Local investors don’t seek incentives

Jan 20, 2009

LOCAL investors do not seek services offered by the Uganda Investment Authority (UIA), a top official has disclosed. The disclosure comes after several complaints from the local investors that UIA discriminated against them when offering incentives.

By David Muwanga

LOCAL investors do not seek services offered by the Uganda Investment Authority (UIA), a top official has disclosed. The disclosure comes after several complaints from the local investors that UIA discriminated against them when offering incentives. The local investors have also repeatedly accused UIA of giving priority to foreign investors.

“Let me use this occasion to dispel the perception that local investors are discriminated against when it comes to incentives. Our incentive regime is non-discriminatory,” Patrick Bitature, the board chairman, explained.

“I, therefore, encourage all local investors to visit the investment centre where we have the one-stop shop.Our officers will explain to you what incentives are available to all investors, foreign and local alike,” Bitature said at the agency’s investor-of-the- year award ceremony at Hotel Africana in Kampala over the weekend. He said the investment climate in 2008 was good.

“UIA licensed 350 projects with a planned investment value of $2.4b, which was projected to create 48,805 jobs,” he said.

“This is an improvement from the previous calendar year when we licensed 357 projects with, planned investment of $2.2b,” he added.

He said the transport and communications sectors were top performers in 2008 with planned investment of $946m.

These were followed by the manufacturing sector with a $641m investment and the finance and banking sector with planned investment of $380.

Bitature said the 10 sources of foreign direct investment included Singapore, Belgium, the UK, India, Kenya, Pakistan, Mauritius, China, Finland and the US.

“Ugandan companies came second to Singapore as regards to overall investment value,” the chairman disclosed. He said Singapore plans to invest $465m in three projects projected to create 920 jobs, while Ugandans plan to invest $426m in 94 projects projected to create 13,431 jobs.

“I also wish to appeal to the media and all stakeholders to be sensitive to investment promoters when reporting. Insensitivity in this case portrays Uganda poorly and discourages investors,” Bitature said.

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