Transcript UGANDA FDI Trends an.. - UN

FDI TRENDS AND PROSPECTS IN LAND LOCKED DEVELOPING
COUNTRIES: OPPORTUNITIES AND CHALLENGES –
THE CASE OF UGANDA
AT THE HIGH LEVEL INVESTMENT FORUM ON
INVESTING IN LLDC
OCTOBER 1, 2008 - NEW YORK, USA
BY: PROFESSOR MAGGIE KIGOZI,
EXECUTIVE DIRECTOR, UIA
FDI inflows to Uganda (1990 – 2007)
Year
FDI m$
400
1990/00 (avg)
82
350
2002
185
300
2003
202
250
200
2004
295
2005
380
100
2006
400
50
2007
368
0
Source: WIR 2008, UNCTAD
150
FDI (m US$)
2
Achievements: 1991 - 2007
14,000
12,000
10,000
8,000
6,000
4,000
2,000
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
Investment Values (USD M)
Planned Investment Values (1991 - 2007)
Year
Cumm. Pl. Inv (USD M)
3
Achievements: 1991 - 2007
Planned Employment Values (1991 -2007)
400,000
No. of Employees
350,000
300,000
250,000
200,000
150,000
100,000
50,000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Year
Cum Planned Employment
4
Top Ten FDI Sources
TOP TEN MAJOR SOURCES OF FDI
BY INVESTMENT (1991 – 2007)
Ownership of Projects 1991 - 2007
Local
34%
Foreign
45%
Joint Venture
21%
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
United Kingdom
Kenya
India
UAE
South Africa
Canada
USA
China
Egypt
Pakistan
5
70,000
3,500,000
60,000
3,000,000
50,000
2,500,000
40,000
2,000,000
30,000
1,500,000
20,000
1,000,000
10,000
500,000
Jobs
Source: UIA Database
Investment
Ca
na
da
na
Ch
i
ar
k
De
nm
an
y
G
er
m
In
di
a
Ke
ny
a
ta
n
Pa
kis
ric
a
Af
S
Ug
an
da
UK
0
US
A
0
Projected Investment USD 000
Projected jobs 2000-06
Sources of Investment in Uganda 00-07
USA
UK
Uganda
S Africa
Pakistan
Kenya
India
Germany
Denmark
China
Canada
3,230
16,519
65,493
2,491
4,626
16,469
41,744
4,882
2,458
9,239
2,459
95,196
915,644
2,896,259
78,411
109,415
468,576
666,390
40,791
53,276
150,547
6
66,494
Challenges to Investment
•
•
•
•
•
•
•
1996
Electricity
Tax Policy
Tax Administration
Cost of Finance
Access to Finance
Utilities
Bureaucracy/
Corruption
•
•
•
•
•
•
•
2001
Access to
Finance
Tax Admin.
Bureaucracy/
Corruption
Transport
Tax Policy
Lack of
Incentives
GOU
Discriminatory
Interventions
2005
•
•
2004
Cost of Finance
Macroecon. Inst
•
•
Corruption
•
Corruption
•
•
•
•
•
•
•
•
•
•
Electricity
Tax Admin.
Tax Rats
Anti-competitn
Skills-Workers
Customs & regu
Theft & disorder
Land access
Labour regulatn
Licence/permits
•
Interest Rates
•
Inflation
•
VAT
•
Income Tax
•
Customs Duty
•
Tax Policy
•
Availability of
Exchange
Rates
Power
•
Corporate Tax
Sources: UIA Investor Surveys, FIAS Report 2003
7
Investment Climate Assessment Uganda 2004 & FPC
Survey 2005
Constraints
1. Infrastructure
2. Access to Finance
3. Administrative Barriers
8
Why Uganda for your Business?
1. Resource Rich
2. Productive, competitive labour
3. Markets
9
Uganda’s Strategic Location in the Heart of Africa
UGANDA
MARKET
Uganda
30* million
East Africa 125* million
Great Lakes Region190*
million
COMESA
- 23 member countries
- 400 million people.
- Imports over US$ 170
billion annually.
AGOA
EU – Preferential Treatment of
Exports
*Source: CIA World Fact Book - Estimates
10
The 21st Century Belongs to Africa
•
•
•
•
•
•
•
•
•
•
Leaders
Vision
Strategy
Plan
Land
Human Resource
Tourism
Agriculture
Minerals
Infrastructure
11
Priority Sectors
•
•
•
•
•
•
•
•
•
•
Manufacturing
Transport / Infrastructure/Logistics
Agriculture
Energy
CDM
Mining
Petroleum
ICT
Services – Health, Education, Financial services
Tourism
12
Some Multinationals in Uganda
13
Some New Multinationals - 2007/8
14
Main Challenge – Infrastructure
Opportunities Abound!
15
Uganda Investment Authority
Twed Plaza - Plot 22B,
Lumumba Avenue
P.O. Box 7418, Kampala
Uganda
Tel.+256-(0)414-30-10-00
Fax +256-(0)414-34-29-03
www.ugandainvest.com
[email protected]
THANK YOU!
16