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Most attractive investment
destinations in Africa

Where to invest in Africa in 2018: Africa’s most attractive investment destinations

1. Political and Social Stability

  • Ethiopia is the oldest independent country in Africa, and is among the most stable countries in the region. The 2012 peaceful transition of power to a new Prime Minister has proven the stability of Ethiopia’s multi-party political system and parliamentarian form of government.
  • Ethiopia is most know for its social stability and least crime rate, as well as strong public institutions and reliable police service.
  • There is no tolerance to corruption, ranked 34th under the Global Competitiveness report (2016-2017) for impartial public decision making,well above most of its regional peers such as Kenya (92nd) and South Africa (115th).

2. Growing Economy

  • Ethiopia has grown at an average rate of 10% since 2010. In 2012, Ethiopia was the 12th fastest growing economy in the world, managing to grow faster than other African countries such as Rwanda, Mozambique, Zambia, and Ghana, as well as China and India (World Bank, 2013).
  • Through a co-ordinated, prudent fiscal policy and a tight monetary policy, combined with a slowdown in global commodity prices, the Government has brought down inflation to single digits.
  • Ethiopia is raked higher than its regional peers (Kenya, Rwanda and South Africa) for its condusive macroeconomic environment(World Economic Forum, Global Competitiveness Report,2016-2017).
  • Growth forecasts of more than 7% from the International Monetary Fund and the African Development Bank place Ethiopia among the world’s growth leaders over the medium term.

3. Excellent Climate and Fertile Soils

  • Ethiopia is the 27th largest country in the world by land size and given its diverse topography and geographical location, it is suitable for the production of some of the world’s most coveted food crops - cereals, pulses, oil seeds, a wide range of fruits and vegetables, coffee, tobacco, sugar cane, tea and spices, among others.
  • Much of Ethiopia has a surprisingly temperate climate by African standards due to its elevation. Ethiopia has an elevated central plateau varying in height from 2,000 to 3,000 meters above sea level.
  • Thanks to its fertile soils, Ethiopia is among the world’s largest producers of coffee, and the 3rd largest producer of Arabica beans in the world (US Department of Agriculture). Ethiopia also is among the top non-EU exporter of cut-flower to the EU market and the 2nd largest flower exporter from Africa.

4. Strong Guarantees and Protections

  • Private property is protected by the Constitution and the investment law.
  • A foreign investor has the right to make remittances out of Ethiopia in convertible foreign currency at the prevailing rate of exchange.
  • Ethiopia is a member of the Multilateral Investment Guarantee Agency (MIGA), a World Bank affiliate which issues guarantee against non-commercial risks in signatory countries, and of the World Intellectual Property Organization (WIPO).
  • Ethiopia has concluded over 30 bilateral investment promotion and protection agreements, of which 11 are with individual European Union Member States. Significant other partners include China, India, South Africa, and Russia, and a number of regional economic partners (Israel, Egypt, and Sudan, among others).

5. Abundant and Affordable Labor

  • Ethiopia’s labor law, which regulates worker-employer relations, is in line with international conventions.
  • With over 50 million workers, Ethiopia has the second largest labor force in Africa (World Bank’s Doing Business Report, 2014).
  • Ethiopia’s minimum wage is among the lowest in Africa, with only 5 countries - Burundi, Uganda, Egypt, Gambia and Malawi - having lower minimum wages (International Labor Organization, 2010/11).
  • Generally, private sector monthly salaries for university graduates range from USD 150 to USD 200, while construction sector monthly wages range from USD 60 for daily laborers to USD 300 for a foreman (Source: Ethiopia’s Ministry of Urban Development and Construction).

6. Regional Hub with Access to a Wide Market

  • With a population of appx. 100 million people and a rapidly growing middle class society, Ethiopia is the second largest market in Africa, and is also part of the Common Market for Eastern and Southern Africa (COMESA) comprising 19 member countries and over 400 million people.
  • Addis Ababa has emerged as a regional hub and is home to key international organizations such as the African Union (AU) and the United Nations Economic Commission for Africa.
  • Addis Ababa is also the main air hub for Africa and the home of Ethiopian Airlines, which has won repeated recognition as the best airline in Africa. Ethiopian Airlines offers flights to 94 international passenger destinations (52 in Africa, 17 in Europe and America and 25 in the Middle East and Asia), 19 domestic passenger destinations, and 35 cargo destinations (21 in Africa, 11 in the Gulf, Middle East and Asia, and 3 in Europe). It carries two thirds of Africa’s air freight.
  • Ethiopian products have duty-free, quota-free access to the U.S. and EU markets under the African Growth and Opportunities Act (AGOA) and the Everything But Arms (EBA) initiative, respectively.
  • Ethiopia enjoys also preferntail access to key markets like Australia, Canada, Japan, New Zealand, Norway, Switzerland, China, India, Russia, the Republic of Korea, and Turkey.

