Doing Business in Uganda
HOTSPOTS FOR OVERSEAS EXPANSION IN UGANDA
There are several hotspots for overseas expansion and investment areas in Uganda. Some of the main sectors are discussed below:
Energy and Mining
Uganda has favourable geological conditions associated with a rich and diverse mineral resource base. Over 33 metallic and non metallic minerals are found in the country. Some of these minerals are currently being mined and others explored. Minerals found in Uganda include but are not limited to gold, iron ore, Tin, Copper, Cobalt, Phosphates, Vermiculite, Diamond, Petroleum, Limestone, Chronite, Magnetite, Uranium, Wolfram, Salts, Nickel, Glass and Sand.
Uganda has both renewable and non – renewable energy resources. Renewable energy sources include plentiful woody and non- woody biomass, solar, wind, geothermal, and hydrological resources.
Oil & Gas
The discovery and confirmation of commercial oil reserves along the western border has put Uganda in the spotlight. In January 2009, Heritage Oil announced the discovery of an estimated 400 million barrels of oil in a field dubbed Giraffe1, in the Lake Albert region and that the wider field named Buffalo Giraffe is thought to have well over two billion barrels of oil in place. Foreign companies already involved in oil operations in Uganda include UK-based Tullow Oil, Tower Resources, China’s China National Offshore Oil Corporation (CNOOC), France-based Total SA and Italy’s Eni Spa,
Real Estate, Construction and Infrastructure
The population of Uganda is steadily increasing and is currently estimated to be at 34 Million people. This has led to an increase in the demand for housing provision and construction services. Investment opportunities in this sector include the provision of low-cost housing for the population in urban and peripheral areas; the manufacture of prefabricated concrete systems and other fittings for the building & construction industry, supply of furniture & fittings among others.
Trade and Commerce
The recent economic dynamism has also opened up opportunities in manufacturing and services. Linked to almost all of the primary sector industries are opportunities in up-stream or down-stream manufacturing activities. These include, among other things, packaging and the construction of storage facilities. In addition, the extensive privatization programme of the Government has opened up industries that were formerly closed to the private sector, particularly in the infrastructure sector.
Agriculture and Food processing
Uganda is endowed with a good climate and fertile soil. Temperatures range between 15 and 30 degrees centigrade and annual rainfall between 750 and 2000 millimetres. Investment opportunities in this sector range from forestry to food-processing and the manufacture of inputs. Specific agriculture-related industries with attractive opportunities include food products and oil seeds, fruits and vegetables, forticulture, fish and fish products, livestock and dairy products, and commercial coffee and tea farming.
Transport and Communication
Uganda is served by road, rail, inland water and air transport. Road is by far the dominant transport mode in terms of scale of infrastructure and the volume of freight and people movements. The shortage of proper infrastructure facilities, in particular air, road and rail transport, is an obstacle to users but an opportunity for investors to get contracts in Road/Railway/Bridge construction. Opportunities in the Communications sector include provision of Technology Hardware and Software, Extension of Internet connectivity solutions, Software development, webhosting/Design solutions, Mobile telephone services
Other sectors include manufacturing, service delivery to mention but a few.
The Republic of Uganda is a landlocked country located in East Africa. It borders Kenya in the East, Democratic Republic of Congo in the West, the United Republic of Tanzania in the South, Rwanda in the South West and Republic of South Sudan in the North.
Despite the limitation of being landlocked, Uganda has numerous opportunities created by its being land linked; as shown above, it has five countries bordering it. Its biggest opportunity is the ease of trade with all the five neighbouring countries.
Uganda has a population estimate of 34 million people which translates into a high market for manufacturing services, construction, leisure provision, infrastructure development, agriculture and potential for all sectors. It is blessed with ideal climate, green vegetation and indeed stands true by its motto “gifted by nature”. Uganda is said to have been called the “Pearl of Africa” by Sir Winston Churchhill, the former British Prime Minister visited Uganda. Although certain literature and research suggests that it was first named the Pearl of Africa by Henry Stanley. See the interesting research presented by Jonathan Musere at http://mozambi5.wordpress.com/2010/11/21/winston-churchill-and-henry-stanley-who-named-uganda-the-pearl-of-africa/