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Potential Areas of Investment in Uganda
Uganda has over the past five years attracted the highest levels of foreign direct investment in the East
African Community, attracting FDI of up to US$ 848 million because of several reasons including;
Predictable investment environment, Liberalised Economy, Good market access, Strong natural resource
base and a commitment to the private sector by the government.The manufacturing sector has grown
steadily at an estimated average of 7.7% annually.
Opportunities exist in virtually all sectors ranging from Beverages, Healthcare, Leather, Agro processing,
Paper, Textiles, Recreation, Pharmaceuticals, Fabrication, Ceramics, Glass, Fertilizers, Plastics, assembly
of electronic goods, Education and Financial services.
FINANCIAL SERVICES
With a hastily growing Bankable population, opportunities for investment exist. The Bankable
population of about 3million out of the over 33million Ugandans is expected to double in the next five
years. This provides a very lucrative area of investment particularly through Promoting new or
innovative financial products (e.g Mortgage finance, venture capital, merchant banking and leasing
finance) and also micro finance saving institutions, with focus on rural areas. Insurance, on the other
hand, is still a relatively young sector and offers several opportunities for investment.
EDUCATION
Reducing costs and enabling employees to work more efficiently is at the core of all attempts to increase
productivity and one of the major means to achieve this is by embracing computer technology.
Aside from lacking proper school infrastructure at all levels of education, the Ugandan education sector
is one of the most untapped sectors in so far as technological advancement is concerned. Entrepreneurs
all over the country are seeking all possible means to cope in the midst of rising costs and sluggish
demand in the ever toughening economy, but the current stature of the economy does not provide
adequate solutions, leaving the education sector to lag behind international trends.
This compels a large section of Ugandan parents to send their children abroad in prospect of better
world class education, which is not without difficulties since very few Ugandans can afford to meet the
monetary demands that come with education in the developed world. The economy also faces colossal
outflows, a major concern to the government. Coupled with that, a rising number of international
professionals is immigrating into the country, stressing the need for international standard Education.
With such a setting, anyone capable of providing affordable Educational computer technology,
congruent with world class education and capable of creating efficiency in the classroom by way of
enhancing the process of instruction, student comprehension and ultimately increasing efficiency and
productivity is assured of a hero's welcome.
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HEALTH
Over the years, Uganda and the greater East African region have experienced a burgeoning loss in
efficiency and productivity due to the lack of advanced health facilities ranging from edifices to
equipment. Such equipment is expensive and not available locally even with the great demand.
Patients in need of advanced health care resort to the few second-rate providers or get it abroad, which
is very costly in terms of time and money. Opportunely the country has a large and still growing number
of health professionals, providing very affordable human resource for the health sector. The registration
procedure for health providers is also very friendly due to immense government support arising from
the urgent need for advanced health care.
The country’s health sector is therefore a very fertile area of investment.
AGRICULTURE
Uganda and all neighbouring countries are endowed with vast chunks of Arable Land but they still
witness the importation of processed foods from all parts of the World.
Agro products even in their scarcity are largely unprocessed. As the current developments in Agricultural
Economics tell, demand for perishables is growing hastily yet its impossible to produce optimal amounts
with out proper processing and storage facilities all of which abscent in the region. Consequently the
food market is dominated by foreign brands which profit highly from the ever growing food demand.
Agricultural processing plants and extensive farming projects both in crop and livestock would therefore
be highly profitable investments.
RECREATION
With 75% of the Ugandan population being youthful, the demand for recreational facilities is high.
There’s also a growing awareness about children’s need for recreation. This has attracted the
emergence of several small recreational facilities that are not up to standard and do not meet the high
demand.
Facilities such as leisure parks and proper event halls are yet to be seen despite extensive awareness
and demand for the same.
This leaves a huge gap in the largely virgin recreation industry.
TRANSPORT
The total Ugandan population is over 33million with about 4 million living in Cities and large Towns.
These are areas experiencing escalating demand for transportation facilities yet faced with meager
availability. The use of motocycles for transportation on very busy streets has claimed thousands of lives
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but motorists still profit highly due to the resilient demand. The use of buses and other more efficient
means of public transport is in the introductory stages posing a crucial area of lucrative investments.
TOURISM
With over 5000plant species, 15 primate species, and 156 mammal species, Uganda is one of the most
prominent tourist destinations in the region. Uganda offers a wide range of bird species numerous
sporting opportunities such as mountain climbing and water sports including white water rafting. All
these attract a large number of tourists from allover the world, who require a host of services to enjoy
their stay in the different tourist destinations in the country.
The opportunities in tourism range from constructing high quality accommodation facilities, operating
tours and travel circuits to the development of specialized eco-tourism, all of which only scantily
available in the region.
INFORMATION COMMUNICATION TECHNOLOGY
Uganda’s Information and Communication Technology (ICT) sector is one of the most vibrant within the
region, owing to the good legal and regulatory frameworks. The newly developed and highly qualitative
ICT infrastructure is also ready to accommodate more future investments.
Opportunities in the ICT include establishment of information and communication infrastructure and
broadband services, business process outsourcing services, computer and related equipment hardware
assembly, high level ICT training facilities on international standards, ICT business services incubation,
hardware repair training facilities, software development niches, and setting up Internet service
provider facilities in other parts of Uganda.
REAL ESTATE
The 2007 Uganda population report uncovered immense shortage of housing facility, showing only
about 6.1 million units for a 33 million population. Rapid urbanization has aggravated the situation with
overpriced accommodation rates. This has compelled the government to prioritize the provision of low
cost housing. Consequently, tax remissions for developers building a minimum of 20 units have been put
in place to encourage development of infrastructure. Land is also considerably cheaper than in all the
neighboring countries in the region. Accordingly, the Ugandan real estate sector is a relatively young and
fertile one, a great avenue for investment.
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