7. Improved Economic Infrastructure

  • Power production has increased steadily over the last ten years, with 99% sourced from clean energy in the form of hydropower. Ethiopia has the second largest hydropower potential in Africa (Deloitte, 2014), and the country’s installed electricity generating capacity is expected to reach 10,000 MW by mid-2015.The Grand Ethiopian Renaissance Dam – the largest hydroelectric power dam in Africa being built on the Nile river - is expected to generate 6,000MW electricity. This coupled with Gilgel-gibe III (1,870MW) and Genale-Dawa III (254MW) and other wind power projects will make Ethiopia a regional power house.
  • Cheapest electricity rate in Africa and the whole world – US$0.04/kWh compared to US$ 0.15 in South Africa, US$0.17 in Kenya, US$0.18 in Rwanda, US$0.14 in China, US$0.16 in India and US$0.26 in Germany (World Bank Doing Business Report, 2017).
  • Ethio Telecom is currently engaged in a major transformation work of Next Generation Network (NGN) projects to create a world class telecom service provider.
  • Ethiopia has a huge run-off and ground water potential. With numerous project underway, national access to portable water is fully enhanced.
  • A 5,000 km-long railway network is currently under construction. While the first priority is to join Addis Ababa to Djibouti’s main port, the network is expected to reach every corner of the country.As part of this big project, a 34 km Addis Abeba light rail is fully operational while a new 756 km Addis Abeba-Djibouti electrified railway route is well completed in 2016 - making access to port Djibouti much easier. Other standard gauge networks are in pipeline. As a significant portion of Ethiopia’s import/export trade passes through port Djibouti, the rail way construction is a huge efficiency enhancer for producers and traders.

