Uganda Attracting Large Foreign Direct Investments

7890 Views Kampala, Uganda

In short
Statistics from Uganda Investment Authority (UIA) show that in 2010/11 Uganda was the largest recipient of FDI in Sub-Saharan Africa. The country received 1.7 billion dollars, equivalent to about four trillion shillings, worth of investments from the private sector, both foreign and domestic.

Uganda is increasingly becoming a large recipient of foreign direct investments (FDIs) in Sub-Saharan Africa.

According to data from Bank of Uganda, in the just concluded financial year 2011/2012 the country received inflows totalling to 1.8 billion dollars, equivalent to 4.6 trillion shillings. The inflows were mainly through foreign direct investments and portfolio investments which attracted offshore investors.

Statistics from Uganda Investment Authority (UIA) show that in 2010/11 Uganda was the largest recipient of FDI in Sub-Saharan Africa. The country received 1.7 billion dollars, equivalent to about four trillion shillings, worth of investments from the private sector, both foreign and domestic.

The figures further show that between 2005 and 2010, foreign direct investment inflows into Uganda grew at an average rate of 17 percent, a very significant rate.

Arthur Nsiko, a research analyst with investment firm African Alliance, attributes the country’s attractiveness to liberal FDI norms like the allowance of complete foreign ownership of investments.

Nsiko says other favourable factors are Uganda’s location in the heart of Sub-Saharan Africa, membership of regional economic blocks like East African Community and Common Market for Eastern and Southern Africa and abundant mineral resources, top of which is oil.

Uganda is also reforming its laws and procedures in order to ease doing business and embarking on infrastructure development like electricity and roads.
 

 

Mentioned: uia

About the author

David Rupiny
In his own words, David Rupiny says, "I am literally a self-trained journalist with over 12 years of experience. Add the formative, student days then I can trace my journalism roots to 1988 when as a fresher in Ordinary Level I used to report for The Giraffe News at St Aloysius College Nyapea in northern Uganda.


In addition to URN for which I have worked for five years now, I have had stints at Radio Paidha, Radio Pacis, Nile FM and KFM. I have also contributed stories for The Crusader, The New Vision and The Monitor. I have also been a contributor for international news organisations like the BBC and Institute for War and Peace Reporting. I am also a local stringer for Radio Netherlands Worldwide.


I am also a media entrepreneur. I founded The West Niler newspaper and now runs Rainbow Media Corporation (Rainbow Radio 88.2 FM in Nebbi). My areas of interest are conflict and peacebuilding, business, climate change, health and children and young people, among others."