Ugandan officials have have urged European countries to invest and trade more with the East African country, citing several benefits including an expandiing market and tax exemptions.
“While global challenges, including, geopolitical tensions, and inflationary pressures, pose uncertainties, Uganda remains committed to fostering economic cooperation and connectivity, particularly with the European Union (EU),” said Uganda Investment Authority (UIA) board chairman Morrison Rwakakamba.
“Our proactive approach involves implementing pro-business policies to attract investments and enhance regional trade. We believe substantial wealth creation lies in five core areas: commercial agriculture and agro-processing, mineral value addition, tourism, manufacturing, and enabling Infrastructure,” he added.
Rwakakamba spoke on Tuesday during the third Uganda-EU Business Forum at Speke Resort, Munyonyo, Kampala.
Organised by European Union Delegation to Uganda and the Private Sector Foundation Uganda in partnership with the Uganda Investment Authority, the three-day event is aimed at bringing together Ugandan and EU participants to network, learn about policy orientations, identify trade and investment opportunities, discuss challenges, develop business strategies, and establish durable business partnerships to promote sustainable and inclusive growth in Uganda and EU countries.
The head of EU in Uganda, Amb Jan Sadek said the objective of the Uganda-EU Business Forum is to attract European investment in Uganda and to increase trade and notably Ugandan exports to the EU and the region while supporting those already invested in Uganda.
Sadek further said forty Uganda products and business ideas will be showcased with the aim of attracting EU investments.
Investment
The head of EU Delegation in Uganda, Amb Jan Sadek speaking at the event The European Union (EU) is a key trade and investment partner for Uganda.
In 2022, Uganda had a positive trade balance with the EU – the total trade volume reached EUR 1.5 billion (Shs 6.2 trillion), with Uganda exporting EUR 800 million and importing EUR 700 million.
In this period, Uganda’s main exports to the EU were food, notably coffee, live animals (82.1%), and flowers (14.7%).
Inversely, Uganda’s main imports from the EU were machinery (38.2%) and manufactured goods (22.8%).
The event attracted government officials amd prIvate sector players from Uganda and EU Rwakakamba said Uganda remained an appealing destination for Foreign Direct Investment (FDI).
“In 2021, Uganda was the top recipient of Foreign Direct Investment (FDI) in the East African Community (EAC), amounting to USD 3.2 billion (Shs 12.1 trillion),” said Rwakakamba, adding, “Key to Uganda’s investment appeal is the rate of returns enjoyed by investors, averaging 13.8% in 2022, the highest in the EAC and the 4th in Africa.”
Sadek noted that the EU’s share of Foreign Direct Investments in Uganda was in 2022 more than 40% of the total or €1.2 billion.
The EU private sector is a leading investor in the sectors of energy, agribusiness, ICT, construction, transport, tourism, finance/legal services and education.
Rwakakamba urged EU countries to seize the diverse opportunities available in Uganda, saying the country’s membership in regional blocs, such as the East African Community, the Common Market for East and Central Africa, and the African Continental Free Trade Area (AfCFTA), provides access to expanded regional and continental markets. With the DRC joining the East African Community Common Market, investors can tap into a market that has grown to 92.9 million people.
The AfCFTA has since opened doors to a market of over 1.3 billion people across 55 countries, with a combined GDP of US$3.4 trillion.
To attract both domestic and foreign investors, UIA says it offers a comprehensive array of financial, fiscal, and regulatory incentives.
These include a 100% exemption of tax on income from agro-processing activities, access to serviced parks, and exemption from customs duty on plant and machinery, among others.
“For those choosing to locate in our Business and Industrial Business Parks, a generous 10-year tax exemption awaits, providing a minimum investment of USD 50 million for foreign investors and USD 10 million for domestic investors,” said Rwakakamba.
The post Uganda-EU Deepen Commercial Ties as Trade Turnover Hits $1.5bn first appeared on ChimpReports.
