Kampala — The Vice Chairperson of the Private Sector Foundation Uganda (PSFU) Board, Ms Sarah Kagingo, has called on European and Ugandan businesses to translate investment opportunities into concrete projects, jobs and higher-value exports as the two partners mark 50 years of relations.
Speaking at the Uganda-EU Business Forum in Kampala, Kagingo said Uganda’s growing trade with the European Union presented an opportunity to move beyond exporting raw products towards processing more of what the country produces and supplying higher-value goods to European markets.
“As Uganda and the EU mark 50 years of partnership, this business forum provides a great opportunity to scale our business relationship,” Kagingo said.
She said the next phase of the partnership should prioritise investments that help businesses expand production, improve competitiveness and employ more Ugandans, particularly through reliable and affordable energy.
“Our ask as a private sector is that energy investment should enable businesses to produce competitively, expand and employ more Ugandans,” she said.
Kagingo said the private sector needed energy solutions tailored to the realities of different businesses, from manufacturers requiring reliable electricity at manageable costs to small enterprises seeking affordable and sustainable power.
The forum, co-organised by the Government of Uganda, PSFU and the European Union, focused on energy investment and partnerships, alongside a renewable energy conference and exhibition.
Trade and investment offer room for growth
Kagingo said Uganda and the EU had established a strong commercial relationship, but argued that greater value addition would be necessary to maximise its benefits for Ugandan businesses and workers.
Citing European Commission figures, she said bilateral trade in goods reached approximately 2.35 billion euros in 2025. Uganda exported goods worth 1.64 billion euros to the EU and imported 713 million euros, giving the country a trade surplus of 923 million euros.
She urged businesses to build on that performance by developing processing capacity and supplying products with greater value to European markets.
The call comes as Uganda and the EU commemorate five decades of diplomatic and economic relations, with both sides seeking to deepen trade, investment and cooperation in sustainable development.
Kagingo also commended the government for maintaining a predictable business environment and engaging the private sector in economic policy discussions.
She said PSFU participated in the annual budgeting process and made proposals on taxation and the business environment, adding that the Minister of Finance had adopted 82 per cent of the foundation’s proposals for the current financial year.
Kagingo cited Uganda’s economic outlook as another reason for investors to consider the country. She said the International Monetary Fund had projected economic growth of 9.9 per cent in 2027, up from an earlier projection of 8.2 per cent in April.
She also said inflation had been maintained below five per cent, while anticipated first oil production could further support economic expansion.
Energy investment should deliver measurable results
Kagingo said Uganda’s energy needs presented significant opportunities for European investors, developers and technology providers, but urged businesses to establish clear commercial requirements before committing to projects.
She called on energy developers to engage directly with manufacturers and other potential users to determine demand, connection costs, reliability requirements and the buyers for the electricity generated.
“We need to establish what the demand is, the cost of connection, the reliability required and who will purchase this energy,” she said.
She welcomed the 170 million-euro financing package for rehabilitating the Nalubaale and Kiira hydropower plants, which includes 30 million euros in EU grants alongside concessional financing from the European Investment Bank and the French Development Agency.
Kagingo encouraged similar financing arrangements combining grants and long-term capital to support commercially viable energy projects.
She also urged participants to use business-to-business matchmaking sessions to identify local suppliers and partnerships in installation, engineering, equipment supply and maintenance. She said smaller businesses, including enterprises led by women and young people, should have practical opportunities to join these supply chains.
Kagingo called for responsible investment that respects workers, communities and the environment. She also proposed an initial review within 90 days to assess which proposed partnerships had advanced, which faced obstacles and what support was needed.
“Progress should be measured through products financed, concepts implemented and jobs created,” she said.
She invited European investors to work with Ugandan businesses on a pipeline of credible opportunities, while urging development partners to provide support that could unlock further private investment.
Misinformation emerges as a business risk
Kagingo also raised concerns about the risks businesses face amid global uncertainty and disruptions to supply chains.
Referring to the Reuters Institute’s Digital News Report 2026, she said 62 per cent of respondents across 48 markets were concerned about false or misleading information online.
The concern adds a communications dimension to the business forum’s discussions, as companies increasingly depend on public confidence, credible information and strong relationships with customers and other stakeholders.
She called on Ugandan businesses to present clear proposals during matchmaking sessions, outlining what they produce, what they need and the partnerships they seek.