UGANDA WELCOMES YOU

                                       Uganda is located in the heart of Sub-Saharan Africa and lies astride 
the Equator. The total area of the country is about 241,039 square kilo-
metres of which about 43,942 sq. km are covered by fresh water bodies 
and swamps. Uganda is a country strategically positioned within East 
and Central Africa, a region that includes some of Africa’s most econo-
mically important and resource rich countries with a substantial market 
and great future potential.

The country is land-locked and borders the Sudan to the north, the 
Democratic Republic of Congo to the west, Kenya to the east, and 
Tanzania and Rwanda to the south.

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For the visitor, Uganda offers exceptional diversity combining some of the best features that Africa 
has to offer. The country lies at the overlap between the tropical East African Savannah and the 
West African rain-forest zones. It is a country blessed with contrasting physical features ranging 
from extensive plains with undulating hills to snow-capped mountains, waterfalls, meandering rivers 
and spectacular flora and fauna. Seven of Africa’s plant kingdoms are represented in Uganda, which 
is more than any other country on the continent. In addition, Uganda ranks among the top ten in the 
world in terms of the diversity of its mammal groups. For example, by comparison with the UK, 
Uganda supports five times more bird species, six times as many mammals, ten times as many 
reptiles and amphibians and three times the number of plant species.

Uganda is also the source of the Great River Nile and Africa’s largest fresh water lake, the Lake 
Victoria. Such is Uganda’s potential in Africa that the former British Premier, Sir Winston Churchill 
after his many journeys across the length and width of the African continent, concluded that the 
country (Uganda) was indeed the Pearl of Africa. His verdict did not only describe the wealth of 
Uganda’s resources, but also the peaceful environment and social system in which the people 
of Uganda lived. Uganda welcomes you.

Uganda Country Data

Area
Land Area                                


197,097 Sq. Km

Water and Swamps       

43,942 Sq. Km

Total Area                               

241,039 Sq. Km

 

Land Use

 

Arable Land

25%

Permanent Crops                      

9%

Permanent Pastures

9%

Forests and Woodland

28%

Other

29%

 

Demographics

 

Total Population (2002)  

24.7 million

Female Population (2002)          

12.6 million

Male Population (2002)              

12.1 million

Percentage Urban (2002)           

12%

Population of Kampala City (2002)

1,208,544

Female Population/Aged 15-54 (2002)

5.4 million

Male Population/Aged 15-54 (2002)

5 million

Young Adults/Aged 10-24 (2002)

7.9 million

Population/Aged under 5 years (2002)

3.83 million

Population/Aged 65+ (2002)       

0.77 million

Population Density (2002)          

126 persons/km

Inter-Censual Annual Population Growth Rate (1991-2002)

3.4% per year

Infant Mortality Rate (2000/01)

88 per 1000 live births

Life Expectancy (1991)              
Male                                        
Female                                    

48.1 years
45.7 years
50.5 years

Population per Physician (Doctor)

18,575

 

Education

 

Literacy Rate (2002)      

64%

 

Religions

 

Roman Catholic

33%

Protestant                    

33%

Muslim                         

16%

Indigenous Beliefs         

18%

 

Form of State

Republic

President

H.E. Yoweri Kaguta Museveni

Legal System

Based on English law and the new Constitution enacted in October 1995.

National Legislature

319 Elected members (by Adult Suffrage 284 & electoral colleges 35) and 10 Ex-officio

Last Elections

Presidential, Parliamentary, Local Government February/March 2006

Official language

English 
Other languages: Swahili, Luganda

Capital City

Kampala

Currency

Uganda Shilling

Time

GMT+ 3

                                        
                                                 
RECENT POLITICAL HISTORY

Uganda has come a long way from its pre-1986 days and in many ways reflects the new face 
of emerging Africa. Under the firm leadership of President Yoweri Museveni, Uganda has trans-
formed into a politically stable country with a dynamic economy based on free make principles.