8. Competitive Incentive Packages

  • Ethiopia offers a comprehensive set of incentives, particularly for priority sectors, such as: Customs duty payment exemption on capital goods and construction materials, and on spare parts whose value is not greater than 15% of the imported capital goods’ total value; Investors have the right to ask refund of customs duty paid on inputs (raw materials and components) when buying capital goods or construction materials from local manufacturing industries. Income tax exemption of up to 6 years for manufacturing and agroprocessing, and of up to 9 years for agricultural investment. Additional 2-4 years income tax exemption for exporting investors located within industrial parks and 10-15 years exemption for industrial park developers. Carry forward of losses for half of the tax holiday period. Several export incentives, including the Duty Draw-Back, Voucher, Bonded Factory and Manufacturing Warehouse, and Export Credit Guarantee schemes.
  • Kenya is the land of unlimited possibilities. It is ranked the 4th largest economy in Sub‐Saharan Africa with a GDP of USD 60 billion.
  • The World Economic Forum’s country competitiveness report ranks Kenya number one (1) in Africa in quality of human capital and availability of research and innovation.
  • Kenya has one of the highest rate of internet access in the continent, with 72% (approximately 32 Million) of its population having internet access making it ideal for investment on internet driven and knowledge economy.
  • Kenya has the second largest population within the EAC at 44.2 million and is growing at a rate of 2.7% per annum. The country has a rising middle class with increasing urbanization, which contributes to an increase in consumer demand for high‐value goods and services. This trend is forecasted to continue, with 50% of the population expected to live in urban areas by 2050. The country’s income per capita has also increased at a Compound Annual Growth Rate (CAGR) of 2 % over the past ten years.
  • Kenya is the dominant economy in the East Africa Community (EAC), contributing approximately 50% of the region’s GDP. Furthermore, Kenya is centrally located within the EAC and provides investors access to a wider consumer market of up to 400m people in the EAC/COMESA region.
  • Kenya’s investment climate is the strongest in the EAC, with Foreign Director Investment (FDI) flowing in from emerging and developed markets and a high number of multinational companies with regional and continent‐wide presence. Having their headquarters in the country.
  • Kenya is firmly interconnected through a network of roads, railways, ports, airports, waterways, and telecommunications. For example, Kenya‘s Jomo Kenyatta International Airport and Mombasa port are the second busiest in Africa.
  • Kenya is a member of trade arrangements and a beneficiary of trade promotion schemes that include Africa Growth and Opportunity Act (AGOA), World Trade Organization, and EAC‐EU Trade Agreement. It is also a member of East Africa Community (EAC), Common Market for Eastern and Southern Africa (COMESA) & Southern Africa Development Cooperation (SADC) regional bloc that will soon be a Tripartite Free Trade Area (FTA) cooperation creating a potential market of over 600million people.
  • Kenya‘s Financial Sector development continues its economic growth through mobilization of large savings to finance investment needs. In the 2015/16 World Economic Forum Global Report, Kenya ranked number 42 in the world out of 140 countries for financial market development. In 2015, the country was ranked 1st in the world for leveraging technology to drive inclusion by Brookings Financial and Digital Inclusion project (FDIP).
  • Kenya has an extensive and relatively well‐developed banking industry serving the domestic, regional and international markets. There are 44 banks registered in Kenya. They include global names such as Barclays, Citi Bank, and Standard Chartered Bank. Kenya is currently ranked 28 out of 151 countries in ease of accessing credit in the World Bank Ease of Doing Business Reports 2016.
  • Kenya has the most developed stock market in the Eastern and Central African region,i.e., the Nairobi Stock Exchange (NSE) with a market capitalization of about Ksh. 1.992 trillion(approximately USD 19.48 billion).
  • Kenya is a position to improve its power generation capacity through a focus on geothermal energy and other green energy and cost‐effective energy sources. The Country’s Second Medium Term Plan (2013‐2017) has targeted generation of 5,000+MW. To date, 615MW of power have been added to the national grid and has significantly reduced the cost of power. An additional 300MW of the power of wind is expected to be added to the national grid in the next one year with the ongoing works at Lake Turkana wind project. These resources are expected to increase our clean energy mix cementing Kenya’s position as world leader in renewable energy. These, and other ongoing power projects, will ensure adequate power supplies and significantly reduce the cost of doing business.

    • INVESTMENT OPPORTUNITIES

  • In Kenya, key business and investment opportunities exist in the following fields: tourism, agriculture, transport and infrastructure, manufacturing, communications building and construction and pharmaceutical sectors.
  • Specific areas of interest to business are eco‐tourism, power generation equipment, telecommunications equipment, agricultural inputs, food processing and packaging equipment, road construction, cement production, motor vehicles parts among others as enumerated below.

1. Doing business is easier

  • Rwanda is among the top three nations in Africa for ease of doing business following Mauritius and South Africa. But it will probably take the trophy for registering your business. I have just accompanied some Polish investors during their market entry in Rwanda. They applied for business registration around noon and registration was fully completed later that evening!
  • The issuing of certifications for construction or manufacturing takes just two to three working days and you are ready to go.
  • There is no minimum amount required to invest in the country, and the Rwanda Development Board (RDB) is a one‐stop entity committed to support both business owners and investors.

2. Effective public enterprises and civil servants

  • Rwanda’s public sector is amazingly well organised and efficient. And that is crucial in cutting time and energy when getting your business off the ground or growing it. The secret? A clear agenda coupled with a young, effective, and ambitious workforce in leadership positions, largely in their thirties. We must admit this is a rare (albeit increasing) sight in Africa. You meet the director general of a line ministry, the head of investment promotion, or a Rwandan business delegation travelling abroad – and most look like they have just left university.

3. Overly ambitious vision to boost development

  • Rwanda has an overly ambitious development agenda. To give you a taste: only 17% of the country is currently urbanised, but the plan is to reach 35% urbanisation by 2020. The pace is felt across industry sectors, and both public and private stakeholders in Rwanda are under pressure to deliver. You will feel the quest for progress and efficiency everywhere you go. Rwanda has also developed a fully serviced economic trade zone for foreign investors.

