Why its timely for Uganda to Host Business Delegations from the Asia Tigers

Uganda Edged led edging all other East African countries in FDI attraction, according to the World Bank update report. Uganda attracted Foreign Direct Investments (FDIs) worth $1.8 billion in 2013, Tanzania, $1.5 billion and Kenya only $249 million. Uganda’s FDI dwarfs Kenya’s seven times with Tanzania receiving six times more foreign investment than what Kenya gets.

The Business Environment in Uganda has over the last 3 months been punctuated by inflow of several business personals from across the world. First was the Singapore business community that was in Uganda from 24 -27 April 2016. This was closely followed by the EUROPEAN FOOD AND DRINKS FESTIVAL from 6TH – 8TH MAY 2016. Closely there after, the heads of state from South Korea and Turkey led business delegation as they held bilateral talks with the Ugandan counterpart arriving on 28th May and 31st May 2016 respectively.

The accompanying business community had an opportunity to meet Ugandan business counterparts to explore trade and investment/partnership opportunities. Among the outstanding things was that, it was the first time a Turkish President H.E. Recep Tayyip Erdoganand South Korean President H.E. Park Guen-hye was visiting Uganda which indicated that those states mean business. Bravo to Uganda's Head of staff to invite them to Uganda as their steady Economic growth offers Uganda an example to look at and technological prospects going forward.

I was privileged to attend the Business to Business (B2B) meetings held between the Turkish Business Community and Ugandans. What struck me the most was that those Turkish businesses whose products/ services had potential to set up manufacturing units in Uganda had long ques of Ugandan Business community struggling to meet them. The most 'Qued-after' Companies were from the sectors of Pharmaceuticals, Agribusiness, Oil& Gas, Manufacturing as well as services such as ICT, Tourism. This in part points to the changing mindset among Ugandan business community to consider investment more than just trading in products like furniture and as a matter of fact the tables for companies dealing in furniture were largely empty. To miss no pint, these sectors are part of the priority list of sectors highlighted in Uganda's National Development Plan II as well as Uganda Free Zones Authority. Uganda is targeting to accelerate the economy into a middle income with in 30 years according to the Vision 2040 and industrialization has been fronted as a key pillar.

The Business forum that took place at Serena was packed with Uganda's leading business people like Patrick Butature (Chairman of Simba Group), Ministers like Hon. Matia Kasaijja. Key sector flag bearers like Hon. Dr. Elly Karuhanga the Ugandan Chamber of Mines and Petroleaum Chairman, who made a philosophical speech encouraging the Turkish Business Community not to think twice about investing in Uganda. He Quoted Thomas Giddings;

'There's no other place like this place anywhere near this place, so this must be the place'.....Refering to Uganda's readiness to receive FDI from Turkey..

Uganda shares a lot with these tigers like Singapore, South Korea that have transformed themselves in first class economies of the 21st century from nothing. The backbone to the rapid economic growth is SMEs according to Lee Kuan Yew's Book, 'From third world to first'. Uganda has prioritized SMEs as an engine of growth as 2.5 Million people are employed by SMEs. In addition, SMEs constitute up to 90% of the private sector and contribute over 70% of GDP

So the window of opportunities is half open for the Ugandan business community needs to follow up the business leads to nurture them to become fully blown business realities. It is no coincidence that the Uganda President H.E Yoweri Kaguta Museveni will in a couple of weeks lead a business delegation to Turkey offering the business community an opportunity to cement business relationships and possibly crack some deals.

Its timely that Uganda has set up Uganda Free Zones Authority mandated to establish, manage and supervise the operation of Special Economic Zones. Its in these zones that such prospective investors could set up and enjoy full benefits such as tax incentives, first class infrastructure and abundance of markets regionally and internationally. With such Facilities, Uganda should be prepared to receive FDIs and ensure administration is minimized to foster speeders set up as mooted by the President in the recent state of the national address and address at the Turkish-Uganda business community.

 Philip Muwanika is an international trade expert and the outgoing Traidlinks Assistant Export Development program Manager/ Regional Coordinator for the MarketLinked Regional Export program (co-funded by Irish Aid and TMEA with the aim of establishing an export promotion system across East Africa for EPAs and Export companies to access).Philip has close to 10 years’ experience in trade policy and trade facilitation, export competitiveness and he is an ITC certified international trade Adviser. He is a regular writer on economic development especially trade related aspects. He is currently the Business Development Executive, Uganda Free Zones Authority.

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