Business Opportunities in Uganda

Having been through severe economic hardships, Uganda today presents several opportunities for trade and business

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Uganda is making rapid strides to emerge as one of the leading commercial centres in East Africa. Realising the importance of Uganda as one of the most progressive economies in Sub-Saharan Africa, more than 600 participants from over 35 countries participated in the Uganda International Trade Fair held in Kampala recently. The trade fair was attended by many companies from the Middle East countries looking to promote their products in the lucrative markets of East Africa.

Having been through severe economic hardships, Uganda today boasts of having a political stable environment which is characterised by low inflation, stable exchange rates and consistently high economic growth. After having gone through a tumultuous period in Idi Amin’s regime, today Uganda is a country at relative peace. It is one of the fastest growing economies in East Africa, and its government is working to better the lives of it’s people by establishing a representative form of governance and laying the groundwork to establish a viable commercial market. As a member of the recently formed East African Community, Uganda can play an important role as the trade and distribution hub in the East African region. The country has the political will, the resources and the infrastructure to emerge as an important centre of business in Africa.

Uganda has also invested heavily in the development of its infrastructure. Uganda’s road system is well linked to its principal trading partners, Kenya and Tanzania. Rail transport is also available for bulk cargo transportation. The international airport at Entebbe has undergone major improvements and expansion. It currently handles international air traffic to all the major business centres in the world and is located some 40 kilometres south of Kampala, in the lakeside town of Entebbe. The Entebbe airport is provides a spectacular entry to the country with an approach over the picturesque Lake Victoria. A number of International carriers operate regular flights to and from Entebbe. These include Air India, Air Tanzania, British Airways, Egypt Air, Emirates, Ethiopian Airways, Gulf Air, and Kenya Airways. Cargo and passenger flights in and out of Uganda are increasing rapidly with Entebbe emerging as an important regional airport alongside other established ports in the region.

“We are committed to improving the incentive structure and streamlining bureaucratic procedures in order to make Uganda competitive as an investment location for investors,” says President Yoweri Museveni. “The Government of Uganda will also continue to work on improving the infrastructure to support private enterprise,” he said during a recent conference in Kampala.

Bi-lateral trade between Uganda and the United Arab Emirates has been registering a steady growth during the last five years. Economic liberalisation policies adopted by the government of Uganda in recent years, coupled with the geographic proximity of the two countries has played an instrumental role in promoting direct trade between the business communities of the two countries.

AIRPORT EXPANSION

Uganda is making rapid strides to emerge as the regional business hub for the East African Community (EAC). In an effort to promote regional and international trade, Uganda has launched several schemes to improve its telecommunications and logistics infrastructure.

In a much overdue move, Entebbe International Airport is being expanded to handle about 150,000 operations a year, with the aim of making it the regional hub for aircraft from around the world. Funded by the US government, the new expansion plan for Entebbe airport would expand the terminal building, increase air cargo handling capacity and expand the runway and landing area. Additional space will be created in the main terminal to build departure lounges and to extend the duty-free shopping area within the airport.

As part of the expansion, the government of Uganda is also inviting tenders for the construction and management of an airport hotel, development and provision of In-flight Catering services and the establishment of cold storage facilities.

Entebbe International Airport lies astride the equator, for which reason it has often been described as the “Airport on the Equator”. Elevated at 3,782 feet above sea level, the airport is part of a peninsular bordering Africa’s biggest fresh-water lake, Lake Victoria.

The need for expansion has come at an appropriate time. Uganda has been registering an impressive GDP growth rate in the last decade and has been successful in keeping its inflation rate under control. The Ugandan economy has been expanding in size and stature as it begins to attract foreign direct investments from all around the world.

Entebbe has seen a rise in the number of airlines flying in and out of its airport. Being a landlocked country, Uganda’s contact with the outside world is largely dependent on air connections. Goods are usually flown in to Uganda for further distribution within the country. As a result, air cargo movement is of paramount importance for the overall expansion of the Ugandan economy.

Recognising the need to regulate the smooth flow of air cargo, the government of Uganda has changed the basis for taxation of air cargo from CIF to FOB in order to boost airfreight and enhance competitiveness. It also abolished the monopoly of Entebbe Handling Services (ENHAS) in air cargo handling. The liberalisation of the service is expected to reduce the inefficiencies in cargo handling and to professionalise cargo handling by attracting technical and management expertise.

The expansion of the airport and cargo handling capacity at the Entebbe airport will help Uganda find new markets for its coffee. Coffee is of fundamental importance to the economy of Uganda, it’s the leading export agricultural commodity, accounting nearly 50 per cent of total foreign export earnings, and providing a livelihood to the vast majority of the rural population, estimated at around 2.5 million.

Uganda grows two types of coffee Robusta and Arabica in the ratios of 9:1, respectively. Robusta coffee is famous for its very good quality attributed to climatic and soil conditions, singular to high altitude, under which it is grown.