4. Low risk factors

  • When you think about doing business in Africa you will naturally think about a wide range of risk factors. Rwanda, however, has one of the lowest crime and corruption rates on the continent. This means both personal safety when you stroll through the streets of Kigali by night, and the delay of deliverables because people are waiting for a bribe are a non‐issue. Other common risks such as prolonged droughts, terrorist attacks, armed conflict, or high and unstable inflation rates are equally low. One challenge you may however face is the frequent change in policy and related frameworks. Just over the last few years Rwanda changed 80 policies to get it where it is now, and that trend continues. Be prepared to adapt.

5. Strategic regional positioning

  • Rwanda’s small market size is widely viewed as a downside. While that indeed poses a limiting factor for certain companies, Rwanda has a unique advantage to offer: a powerful geographic position regionally. Some international firms have made use of that: they see Rwanda as a smart and safe gateway to both the East African Community trade region with 150 million inhabitants to the east, and the DRC with vast untapped market opportunities to the west.
  • The fact that Rwanda is land‐locked is a downside that increases cost. But having said that, newly designed railway plans will connect Kigali with the ports of Mombasa (Kenya), Dar es Salaam (Tanzania) and Kinshasa (DRC) – this will speed up transport and cut current cost in the long‐run.

6. Huge local market demand exists in key sectors

  • But the country also has a dynamic consumer base, and there are efforts to develop Rwanda into a medium‐income country, which means that Rwandan consumers would have increased spending power. The country may be relatively small in market size, but the demand in certain sectors far outweighs local supply, and that has prompted government to actively seek investors to fill the gap. Great opportunities and huge demand currently exists in housing and real estate, construction, energy, commercial agriculture and food processing, degradable packaging, light ‐weight manufacturing, ICT, telecommunications, and business services.

7. Great connectivity

  • Rwanda has one of Africa’s fastest internet connections which allows you to remain effective in your communication. In fact, the Rwandan government has decided to make internet available throughout the country, and you will get numerous free wireless spots in public places as part of this plan.

8. Kigali is clean and has little traffic

  • Kigali is most probably among the cleanest cities in Africa, if not in the world. One must have seen it to believe it. It is difficult to even spot a paper or an empty bottle laying around anywhere in this city of over one million people. How this works will probably forever remain a secret. Rwandans will simply tell you they have developed a culture of not throwing things onto the roads.

1. Predictable Environment

  • Uganda has been able to achieve macroeconomic 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, Tanzania, Rwanda and Burundi.
  • 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

  • 1. 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%
  • 2. Investors who register as investment traders are entitled to VAT refund on building materials for industrial/commercial buildings
  • Duty and Tax free import of Plant & Machinery
  • 4. 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
  • 5. 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

