Bilateral trade in goods: (£ million)
|Source: HMRCBilateral trade in services: (£ million)|
Source: ONS UK Balance of PaymentsTop exports of goods from the UK to Uganda in 2009 are:
- Specialized machinery £6m
- Road Vehicles £6m
- General Industrial Machinery £5m
- Power generating Machinery £4m
- Miscellaneous manufactured articles £4m
Top imports of goods to UK from Uganda in 2009 are:
- Vegetables and fruit £4m
- Electrical Machinery £3m
- Coffee, tea & Spices £1m
Politics and the Economy Economic:Uganda is one of the fastest growing economies in Africa, with GDP growth averaging 6% per annum over the past decade. The World Economic Forum ranked Uganda 4.5 (on a 7-point scale) in macroeconomic performance, well above the average of Sub-Saharan Africa (average rank 3.7).In recent years agriculture hás played a decreasing role in the economy with industry increasing, to the current 22% and 29% respectively. Services accounts for 49% of GDP. Agriculture employs 80% of the population. Government policy promotes and supports private sector-led development.The main industry sectors in the country are agro-processing oriented, made up mostly of fish processing, sugar, tea, cooking oil, dairy processing, breweries and soft drinks. The manufacturing of textiles, paper products and tobacco also takes place.
With the discovery of commercially viable quantities of oil and their subsequent development, the oil and gas sector is expected to become a leading driving force for economic development both through direct revenue and spill-over effects. Oil production in Uganda is expected in late 2010/ early 2011.
Growing impact of East African regional integration:
The East African Community comprises a market of over 130m consumers and total GDP of $40bn. Intra community tariffs are gradually being reduced:
- Common external Tariff on all goods imported into the region.
- Zero duty on most goods originating and traded within East Africa.
- Zero duty on most capital goods, agricultural inputs, medicines and medical equipment, raw materials and chemicals.
- Tax incentives for producers of goods for exports through various export schemes covering export processing zones, manufacturing under bond, duty drawback for manufacturers of goods for export, inward processing.
Uganda’s socioeconomic profile:
- Population: 31m (2009)
- Population growth rate: 3.3%
- GDP per capita: $453
Uganda is a democratic presidential republic. It is a multi-party parliamentary system with universal suffrage of all citizens over the age of 18 years. The ruling party, the National Resistance Movement (NRM) has been in power since 1986. The President, HE Mr Y K Museveni has been in office throughout this time. The next presidential and parliamentary elections are due in March 2011.
The government with a relatively stable polity and a pro-business oriented president continues to attract foreign investment and promote both regional and international trade.
At the airport
Taxis from Entebbe Airport to Kampala cost about £25. The journey may take up between 45 and 90 minutes depending on traffic.
Nearly all major towns are connected by tarmac roads. Driving is on the left-hand side of the road, as in the UK. Buses connect the entire country.
British Nationals require a visa to enter Uganda. Passports should be valid for at least three months beyond the date of the end of your visit. Visas may be obtained on arrival by air with a cash payment of US$50 but it is recommended that visas are obtained in advance through a travel agent or from a Uganda High Commission or Embassy. Your visa allows re-entry to Uganda after visits to Kenya or Tanzania.
The Uganda Tourist Board (www.visituganda.com) is a good source of information and can help you plan your trip. UKTI Uganda can help you plan your business visit to Uganda.[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row]