Kampala, Uganda – The Prime Minister, Robinah Nabbanja, has called for investors in Dubai to take advantage of the many economic opportunities presented by Uganda, characterizing the country as a profitable but unexploited investment destination in East Africa. Speaking at a meeting between the Dubai Chamber of Commerce and the Uganda National Chamber of Commerce held at the Kampala Sheraton Hotel on Monday, Nabbanja emphasized Uganda’s potential for partnerships in key sectors.

Enhancing Uganda-UAE Relations

The Premier acknowledged the excellent relationship existing between Uganda and the United Arab Emirates, anchored on mutual respect, shared interests, and a commitment to peace and prosperity. She noted that the trading partnership has been growing, with the trade between the two countries reaching 3.8 billion dollars in 2023, propelled by the commitment of the two governments to advance economic growth.

Today, FDI from UAE into Uganda is estimated at $3 billion in energy, healthcare, agribusiness, oil and gas, manufacturing, construction, real estate, and tourism, among other sectors.

Vision of Uganda Economy

Nabbanja shared Uganda’s ambitious plan to grow its economy tenfold, targeting a $500 billion economy by 2040. This, she says, is being achieved as the government is focusing on transforming 39% of households from subsistence farming into the money economy.

“We are focusing on investments in four main areas: agro-industrialization, tourism development, mineral-based industries including oil and gas, and science and technology with emphasis on ICT,” she said.

Under agro-industrialization, the government aims to commercialize agriculture and add value to agricultural products. In mineral-based industries, Uganda is completing its mineral deposit assessments, preparing for large-scale mining, and expanding its oil and petrochemical industries for exports.

Additionally, Nabbanja announced that Uganda will begin commercial oil production in 2025, presenting a significant investment opportunity for international businesses.

It has also been promoting science, technology, and innovation, beckoning investors to add value through research and new technologies.

Investment Incentives

The Prime Minister highlighted some incentives available to investors: 

• Tax Holidays: A 10-year income tax holiday for agro-processors operating in industrial parks.
• Zero Import Duty: No import duty on machinery and raw materials utilized in agro-processing and industrial setups.
• VAT Exemptions: Exemptions on raw materials and agricultural inputs, with VAT deferment for machinery imports.
• Tourism Sector Benefits: Import tax exemptions for tourism vehicles, hotel equipment, and furnishings.

Uganda has also established one-stop border centers through the East African Community to ease trade and doing business. A bilateral agreement between Uganda and the UAE provides for investment promotion and protection.

Fostering Collaboration

Nabbanja called for increased collaboration between the Ugandan and UAE business communities, adding that this could be an avenue through which knowledge, expertise, and innovation can be shared.

This is our chance to create a partnership that goes beyond transactions, one that fosters sustainable growth and mutual benefits,” she said.

Call to Action

The Prime Minister’s remarks were meant to reemphasize that Uganda is indeed a destination for foreign investment, with great opportunities in agriculture, tourism, oil and gas, technology, among others. Indeed, Uganda is creating the way for international investors to do business, with strategic incentives and a commitment to fostering a business-friendly environment.

Dubai investors were urged to seize the opportunity in Uganda’s good policies, growing economy at a fast rate, and solid partnership with the UAE. With Uganda poised to begin full-scale oil production and build its industrial base, the Prime Minister’s invitation to collaborate was indeed a new chapter in the history of Uganda-UAE relations.

Long-term growth and sustainability remain the focus of Uganda as it opens its doors to investments that will transform its economy and solidify ties with global partners. This meeting was a testament to the nation’s dedication to creating win-win opportunities for both Ugandan and UAE businesses.