9. Where should you invest?

  • Investment opportunities abound in the following areas
    • Agriculture
    • Livestock
    • Fisheries
    • Forestry
    • Manufacturing
    • Mining
    • Infrastructure
    • Financial services
    • Tourism
    • Printing and publishing
  • Côte d’Ivoire is well on its way to recovery after a difficult start to the 21st century. The International Monetary Fund (IMF) forecasts GDP growth to reach 8.4% in 2016.
  • There has been significant progress towards implementing structural changes to strengthen and improve the business environment. However, many sectors remain in state‐ownership due to profitablility issues and reform requirements.
  • To help Côte d’Ivoire become an emerging country by 2020, the government has prioritised Public Private Partnerships (PPP). It has also increased social spending and invested heavily in infrastructure projects.
  • The services sector represents the largest segment of the economy and provides the biggest contribution to growth. Transport and communications activities were on the rise, benefitting from the rebound in agriculture and the Increase in household incomes.
  • Substantial investments in agro‐industry and the extractive and food industries have been made recently.
  • Substantial investments in agro‐industry and the extractive and food industries have been made recently.
  • Eritrea’s Strategic Location along the Red Sea provides ideal exposure to one of the world’s busiest shipping lines and established linkages to other areas of the region and beyond. The port of Massawa is a transit point for goods to the Middle East, European and Asian Markets. The development of the port is poised to bring about potential gains to trade. The establishment of a Free Port Zone at Massawa is further expected to boost trade prospects within the already established Middle Eastern and African Markets.
  • The Massawa Airport is equally capable of facilitating traded goods in transit to regional and global destinations. Investment in exploration activities for reserves of oil, natural gas, and other minerals provide a potential source for the expansion of export receipts. Eritrea’s natural mineral resources include gold, copper, potash, zinc, oil, natural gas, cement, gypsum, granite, marble, ceramics, limestone and iron ore. The Bisha Mining Company, which is a mining conglomerate between the government and a Canadian company (NEVESUN), has started extraction 2010. The company expects to produce 471,000 oz of gold during the first year of operation at Bisha, and 424,000 oz in the second year. Copper production will begin in the second year and peak at 184million pounds of copper in the fifth year of operation. The mine will begin producing zinc in its sixth year. There are many more mining contracts on the making. The potash mine in Danakil Depression with a planed output of up to 10,000 ton a day life span of over 150 years, the Zara and Dubrba gold mining Eritrea stands to share in hundreds of billions of dollars in mining profits.
  • Private Sector Development
  • The private sector is seen as the major development partner, an engine of growth that will help jump start the economy and eventually lead to long‐term growth in the Governments development agenda‐ as explicitly indicated in the Macro Policy document (1994). The Government has achieved so much at adopting favorable monetary and fiscal policy, reduced regulatory framework and bottlenecks by offering incentives and avoiding trade and other related barriers to attract private sector investment and to expand exports.
  • In line with the macro‐policy objectives, a revised investment code was issued in 1994. The main objective of the investment code is to promote investment in Eritrea as well as develop and use the country’s natural resources. Within this broader objective, the investment code intends to achieve objectives including, the promotion of exports, encouragement of competitive import substitution industries, enhancing transfer of new technology, securing equitable regional growth, development of small‐and medium‐scale enterprises, and expansion of employment opportunities (GOE, 1994: 5). The Eritrean investment code also provides various incentives for domestic and foreign investment. The investment code further outlines that there will be no taxes on declared dividends; any corporate profit that is set aside for reinvestment will be taxed at the rate of 20%. Furthermore, there shall be no exchange controls for remitting dividends and capital gains, and foreign investors are free to repatriate their profits.
  • The investment code provides various benefits to investors. For instance, profit and dividends of investors, payments for a foreign loan, fees, royalties, or proceeds received from liquidation of investment and/or expansion, and payment received from the sale of transfer of shares will be remitted in accordance with the rate of exchange prevailing at that time. There is no minimum threshold value of investment. Moreover, with the exception of domestic retail and whole sale trade, import, and commission agency that requires bilateral agreements of reciprocity with the country of investor, all areas of investment are open to all investors both foreign and domestic (GOE, 1994:6). Foreign capital may establish any enterprise on its own or in partnership with local capital. Moreover, the investment code guarantee, that capital and other associated foreign‐owned assets will not be nationalized without due laws. To this effect, Eritrea has also signed the convention establishing Multilateral Investment Guarantee Agency (MIGA) and the convention on the Settlement of Investment Disputes between States and Nationals of other States (GOE, 1998: 20). It established, The Investment Center, which is the legal body responsible for the promotion of investment. Issuance of certification to investors with a maximum delay of 10 days (GOE, 1994:15), Land Proclamation that provides usufruct rights for the long‐term up to 99 years has been issued since 1994 and is expected to facilitate the allocation of land for investors (GOE, 1994; IMF, 1996:9).
