NEWS– The Chairman of Uganda Investment Authority Morrison Rwakakamba has made it categorically clear that the government of Uganda is committed to fostering economic cooperation and connectivity particularly with the European Union despite global challenges of geopolitical tension and inflationary pressures.
Rwakakamba made the remarks today March 5th 2024 while speaking at opening of the 3rd Uganda-EU Business Forum that is taking place at Speke Resort Munyonyo in Kampala which aimed at bringing together Ugandan and European Union Union participants to network, learn about policy orientation, identify trade and investment opportunities, discuss challenges, develop business strategies and establish durable business partnerships to promote sustainable and inclusive growth in Uganda and European.
Rwakakamba said that Uganda’s proactive approach to investment involves implementing pro-business policies to attract investment and enhance regional trade, and believe that substantial wealth creation lies in 5 core areas of commercial agriculture and agro-processing, mineral value addition, tourism, manufacturing and enabling road infrastructure.
“We encourage our EU counterparts to seize the diverse opportunities available in these areas and invest with assurance of high returns”, Rwakakamba said.
He said that Uganda’s membership in regional blocks such as the East African Community (EAC), the Common Market for East and Central Africa (COMESA), and the Africa Continental Free Trade Area (AfCFTA) provides access to expanded regional markets.
He explained that after Democratic Republic of Congo joined the East African Community Regional Market investors can tap into the 92.9 million people and African Continental Free Trade Area boosts a market of over 1.3 billion people across 55 countries with a combined GDP of US 3.4 trillion dollars.
Rwakakamba pointed out that Uganda has an appealing destination for Foreign Direct Investment (FDI) which made it a top recipient of FDI in East Africa Community amounting to US 3.2 billion dollars (equivalent to 12.1 trillion) which is key to investment appeal.
“Uganda and European Union are like-minded partners with strong multifaceted relationships and EU remains Uganda’s key trade and investment partner with positive trade balance where the trade volume has reached Ugx 6.2 trillion”, He said.
Uganda’s main exports to Europe include coffee, flowers and animals whereas it imports machinery and manufactured goods and European Union has become leading in energy, agribusiness, ICT, construction, tourism, transportation, finance, legal services and education.
Rwakakamba assured that Uganda Investment Authority take their mandate with dedication to coordinate, encourage, promote and facilitate investment across the country.
“To attract both domestic and foreign investors, Uganda Investment Authority offer a comprehensive array of financial, fiscal and regulatory incentives which include 100% exemption of tax on income from agro-processing activities, access to industrial parks, and exemption from customs duty on plant and machinery for industrial development “, Rwakakamba said.
Rwakakamba made it clear that for those choosing to locate in the earmarked Uganda Investment Authority Business and Industrial Parks across the country, a generous 10 year tax exemption for investment of US 50 million dollars to foreign investors and US 10 million dollars for domestic investors awaits.
