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7/11/2012 | Uganda Investment Authority
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Investment OpportunitiesInvestment OpportunitiesInvestment OpportunitiesInvestment Opportunities
Presented By: TOM BURINGURIZA
Ag Executive Director
At: Seminar on Economic Opportunities in Uganda
Venue: ICE HQs, Rome, ITALY
Date: 11th July 2012
UGANDA: The Pearl of Africa
Structure of the Presentation
• Uganda Country Overview
• Status of Business Climate & Investment in
Uganda
• Investments Opportunities
• Procedures for Setting up Investments
• Investment Incentives
• National & Organizational Challenges
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Land Area 199,807 km2
Lakes, rivers, swamps 41,743 km2
Total Area 241,039 km2
Population (2012 mid year) 34 .1
million, at 3.5% growth pa
Per Capita GDP (2011) USD 563
Economic Growth (2011) 3.2%
Inflation rate (2011) 18%
Uganda’s age distribution*
0-14 years -49.90%
15-64 years-48.10%
65 years and above- 2.10%
NB: young productive population*Source: CIA World Fact Book - 2010
Uganda: A Land linked Country at the Heart of Africa
UGANDA
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The National Vision
Vision of the National Development Plan (NDP)
“ A transformed Ugandan Society from a peasant to a modern & prosperous country within 30 years.”
Elements of NDP
• Stability & Peace
• Knowledge based economy
• Exploitation of resources gainfully & sustainably
• A strong federated East Africa with an effective African Common market, ….
• Private Sector Led Economy
Uganda’s GDP Composition
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Source: Uganda Bureau of Statistics, Statistical Abstract 2011
General Trend of FDI
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1991–2011: Licensed projects over 6,000 worth about US$12 billion of planned investments
According to UNCTAD, actual FDI peaked US$848 million in 2010 upfrom an annual average of US$167 million registered between 1995 and 2004
In terms of country ranking by FDI performance, Uganda has movedfrom number 64 in the world in 2008 to 41st position in 2010 out of 141 world economies.UNCTAD, World Investment Report 2011; www.unctad.org/wir
Country Sources of Investment in 2011
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Ugandan owned projects: 33.3% of the total number and 59.6% by value
Foreign owned projects: 36% by value and 59.7% by number
In 2011 alone, UIA licensed 273 projects worth US$1.3 billion ofplanned investments.
Top FDI sources in million US $, 1991 – July 2010
Source: UIA database
1) United Kingdom
2) India
3) Kenya
4) China
5) Singapore
6) USA
7) Canada
8) South Africa
9) Pakistan
10) Australia
Ease of Doing Business Ranking in SSA
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Source: www.doingbusiness.org
Bilateral Investment Treaties Avoidance of Double Taxation Treaties
Country Date Country Date
Mauritius Tuesday, August 19, 2003 Mauritius Tuesday, August 19, 2003
France Friday, January 03, 2003 India Wednesday, April 30, 2003
Denmark Monday, November 26, 2001 Italy Friday, October 06, 2000
Netherlands Tuesday, May 30, 2000 Netherlands Wednesday, May 03, 2000
South Africa Monday, May 08, 2000 Denmark Dec. 22, 1954 & Jan, 2000
U. K. & Ireland Monday, April 20, 1998 Norway Tuesday, September 07, 1999
Italy Friday, December 12, 1997 Kenya Wednesday, April 14, 1999
Egypt Saturday, November 04, 1995 Tanzania Wednesday, April 14, 1999
Bilateral Investment and Double Taxation Treaties Concluded with Uganda
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Source: International Trade Centre, www.trademap.org
Uganda’s Export Partners (2010)
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Source: International Trade Centre, www.trademap.org
Uganda’s Import Partners (2010)
3 Reasons Why Uganda is Good for Business
1. Productive Labour
2. Resource Rich
3. Location, Market size and Access
MARKET
Uganda- 35.8Million
East Africa - 126 million
Great Lakes Region-190 million
COMESA
- 19 member countries
- 400 million people.
- Imports over US$ 170bn p.a.
*Source: CIA World Fact Book - 2010
Focus for investment promotion.
• Agri � business (value addition)
• Mineral beneficiation
• SME development (Oil and Gas, Business
linkage – manufacturing and services, etc)
• Tourism (hotels)
• ICT
Presentation on UIA work plans 2011/2012
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Overview of Uganda’s Energy Sector
1. Uganda’s energy mix comprises: biomass (92%), petroleum (6%) and
electricity (2%)
2. Level of electrification is low with 5% of the population connected to the
national grid. Less than 1% of the rural areas has access to the national grid.
About 88% of Uganda’s population lives in the rural area.
3. Uganda receives 2500 – 3200 hours of sunshine per year and a mean solar
radiation of 5.1 Kwh per square metre per day on a horizontal surface, which
provide viable potential for solar energy production
4. Fully liberalized energy regime where the private sector produces power
and sells it to the national grid
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Energy
Large Hydropower SitesThe large hydropower potential is mainly along the River Nile in Uganda and has been estimated at 2,000 MW. Only 380MW of the large capacity is currently exploited and this is at Jinja in the Kiira (200) and Nalubaale (180) Power stations.