Uganda’s broad-based system of government provides for a stable government committed to the development of the country. The Rule of Law is entrenched and has prevailed for over 12 years. 
Uganda today has a strong peoples’ parliament and an independent judiciary to check on the 
Executive. Together, these institutions have been able to guarantee stability, thereby providing 
investors with a high degree of certainty for their future planning.

KAMPALA CITY - The capital of Uganda

Kampala, the capital of Uganda is a rapidly expanding cosmopolitan city with a population of 
1,208,544 people. The city takes its name from Kasozi k’mpala, "the hill of antelopes" and its 
origins go back to 1891 when the Kabaka of Buganda had his court on Rubaga and Mengo Hills 
one of the 21 hills that now make up Kampala.

In spite of its rapid expansion, evidenced by the modern structures, red-tiled villas and iron roofed 
bungalows that have come up in recent years; Kampala has largely retained its traditional charm 
and remains one of the greenest cities in Africa. The city boasts of all the modern trappings ranging 
from international banks, five-star hotels, first class restaurants, state-of- the-art conference facilities 
to modern communications infrastructure. The cosmopolitan nature of Kampala is reflected in the 
wide choice of eating-places to be found in the city ranging from continental type facilities to 
Chinese and Indian restaurants.

Other towns in Uganda include Entebbe, home of Uganda’s International Airport and a number of 
hotel resorts and Jinja, the second industrial town of Uganda and the source of the Great River Nile. 
There are many other small upcoming towns in different parts of the country.

OVERVIEW OF THE ECONOMY

The economic reforms implemented by the present government in Uganda since 1987, coupled 
with political stability, have contributed to economic growth rates averaging 6% per annum in the 
last decade. This has made Uganda one of the fastest growing countries in Africa.

Inflation is under control and has been maintained below 10% per annum for the last four years. 
Most economic activities are fully liberalized and open to foreign investment. There are no 
restrictions to 100% foreign ownership of investments and no barriers to remittance of dividends. 
Uganda’s shilling is fully convertible and has remained stable over the last years. The foreign 
exchange market is now wholly liberalized following a move by government, effective July 1997 
to liberalize capital account transactions. Uganda is now one of about only five countries in the 
whole of Africa that have no restrictions on capital amount transfers. Within Africa and the 
merging markets, Uganda enjoys a high status with donors and lenders.

Taxes on imports and locally manufactured goods continue to fall in line with the Government’s 
commitment to support the growth of the manufacturing sector. In general, the environment for 
private sector investment has improved significantly with the formal economy growing in importance. 
As well as pure growth, Uganda is seeing a shift from the firmly agricultural based economy of 
1986 towards construction manufacturing and regional trade/distribution.


INVESTING IN UGANDA

The Uganda Government’s economic strategy is to modernize the economy through relying on 
markets and the efforts of entrepreneurs as the basis for efficient and productive economic 
activity. Government’s major role in Uganda’s private sector driven economy is mainly to 
provide the necessary legal policy and physical infrastructure for private investment to flourish. 
This strategy endorsed by the World Bank, other donors and the private sector is already 
showing results as witnessed by the country’s strong economic performance in the last ten years.

The Investment Code

Established in 1991, the Code aims at providing conditions that are more favorable for 
investment. The Code requires that foreign investors have an investment licence to operate 
a business in Uganda, and provides for certain incentives to investors.

Limitations on Foreign Investment

The Code allows foreign investors to invest in all fields except those, which compromise 
national security and ownership of land. Regarding land, foreign investors may, however, 
lease land for up to 99 years. Foreign investors can also participate in joint ventures 
involving the outright purchase of agricultural land. For such cases, Ugandans must hold 
the majority stake. Aside from this limitation, Uganda imposes no limitations whatsoever, 
on foreign investors. 100% foreign ownership of investments in the country is allowed. 
Foreign investors are also free to bring in and take their capital out of Uganda with no restrictions.


UGANDA’S COMPETITIVE ADVANTAGE

Since 1991, over 2,000 enterprises of various sizes have committed over US$2 billion in actual 
investment to Uganda for various projects ranging from agro processing, manufacturing, energy, 
tourism and fisheries. Multinational firms like:

·         Coca-Cola

·         Pepsi Cola

·         South African Breweries

·         Shell

·         BAT Industries

·         Unilever

and many others are investing millions of dollars in expanding their operations in Uganda. 
For these and many other investors who continue to target Africa as their next investment 
frontier, investing in Uganda makes business sense for a number of reasons.

