Trade & Investment

Uganda offers an incomparable opportunity for your business in the heart of Africa. It is strategically positioned in the Region and thus offers greater market potential than any other country in the region.

A Uganda is a place where opportunities for business are plenty, it is an ideal place to a getaway to East African market as it has ideal investment climate as listed below:

  • Political Stability/ Security
  • Predictable environment and Economic Stability
  • Access to domestic, regional and global markets.
  • Productive, competitive and trainable labour
  • Strong Natural resource base
  • Fully liberalized economy, (e.g. Banking and Finance)

All the above come with       such incentives as:

  • Capital allowances on capital goods imported: 50% – 75%
  • Deductible Annual Allowance
  • Import duty exemptions
  • Duty draw back facilities
  • First arrival privileges (i.e. vehicles, domestic facilities, etc)
  • Externalization of funds allowed
  • 10 Year tax holiday for value added exporters
  • Withholding tax exemptions on interest, raw materials, plant & machinery.

The Investment Code provides the following guarantees to an investor:

INVESTMENT GUARANTEE

  • Non-nationalization, or non-confiscation of investment.
  • Such acquisition is only allowed by law and in consideration of a just compensation.
  • The compensation so determined is fully transferrable outside Uganda and not subject to any exchange controls.

FAVOURABLE TAX ENVIRONMENT

The following tax incentives are listed in the Investment Law:

  • VAT refund on building materials for industrial/commercial buildings for investors who register as investment traders.
  • Duty and Tax free import of Plant & Machinery
  • Duty exemptions for personal effects and motor vehicle (previously owned for at least 12 months) to all investors and expatriates coming to Uganda.

DISPUTE SETTLEMENT

The law stipulates a clear mechanism of dispute settlement between business parties and between the government and a private investor. In case the dispute is not solved through the national courts, the law also allows settlement via international bilateral or multilateral agreements or any other international machinery agreed to by the parties.

WHY INVEST IN UGANDA

Investing in Uganda has many advantages of Regional Trade associations and Blocks

REGIONAL TRADE ASSOCIATIONS AND BLOCKS

Uganda is a member of/ signatory to the following:

  • Common Market for Eastern and Southern Africa (COMESA), which creates a full free trade area among its 19 members.
  • Intergovernmental Authority on Development (IGAD)
  • East African Community (EAC)
  • African Growth and Opportunity Act (AGOA), giving duty free access to the US market.
  • Generalized System of Preferences (GSP)
  •  EU Everything but Arms initiative

For more information, please contact:

Ministry of Trade, Industry and Cooperatives,
Tel: +256414 314000
Fax: +256414 347286
Email  ps@mtic.go.ug
Web: www.mtic.go.ug

Uganda Investment Authority (UIA)
Email :   info@ugandainvest.go.ug
Web : www.ugandainvest.go.ug