Uganda
is clearly a country on the move. The country has attracted
increasing amounts of foreign direct investment (FDI)
since the beginning of the 1990s. Between 2005 and 2007,
the country attracted an average of over US$100 million
in FDI. This increased steadily with FDI being USD 210
million in 2006. This means that Uganda attracts more
FDI than most other countries in the region and indeed,
most developing countries.
The Government of Uganda has pursued a steady policy of
improving the investment climate by reducing bureaucracy,
streamlining the legal framework, fighting corruption
and 
stabilizing
the economy. The government has adopted 'The Big Push'
strategy intended to make Uganda the most competitive
destination for FDI in Africa and establish Multi-Facility
Economic Zones, extra-territorial zones exempt from cumbersome
and archaic domestic laws.
Uganda is a country rich in natural resources and offers a wide range of investment opportunities in agriculture, forestry and mineral resources. Because the country's young economy, the potential and the choice of investment opportunities is much wider for the prospective investor than would be the case in more developed economies. The recent economic dynamism has also opened up opportunities in manufacturing and services. Linked to almost all of the primary-sector industries are opportunities in upstream or down-stream manufacturing activities. These include, among other things, packaging and the construction of storage facilities.
The extensive privatisation programme undertaken by the Government has opened up industries that were formerly closed to the private sector, particularly in the infrastructure sector.Uganda was one of the first African countries to liberalise its telecommunication sector
and
there are now several private telecommunication companies
in operation. The poor condition of many other infrastructure
facilities, in particular air, road and rail transport,
is an obstacle to users but an opportunity for investors.
Perhaps the biggest long-term opportunities are to be found in the tourism industry. Uganda, commonly known as the 'Pearl of Africa', offers a number of unique tourist attractions.These include Lake Victoria, the source of the Nile, the Murchinson Falls and the Mountains of the Moon, along with a number of national parks and wildlife reserves hosting, among other fauna, half the world ’s mountain gorilla population. However, the tourism infrastructure is still underdeveloped. This offers plenty of opportunities for tour and hotel operators.
Apart from the availability of natural resources, Uganda offers a well educated domestic labour force. On top of this, the government provides a fiscal incentive package which in turn provides for generous capital recovery terms, particularly for investors whose projects entail significant investment in plant and machinery and whose investments are medium/long term.
Economic Growth
After a year of turbulence, the Ugandan government stabilised the economy in 2012 with inflation falling to 14.6% from 18.7% in 2011. Tightened fiscal and monetary policy helped bring fiscal balances under control. While laying the foundations for recovery and growth, stabilisation came at the cost of a slowdown in gross domestic product (GDP) growth to 3.2% by June 2012
Agribusiness
Uganda is among leading producers of coffee and bananas. It is also a major producer of tea, cotton (including organic cotton), tobacco, cereals, oilseeds (simsim, soya, sunflower, etc), fresh and preserved fruit, vegetables and nuts, essential oils, orchids..
Factory Growth
Uganda's manufacturing output has been expanding by more than 10% annually over the last eight years. Opportunities exist in virtually all areas ranging from beverages, leather, tobacco based processing, paper, textiles and garments, pharmaceuticals, fabrication, ceramics, glass, fertilizers, plastic / PVC, assembly of electronic goods, hi-tech and medical products.