Reasons to invest in Uganda

1. Predictable Environment: Uganda has been able to achieve macro-economic stability 
when clouds of   uncertainty rocked many regions of the world

·     Inflation is single digit for over 10 years from a record high of 240% in 1988

·     Stable annual economic growth averaging 6% per annum

·     Market driven exchange rates

2. Fully Liberalized Economy:

·       All sectors liberalized for investment and marketing

·       Free inflow and outflow of capital

·       100% foreign ownership of investment permitted

3. Market Access:

  • Uganda enjoys a unique location at the heart of Sub-Saharan Africa giving it a 
    commanding base for regional trade and investment
  • Uganda is a member of the commonwealth market for eastern and Southern 
    African States (COMESA), a region with a market of over 300 million people in 
    20 countries
  • Uganda is a member of the East African Community comprising Kenya, Uganda, 
    and Tanzania
  • Duty and quota free access into the US (AGOA) and EU (EBA) markets.

4. Strong natural Resource Base

  • Rich endowment of rainfall, soils, and favorable temperature range. A number of 
    crops are grown organically
  • Unexploited mineral deposits, and tourism opportunities. Confirmed deposits include 
    Gold, Zinc, Wolfram, Petroleum, diamond, vermiculite, silica etc

5. Government Commitment to Private Sector

  • Government and private sector dialogue in policy formulation
  • Continuous improvement in providing infrastructure and other social services

6. Trainable Labour

  • Uganda presently produces over 10,000 University graduates per year

·         Quality of labour is one of the biggest attractions

 7. Security of Investment

·         Guaranteed under the Constitution and the Investment Code 1991.

·         Uganda is a signatory to main international investment related institutions

·       Multi lateral Investment Guarantee Agency (MIGA)

·       Overseas Private Investment Corporation (OPIC) of US

·       Convention on the recognition and enforcement of foreign arbitral 
award (CREFAA)

·       ICSID, TRIMS, GATS, and TRIPS

8. Investment Incentives

a) Investment Capital Allowances

  • Initial Allowance on plant and machinery              50-75%
  • Start up cost spread over 4 years                                    25% p.a.
  • Scientific research expenditure                            100%
  •  Training expenditure                                                      100%
  • Mineral exploration expenditure                           100%

    Initial Allowance on Hotel and Industrial Buildings                     20%

    Deductible annual Allowances (depreciable assets)
    Depreciation rates of assets range                                           20-40%
    Depreciation rate for Hotels, Industrial Buildings & Hospitals      5%

1.   Investors who register as investment traders are entitled to VAT refund on building 
materials for industrial/commercial buildings

2.   Duty and Tax free import of Plant & Machinery

3.   First Arrival Privileges in the form of duty exemptions for personal effects and 
motor vehicle (previously owned for at least 12 months) to all investors and 
expatriates coming to Uganda

4.       Export Zones (Provisional)
       * A ten year corporation tax holiday
       * Duty exemption on raw materials, plant and machinery and other inputs
       * Stamp duty exemption
       * Duty draw back to apply on input of goods from domestic tariff area
       * No export tax
       * Exemption of with holding tax on interest on external loans
       * Dividends repatriated to get relief from double taxation

QUALITY OF LIFE

The quality and cost of living in Kampala and other major towns in the country compares 
favorably with what investors may hope to find elsewhere in Africa. Modern first class hotels, 
serviced apartments are to be found in the urban centres. Leisure facilities exist for such 
pass-times as golf, horse riding and equestrian sports, tennis, white water rafting and 
sailing on the Lake Victoria. Uganda’s education system is still among the best in Africa 
and provides good quality education at different levels. Foreign investors and their expatriates 
can enroll their children at a number of reputable international schools in the country. 
Unfurnished housing accommodation in Kampala goes for between US$500 and US$2000 
per month.