Uganda
is clearly a country on the move. The country has attracted
increasing amounts of foreign direct investment (FDI)
since the beginning of the 1990s. Between 2005 and 2007,
the country attracted an average of over US$100 million
in FDI. This increased steadily with FDI being USD 210
million in 2006. This means that Uganda attracts more
FDI than most other countries in the region and indeed,
most developing countries.
The Government of Uganda has pursued a steady policy of
improving the investment climate by reducing bureaucracy,
streamlining the legal framework, fighting corruption
and 
stabilizing
the economy. The government has adopted 'The Big Push'
strategy intended to make Uganda the most competitive
destination for FDI in Africa and establish Multi-Facility
Economic Zones, extra-territorial zones exempt from cumbersome
and archaic domestic laws.
Uganda is a country rich in natural resources and offers
a wide range of investment opportunities in agriculture,
forestry and mineral resources. Because the country's
young economy, the potential and the choice of investment
opportunities is much wider for the prospective investor
than would be the case in more developed economies. 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 upstream
or down-stream manufacturing activities. These include,
among other things, packaging and the construction of
storage facilities. In addition, the extensive privatisation
programme undertaken by the Government has opened up industries
that were formerly closed to the private sector, particularly
in the infrastructure sector.
Uganda
was one of the first African countries to liberalise its
telecommunication sector 
and
there are now several private telecommunication companies
in operation. The poor condition of many other infrastructure
facilities, in particular air, road and rail transport,
is an obstacle to users but an opportunity for investors.
Perhaps the biggest long-term opportunities are to be
found in the tourism industry. Uganda, commonly known
as the 'Pearl of Africa', offers a number of unique tourist
attractions.These include Lake Victoria, the source of
the Nile, the Murchinson Falls and the Mountains of the
Moon, along with a number of national parks and wildlife
reserves hosting, among other fauna, half the world ’s
mountain gorilla population. However, the tourism infrastructure
is still underdeveloped. This offers plenty of opportunities
for tour and hotel operators.
Apart from the availability of natural resources, Uganda
offers a well educated domestic labour force. On top of
this, the government provides a fiscal incentive package
which in turn provides for generous capital recovery terms,
particularly for investors whose projects entail significant
investment in plant and machinery and whose investments
are medium/long term.
