By David Rupiny
In the financial year 2023/24, the Uganda Investment Authority (UIA), which is the chief investment promotion agency of the Government of Uganda, licensed 426 planned investment projects valued at 2.61 billion dollars (equivalent to 9.63 trillion Ugandan shillings). The trajectory is upward.
Planned investment projects
According to data from the UIA licensing system www.ebiz.go.ug, licensed projects in the financial year were 26 more than the 400 licensed in the financial year 2022/23, representing a 6.5 percent increase in the number of licensed investment projects.
The value of planned investments registered a 74-percent decline to 2.61 billion dollars, from 10.05 billion dollars in the previous financial year. The decline was on account of another significant increase of 90.7 percent in licensed investments in the financial year 2022/23 when the East African Crude Oil Project was licensed. Since there was no investment of such magnitude in 2023/24, the total value of planned investments declined. Nonetheless, the trend is positive.
The Manufacturing sector registered the highest number of licensed projects, 262, which accounted for 62 percent of all the licensed projects, followed by Agriculture at 12.2 percent (of all the licensed projects in 2023/24).
Increase in planned direct jobs
In the area of employment, the level of planned direct jobs registered a 55.9 percent increase to 67,911, up from 43,563 planned direct jobs registered in the financial year 2022/23.
The increase was mainly attributed to an increase in locally-sourced employment from 13,832 in financial year 2022/23 to 41,920 in 2023/24, and United Kingdom-sourced employment from 1,013 to 1,540.
Local companies registered the highest level of planned employment, 41,920, and this accounted for 61.7 percent of all planned employment.
In terms of sector contribution, the Manufacturing sector registered the highest level of planned direct employment, 30,424, and this accounted for 45 percent of all the planned employment.
If for each direct job created six indirect ones are created, this potentially translates into a cumulative 407,466 jobs (direct and indirect).
Improvement in domestic investment
Out of the 426 licensed investment projects, 159 were locally sourced, up from 129 licensed domestic projects in 2022/23. This accounted for 37.3 percent of all licensed investment projects. The improved performance was mainly attributed to heightened domestic investment promotion activities, especially through the dedicated Domestic Investment Division which has promotional activities across the country.
Source of planned investment projects
In terms of sources of planned investment projects, Ugandan investors contributed the highest number of licensed projects (159), which accounted for 37.3 percent of all licensed projects in 2023/24.
At the global level, the East African Community (EAC) registered the highest value of planned investments totaling 1.4 billion dollars, which accounted for 54 percent of all the planned investments in 2023/24.
The import of this is that Uganda, and the EAC, remain one of the country’s key sources of investment projects.
UIA’s industrial park development initiatives
UIA is mandated to drive sustainable industrialization. A total of eight industrial and business parks (Namanve, Luzira, Bweyogerere, Jinja, Mbale, Soroti, Mbarara, and Kasese) have been operationalized. The operational industrial lands are Kiryandongo, Masindi, Lukali-Goli, Kaweeri, Kasangati, and Kashari.
As of the end of financial 2023/24, a total number of 625 companies were allocated land in the industrial and agricultural parks, up from 514 companies in the previous year. This indicates an increase of 111 factories allocated. Of the 625 companies that have been allocated land in the industrial parks, 294 are already operational, 194 are in the construction stage, and 139 are in the pre-start stages.
As of the end of the financial year 2023/24, a total of 122,168 direct and indirect jobs were created in the industrial parks, 19,460 of which were created in 2023/24 alone. In the financial year 2022/23, the number stood at 102,708 jobs.
By the end of the financial year (2023/24), the total capital investment in the industrial parks stood at an impressive 3.31 billion dollars (12.24 trillion shillings), up from 2.99 billion dollars (11.03 trillion shillings) the previous year.
In addition, UIA continues to support the growth and development of private industrial parks like Kapeeka, Tian Tang Mukono, Picfare Nyanza, MMP Buikwe, and Lugazi.
Infrastructure development (roads, water, electricity, broadband, waste, drainage, security, lighting, etc.) is being undertaken in Namanve, Kapeeka, and Mbale industrial parks.
Key sectors in the industrial parks are: manufacturing, agro-processing, assembling, beverages, commercial, energy, ICT, logistics, medicines, services, tourism and hospitality, warehousing and others.
