A glance at Uganda.
Uganda, is located in the East-Central Africa. It is bordered to the east by Kenya, to the north by South Sudan, to the west by the Democratic Republic of the Congo to the south-west by Rwanda, and to the south by Tanzania.
The southern part of the country includes a substantial portion of Lake Victoria, shared with Kenya and Tanzania. Uganda is in the African Great Lakes region. Uganda also lies within the Nile basin, and has a varied but generally a modified equatorial climate.
Population 44.27 million people
Total area of 93,065 mi²
GDP 28.50 billion USD
Currency Ugandan shillings
Official language English
´Minimum Investment capital $100,000
´Local Investors the minimum requirement is US $ 50,000.
Setting up investments.
One has to register there company with the Uganda Registration Services Bureau. After registration the investor will be issued a memorandum of association and a Certificate of incorporation.
All foreign nationals planning to start up a business in Uganda must acquire an investment license from the Uganda Investment Authority.
Secondary licenses can be secured if the sector you want to invest in requires the license these include Mining, Health Services, Air Transport, Banking etc) Uganda Investment Authority can assist you in securing these licenses within reasonable time.
By law, all foreign investors need to obtain an Investment License from Uganda Investment Authority (UIA). However, according to the current investment Code, domestic investors are not obliged. One can apply for an Investment License Online from Uganda Investment Authority.
Why invest in Uganda ?
Uganda offers ideal opportunities for your business in the heart of Africa. The country is wide spread in African markets. This makes it easy to access market for the goods and services.
The country is a destination for leading global corporations and international organizations. These corporations have harmoniously carried out three business in the country.
The growing economy with its liberal policies makes Uganda a stop place for investments.
Uganda has a variety of business opportunities. These include real estate, Agriculture, the service sector and so on.
Uganda Investment Authority provides pro-active assistance in all aspects for investing in Uganda.
The friendly nature of citizens. Ugandans have been ranked as one of the most friendly and highly entrepreneurial community.
The economy also offers high returns on investment thus making Uganda your preferred investment destination.
Requirements needed to carry out investments.
For A Certificate of Incorporation and Articles & Memorandum of Association from Uganda Registration Services Bureau (URSB);
A brief Business Proposal on the project (Not less than 5 pages);
Evidence of availability of funds for the project, which could be a Bank statement for the company/Directors;
Proof of land ownership or tenancy (land title or a tenancy agreement to confirm location of the project).
Photocopy of Passport of Foreign Shareholders. Other additional supporting documents
Bill of lading to confirm importation of machinery (exceptional cases )
Copy of the secondary License issued by the relevant Government Ministry/Department or Agency
Environmental Impact Assessment Report/Certificate of Approval by National Environment Management Authority (NEMA)
Applications in the following businesses will require to secure a secondary license before applying for an investment license: energy generation, mining, banking and air transport.
Investment opportunities in Uganda.
Small manufacturing industries
Tourism and hospitality
Computer and internet services
Industrial parks in Uganda.
Kampala Industrial and Business Park (KIBP) – Namanve
Luzira Industrial and Business Park
Bweyogerere Industrial and Business Park
Jinja Industrial and Business Park
Kasese Industrial and Business Park
Soroti Industrial and Business Park
Mbale Industrial and Business Park
Karamoja Industrial and Business Park
Kashari Agricultural Land
Mbarara SME Park
Principal Taxes Tax rate
Corporate income tax 30%
Turnover Tax (TOT) 15%
Import duties 6%
Export tax Nil
With holding taxes 6%
Value added tax 18%
Dividend tax 15%
Extra Large Industrial Consumers- CODE 40 High voltage 11000 volts or 33,000 volts with maximum demand exceeding 1,500 kVA and dealing in manufacturing 0.11 USD.
Medium Industrial Consumers- CODE 20 Low voltage supplied at 415 volts, with maximum demand up to 500kVA 0.21 USD
Commercial use <1500m3 per month 1.14 USD
Commercial > 1500m3 per month 0.91 USD
Unlimited Internet 89USD
1 min. of Prepaid Mobile Tariff Local (No Discounts or Plans) 0.03 $
´Uganda has plenty of labor both skilled, semi skilled and unskilled labor.
Wages depend on the skills and the type of job one does . Engineering, accounting, are paid more than the others such as office messengers .
Minimum wage is 70-100 USD
Average monthly salary is between 200$-700$
There is plenty of trainable labor I the country since most of the people have got basic education
Uganda’s investment incentive package provides generous capital allowance for medium- and long-term investors in priority areas whose projects involve significant investment in plant and machinery and other costs.
Tax holidays for specific industries in the first 5-10 years more especially in the industrial zones.
Free lease of land for 99 years. The government of Uganda through the Uganda land board leases land to multinational or companies with huge investments to get land at an affordable price.
Incentives like reduced costs in the free trade areas .
Uganda allows foreign investors to repatriate their profits, dividends, principal and interest as long as they follow the right procedures.
Guarantee against expropriation or nationalization.
The right to employ expatriate managers and experts. Foreign companies are granted the right to employ non Ugandan citizens and they all share equal rights with the nationals.
Double taxation avoidance treaties with 18 countries. The country is against the exploitation of foreign investors through charging them un necessary fees.
Foreign companies in Uganda.