Uganda named top investment spot in Africa as FDI hits $1.5Bn

Summary:

• Uganda is hailed as Africa’s top investment destination, attracting $1.5 billion in Foreign Direct Investment (FDI). The country’s strategic measures, including tax incentives and infrastructure development, have fostered a conducive business environment.

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Uganda has clinched the title of top investment destination in Africa, garnering acclaim at the Annual Investment Meeting (AIM) in Abu Dhabi. With over $1 billion in Foreign Direct Investment (FDI) from the United Arab Emirates (UAE) in the past two years, Uganda’s total FDI soared to $1.5 billion in 2023.

The prestigious award, bestowed upon Uganda by the AIM, was confirmed by State Minister for Investment Evelyne Anite. “Uganda has been awarded a recognition award of best investment destination in Africa,” said Anite.

This accolade follows Uganda’s previous triumph in 2023, where it was hailed as the premier investment destination in East Africa. The Ministry of Finance, Planning and Economic Development (MoFPED) reported a significant uptick in FDI inflows, surging from $1.36 billion in April 2022 to $1.5 billion by April 2023.

Despite challenges such as Western sanctions, the World Bank remains optimistic about Uganda’s economic prospects, forecasting a growth from 5.3% in 2023 to 6.0% in 2024. FDI plays a pivotal role, contributing over 4% to Uganda’s Gross Domestic Product (GDP).

Uganda’s success stems from deliberate governmental measures aimed at fostering a conducive business environment. Strategies include reliable electricity, tax incentives, robust transport infrastructure, and high-speed internet connectivity.

The AIM Global Investment Awards, which attracted participation from over 170 countries, singled out Uganda for its outstanding performance in investment attraction and conducive business conditions.

In light of Uganda’s accelerating economic growth, driven by an oil-related construction boom and robust agricultural expansion, the future looks promising. Major FDI contributors include the Netherlands, the United Kingdom, Mauritius, Kenya, and Switzerland.

The AIM Congress 2024, themed “Adapting to a shifting investment landscape. Harnessing new potential for global economic development,” provided a platform for global stakeholders to explore emerging investment opportunities.

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