UIA tips German investors on opportunities in Uganda 

Uganda Investment Authority (UIA) hosted a twenty business man delegation from Germany who were in the country to seek information on how to invest in Uganda.

They were briefed by the Authority’s Acting director general Lawrence Byensi who informed them that government has introduced various fiscal incentives for exploitation by potential investors.

He said that this has been done through the respective tax laws which makes it non-discriminatory and accessible to both domestic and foreign investments.

“There are also sector specific especially in agriculture, transport, education, manufacturing and energy sectors in order to encourage investment in those sectors and generate employment for nationals,” he said at the meeting held on Wednesday at the Authority’s head office on Lumumba avenue.

He told the delegation that there tax deductions that also include specific incentives in agro sector.

These include income tax deduction in the initial capital allowances (Accelerated depreciation), industrial building allowance and deductions.

He explained that there are also carry forward of losses that could be unlimited or uncapped.

Byensi pointed out that there also incentives in the manufacturing sector that include 10 years income tax holiday for exporters of finished consumer and capital goods (80% of production).

“Similar exemptions are also offered on inputs and equipment in the health, energy, mining, petroleum, and transport sectors,” he said.

He further pointed out government offered a 10 year tax holiday for developers investing at least US$ 50 million (foreign) and US$ 10 million (domestic) and this includes East African Community member states for investors in the Industrial Park and Free zone development.

“A number of sector specific exemptions have been introduced to support the tourism and hospitality, health; mining and petroleum, leather and cotton industries."

This also includes investors in processing, manufacturing and assembly of listed items, as well as vocational institutes among others.

These also benefit from a 10 year tax holiday for minimum of US$ 10m (foreign) and US$ 1m (for local) including members from the partner states of the East African Community (EAC).

He added that UIA supports investment by providing information on the investment opportunities, issuance of licenses and after care services.

“The Authority can also help investors in brokering joint venture partnerships, facilitation and enhancement of small and medium firms and acquisition of land for investment and development in the Industrial Parks,” Byensi said.

There is also value added deferment facility on plant and machinery available at importation while almost all agricultural inputs are exempt from import duty and VAT.

He told the delegation that investment opportunities in Uganda currently include value Addition to the natural resources.

Others are mineral benefaction, Information and Communications Technology (ICT), Oil and Gas Sector and its support services, services sectors.

These include finance, education, health care, infrastructure, real estate, tourism in terms of accommodation, conferences, tour and travel among others.

He said that Uganda's exportable products include agro products like coffee, tea, cotton, fruits, horticultural products, fish, honey, diary and poultry products, oil seeds and or animal and vegetable oils and cocoa beans.

Other exportable products include manufactured products potential specifically sugar, plastics and selected pharmaceuticals.