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BY: PROFESSOR MAGGIE KIGOZI, EXECUTIVE DIRECTOR, UIA FDI TRENDS AND PROSPECTS IN LAND LOCKED DEVELOPING COUNTRIES: OPPORTUNITIES AND CHALLENGES – THE CASE OF UGANDA
BY: PROFESSOR MAGGIE KIGOZI,
EXECUTIVE DIRECTOR, UIA
FDI TRENDS AND PROSPECTS IN LAND LOCKED DEVELOPING COUNTRIES: OPPORTUNITIES AND CHALLENGES –
THE CASE OF UGANDA
2Source: WIR 2008, UNCTAD
Year FDI
m$
1990/00 (avg) 82
2002 185
2003
202
2004
295
2005 380
2006 400
2007 368
0
50
100
150
200
250
300
350
400
FDI (m US$)
FDI inflows to Uganda (1990 – 2007)
3
Achievements: 1991 - 2007Planned Investment Values (1991 - 2007)
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Year
Inve
stm
ent V
alue
s (US
D M
)
Cumm. Pl. Inv (USD M)
4
Achievements: 1991 - 2007Planned Employment Values (1991 -2007)
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Year
No. o
f Em
ploy
ees
Cum Planned Employment
5
Top Ten FDI Sources
TOP TEN MAJOR SOURCES OF FDI BY INVESTMENT (1991 – 2007)
1. United Kingdom2. Kenya3. India4. UAE5. South Africa6. Canada7. USA8. China9. Egypt10. Pakistan
Ownership of Projects 1991 - 2007
Local34%
Joint Venture21%
Foreign45%
6
Sources of Investment in Uganda 00-07
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Pro
ject
ed j
ob
s 20
00-0
6
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
Pro
ject
ed I
nve
stm
ent
US
D 0
00
Jobs Investment
Source: UIA Database
USA 3,230 95,196UK 16,519 915,644Uganda 65,493 2,896,259S Africa 2,491 78,411Pakistan 4,626 109,415Kenya 16,469 468,576India 41,744 666,390Germany 4,882 40,791Denmark 2,458 53,276China 9,239 150,547Canada 2,459 66,494
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Challenges to Investment
Sources: UIA Investor Surveys, FIAS Report 2003 Investment Climate Assessment Uganda 2004 & FPC Survey 2005
2001• Access to
Finance• Tax Admin.• Bureaucracy/
Corruption• Transport• Tax Policy• Lack of
Incentives• GOU
Discriminatory Interventions
2004• Cost of Finance• Macroecon. Inst
• Corruption• Electricity• Tax Admin.• Tax Rats• Anti-competitn• Skills-Workers• Customs & regu• Theft & disorder• Land access• Labour regulatn• Licence/permits
2005
• Exchange
Rates
• Corruption
• Interest Rates
• Inflation
• VAT
• Income Tax
• Customs Duty
• Tax Policy
• Availability of
Power
• Corporate Tax
1996• Electricity• Tax Policy• Tax Administration• Cost of Finance• Access to Finance• Utilities• Bureaucracy/
Corruption
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Constraints
1. Infrastructure
2. Access to Finance
3. Administrative Barriers
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Why Uganda for your Business?
1. Resource Rich
2. Productive, competitive labour
3. Markets
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MARKET Uganda - 30* million East Africa - 125* million Great Lakes Region- 190* million COMESA
- 23 member countries- 400 million people.- Imports over US$ 170
billion annually.AGOAEU – Preferential Treatment of Exports*Source: CIA World Fact Book - Estimates
Uganda’s Strategic Location in the Heart of Africa
UGANDA
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The 21st Century Belongs to Africa
• Leaders• Vision• Strategy• Plan• Land• Human
Resource• Tourism• Agriculture• Minerals• Infrastructu
re
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Priority Sectors
• Manufacturing• Transport / Infrastructure/Logistics• Agriculture• Energy• CDM• Mining • Petroleum• ICT• Services – Health, Education, Financial services• Tourism
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Some Multinationals in Uganda
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Some New Multinationals - 2007/8
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Main Challenge – Infrastructure
Opportunities Abound!
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Uganda Investment AuthorityTwed Plaza - Plot 22B,
Lumumba Avenue
P.O. Box 7418, Kampala
Uganda
Tel.+256-(0)414-30-10-00
Fax +256-(0)414-34-29-03
www.ugandainvest.com
THANK YOU!
