Doing Business In Uganda
Uganda is a member of the East African Union together with Kenya, Tanzania, Rwanda and Burundi. Uganda had a 6,41% growth rate in 2009 and it is expected to be the country with the highest Gross Domestic Product all over the world until 2020.
Today Uganda is considered among the countries with greatest share in the enormous potential of Africa. Uganda is a member of the East African Union together with Kenya, Tanzania, Rwanda and Burundi. Uganda had a 6,41% growth rate in 2009 and it is expected to be the country with the highest Gross Domestic Product all over the world until 2020. With its newly discovered underground wealth, Uganda is a candidate to become one of the most attractive investment points in the future. The poverty and shortcomings are still seen in the country but Europe has already started to invest and research in the region. Dutch companies are the freshest evidence is this, don’t you think? Today, Uganda has a developing middle class population of 32 million. Uganda, with its developing middle class, growing economy, increasing product demands, low labour costs and developing infrastructure, is a region for the entrepreneurs with high potential of successful trade, and where warm and sincere people smile at you with hopes for the future.
DOING BUSINESS IN UGANDA
Today Uganda is considered among the countries with greatest share in the enormous potential of Africa. Uganda is a member of the East African Union together with Kenya, Tanzania, Rwanda and Burundi. Uganda had a 6,41% growth rate in 2009 and it is expected to be the country with the highest Gross Domestic Product all over the world until 2020. With its newly discovered underground wealth, Uganda is a candidate to become one of the most attractive investment points in the future. The poverty and shortcomings are still seen in the country but Europe has already started to invest and research in the region. Dutch companies are the freshest evidence is this, don’t you think? Today, Uganda has a developing middle class population of 32 million. Uganda, with its developing middle class, growing economy, increasing product demands, low labour costs and developing infrastructure, is a region for the entrepreneurs with high potential of successful trade, and where warm and sincere people smile at you with hopes for the future.
UGANDA FROM ECONOMIC POINT OF VIEW
Almost 80% of the Uganda economy is based on import like the other African countries. Unfortunately, manufacture industry and industrialization have not developed as desired.
Therefore, majority of the economic activities consists of conventional dealing activities.
China, India, Malaysia, South Korea, Japan and other Far Eastern countries are the exporter countries to Uganda. Well-established businessmen in the country choose to go to the above countries for purchases and those with medium income level prefer the Dubai free (tax free) market. In spite of all these commercial habits, Uganda people think that the Turkish products are more expensive than the Chinese products but their quality is better than the Chinese ones. Turkish products are cheaper than the European products but have the sufficient quality to replace European products. So they can find a place in the market and sympathy for Turkey is getting spread among the hearts of the Ugandan people.
In addition, the global crisis and the great development of the Turkish manufacture industry in recent years will definitely trigger the entrance of the Turkish businessmen to Africa.
The political stability in the country made Uganda a centre of attraction among its neighbours. The government has noticed that and brought in many foreign businessmen and foreign capital to Uganda from various places of the world with practices like incentives etc.
TOURISM IN UGANDA
Uganda is one of the most beautiful countries of the world with the qualities as given simply as follows:
1. The white Nile branch of the River Nile, which is the artillery vein of Africa, originates from Jinja. There is a mausoleum of Mahatma Ghandi where the River Nile starts. The ashes of Mahatma Ghandi’s body were thrown to the River Nile by the then Prime Minister of India from that location.
2. Mount Rwenzori, the 3rd highest in Africa (with snow throughout the year)
3. Virtual Equator (parallel no 0) line passes through Kampala.
4. There are rain frosts.
5. Safari areas
6. The most important Chita region of the world is in Uganda.
7. Again, one of the most important rafting centres in the world is on the River Nile in Uganda.
8. The Kalangala state is a beautiful one consisting of 82 islands in the Lake Victoria.
9. There are numerous National parks and natural living areas.
10. Uganda has the biggest preservation area in the world for gorillas. Seeing gorillas for one day (4-6 hours) costs USD 500 for one person (USD 1200-1500 with all other expenses) and this is an important tourism advantage.
INVESTMENT POSSIBILITIES IN UGANDA
Uganda offers important opportunities to the investors in the heart of Africa with its rich natural resources, dynamic economy and unique strategic position.
