Rwakakamba Morrison
H.E the President of Uganda, Yoweri Kaguta Museveni,
Honourable Ministers Republic of India,
Hon. Lord Dolar Popat
H.E. the Ambassadors,
The Indian and Ugandan Business communities
Government Officials Present,
Ladies and Gentlemen,
Good morning,
On behalf of the Uganda Investment Authority, I would like to thank the Government and business community from Uganda and India for participating in the Afro-India Investment and Business Summit.
Under the leadership of H.E. Yoweri Kaguta Museveni, Uganda has enjoyed political and economic stability for over 30 years, which fosters a robust business and regulatory environment that facilitates joint ventures between Ugandan and foreign businesses. This method combines context, on-the-ground experience, and expertise which strengthens businesses and expands global outreach.
Ladies and gentlemen, investing in Uganda is attractive, profitable and provides significant benefits:
Agricultural value addition is profitable and provides a huge investment opportunity for investment. Studies by UIA show average earnings before interest and tax between 33-35% in key export crops; coffee, cotton, cocoa, Maize, Banana among others. The average estimated payback is 5 years.
A hectare of Coffee plantation yields about 3.4 Metric Tonnes. At an average price of USD1, 370 MT, there is a huge processing opportunity of 1.3 million MT valued at USD 1.87 billion per year.
A hectare of Cocoa has the potential to generate 17.3 million Metric Tonnes. At an average price of USD 2,175 per MT of dried cocoa beans, there is a processing potential of 1.2 million MT valued at USD 2.64Bn per year.
Opportunity in Fish Investment: Lake Victoria and L. Albert provide a huge potential for Aquaculture. In the space of 649.95 km, currently available on the 2 lakes, an average 1.3 metric tonnes is produced on 18 cubic centimetres under cage farming. There is a potential production volume of 18.3 million MT valued at USD 31.8 million. Similarly, investment in fish farming provides an import substitution of 86,000 MT of fish feed valued at USD 112.8 million per year.
Sesame: At the production potential yield of 1.25 MT and market price of USD 1,876 per metric tonne, Sesameās existing processing potential is valued at USD 186 million per year
Soya beans: At the current production potential of 2.5 metric tons per hectare. With the current price of USD 556 per ton, a processing potential of USD 290 million per year exists in soya beans. India a huge market potential for this opportunity.
Beans: At a production potential yield of 1.8 metric tonnes per hectare and a price of USD 982 per MT of dried beans, exists a processing potential of 467,000 metric tonnes valued at USD 468 million per year
Milk: With the current milk production of 5,755 litres per cow per year at a price of USD 1 per litre, Uganda provides a milk processing opportunity of 6.1 billion litres of milk valued at USD 6.1bn per year.
Maize: At 6 metric tonnes per hectare, considering the price of USD 500 per MT of flour. A processing potential exists of 5.4million MT valued at USD 2. 69 Bn per year
Cassava: Presently, China imports 2.7 million MT of cassava flour annually. At a potential yield of 23MT per hectare and at a price of USD 273 MT of flour, there is a flour processing opportunity of 27million MT valued at USD 7.4bn
Poultry: The current supply gap of dressed chicken stands of USD 57,100 MT is valued at USD 235 million at a market price of USD 4,110 per metric ton. Likewise, the supply gap for 41 million day-old chicks is valued at USD 28 million, while regional egg demand is projected at USD 291 million valued at USD 26.6 million.
Rice: At a potential production of 5MT per hectare, with an average price of USD 1,041 per metric ton, the processing opportunity of 0.9m MT exists valued at USD. 2.7bn per year to meet local demand.
Mineral value addition is another profitable investment opportunity in Uganda.
Iron Ore: Over 300 Million Metric Tons exists in Uganda. The estimated untapped potential value is USD 15.6Bn
Gold: Estimated untapped reserves of 221 Metric Tons with an estimated value of USD 3.4 Bn
Copper, Cobalt and Nickel: Estimated potential is 6 Million Tons with 100% untapped reserves. The estimated value at USD 181bn.
Rare Earth Elements: The estimated potential of 3.73Bn Tons of aluminous clays with an estimated potential value of USD 370bn
Vermiculite: Current reserves are estimated at 54.9 Million Metric Tons with an estimated value of USD 11.5bn
ICT: The establishment of an information communication technology (ICT) park, incubation centre, business process outsourcing centre, innovation centre and other ancillary services is a huge investment opportunity in Uganda with an average return in excess of 30%.
Strategic and Market Potential
Uganda is strategically located in the heart of Africa and therefore grants immediate access to a large and growing domestic market of nearly 45 million people and an estimated 300 million people in the EAC. This combined market population includes the Democratic Republic of the Congo which recently joined the EAC.
Beyond the EAC, through COMESA, investors can access a market of over 700 million people. Our ratification of the African Continental Free Trade Area (AFCTA), which removes barriers to inter and intra-Africa trade makes us a perfect launch pad into the wider African market- whose population is 1.3 billion and expected to stretch to 2 billion people by 2050.
In short ladies and gentlemen, through Uganda, you can access markets from the Indian to the Atlantic Ocean. It is now the right time to access global markets and more specifically the Indian market.
Globally, Uganda is enriched with a competitive tax and non-tax incentive regime which includes:
The 10-year tax holiday for investors; the Agriculture sector (both commercial and value addition sector), the developers and operators in the Industrial Parks, manufacturers who export 80% of their production outside the domestic market (i.e. outside the East African Community market);
Import duty exemptions on plant and machinery;
100% allowable expenditure on training;
100% allowable expenditure in research and development;
100% cost recovery on exploration, development and production costs expenditure on mining operations.
Non- Tax incentives include land which UIA provides free of charge in the gazetted industrial parks and free tax zones . Our Investment Land Bank currently stretches over 16 square miles across the country and the Government of Uganda has deployed resources to make these parks fully serviced with industrial electricity, industrial water, tarmac roads, high-speed internet and industrial waste treatment.
Uganda is guided by the triple bottom line of People, Profit and Planet.
On behalf of the Uganda Investment Authority, allow me to thank you for honouring our invitation and to be part of the Afro-Indian Summit
You are welcome to invest and do business in Uganda.
God bless you and happy deliberations.
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