Uganda shines in Dubai as UAE investments hit Shs3t

Uganda was yesterday crowned as the best investment destination for the United Arab Emirates (UAE) in Africa. 

The State Minister of Finance (Investment and Planning) received the award at the Annual Investment Meeting (AIM) gala dinner at the National Exhibition Centre in Abu Dhabi, UAE.

The two-day meeting that kicked off on Tuesday ended yesterday. It ran under the theme: “Adapting to a shifting investment landscape: Harnessing new potential for global economic development.’’

The ongoing conference has attracted 12,000 participants from 174 countries across the world.

Ms Anite said the participating countries are grouped by continents and then assessed. 

“They assess how you treat investments in your country and the way you have been relating with the UAE,” she said.

Uganda last year won the award for being the leading investment destination for UAE in East Africa.

In an interview with the Monitor yesterday, Mr Morrison Rwakakamba, the chairman of the board of Uganda Investment Authority (UIA), said the achievement reflects the confidence that foreign investors have in Uganda.

“Investors don’t [just] make decisions by accident but do research and data mining about countries where they can get the highest return on investment. In Uganda, for every dollar you invest, you get the highest return in Africa,” he said.

Mr Rwakakamba added: “It is also a vote of confidence in the business environment because investors do not look at short-term but rather long-term stability to ensure their money is safe and this is another validation of their projections of better-doing business in the country.”

The development comes at a time when UAE investments in Uganda have hit more than $832m (Shs3.1) in agro-processing, renewable energy, tourism, telecommunications, oil and gas, mining, construction, security, health, and education.

Some of the UAE firms investing in Uganda include Amia Power Solar Energy which has sunk in $20m, Masda Rentable Energy in Elgon zone ($150m), Metro Cement Ltd in Kamonkoli-Budaka ($30m), General Petrol Lubricant investing between $20m and $100m in Namanve, and Streit Car Factory in Nakasongola investing $60m.

Others are Global Gases in hospitals worth $100m, Exizim Finance Agro Processes (£50m),  Sharjah Chamber of Commerce investing $300m.

The firms are part of the 1,202 total investment projects worth $16.5b (Shs62.3t) with 142,524 planned jobs that were licensed by UIA between the financial years 2021/2022 and 2022/2023.

Data from the Observatory of Economic Complexity (OEC), a global data visualization tool for international trade data, indicates that Uganda’s exports grew from $495,000 in 1995 to $1.12b, with gold being the leading export product while exports from UAE to Uganda now stands at $305m up from $60.7m, with broadcasting equipment being the largest export product.

Ms Anite said: “The award is a strong recognition of efforts by the Government of Uganda and the Uganda Investment Authority in creating a conducive environment for investments and doing business in Uganda, including in the green economy.”

During the Conference of Parties (COP) that was held in Dubai last year, UIA submitted three green investments worth $400m (Shs1.5t) Foreign Direct Investment. These include Spouts of Water, which is the largest manufacturer of ceramic water filters in Africa, producing an affordable solution using locally sourced materials to cover 200,000 households with plans to expand to six million homes.

Mr Rwakakamba said it has invested, together with the United Kingdom Export, more than $100m, with $10m in the factory alone and employs 200 Ugandans directly and more than 1,000 indirectly.

UIA’s Director General Robert Mukiza said the highly competitive award recognises the accomplishments of a country in attracting the most significant investment projects, which contributes to economic growth and development.

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