UIA urges local investors to register their investments

INVESTMENT

KAMPALA-The acting Executive Director of Uganda Investment Authority (UIA), Lawrence Byensi, has appealed to Ugandan investors to register their investments with the investment body because it comes with many opportunities and benefits.

 

Addressing Ugandan and foreign investors at the Sheraton Kampala Hotel in Kampala, Byensi encouraged Ugandan investors who have not registered with UIA to do so in order not to miss out on investment opportunities.

 

"I want to encourage Ugandans who haven't registered with Uganda Investment Authority to do so, so that when we get opportunities, you don't miss out", Byensi said on Wednesday.

 

Byensi noted that although UIA caters for all investors, some domestic ones have not had their investments registered with the agency, a thing the chief executive wants changed.

 

UIA, as the investment promotion agency of Government, facilitates and promotes investments in the country. The agency registers investors and maintains the records in a database of investors, both domestic and foreign.

 

Byensi explained that whenever investment opportunities arise, like access to land in industrial parks, business trips or participation in business fora, UIA uses the database to match investors to such opportunities.

 

Responding to the perception by some Ugandan participants that UIA mainly serves foreign investors, Byensi responded that the UIA also serves Ugandans, some of whom actually use her services.

 

According to Byensi, whenever the authority analyses investment data, Ugandans emerge as the top sources of investments, showing that there are Ugandan investors who appreciate the importance of the agency.

 

He said it is important that Ugandans pick up interest and start accessing UIA's services because the agency is there to serve them.

 

"Please register your investments with Uganda Investment Authority because it is there to serve you", Byensi stressed.

 

On incentives, Byensi said that under the new Investment Code Act of 2019 the government has, for the first time, set criteria for investors to get incentives.

 

President Yoweri Museveni assented to the Act on February 20, 2019. It is waiting to be gazetted.

 

Section 12 of the new investment code provides that an investor, whether domestic or foreign, qualifies for incentives when the investor meets the minimum investment capital for investment and engages in any of the priority areas listed in the Act.

 

The 26 investment priority areas in the Act include; agro-processing, food processing, building materials, automobiles, logistics and warehousing, information technology, tourism and oil and gas.

 

Other conditions are that the investor exports a minimum of 80% of the goods produced, provides for substitution of thirty percent of the value of imported products, sources seventy percent of the raw materials used locally, directly employs a minimum of sixty percent of citizens, and introduces advanced technology or upgrading of indigenous technology

 

Byensi explained that in addition to the incentives listed in the new investment code, there are other incentives like allowing plant and machinery duty free, no taxes on exports and 20% deductible allowance for companies that put up industrial structures, amongst others.

 

According to Byensi, an investor who invests $100 m (sh372b) to set up an industrial park is entitled to a five-year tax holiday, while an operator of an industrial park with injections of five million dollars (for locals) and 15 million dollars (for foreigners) gets a five-year tax holiday.

 

He explained that there are also sector-specific incentives for investors in, amongst others, agriculture, oil and gas, energy, tourism and health.

 

Byensi called upon prospective investors, particularly Ugandans, to utilise UIA's One-Stop Centre, in which 12 investment service providers are represented, and its online portal www.ebiz.go.ug.

 

UIA's Deputy Director for Investment Promotion, Martin Muhangi, said the incentive regime is non-discriminatory and applies to both domestic and foreign investors, stressing that it is aimed at making Uganda attractive and competitive.