Source: www.era.or.ug
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Medium Hydro Power Sites
Site River Estimated Capacity (MW)
Musizi Musizi 10
Bogoye Mubuku 7.5
Nengo Bridge Ntungu 12.0
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Renewable Energy Investment Opportunities
1. The design, construction, sales and service
support of biomass / solar / and mini hydro
plants to generate electricity
2. Assembly and making of solar units
3. Manufacture and marketing of charcoal
briquettes
4. Acquisition, installation and services of micro
hydro power plants
5. Export opportunities exist in the Great Lakes
Region and COMESA
6. Generation of power from garbage does not
exist in Uganda yet there is an increasing
population giving rise to increased amounts of
garbage
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Uganda Electricity Transmission Company Ltd
(UETCL) has export contract obligations with
neighbouring countries as follows: Kenya (30
MW), Tanzania (9 MW) and Rwanda (5 MW).
However, the 30 MW to Kenya is supplied
only during off-peak hours and only 9 MW
and 5 MW exports go to Tanzania and
Rwanda respectively. However, arrangements
have been finalised for Uganda to export firm
capacity of 50 MW to Kenya after the
commissioning of the Bujagali Project.
Uganda is also committed to supply 60MW to
the Democratic Republic of Congo with
enormous market
potential in the South Sudan.Source: Statistical Abstract (2010)
Energy Export Market Potential
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Name of Company Country of Origin Area of interest
1. Kikagati Power Company Ltd Norway Mini-Hydropower Plant
2. Electro-Maxx (U) Ltd United Kingdom Thermal Power Plant
3. Bioenergy Group Ltd Denmark Jatropha Farming
4. African Power Initiative Ltd United States Jatropha Farming & Processing
5. Jacobsen Uganda Power Plant (U) Ltd Norway Thermal Power Plant
6.Neptune Petroleum (U) Ltd Virgin Islands Petroleum Exploration
7.Eco Power (U) Ltd Sri Lanka Mini-Hydropower Plant
8.Hydromax Ltd India Hydropower Power Plant
9.Sugar Corporation Of Uganda Ltd United Kingdom Co-Generation
10. Bujagaali Energy Ltd Uganda Large Hydropower Plant
11.Uganda Biofuels Ltd Germany Jatropha Farming
12.Hardman Petroleum Africa Nl Australia Petroleum Exploration
13.Tam Oil East Africa Ltd Libya Oil Pipeline
14.Eskom Uganda Ltd South Africa Electricity Generation
15.Umeme Bermuda Electricity Distribution
16. Tullow Oil Ireland Petroleum Exploration And Refining/gas
energy generation
The Uganda Investment Authority has licensed 112 projects in the energy sector with
planned investments worth over US$1.2 billion. Below are some major investors
Some Players in the Energy Sector
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Agribusiness
Investment Opportunities include:
• Commercial Farming (crops,
Forestry and aquaculture)
• Value addition
• Manufacture of inputs
• Supply of agriculture machinery
• Refrigeration Services
• Agriculture Banks
• Organic products farming
Agricultural Investment Successes in Uganda
COMPANY ACTIVITY
BIDCO - Palm oil production in partnership with local out growers
- Edible oil processing factories in Uganda, Kenya and
Tanzania
Madhvani Group -Sugar plantations and processing
- Horticultural and tea production/ processing and supply
to the region
Mukwano Group Vegetable oil production / tea / and sunflower processing
to supply the region
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Other Priority Sectors
� Tourism
� ICT
� Mining
� Infrastructure ( Roads, Rail, etc )
� Oil and Gas
� Manufacturing
� Services – Health, Education, Financial services
Uganda Investment Authority
Procedures to Set Up Investment
1. Register a local company in Uganda (URSB)
2. Acquire a secondary license in some sectors e.g mining, fishing, finance,
energy
3. Acquire Investment licence from Uganda Investment Authority (UIA)
4. Environment Impact Assessment (EIA)
5. Acquire Land – commercial, industrial…
6. Implement the project
NB:
• Company registration, investment licensing, tax registration & advice,
and Immigration issues are all done at the UIA
• The Import and Export Business does not require an Investment License
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� Non negotiable
� Non discretionary
� Available to all investors, local and foreign
� There are some additional sector specific tax exemptions
� In the UIA Industrial Parks, investment in the following
areas may access free land; Agro processing, ICT, and
Mineral beneficiation
Incentives
Investment Code Guarantees and Dispute Settlements
•INVESTMENT CODE PERMITS INTERNATIONAL ARBITRATION
•UGANDA HAS INVESTMENT TREATIES WHICH ALLOWS A RECOURSE TO INTERNATIONAL RBITRATION SECURITY OF INVESTMENT
•GUARANTEED UNDER THE CONSTITUTION AND THE INVESTMENT CODE 1991
•UGANDA IS A SIGNATORY TO MAIN NTERNATIONAL INVESTMENT RELATED INSTITUTIONS (MIGA, OPIC,ICSID, TRIMS, GATS, ETC)
Some Constraints to Investment
1. Infrastructure – lack of functioning railway from the sea port.
However, efforts are underway to solve this. Electricity supply
is still insufficient and costly
2. Access to Finance - interest rates are high
3. A few Administrative barriers
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Uganda Investment Authority
Twed Plaza - Plot 22B,
Lumumba Avenue
P.O. Box 7418, Kampala
Uganda
Tel.+256-(0)414-30-10-00
Fax +256-(0)414-34-29-03
www.ugandainvest.go.ug
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