Uganda’s Investment Opportunities – African countries have been known to individually as well as collectively possess breathtaking features like wildlife, beautiful beaches, historic landmarks, and natural resources haven. Uganda happens to be one of those fully blessed countries
Uganda is seated sweetly in the middle of the East African region. It is flanked to the north by Sudan, the United Republic of Tanzania in the south, Kenya in the east, DRC in the west, and Rwanda in the Southwest.
The landlocked position of the country gives it the strategic edge to be the hub for investment and trade in the region and because of this, the country enjoys the best of trade partnerships that only further boost the country’s trade market and open it up for more business.
Investment in the area is very free because all sectors available for possible investments are open and because of its location in the middle of thriving economies, there is free movement of capital funds to and from the nation.
The investment opportunities in Uganda include the production of Agro-based products, ICT, Tourism, mineral resources, construction, and so on.
Why Invest in Uganda?
Ranked the 8th freest economy in 2019. The economy is basically a business operating nation that has its policies and laws lax enough to accommodate any kind of investor and investing opportunity. The minimum investment capital that is needed by an investor to invest in Uganda is $100,000.
To further prove that the country is the perfect zone for foreign investors. It has enjoyed stable economic and political weather and it only consistently continues to improve.
Apart from the above, the Ugandan government created a one-stop center (OSC) that registers businesses and controls licensing under the Ugandan Investment Authority. Some of its duties are ;
- Tax Advice and Registration Support
- Immigration and work permit issues
- Land acquisition and Verification
- Environmental Compliance and approvals and so on.
Because all these services and more are provided all in one place, the investors find that they save time and money. This only allows for a fast track of the licensing of projects and with that implementation is swift.
Now, knowing how easy the Ugandan government has made it for investors, here are some of the top-tier sectors to invest in.
What to Invest it in, in Uganda
- Energy
Oil is one of the world’s greatest resources because its refining leads to the production of other products that are greatly beneficial to those who use it, either directly or indirectly.
The effects of having Oil in a country include, increase in productivity levels, increase in export, reduction in the cost of running a business, better standard of living as well as an increase in job opportunities. It ultimately leads to the economic growth of a nation
It’s no news that just recently Uganda discovered about 3.5 billion barrels of oil located off lake Albert. Which sits on the nation’s border with the DRC. It is estimated that the DRC’s section of the lake may hold about 2 billion barrels of oil.
The President of Uganda also has plans for his country’s side of the lake as he plans to build a pipeline. It goes from this country’s oil-filled and links up to Lamu’s port in Kenya, which is off the northern coast of Kenya
The source of oil could lead to more energy resources for the people of Uganda. The country is home to more than 45.71 million people in Uganda, who massively use petroleum resources.
This newfound source of energy could also lead to a lot of FDI inflows which boost the country’s economy.
- Agriculture
The agricultural sector in any nation is the heart of all operations. The people of a nation are sustained by its source of food. But like many other East African countries, Uganda exports its agricultural natural resources and in return receives revenue that it can channel into other underdeveloped sectors of its economy.
Uganda possesses a rich and fertile soil that produces a lot of agro-based products, some of which include; Tea, Cotten, Tobacco, cereals, oilseeds, fresh and preserved fruits, vegetables and nuts, essential oils, orchids, etc. They are one of the leading producers of coffee and bananas in the world.
Exporting these products that are more than readily available in the country would give its production more value as well as the investors.
Investment opportunities such as commercial farming and value-added supply of agriculture manuring and the establishment of cold storage facilities and so on are available in the country.
- Mineral Resources
Like many East African, the country’s large mineral deposits are largely unexploited. some of their minerals materials include; gold, oil, high-grade tin, wolfram, salt, beryllium, cobalt, kaolin, iron ore, glass sand, and uranium
Gold exists in many areas of the country like Busaia at the east, Buhweju, and Kigezi at the west. The demand for mineral resources such as iron and steel is rising because of the need to develop fractures projects in energy, in building railways, and in oil and gas plants.
This sector of the economy is still underdeveloped and as such would enjoy the presence of foreign investors.
- ICT
Like many countries in the east enjoying the growth and boom of the ICT sector, Uganda ICT has become one of the most vibrant and most promising ICT sectors in the east.
Because of how supportive the government is to the investing community, numerous opportunities have opened up. This allows more digital advancements and skills development in the country. And as such, the country is always up to date with the current trends of the world.
- Tourism
Like the other countries in East Africa, investment in tourism is a major source of revenue to the country as well as to its investors.
Having a solid tourism industry will only aid the expansion of the country in the world’s eye. It’s this goal that Uganda is aiming for as it fits develops its tourism sector by accommodating and accepting more and more foreign investors
In Uganda lies the Source of the longest river in the world; the river Nile. It is this beautiful stretch of water that offers the best experience for white-water rafting in the world.
The country also shares the home of the second-largest freshwater lake in the world with Kenya and Tanzania. It also holds Lake Bunyonyi which is the world’s 3rd deepest lake that exists in the world.
In the aspect of wildlife, about 50% of the world’s Gorillas live in Uganda.
It also holds other animals in its wild forests such as lions.
The investment opportunities that exist in these countries for tourism are numerous and some are
- Building of resorts
- Construction of domestic air transport
- Wildlife and forest resorts/lodges
- Sporting events
- Packaging
One of the essentials for promoting a brand/product is packaging. How well a product is packaged determines how customers will be attracted to it. Customers are mostly attracted to packaging that is of good quality. So the better the quality the more likely the product will get purchased.
Because of poor packaging, a lot of Ugandan products are losing out on many opportunities in bigger and larger markets. The problem is that the packing from Uganda does not meet international standards.
Now, before products like fresh juices, nuts, honey, chemicals, and even herbal medicine, and so on can compete internationally, regionally, and nationally the quality of its packaging has to be top-notch.
This is why the country needs more foreign investment in this sector of the economy to develop companies that produce quality packaging.
But the companies that package goods in the country are most interested in plastics and their by-products. Such companies include;
This will not only bring job opportunities and boost the country’s economy, but it will also increase the number of opportunities Ugandan products can seize in international markets.
Any company in search of quality and customized packaging usually imports them from other countries like South Africa, China, and Kenya.
Entering the Ugandan market.
As already stated, the Uganda government has made it pretty easy for foreign investors to easily invest in its country by providing things like one-stop centers and low investment requirement costs.
But some foreign investors are peculiar and may need some assistance in navigating through the setting up process of their Enterprise.
It is at this point that the Shikana legal and investment advisory group can assist. With their knowledge of the investment environment and years of doing business in the country.
They would safely provide the investors with important information to help their business as well as provide them with the best strategies to enter the market and navigate policies and laws.
Conclusion
Uganda, the pearl of Africa has within it amazing and yet to be tapped sectors that are rich in value.
Its people are bright, smart, and hard-working as a lot of the population are youths.
And with the help of a company like the Shikana group, investing in Africa is simply a knock away from answering
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