Arab investors to partner with Ugandan Businesses

By Samuel Sanya

President Yoweri Museveni has welcomed a high powered delegation of 60 Arabian Investors, urging them to boost the private sector through investments in capital intensive businesses.
               
He urged the investors to focus on value addition of agricultural produce, adding that doing so will transform the industrial sector and the entire economy in record time.

"Local investors are concentrating on small businesses in the transport sector, hair salons, night clubs and real estate. We need investors like you who can spend in excess of $20m (sh50b)," the President said.
               
"The government is working to ensure that electricity supply deficits are stamped out. The macro-economy is stable. All crops can do well here and our tourism sector is a gold mine," he added.
               
The President was speaking at the start of a three day Gulf Cooperation Council (GCC) investment forum at the Sheraton hotel in Kampala.

Representatives fromUganda's private sector, ministers, UN agencies, development agencies and banks are in attendance.
               
The GCC delegation is composed of investors from Bahrain, Kuwait, Oman, Saudi Arabia, United Arab Emirates and Qatar.
               
The investors are seeking to buy into existing Ugandan businesses in the cotton, dairy, meat, tourism, energy, fruit and vegetables subsectors in assition to  forming joint ventures.
               
The president explained that Uganda enjoys cordial trade ties with countries in the Common Market for East and Southern Africa with a market of 500m people, the EAC with 130m people and a market of 34m people locally.
               
The country also enjoys quota and tax free trade agreements with the US and Europe through African Growth Opportunity Act (AGOA) and the EBA (Everything But Arms) programs. He also revealed that  Somalia has applied to join the East African Community (EAC) and that the African continent is moving towards a common market in the year 2030.
               
Maria Kiwanuka, the finance minister pointed out that Uganda is well positioned at the heart of Africa to act as a distribution hub for the continent.
               
"The country is reaping the benefits of economic stability. Going forward, government efforts will be focused on reducing the cost of doing business," she said.
               
She urged the investors to exploit the lucrative natural resources sector with emphasis on the young oil and gas sector. 
Sheikh Ebrahim Al Khalifa, the 18th in the line of succession to the Bahraini throne and UNIDO Board of Trustees chair noted that the partnership with countries in the gulf will reduce unemployment rates in the country.
               
"There is a positive expectation that the partnership between and Uganda and the countries in the gulf will lead to strong economic growth through value addition to Ugandan products," he said.
               
Ambassador Abdelaziz El Khelef, the director general of the Arab Bank for Economic Development in Africa pointed out that Gulf States are keen on exploiting the comparative advantages in Uganda and the GCC.
               
"Let us spare no effort in creating synergies and exploit our different areas of competitive advantage," he said.

Ambassador Khalil Al Khonji, the chairman of the Federation of the GCC chambers of commerce noted a vibrant private sector and Foreign Direct Investment (FDI) are essential to achieve economic growth.