1. Overview on State of Investment
Presidential Investor’s Round Table 2013
End. Dr. Ajedra Gabriel Aridru
Minister of State for Finance, Planning & Economic Development
(Investment)
April 17, 2013

2. Presentation Structure
• Introduction
• Status of Investment
• Investment trends
• Sources of FDI
• Ownership of
investment
• Investment by sector
• Incentives
•
6/25/2013
• Key Country Facts
• Investment Climate
• Security of Investment
Key Sectors for Investment
• Investment Constraints
• Why Uganda?
• Conclusion
2

3. Key Fact Highlights
Geographical & Demographical
Population: 35 million (2012 est.)
6/25/2013
World Population Rank: 35
Population Growth Rate: 3.2%
Location
Rural
Population:
86.5%
Urban
Population:
13.5%
Sex distribution in labor force
(millions, 2012 est.)
Female,
7.04
Male, 7.
27
3
Proportion engaged in
agriculture
81.8%
80.7%

4. • - Peace and security of
persons and property.
• Good macroeconomic
policy and environment
• - Fully liberalized economy
• - Competitive market access
• - Stability and good
democratic governance
• - Excellent weather Climate
• and conditions.
• - Strong natural resource
base Friendly population
• - Government commitment
to private sector.
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Investment Climate
4

5. Security of Investment
The Investment Code provides the following guarantees:
• Non-nationalization, or non-confiscation of investment
• Acquisition is only allowed by law and for fair consideration
Favorable Tax Environment
Following tax incentives are listed in the Investment Law:
•VAT refund on building materials for industrial/commercial blds
•Duty and Tax free import of Plant & Machinery
•Duty exemptions for personal effects and motor vehicle
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Investment Guarantees
Dispute Settlement
• Disputes between parties settled according to law.
•Otherwise those not solved through the national courts, the
law also allows settlement via international bilateral or
multilateral agreements or any other int’l arrangement.
5

6. Regional Trade
Associations and Blocs
Uganda is a member of/ signatory to the following:
• COMESA comprising 19 member States
• Intergovernmental Authority on Development (IGAD)
• East African Community (EAC)
• African Growth and Opportunity Act (AGOA), giving duty
free access to the US market
• Generalized System of Preferences (GSP)
• EU Everything but Arms initiative
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Agreements and Associations
Uganda is a signatory to and member of the
following :
International Investment
Guarantees and
Agreements
• Multilateral Investment Guarantee Agency (MIGA), which
provides guarantee against non commercial risks
• International Centre for Settlement of Investment Disputes
(ICSID), for settling disputes between foreign investors and
host governments
• Overseas Private Investment Corporation (OPIC) of USA
• Convention on the recognition and enforcement of foreign
arbitral award (CREFAA)
• Islamic Corporation for the Insurance of Investment and
Export Credit (ICIEC)
6

7. FDI VALUE (US$ MILLIONS)
900
842
792
800
792
729
700
600
6/25/2013 |
644
544
500
380
400
300
295
254
229
237
237
2001
2002
2003
200
100
0
2000
2004
2005
2006
2007
2008
2009
2010
2011
7
Source: UNCTAD World Investment Reports

8. FDI Comparison in the EAC
1400
1000
U.S $ (Millions)
800
Uganda
600
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1200
Kenya
TZ
400
Rwanda
200
Burundi
0
2006
2007
2008
2009
2010
2011
Uganda
644
792
729
842
544
792
Kenya
51
729
96
116
178
335
TZ
403
582
1247
953
1023
1095
Rwanda
31
82
103
119
42
106
Burundi
0
1
4
0
1
2
Source: UNCTAD World Investment Report, 2012
8

9. Percentage ownership
number of projects.
of
33.3
36
Ugandan Owned
Foreign Owned
Percentage ownership of
value of investment
59.7
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Ownership of Investments in Uganda
59.6
Ugandan Owned
Foreign Owned
Joint ventures make up about 30 % of the investments in Uganda
Source: UIA Data
9

10. Investment into Uganda by Sector (USD), 2011/2012
Mining &
Quarrying,
130,583,682
Electricity, Gas &
Water,
564,396,700
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Others,
182,330,026
Agric, Hunt, Fore
st & Fish,
135,136,380
Fin, Ins, Real
Estate and
Business Services
, 165,137,207
Transport, Storag
e and
Communication,
296,880,553
Source: Investment Statistical Abstract, 2011/12, UIA
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11.  Non negotiable and Non discretionary – Stipulated by
the Investment Code
 Incentives are available to all investors, local and foreign
investors
 There are some additional sector specific tax exemptions
 Value addition on agro and mineral raw materials for
export is granted a 10 year tax holiday among other
export incentives (terms and conditions apply)
 In the UIA Industrial Parks, investment in the following
areas may access free land; Agro processing, ICT, Mineral
beneficiation and Tourism.
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Incentives to Investors
11