Uganda, as one of the fastest growing countries of Africa in recent years, provides a convenient environment and various incentives for attracting national and foreign capital. In addition, the macroeconomic successes, political stability and worldwide publicity works caused a stable increase in direct foreign investment.
Uganda’s investment advantages include:
- being a foreseeable economical environment
- fully liberalized economy
- secured investments
- attractive investment incentive policies
- strategic position
- ease of entering to market
- rich natural resources
- state’s attention to private sector
- trained and qualified labour force
- perfect nature and climate
- exceptional, unique living quality
On the other hand, when we look at the commercial relations between Turkey and Uganda, we see that the country is a potential market for Turkey as almost any product can be exported to Uganda. Turkish products have a market advantage in Uganda with their quality and affordable price.
The majority of our export to Uganda consists of iron and steel products, rubber and rubber products, electrical machinery and devices. Our import from Uganda covers oilseed and fruit, textile fibres, tobacco and tobacco products.
As of 2011, Uganda Investment Ministry lists the meat sector, medicine sector, cement, cotton factories, station and energy sector, fruit and vegetables sector, agriculture and animal husbandry sector as the sectors where Turkish investors are expected to.
Fishery
Although having no sea coast, Uganda is very rich in fresh water resources. The half of the Lake Victoria, the second biggest in the world, is located within the borders of Uganda. 60 small lakes and many rivers are also within the borders of Uganda.
Around 800 thousand people live on fishing, directly or indirectly. Fish is a very important domestic consumption item as it is the basic food source for 17 million people. It is possible to establish fish farms in the enormous fresh water sources of Uganda and sell the fishes grown here to internal and external markets.
Horticulture
The horticulture industry of Uganda was established only 15 years ago but already reached to a business volume of 30 million USD with an annual growth rate of 14%. In 2006, 6500 tonnes of cut flower were exported to foreign countries, European market being the major one. Total investment amount in horticulture sector reached to 60 million dollars.
Growing Fruit and Vegetables
Fruit and vegetables are grown in less of one hundredth of the 19 million hectare land which is convenient for agriculture; however, the export to Western European and American markets is increasing rapidly. Thanks to its fertile lands, sufficient precipitation and moderate climate, it is possible to grow all kinds of (non-tropical) fruit. The country conditions are quite convenient for the production of organic fruit and vegetables and for the export of the said products to developed countries like Western Europe and America.
Forestry and Wood Products
Especially the western part of the country is rich in tropical forests. Although the woodlands are small when compared to the total surface area of the country, the yield is very high (16 tonnes per hectare annually).
It is possible to take advantage of the forests of the country, in manufacturing quality furniture, obtaining palm oil, manufacturing timber, pile and packaging material.
Energy Sector
Uganda has a great potential in terms of hydro electrical stations and other renewable energy investments with rich water sources (rivers and lakes) and the state of Uganda provides incentives for the supply of reliable and sufficient energy to cover the increasing energy demand of the country.
Mining Sector
Mining Sector used to cover 30% of the country export in 1950s and 1960s. In 1986 and after that, private sector companies obtained mine search and extraction licence, though not sufficient yet, after the creation of convenient business and investment climate.
Mining sector reached to an annual growth rate of 11% and the limestone and lime used in cement production are consumed in the internal market. Pebble stone, stone chips, gold, tin and tungsten mines are exported most.
On the other hand, it is likely that mine reserves like platinum, nickel and diamond reserves extracted in neighbouring countries with similar geological properties can also be found in Uganda and these mine reserves wait for being discovered and extracted.
UGANDA NAME TAG
Official Name: REPUBLIC OF UGANDA
CAPITAL: KAMPALA (POPULATION 1.535.000)
OTHER IMPORTANT CITIES: JİNJA, ENTEBBE, MASAKA, MBALE and MBARARA
SURFACE AREA: 241.038KM²
ESTABLISHMENT: 9 October 1962
POPULATION: 34.000.000 (July 2011 estimate)
OFFICIAL LANGUAGE: English, Swahili
ADMINISTRATION: DEMOCRATIC REPUBLIC
PRESIDENT: YOWERİ MUSEVENİ
PRIME MINISTER: AMAMA MBABAZİ
CURRENCY: UGANDAN SHILLING (UGX)
TRAFFIC : LEFT
TELEPHONE CODE: +256
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