  • Significant progress has been made since independence regarding the liberalization of trade policy. The 1994 Legal Notice 18/1994 reduced the number of import tariffs to twelve. Capital goods, raw materials, and semi‐processed goods have only a 2 % tariff. Basic goods duties range from 3 to 20%. In addition, customs procedures were simplified. In the mid‐1990s, the government began major investments in infrastructure, roads, electricity, dams, and port operations to support the further development of exports. To expand the market for import and export potentials the country entered into active membership in regional organizations such as IGAD and COMESA.
  • Investment Environment
  • Peace and security are the main pillars of a true and conducive investment environment in Eritrea. The economic policy underlines the necessity to have a market lead economic system. The private sector should have the upper hand in all economic sectors with the government to intervene in major public shares. The following are some of the steps taken for a better investment environment:
    • The Eritrean Investment Center was created in 1998 to promote the country as an attractive investment destination. The investment center approves investment projects, and aims to promote and facilitate investment activities in Eritrea.
    • The Business Licensing Office (BLO) was established to create a centralized, “One‐Stop†, licensing center to facilitate the speedy formation of business ventures as well as the issuance and renewal of licenses.
    • Key investment opportunities in the fisheries sub‐sector provide a potential of 90,000sq.km of fishing ground, with an estimated annual production potential of 65,000‐70,000 tons of fish and other marine produces.
    • The manufacturing sector produces a variety of products with particular emphasis on processed food and dairy products, alcoholic beverages, glass, leather goods, marble, textiles and salt.
    • Recent developments in the mining and quarrying sector include the anticipated commencement of mining of gold and copper in the Bisha region.
    • Investment opportunities in the service sector include tourism, transport, energy and water resources, communication and financial services. Offshore oil and natural gas exploration are specific areas of potential investment in the energy sub‐sector.
  • Investment incentive in Eritrea
  • The investment policy of Eritrea provides the following incentives to foreign and domestic companies.
    • Both local and foreign private sector investors are allowed to participate in all sectors of the economy with no restriction and discrimination
    • Priority foreign exchange allocation given to exporters.
    • Up to 100% retention of foreign currency earning.
    • No taxes on dividends declared.
    • Capital goods, intermediates, industrial spare parts and raw materials are subject to nominal customs duty of 2%
    • Raw materials and intermediate inputs are subject to 3% sales tax; however, all sales tax will be rebated on all materials and inputs that have been used for export production.
    • Exports are exempted from export duties and sales taxes.
    • Any loss incurred during the first two years of operation by an investor may be carried forward for three consecutive years.
    • Marginal tax rate on personal income from 2%‐38%: on noncorporate profit from 2%‐38%; on corporate profit from 25%‐35%; on commercial agriculture from 2%‐320%; and on rent income from 1%‐48%.
    • Profit derived from mining activities will be taxed as per the mining legislation.
    • Corporate profit that is set aside from reinvestment taxed at the rate of 20%.
  • Uganda enjoys a unique location at the heart of Sub‐Saharan Africa within the East African region and lies astride the equator. The country is bordered by Sudan in the north, Kenya in the east, the United Republic of Tanzania in the south, Rwanda in the southwest and the Democratic Republic of Congo in the west. This land linked position, gives the country a strategic commanding base to be a regional hub for trade and investment. Uganda enjoys pivotal trade partnerships that create a viable market for business.
  • A potential investor considering investing in Uganda, will find a well regulated highly liberalized economy in which all sectors are open for investment and there is a free movement of capital to and from the country.
  • The 2013 Index of Economic Freedom ranked Uganda, the 8th freest economy out of the 46 Sub‐Saharan Africa countries. The business operating environment allows the full repatriation of profits after the mandatory taxes have been paid, as well as 100% foreign ownership of private investments. The incentive regime is structurally embedded in the country’s tax laws making them non discriminatory and accessible to both domestic and foreign investment depending on the sector and level of investment.
  • The minimum capital investment required for a foreign investor to be eligible to invest in the country in virtually any sector, apart from those that may compromise the country’s security, is US$100,000.
  • Uganda’s labour is highly trainable, English speaking and the cost compares favourably in Africa.
  • Return on investment is about 5% projected to increase to about 7% due to ongoing and planned infrastructural (roads, railway, energy) development that will ensue from the developments in the oil sector (refinery and crude oil export). Uganda’s GDP is between US$25 billion to US$26 billion, with stable economic growth averaging 5 to 7%.
  • Inflation has now stabilized to 6.6% after the global economic downturn against which the Uganda economy was resilient and continued to attract foreign direct investment during the period.
  • The country’s political and economic environment has been consistently improving and stable since 1986. Under the leadership of H.E. Yoweri Kaguta Museveni, Uganda has been able to be a political stabilising force in the region, which has provided a secure environment for business to thrive. Security of investment is also guaranteed under the Constitution of Uganda and the Investment Code 1991, as well as the major international investment related agreements / treaties to which Uganda is signatory.
  • In order to provide a conducive environment for doing business in Uganda, the government of Uganda has created a One Stop Centre (OSC) for business registration and licensing at the Uganda Investment Authority. The OSC also assists in tax advice and registration, immigration and work permit issues, land acquisition and verification, as well as environmental compliance and approvals. Accessing all these services under one roof saves the investor both time and money to have their projects licensed and implemented expeditiously.