12. 6/25/2013
Key Sectors for Investment
12

13. • PPP Investments in commercial farming
and agro-processing (value-addition) to
enhance maize, beans, rice etc production
for export and household food security .
• PPP Investment in Irrigation Schemes to
enhance Agricultural outputs.
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Agriculture and Agro processing Opportunities
• Cotton Processing for edible oil and
textile mills, for foreign owned firms or JV
with local partners:
• PPP JVs in the manufacture of Dairy
Products with a Ugandan Firm Soroti
Dairy Ltd .
13

14. Tourism Opportunities
• The Government projects include construction of
• Construction of Wildlife Forest Lodge
comprising 20 spacious cottages to provide
additional accommodation for mid range travelers
within the Tourist Areas of Mabira and Budongo
Forests, Queen Elizabeth National park and
Murchison national Park.
• Private joint venture to expand the 22 acre
Ssese Palm Beach Resort (SPBR) locally owned by
SPBR Ltd. It is one of the beach hotels in Lutoboka
Bay, Bugala Island in Lake Victoria.
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up / mid market accommodation within Queen
Elizabeth and other Conservation areas, 20-50
bed facilities in the protected areas
14

15. Mining Opportunities
• Dimension stone products
• Phosphates (Sukulu)
• Gold
6/25/2013
(Marble & granite)
(Buhweju, Busia, Mubende, et
c)
• Iron ore (Muko)
• Vermiculite
• Container glass from silica
sands
• Petroleum
related Ind.)
(Petrochemical
15

16. •
•
•
•
•
•
•
•
•
•
•
Business Process Outsourcing
Software development
Software testing & assurance
Data Storage area networks
Integrated Solution Planning
Hardware Assembly
Multimedia Development
Internet Applications
Translation Services
Film Industry and Graphics
Rural Communications
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ICT Business Opportunities
16

17. Gas & Energy Generation
Uganda’s electricity demand is growing at 10% per year. Current
peak demand is 484MW, while installed capacity is 814MW. The
current firm supply is 501MW.
Location
Capacity
Status
Kalagala
Jinja/Mukono
450
Feasibility Done
Karuma
Masindi/Apac
600
Government looking
for investor
Ayago South
Gulu/Masindi
600
Preliminary Studies
Ayago North
Gulu/Masindi
304
Preliminary studies
Murchison
Gulu/Masini
642
Preliminary studies
6/25/2013
Site
17
Source: Electricity Regulatory Authority

18. Opportunities in Smaller Energy Projects
River
Estimated
Capacity (MW)
Muzizi
Musizi
10
Bogoye
Mubuku
7.5
Nengo Bridge
Ntungu
12.0
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Site
Various Joint Venture opportunities exists
to partner with Ugandan Companies.
18

19. Other Renewable Energy Projects
Power generation
Location
1,400MW
Countrywide
2. Peat power development
30 MW
Kabale, SW Uganda
3. Waste to Energy
Unlimited
Country wide
4. Charcoal Production
600,000 tons
Land available under NFA
for tree planting
5. Improved household stoves
4,300,000
Country wide
Solar Energy
Unlimited
Eastern & Northern
Uganda
6. Biogas technology cooking
And power generation
>100,000 units
Huge potential
7. Gasification technology for
power generation and heat
8. Wind power generation
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1. Small and large Hydro
Country wide
19

20. Public Private Partnership Opportunities:
1. Construction of the Kampala – Jinja
Expressway (75 Kms at US$850 M)
2. Construction of new standard gauge
railway line from Kampala to Malaba
(300 Kms at US$500 M)
3. Reconstruction (on existing alignment /
right of way) of the Kampala – Kasese
railway (334 Kms at US$366M)
4. Construction of new railway line from
Pakwach in the North to Kasese in the
South East
5. Others include the upgrading of the
national airport, air strips, as well as
roads and airstrips in the tourist and oil
areas
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Infrastructure and Construction
20

21. Other Major Opportunities
Services (Health, Education, Financial Services)
- Manufacturing, Cars, Light Bulbs, Ceramics
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-
- Large Scale Commercial Agriculture
- Private Hospitals for specialized treatment
(Heart Surgery, Kidney transplant, cancer treatment).
- Pharmaceticals and Plastics – Refinery of Oil
21

22. 1.
2.
3.
4.
5.
Infrastructure – dysfunctional railway system in Uganda and
from the sea port. Road interconnectivity from rural to
urban areas, slow implementation of major infstr. Projects.
Electricity supply though sufficient at this time, demand
growth of 10% is likely to outstrip generation very soon.
Land fragmentation, limited land for commercial agriculture
land tenure system, and insufficient model farms.
Access to Finance - interest rates are still high, low
capitalisation of UDB. With good fiscal and monetary
policies, increase of financial services in the liberalised
financial sector, we expect rates come down.
A few Administrative barriers. Efforts to reduce bureaucracy
are underway through Team Uganda and the PIRT.
6/25/2013
Constraints to Investment in Uganda
22

23. 6/25/2013
Why Invest in Uganda?
Pearl of Africa
Resource rich
economy
2nd In attracting FDI
in East Africa
Ranked 12th
in Africa
In ‘Doing
Business’
23

24. Thank You
Invest in Uganda