Uganda provides great investment opportunities for foreign investors. Learn how foreign companies secure government contracts in Uganda with ease. Uganda is situated in East Africa with a perfect dichotomy between luscious forest and mountains. It is a mosaic of diverse cultures and different ethnicities. With 56 different ethnic groups living harmoniously with each other, Uganda has become “the pearl of Africa” in the past few decades. Uganda has abundant natural resources, including crude oil, cobalt, gold, etc. The country provides many opportunities to invest in construction, mining, and hospitality. 

Is Uganda Politically Stable?

Under the current president, Yoweri Museveni, the country has experienced stability and significant economic growth. It is one of the fastest-growing economies in East Africa. Not only that, the Ugandan economy is projected to expand by 7.0% by 2025. The country has maintained healthy diplomatic relations with the United States since 1962. 

Due to the population spike and unemployment surge, the government has plans to ramp up investments – thus, providing various investment opportunities to companies all around the globe. 

In this article, we will discuss the laws and policies of the Ugandan Government pertaining to Foreign Direct Investment (FDI), the types of contracts available in the country, and how you can secure them. Along with that, we will also discuss the role of Transafrica investments in the smooth procurement of tenders. 

Uganda’s Laws And Policies For FDI 

Uganda’s government provides generous incentives to facilitate economic growth with the help of foreign direct investment. Uganda is still ahead of its neighboring countries in providing a haven for foreign investors. To an extent, FDIs have broadened the financial base of its economy. 

The Ugandan government has reversed policies that polluted the investment climate to gain investors’ confidence. In 2022 alone, FDI of Uganda was increased by 39% to 1.5 billion USD, with 38% foreign direct investment inflow from the Netherlands, 37% from the United Kingdom, and rest from the other countries, including 7 per cent from Mauritius, 5 per cent from Kenya, and 3 per cent from Switzerland. 

So, how do the laws and policies facilitate the investors?

Investment And Licensing Facilitation 

The Ugandan government offers a convenient method to obtain an investment license with just an online application. If all the documents you have submitted are satisfactory, you will get a license within 48 hours. The online registration facility is free of cost by the Ugandan government to attract investors. 

Work Permit And Provision Of Industrial Land

The government of Uganda assists in the work permit procurement for immigration. The government has set up a website, One Stop Centre, for assistance in every step.

The government also provides industrial land to increase the industrial sector’s contribution to the Ugandan economy by 31%. The booming industries in Uganda are mining, manufacturing, and construction. 

Tax Incentives

Investors prefer Uganda over other East African countries due to their tax exemption. According to the government reports, anyone who possesses a Certificate of incentives does not have to pay taxes or duties on plant, machinery, specialized vehicles, and equipment unavailable in Uganda. 

Furthermore, their generous tax incentives include exemption from taxation on the profit for the first three to six years.  

How To Secure Government Contracts

If your company is planning to invest in Uganda, you may be wondering about the best investment opportunities. 

There are many different websites containing the construction tender details and e-procurement notices, including:

• Tenders On Time: a portal where you can subscribe to stay updated with the latest tender details, bids, RFPs, and e-procurement notices from all over Uganda.
• Government of Uganda Procurement Portal: it is a set up by the government containing regular updates of tender notices of schools and construction of hospitals. 
• Ministry of Work and Transport: This portal contains all the information regarding tenders and bids for construction work, bridges, and roads. 

Apart from these conventional industries, there is a modern and uprising investment opportunity in Uganda: solar photovoltaic systems. As the recent survey suggests, 5.3 million households do not have access to electricity. The demand for solar PV systems is there in Uganda as many households look for off-grid electricity. If a business model can address the affordability factor (Uganda still has less than USD 1000 GDP per capita, though growing fast), this field could be very profitable. 

Role Of Transafrica Investments

Transafrica Investments is a diverse group operating across the African continent. Transafrica Investment does the outsourcing on the government’s behalf. It also provides guidance and facilitates investors to yield the maximum ROI while preserving the sanctity of the local habitats of Uganda. 

Conclusion

Uganda has all the policies that welcomes potential investors. From easy, online registration for license to tax exemptions, everything is in favor of the investor. The city has a rapidly growing population and the opportunities for investments in construction are numerous. 

Many websites showcase intricate details about the tenders and bids, which helps investors to stay in their home country and seek investment opportunities from the comfort of their homes. 

Securing government contracts in Uganda is not difficult. The government of Uganda has taken necessary measures to alter its laws and policies to facilitate foreign direct investment. It is up to the investor to avail the golden opportunity to secure tenders and erect a profitable business in Uganda.