The Uganda Investment Authority (UIA) and the French Chamber of Commerce Uganda (FCCU) have held a hybrid breakfast meeting to discuss investment opportunities and business operations in Uganda.
The meeting, hosted at UIA headquarters in Kampala on January 22, 2025, focused on key areas including investment opportunities, incentives for investors, and policy recommendations to facilitate business growth.
UIA’s Acting Deputy Director General, Martin Muhangi, emphasized that the UIA-FCCU platform is a vital tool for strengthening Uganda-France investment relations.
“In the last ten years, UIA has issued 10 investment licenses to French companies, amounting to $5.1 billion in planned investments and targeting the creation of 1,333 jobs for Ugandans,” Muhangi said.
He highlighted agriculture, transport, energy, e-mobility, and digital technologies as key sectors of French investment in Uganda.
Muhangi further noted that Uganda's GDP is projected to grow at 6.7% in the medium term, with a stable security environment, enhanced infrastructure, and developments in the oil and gas sector creating a favorable business climate.
“I assure you of UIA’s support and extend an invitation to the French Chamber of Commerce, alongside their counterparts in Kenya and Tanzania, to collaborate in promoting investment opportunities across East Africa,” he added.
Investors keen on Uganda’s business climate
FCCU President, Thomas Pelletier, reaffirmed the French business community’s interest in Uganda, citing the country’s conducive investment environment.
Uganda Revenue Authority (URA) Tax Revenue Officer, Molly Alice Dusabe, outlined the process for investors to access tax incentives:
- Register the company with Uganda Registration Services Bureau (URSB)
- Obtain tax registration with URA
- Acquire a free investment license from UIA
Once these steps are completed, an investor must write to URA’s Assistant Commissioner of Trade and the Assistant Commissioner for Business Policy to request tax exemptions.
“If approved, the investor will be exempted from VAT and withholding tax. The details will be uploaded on the URA portal (https://ura.go.ug), and URA will issue a letter granting the tax exemption,” Dusabe explained.
For investors seeking a 10-year tax holiday in an exempted sector, Dusabe noted that they must:
- Have certified tax/accounts returns for at least three years
- Be compliant with Pay-As-You-Earn (PAYE) tax
- Ensure at least 75% of their workforce comprises Ugandans
Peter Sekajja, a Standards Officer at the Uganda National Bureau of Standards (UNBS), warned investors against relying on third parties for regulatory processes.
“You cannot rely on a third party to help you deal with agencies like UNBS, UIA, and URA. They exploit the process at your expense,” Sekajja cautioned.
Ritah Mugula, UIA’s Deputy Director of Investment Promotion, encouraged investors to use UIA’s One-Stop Centre (www.ebiz.go.ug) as the first point of contact for all investment-related inquiries.
The forum reaffirmed Uganda’s commitment to attracting and facilitating investment, while offering insights into policy frameworks, regulatory compliance, and available incentives for foreign investors.
