Events
Press Releases / Press Center
Development of cooperation with the Republic of Uganda (East Africa)
At the current time business relations between Russia and Uganda are developing at the level of regional business structures.
Activity by the leaders of Uganda is creating favourable conditions for development of investment activity in the country. There are promising projects which could be of interest to investors of Krasnodar Region.
In its turn the Department of External Economic Activity of Krasnodar Region is ready to provide assistance in establishing business contacts with state and business structures in Uganda. The contact person is VG Chugunnikova, telephone (861) 273 11 24.
Reference information
about the investment climate and investment projects in Uganda
The government of Uganda is carrying out specially targetted and sequential work on creating a favourable climate for foreign investment in the economy of the country. There is a corresponding legislative basis, and an Investment Centre is in operation providing practical assistance in identifying projects for foreign investors and drawing up documents. The minimum amount of foreign capital investment is $100 000, there is no requirement to haved local co-owners' participation in realising business projects, and foreign investors are allowed to take out loans from Ugandan banks for investment purposes.
The profit gained can be taken out of the country in full, there is a right to import machinery, workbenches and equipment necessary for setting up production into the country free of customs duty. The time scale for issuing licences and permits is not more than five days.
The most favourable conditions have been created for capital investment in the agricultural sector, mining, the processing and energy fields, as well in the sphere of industry, fisheries, tourism, education and finance.
Liberalisation of economic relations is continuing, and a range of incentives for private entrepreneurship is in operation, measures are being taken to develop infrastructure, the educational level of the local population is being raised, and external economic links are being diversified.
The line announced by the country's leaders recently of not exporting raw materials but creation instead, on an investment basis, of capacity to process agricultural products, and speeding up of renovation of the railway system linking Uganda with the port of Mombassa (Kenya) are creating extra favourable conditions for capital investment and execution of export-import operations.
Representatives of official circles in Uganda at various levels are expressing their interest in participation by Russian investors in development of the fuel and energy sector (equipping of hydroelectric stations), and carrying out geological prospecting works for hydrocarbons (total discovered reserves of oil over the given period amount to approximately 500 million barrels).
Ugandans have stated their readiness to provide Russian businessmen with plots to carry out exploration-prospecting work, construction of energy producing facilities of varying capacity, and assistance with introduction of alternative energy technology. In relation to this it should be emphasised that the energy crisis in Uganda resulting from a sharp reduction in the capacity of hydroelectric stations following a fall in the water level in Lake Victoria, has driven representatives of business circles of Norway, Saudi Arabia and other countries to more quickly equip small and medium capacity diesel power stations.
In connection with the fact that the geological potential of Uganda in terms of mineral resources currently remains almost unstudied, an exceptionally promising opportunity for Russian specialists from the Ural region and Siberia to participate in processing and carrying out a programme of geological research in Uganda is offered, to which the government has allocated $40 million. At the same time it is known that the country has reserves of gold, cobalt, copper, tungsten, uranium, iron ore and other mineral resources (more than 50 different types).
The real potential of Russian-Ugandan trade-economic cooperation today has expanded reserves. In particular, Uganda is experiencing heavy demand for automobile, aviation, road building, agricultural, medical and industrial equipment, construction materials, fertilisers, rubber goods and other goods which can be provided by Russian regions.
Ugandans, in their turn, have the opportunity making deliveries at a cost lower than world prices to subjects of the Russian Federation of coffee, tea, flowers, fruit, fish, timber, cotton, vegetable (palm) oil, meat and dairy products, and textiles.
There is solid potential for development of cooperation in the sphere of tourism, as the Ugandan national parks are second to none in riches of flora and fauna, and in some ways exceed the world famous African reserves. These conditions are complemented by the opportunities for rafting along the Nile, fishing on Lake Victoria and other lakes.
It could be useful for economic operators from subjects of the Russian Federation to take part in the annual autumn international exhibition fair in Kambala, at which the most varied products are displayed, from mass consumption goods and food products to automobile technology and industrial equipment.
All these possibilities could give rise to even greater interest in connection with the expected expansion of the Ugandan market area resulting from the creation of the East Africa Federation of Uganda, Kenya, Tanzania, Rwanda and Burundi. The start of its becoming fully operational has been announced for 2012-2013.
The Ugandan department for investment is currently inviting foreign investors to take part in realisation of projects in the following fields:
Energy
Transport infrastructure
Information and communications technology
The geological sector
The aviation sector (Entebbe airport).
The Department will be pleased to provide detailed information about these and other investment projects.
