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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. KM Advocates and Associates potential areas of Investment in Africa memo. 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 KM Advocates and Associates potential areas of Investment in Africa memo. 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. KM Advocates and Associates potential areas of Investment in Africa memo.