Uganda is presently enjoying the euphoria of its most recent achievement, having secured the title of Best Investment Destination in Africa awarded by its investment authority in 2024.
The country was recognized and honored as the premier investment location in Africa during the latest Annual Investment Meeting (AIM) held in Abu Dhabi.
Over the last two years, this East African nation has successfully drawn in more than $1 billion in Foreign Direct Investment (FDI) from the United Arab Emirates (UAE), resulting in a total FDI exceeding $1.5 billion in 2023.
The news was confirmed by the state minister for Investment Evelyne Anite who stated that the award was bagged at the Annual Investment Meeting (AIM).
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Uganda has been awarded a recognition award of best investment destination in Africa,” said Anite.
Uganda’s Achievement So Far
In 2023, Uganda won the award for ‘best investment destination in East Africa.’
Uganda was also ranked among the top 10 in industrial development by the Africa Development (AfDB) Africa Industrialisation Index 2022.
Uganda has attracted more than US ($)1 billion in Foreign Direct Investments (FDI) from the UAE over the past two years, according to statistics from the Ugandan embassy in the UAE.
The Ministry of Finance, Planning and Economic Development (MoFPED) has noted that Foreign Direct Investment (FDI) inflows into Uganda increased from $1.36 billion in April 2022 to $1.5 billion for the year ending April 2023.
More Insight
The World Bank reports that Foreign Direct Investment (FDI) makes up more than 4% of Uganda’s gross domestic product (GDP). Despite facing sanctions from Western countries, the international financial institution anticipates a significant economic expansion in Uganda. The country’s economic growth is forecasted to increase from 5.3% in 2023 to 6.0% in 2024.
According to World Bank Statistics, FDI contributes over 4% to Uganda’s Gross Domestic Product (GDP). The World Bank also predicts Uganda’s economy to grow from 5.3% in 2023 to 6.0% in 2024.
Uganda has put in place various measures to encourage Foreign Direct Investment (FDI), with a particular emphasis on establishing a conducive business climate.
The multi-faceted strategy put in place by the Ugandan government driving an increased FDI inflow includes reliable electricity, tax holidays, efficient transport infrastructure, and reliable high-speed internet.
Uganda’s 2024 Economic Outlook
Uganda’s economic outlook for 2024 appears promising as Global Research firm BMI projects real GDP growth of 5.8 percent after a slowdown to 4.6 percent in 2023.
Professor Ibrahim Mike Okumu, Dean of the School of Economics at Makerere University, shared insights on the country’s economic recovery and resilience during a recent interview on CNBC Africa.
Looking back at the challenges faced in 2023 due to the COVID-19 pandemic, Professor Okumu expressed optimism about Uganda’s path to recovery, citing initiatives like the Parish to Augment model.
This model aims to transition households from subsistence farming to commercial production by focusing on financial inclusion, infrastructure development, and value addition in the agricultural sector. He highlighted the importance of reducing post-harvest losses and enhancing marketing strategies to maximize production outcomes.
Furthermore, the entry of Uganda into the global oil market and the focus on leveraging the tourism sector indicate potential growth opportunities for the country.
As Uganda learns from its regional counterparts and adapts to changing market dynamics, the outlook for 2024 seems positive.
When discussing Uganda’s resilience amidst economic challenges, Professor Okumu acknowledged the country’s stable currency and prudent financial management by the Central Bank.
Despite external pressures such as the shift of investment towards safer Western markets, he emphasized Uganda’s ability to navigate macroeconomic headwinds.
The country’s resilience in the face of global market dynamics sets a favorable tone for economic growth in 2024.
About The AIM Global Investment Awards
The AIM Global Investment Awards was set aside to recognize and celebrate the top-performing investment promotion agencies worldwide.
The event featured over 170 countries that participated in various exhibitions and promoted investment opportunities in their various countries.
Uganda was singled out for its stellar performance in attracting investments and the generally favorable conditions for businesses to thrive in the country.
What To Know
According to the World Bank economic growth in Uganda has accelerated slightly despite external shocks. GDP grew by 5.3% during the first quarter of 2024, supported by an oil-related construction boom and robust growth of agriculture, despite volatile weather conditions.
According to the Bank of Uganda, the Netherlands remained the primary source of foreign direct investment (FDI) inflows, accounting for 38% of the total, closely followed by the United Kingdom, which contributed 37%. Other significant source countries included Mauritius (7%), Kenya (5%), and Switzerland (3%).
The AIM Congress 2024 held in Abu Dhabi was themed “Adapting to a shifting investment landscape. Harnessing new potential for global economic development”. The event lasted for two days.
