Thursday May 29 2014

UIA to tackle declining investment projects

Uganda Investment Authority executive director Frank Ssebowa (R) with senior

Uganda Investment Authority executive director Frank Ssebowa (R) with senior investment executive Rebecca Nalumu Wamono address journalists in Kampala on Tuesday. PHOTO BY STEPHEN WANDERA 


Kampala- Uganda Investment Authority (UIA) executive director Frank Sebbowa has commissioned a research that is not only expected to provide answers to declining levels of licensed projects but also explain why several approved investment opportunities never come to fruition.

UIA third quarter report shows a three per cent decline in licensed projects and five per cent slowed implementation (investment conversion rate) of approved projects to actual investments.

The decline from 10 to five per cent and over five per cent growth in licensed projects to three per cent, informs the need for the survey that UIA will conduct in a month’s time.
“We are now going to do a survey to understand why we do not have a high conversion rate because it is our duty to do so,” Mr Sebbowa said while releasing the investment body performance report on Tuesday.

Mr Sebbowa, however, attributed the low conversion rates (implementing the projects) to financial constraints, exorbitant taxes, erratic power supply, and fluctuation of the shillings, insufficient skilled manpower and lack of sufficient land for investment.

This, he said is further worsened by delays in acquisition of work permits, taken in both carrying out feasibility studies to establish viability of the projects and time spent while processing land transfers.

Meanwhile, the report also showed that the third quarter registered rapid growth in planned investments from $403 million in Quarter two (2) to $852 million in Quarter three (3).

Actual investment also grew by 4 per cent registering $43 million during this quarter.

Total jobs created in this quarter were 2,124 an increase by 27 percent from 1,549 jobs created in quarter two.