Business
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Prime Minister, Robinah Nabbanja has made a case for Uganda as a favourable and profitable investment destination with many untapped opportunities, asking Dubai investors to exploit this economic potential in the East African country.
Speaking during the meeting of the Dubai Chamber of Commerce and the Uganda National Chamber of Commerce at Kampala Sheraton Hotel on Monday, Nabbanja said there is a strong bond between Uganda and the United Arab Emirates built on a foundation of mutual respect, shared interests, and a commitment to peace and prosperity.
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“It is important to appreciate the achievements between our two nations in 2023 trade between UAE and Uganda surged to over $ 3.8 billion an incredible milestone that was largely driven by both nations. Foreign Direct Investment from UAE to Uganda is worth $ 3 Billion in energy, infrastructure, heath care, agri-business, oil and gas, manufacturing, construction, real estate, and tourism,”Nabbanja said.
She told the meeting that the Ugandan government is implementing a tenfold growth strategy that aims to make the country a $500 billion economy by 2040.
According to Nabbanja, to ensure this is achieved, the Ugandan government is focusing on monetarization of the economy aimed at transforming 39% households in substance economy to the money economy and that Dubai businessmen and investors can tap into it.
“ To this end, as a government we are strategizing on prioritizing investment in four anchor sectors namely; agro-industrialization, tourism development, mineral based development including oil and gas and science and technology including ICT.”
“Under agro industrialization our focus is commercialization of agriculture and adding value to agriculture products. In mineral based industrialization including oil and gas. Uganda is finalizing quantification of mineral deposit and their governance regime, commercializing mining operations and products. As well as, commercializing of petrol chemical industry and expanding capacity for oil exports and petrol chemical products.”
The Prime Minister told both Ugandan and Dubai businessmen the country will also soon be commencing commercial production of its first oil in 2025 which she also said is an opportunity they can tap in.
“Under science, technology and innovation government is looking for investors to add value to the traditional economy in areas of research and innovation.”
Incentives
The Prime Minister said government has a 10 year tax holiday for agro processors operating in the industrial park, zero percent import duty on importation of plant and machinery for use in agro processing whereas almost all agricultural inputs are exempt from import duty and VAT
“Uganda offers 10 years income tax holiday for exporters of finished consumer and capital goods (80% of production) outside domestic market. VAT is exempt on raw materials. There is also VAT deferment on plant and machinery at importation and a zero percent import duty on plant and machinery utilized for setting up industry,” Nabbanja said.
She said tourism specific vehicles are exempt from import taxes, hotel equipment, fixtures and furniture are all exempt from taxes at importation
“We established one stop border centres under East African Community where all services are under one roof to facilitate ease of doing business but also an agreement was signed between UAE and Uganda to promote and protect investments.”
She called for greater collaboration between Ugandan and Dubai businessmen to embrace the vast opportunities that lie between Uganda and the UAE,
“We have the chance to build a lasting partnership that go beyond economic transactions and foster shared knowledge expertise and innovation.”
