Swedish investors look to Uganda as energy, rail and dairy opportunities open up

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Uganda is emerging as a growing destination for Swedish investment, as private sector interest begins to follow diplomatic and development ties between Sweden and Uganda.

Rather than the usual aid-focused co-operation, the conversation is now shifting toward business, where Swedish companies are increasingly looking at Uganda’s energy, transport, railway, and agriculture sectors as viable investment frontiers.

This was highlighted during talks between Swedish Ambassador to Uganda Maria Hakansson and officials at the State House Investors Protection Unit (SHIPU).

The meeting in Kampala city painted a picture of a relationship in transition, from donor–recipient engagement to one shaped by investment opportunities, trade expansion and private sector participation.

Ambassador Hakansson said Sweden’s interest in Uganda is widening, with attention now turning to sectors that can deliver both economic returns and long-term partnerships. These include energy projects, railway infrastructure, agro-processing, healthcare, and coffee production.

She singled out coffee as a natural bridge between the two economies, noting that Sweden is among the world’s highest per capita coffee consumers. Uganda, she said, stands out as a key supplier with strong potential for value addition and export growth.

Behind the diplomatic tone, the message was clear. Swedish investors are increasingly scanning Uganda as a serious market rather than a distant development partner.

Growing confidence in Uganda

SHIPU head Col. Edith Nakalema said the country is seeing rising interest from foreign missions, with Sweden becoming one of several countries engaging the unit in recent months.

She said this trend reflects growing confidence in Uganda’s investment climate, supported by ongoing efforts to streamline investor services and strengthen protection frameworks.

Nakalema highlighted priority areas already attracting attention, including the standard gauge railway project, energy developments such as Karuma, and dairy production aimed at expanding Uganda’s processing and export capacity.

She also noted that Sweden’s broader support, estimated at about SEK 1.5 billion ($160 million) under the 2025–2029 co-operation framework, continues to reinforce institutional and economic foundations that support investment growth.

Nakalema stressed that Sweden has already signed a Memorandum of Understanding with the Ministry of Energy and Mineral Development, signalling early steps toward structured private sector engagement.