Key Highlights from the Inaugural Uganda-South Africa Investment Summit

The inaugural Uganda-South Africa Trade, Tourism and Investment Summit ended with the presidents of both countries calling for increased trade and investment.

Ugandan President Yoweri Museveni and his South African counterpart, Cyril Ramaphosa, discussed a number of bilateral issues, particularly how to increase trade and investment between the two sisterly countries.

Talking to the media after the talks, President Museveni said “we agreed to champion deliberate efforts to reinvigorate and boost trade between our two countries as well as put in place avenues to facilitate increase in investment”.

President Museveni said Uganda should focus on what she can export to South Africa and explore third-party markets like the United States, the European Union and China.

The two principals also explored various issues including peace and stability in the eastern Democratic Republic of Congo, now the latest entrant into the lucrative East African Community.

The inaugural Uganda-South Africa Summit was organized with the objective of providing a platform for the private sector, government and business regulatory agencies to freely exchange views, ideas, and information on how to facilitate investment, trade and tourism between the two countries.

The two-day Summit was held at the Gallagher Convention Centre in Pretoria, Mid-Rand, South Africa from February 27 to 28, 2023.

In terms of investments, the Summit focused on agriculture and value addition, mining and mineral beneficiation, infrastructure development and services, amongst others.

The State Minister for Privatisation and Investment, Evelyn Anite, said generous sector-specific incentives exist for investors and appealed to South Africans to come and invest in Uganda.

Uganda Investment Authority showcased investment opportunities in various sectors as well as bankable projects including in iron ore mining.

Pitching to the South African businesses and potential investors, the Director General of UIA, Robert Mukiza, lured them to come and invest in the mining of iron ore found in commercial quantities in Uganda, including the Muko iron ore deposits in southwestern Uganda estimated at over 150 million tonnes.

Mukiza said Uganda is looking for joint ventures that could invest northwards of 500 million dollars in iron ore mining and processing. He said investment opportunities exists in many sectors like agriculture, energy, infrastructure development and services.

He said despite Covid pandemic, foreign direct investment inflow into Uganda has upped – from $807 million in 2019, $927 million in 2020 to $1.14 billion in 2021. He attributed the progression to stable and consistent macroeconomic policies, liberalized business environment and Uganda being a regional logistics hub

Mukiza told South Africans that in Uganda has guarantee of security of person and property and allows 100 percent ownership of investment projects and repatriation of profits.

The inaugural Summit was a success, with many business-to-business engagements as well as trade and investment deals.

The President of The Republic of South Africa, H.E Cyril Ramaphosa has described President Yoweri Museveni as a true Pan-Africanist who is well versed with African history and with a strong desire to ensure that the people of the continent prosper.

“I am particularly pleased that President Museveni knows the history of the African National Congress (ANC). We are very proud to have a Pan-Africanist like President Museveni and also have him articulate points about our continent particularly the prosperity of our people,” he noted.

Meanwhile, Ramaphosa highly commended the cordial and bilateral relationship existing between the two African countries.

“South Africa is proud of its very deep and fraternal relations with Uganda that date way back to the struggle against colonialism and apartheid at a great risk and sacrifice,” he said as he hosted President Museveni at the Union Building.

President Ramaphosa pointed out that Uganda stood firm in its support for the goals of the liberation struggle of the people of South Africa and also contributed materially and in many other ways to help them attain their freedom and democracy.

“On behalf of the people of South Africa, allow me to express our appreciation to the people of Uganda for their contribution to our freedom. The relationship between our two countries is based on the principles of Pan- Africanism, commitment to human rights and also emancipation of women,” Ramaphosa observed.

He, therefore, expressed his desire that the trade bilateral relations will also be strengthened through various bodies like the Joint Commission of Cooperation that held its 2nd meeting recently in Kampala.

President Museveni on his part congratulated the people of South Africa for the struggle they waged against colonialism. He particularly paid tribute to the youth who paid the price with their lives in 1966 to ensure that the country achieves freedom.

“We are very happy that we are where we are now from the phase of struggling for freedom to the phase of working for prosperity,” he said.

President Museveni strongly encouraged members of the Joint Commission to identify and study what South Africa could do best and sell to Uganda and vice-versa.

He particularly cited coal as one of the products Uganda needs most for the processing of high-quality iron ore to steel. President Museveni also pointed out South Africa's lithium as a crucial mineral that the East African country needs in the making of batteries for electric vehicles.

He, on the other hand disclosed that Uganda, a country endowed with favorable agricultural climate could fill South Africa's high agro-based products demand.

“So, we can help you to build a new force of patriotism. The neo-colonialism has failed, what do the progressive parties do? They help to build a new force,” he noted.

Later, the two leaders witnessed the signing of various Memorandum of Understanding (MoU) that covered social, economic, legal and scientific sectors.

Uganda's Minister of Foreign Affairs, Gen. Abubaker Jeje Odongo signed many of the MoUs on behalf of the government of Uganda and Ministers Sisulu Lindiwe (Tourism), Thoko Didiza(Agriculture) , Nkoana Maite Mashabane (Women and Youth) and Naledi Pandor (International Relations) signed the agreements on behalf of the government of South Africa.

Later, at the Press Briefing, President Ramaphosa informed members of the media that the purpose of President Museveni’s visit to South Africa was to review bilateral relations and to gauge the extent on what and how they can be strengthened.

He also announced that they expressed their strong views to resolve issues that impede the economic growth of the two countries.

President Museveni later visited the Freedom Park where the history of the heroes who fought against apartheid and for the Independence of South Africa is showcased. He paid respect to the fallen heroes.

South Africa's Minister of Agriculture and Land Affairs, Hon. Thoko Didiza said President Museveni’s visit was “very important to South Africa”.

“Uganda is very green and good in production; they are known for their large coffee production. We have the Africa Continental Free trade Agreement that allows free trading among African countries and agriculture will be one of those in my view that will enable us trade with each other,” Hon. Didiza stressed.

South Africa's Tourism Minister, Hon. Sisulu Lindiwe noted, “We are signing a memorandum such that when people visit South Africa, we can direct them to Uganda and when they visit Uganda, they can be directed here. There is no competition with Uganda, we shall share the pool of visitors that come to Africa."

Uganda and South Africa have a combined 105 million people and a history stretching more than 70 years, but the result of their bilateral trade is a combined USD 153 million.