Investors in the industrial parks are mainly from Uganda (43.4%), China (27.5%), India (14.9%), Kenya (2.1%), United Kingdom (1.4%), Lebanon (0.8%), United Arab Emirates (0.6%), Mauritius (0.5%), Nigeria (0.5%), Sweden (0.3%), Tanzania (0.2%), and Others (7.8%).
There have been a number of innovations in technology in the industrial parks like the making of a single HIV pill, GIS transformers, powder-free surgical gloves, electrical vehicles, and smartphones, amongst others.
Regional distribution of investment projects
The Central Region continues to get the lion’s share of licensed investment projects, compared to other regions. In the year under review, the region attracted 353 licensed projects; that is 83 percent of all licensed projects.
Concerted efforts are in place to equitably distribute industrial development by establishing regional industrial parks. (See details below)
Development of Industrial Land Bank
To ease setting up of industries, especially through land acquisition and equitably distribute industrial park development and its benefits, UIA has acquired, thanks to local governments, strategic industrial lands in the following districts across Uganda: Nebbi (511 acres), Madi-Okollo (515 acres), Yumbe (1,244 acres), Pader (500 acres), Dokolo (200 acres), Oyam (154 acres), Lira (500 acres), Isingiro (5 square miles/3,200 acres), Rukungiri (203 acres), and Kisoro (620 acres).
Others are Kabarole (502 acres), Kyegegwa (10 square miles/6,400 acres), Nakasongola (640 acres), Kayunga (500 acres), Kamuli (636 acres), Soroti-Obina (600 acres), Busia (500 acres), and Kween (500 acres).
Investment promotion
The Uganda Investment Authority, in the year under review, received and facilitated 78 inward investment missions. These were, amongst others, from the following investment source countries: Australia, Azerbaijan, Bangladesh, Canada, China, Egypt, Ethiopia, Iceland, India, Israel, Japan, Nigeria, South Africa, South Sudan, Turkey, United Arab Emirates, United Kingdom, and Zambia.
Five outward investment promotion missions were conducted, to India, Kenya, Tanzania, South Africa, and the the United Arab Emirates.
Automation of investment and business support services
To improve efficiency and shorten the turnaround time for licenses and permits, the One-Stop Centre for Investors (www.ebiz.go.ug) has been automated: an investment license is issued in 24 hours, up from 48 hours; company registration is down to four hours, up from five working days; tax identification number (TIN) issuance is four hours, up from 72 hours; and work permit issuance takes four days, up from two weeks.
Currently, 13 government and private sector agencies offering key investment and support services operate in the UIA One-Stop-Centre (Plot 1 Baskerville Avenue, Kololo, Kampala). They are UIA, Kampala Capital City Authority, Uganda Business Registration Services, Uganda Revenue Authority, Uganda National Bureau of Standards, National Water and Sewerage Corporation, Ministry of Lands Registry, National Environment Management Authority, Directorate of Citizenship and Immigration Control, Umeme (power utility), Federation of Ugandan Employers, and Giants Club (tourism promotion).
Mobilisation of domestic investment
The Uganda Investment Authority launched the National Small and Medium Enterprises Portal (www.mybusiness.go.ug) to enhance business linkages, visibility, and competitiveness among micro, small, and medium enterprises (MSMEs) and domestic investors. To date, 2,786 MSMEs have been profiled, with 396 fully formalized, contributing 6,101 jobs and 134.96 billion shillings to Uganda’s gross domestic product (GDP).
In addition, UIA in partnership with the State House and Bank of Uganda, amongst others, embarked on regional investment promotion drives in Acholi, Madi, Greater Masaka, Rukungiri, Wakiso, and West Nile. One hundred (100) business ideas and 200 regional sector-based investment profiles have been developed for Acholi, West Nile, Greater Masaka, and Wakiso regions. These initiatives promote regional competitive advantages and support informed decision-making for domestic investors.
Outlook
Uganda’s industrial growth and development are on an upward trajectory. UIA continues to firmly drive Uganda’s industrialization agenda, as reflected in the increasing number of industries, industrial parks, local industrial products and services, jobs, and much more.
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