Uganda has embarked on a new journey of increasing the size of the economy from US$50 billion in FY 2022/23 to US$500 billion by 2040, with an aggressive investment campaign to match the aspiration.
With this, Government continues to make a strong case for why it has been earmarked as a favourite investment destination. Uganda’s Finance Minister-Matia Kasaija said the stability of the Ugandan Currency, stable macro-economic environment with a fully liberalised economy are key factors in attracting high-level investment to Uganda. With the private sector accounting for about 80% of GDP, there is an increase in aggregate demand for intermediate goods and services for manufacturers and other industry players. “We have affordable power tariffs for large industries, sustained peace and security – all key factors that boost export competitiveness, with strong Foreign Direct Investment flows rising from USD1.2 billion in 2020, to USD1.6 billion (2021), USD 2.9 bn (2022) and USD 3.0bn (2023). Minister Kasaija made the remarks while giving a key-note address at the Pearl of Africa Trade Expo in Malaysia.
Government, through the Uganda High Commission in Malaysia organised the Trade Expo to tap into business opportunities in the ASEAN market, which comprises of 10 countries, including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. “Malaysia is well positioned to support Uganda in addressing her dependence on low-value added exports to focus on high-value added exports,” Kasaija stated, as he rallied for investment in the key areas of Agro-industrialisation; Tourism Development; Mineral-based Development including Oil & Gas; and Science, Technology, and Innovation including ICT (Knowledge economy) and the Creative Industries. The Expo has been listed in the ASEAN records as the ASEAN’S First East African Community EXPO, and is made possible as a result of Government’s decision to place greater emphasis on Economic and Commercial Diplomacy in its Missions abroad.
The IMF has indicated that Uganda’s economy is on an upward trajectory, ranking among the world’s fastest-growing, with a projected real GDP growth of 7.5% in 2025. Government of Uganda’s overarching goal is to fully monetize the economy to enhance self-sufficiency and cause structural transformation of the economy.
Uganda is a member of key regional agreements across the African continent, including East African Community (EAC), Common Market for East and Southern Africa (COMESA) and African Continental Free Trade Area (AfCFTA). This guarantees access to one of the largest Free Trade Areas in the world with a combined population of over 1.5 billion persons and GDP of about US$3.0trillion. Kasajia also said that the average Return on Investment (RoI) for Uganda’s economy continues to rise beyond the 14 percent level attained in 2022.
The Minister also highlighted the fact that over the last 15 years, Uganda has added 31 new products to her export basket, most of them manufactured products. Some of these include concentrated milk, hair products, butter, casein and paper labels. “This momentum needs to be maintained,” Kasaija added.
At the same meeting, Hon Ruth Nankabirwa, Minister for Energy said Uganda had only explored about 40% of its petroleum exploration with more investment opportunities in electricity generation, transmission and distribution to supply the region. She said that Uganda is now fully covered by high resolutions airborne geophysical surveys with geological mapping and surveys being carried out to inform critical data to trigger mineral petroleum and energy resource exploration and development. “There exist investment opportunities in mineral exploration, mining, mineral processing and refining, manufacturing, trade with a number of incentives to investors, Uganda is ready,”Nankabirwa said. She gave Government’s commitment to providing a conducive environment and requisite infrastructure.
At the sidelines of the Expo, the Ugandan delegation met with other senior Malaysian Government Officials, led by Hon. YB Liew Chin Tong, the Deputy Minister of Investment, trade and Industry, who expressed his country’s desire to have bilateral partnerships in the Agriculture sector. According to State Minister for Agriculture –Bright Rwamirama, Uganda has 16.5 cattle, 18.5 million goats and sheep, and 8 million pigs, with unrivalled areas of investment opportunities in the sector.
The Expo was attended by among others, the Minister of Agriculture and food security Hon Yang Berhormat Datuk Seri Haji Mohamad Bin Sabu.
