The Indian Association Uganda and the Indian Business Forum Uganda (an arm of the Indian Association) have mobilized eight new foreign investors to Uganda worth USD169.5M mainly from India and Canada for the mining sector and more.
According to the Indian Association in Uganda Chairman, Mohan Rao, the mobilization was conducted to mark their centenary existence and investments in the country and to appreciate the hospitality they have enjoyed in Uganda since.
The new investors met with Uganda Investment Authority senior leadership as well as with the State Minister for Privatization and Investment, Hon. Evelyn Anite, and each signed Letters of Intent (LOI) to invest in Uganda.
Supreme Gold Corporation of Canada signed USD75 million, Chandaria Industries Limited of Kenya signed USD20 million, Trishul Beverages Uganda Ltd signed USD 8 million, Novec International of Morocco signed USD 11.5 million, UKB Electronics signed USD10 million, Hala Group signed USD1O million, NK Techno labs signed USD10 million and Cloud4sa Group which signed USD2 million.
The commitments were signed by each new investor, together with Hon. Evelyn Anite and Uganda Investment Authority Chairman, Morris Rwakakamba, alongside the Authority’s Director General, Robert Mukiza, at Speke Resort Munyonyo on November 17, at an event Sponsored by Diamond Trust bank, and Grant Thornton, among other companies.
“The Government has received, welcomed and signed Letters of Intent with eight new investors for a total value of close to one hundred and seventy million United States dollars. We are talking of new job creation prospects, an increased tax base and so much more,” Hon Anite said after the signing.
She added: “These new investors are yet another proof that there is plenty of interest in Uganda and we should work closer together, public and private institutions to market Uganda as a good place to invest.”
The idea to mobilize new foreign investments for Uganda arose from the Association’s desire to support Uganda’s transition from a low-income to a middle-income country and to celebrate the Association’s 100 years in Uganda and its members’ successful investments.
The year 2022 also marks the 50th anniversary of the expulsion of Asians by then-President Idi Amin.
“Indians have once again become a pillar of Ugandan society. We are leading taxpayers, operating investments that provide thousands of jobs. The able leadership of President Museveni and the NRM government has been a major factor in these achievements. Every new investor should know that Uganda is a 3P country meaning; Profitable, Pleasant and Peaceful”, said the association’s Chairman in a statement.
In his remarks, Thambi Varghese, the Managing Director of Diamond Trust Bank, noted that Uganda is a one-stop centre that has all materials needed to make investment easy.
“When we look at the reports of imports and exports in Uganda, we see that we import more. In 2021, we imported 10.65 billion which brought in 30% more than the previous year. In 2020, because of the Covid19 situation, imports were slightly less by only 3.17%. In 2019, we had done about 8.7 billion and in 2018 it was 7.10% imports much more than exports,” said Varghese.
He added: “So even though we have done a lot of import substitutes, still we will import more than export and that is the opportunity every investor needs. The Buy Uganda Build Uganda will put both Uganda and India on a higher level.”
“I am hundred percent sure that once you invest in Uganda you can’t regret it. We hereby encourage investors in the diaspora to come on board and specifically do foreign direct investment in Uganda. For example those in South Africa, Germany, Spain, and many more,” remarked Varghese.
India has consistently remained one of the top investors in Uganda with an estimated investment worth US$1bn in the last two decades. In 2020, India’s investments in Uganda hit USD$200 million.
The trade between the two countries is still skewed in favour of India. In 2020, Uganda exported and imported goods worth US$ 56.98 million and US$959.11 million, respectively.