Investment environment and incentives
Some of the salient features of Uganda investment environment include:
- Sustained peace and security across the country
- Effective macro-economic policies that maintained economic growth at an average of 6% over a period of time
- Natural resource rich country (Human and Minerals)
- Totally liberalized foreign exchange regime
- Consistently improving infrastructure to facilitate production and trade
- Trainable and fast adaptable workforce from over 30 universities
- Dedicated commercial and industrial courts for quick resolution of commercial and business disputes
- Access to a large regional market of about 177 million people (2019 – EAC Statistics) for the East African Community Customs Union. Uganda also a member of the Common Market for East and Southern Africa Free Trade Area, giving access to about 500 million people (COMESA).
Some of the investment incentives include:
- While partnerships and joint ventures are encouraged, the law also allows 100% foreign ownership.
- The process of registering foreign businesses and acquiring appropriate licenses has been eased with the establishment of a One-Stop Center under the Uganda Investment Authority.
- Government facilitates access to land for setting up industries in industrial parks (terms and conditions apply)
- A 10-year tax holiday if the assembly or manufacturing company is going to export at least 80% of the products.
- 100% expenditure on training Ugandan employees is allowed as a deduction for income tax purposes
- Industrial building allowance of 5% of the cost of construction