Where to Invest in Uganda 2025: Key Sectors and Opportunities Highlighted by Hiromi Abe
World Business Journal talks to Hiromi Abe, Private Secretary to the President for Investment Matters at the State House, about the country’s investment landscape, highlighting the abundant opportunities across key sectors and the various advantages and incentives offered to both local and foreign investors.
Which sectors show the most investment potential?
We are prioritising key investment sectors, starting with agriculture, which accounts for approximately 32% of GDP and employs 72% of the workforce. The focus is on value addition in canned tomatoes, soybeans, pineapples, fruit juices, pulses, and edible and cosmetic oils, along with significant growth potential in dairy processing, particularly cheese, cream, and ice cream.
Manufacturing is vital for economic growth, with factory numbers tripling in 5 years. Opportunities in cotton value addition and furniture manufacturing are significant, given that 90% of ginned cotton is exported and there’s a ban on raw timber exports.
The tourism sector offers significant investment opportunities, particularly in hotels, resorts, and activities like water sports on Lake Victoria and mountain adventures.
We prioritise mineral value addition by banning the export of raw minerals to encourage local processing, stimulating growth in industries like cement and steel.
The vehicle parts sector is also emerging; with companies like Kiira Motors Corporation assembling vehicles, there is a need for local production of vehicle parts to reduce imports.
Infrastructure development, including roads, bridges, and railway networks, is a government priority.
Our abundant solar, hydro, and geothermal resources offer potential for sustainable energy. The World Bank’s regional power integration initiative will enable energy trading with neighbouring countries, attracting investors in power generation.
The ICT sector offers investment opportunities in e-government services, data centres, BPO, and KPO, with high demand despite limited infrastructure.
The real estate sector, particularly affordable housing, deserves attention due to a significant housing deficit of 2.4 million units. This gap underscores the critical demand for low- and medium-cost housing solutions, creating a valuable opportunity for development and investment.
What makes Uganda an attractive destination for manufacturing?
Our strategic location offers access to five neighbouring markets and abundant raw materials, backed up by a youthful, educated, and cost-effective workforce.
Investors can benefit from a clear legal framework offering a 10-year income tax holiday and import duty exemptions for qualifying businesses. Non-tax incentives include free land in industrial parks and essential infrastructure support.
The environment allows for 100% foreign ownership and free capital movement. Political stability and consistent leadership create a secure investment climate, while the Buy Uganda Build Uganda policy prioritises locally manufactured goods in government procurement, ensuring a reliable market for manufacturers.
What advice do you have for first-time investors in the country?
Establish connections with the relevant stakeholders and departments to ensure you obtain precise and credible information. Begin at your embassy and rely on the Uganda Investment Authority for a secure investment experience. Our office is also here to assist investors at any stage—helping you understand incentives, policy, and priority sectors; our role is to facilitate investment and align it with national interests.
