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.

Uganda’s Work Permit Reforms Already Boost Investment; Kambere Signals Key Visa Changes Coming

World Business Journal talks to Geoffrey Brian Kambere, Commissioner, Border and Foreign Nationals Management, DCIC, about changes made in issuing work permits, planned interventions in visa policy, and precautions to be taken while applying for work permits.

 What recent changes have occurred in Uganda’s work permit categories?

 Currently, there are 11 distinct classes of work permits, each tailored to meet the needs of the business community and foreign professionals. In 2021, the government introduced incentivised work permit categories specifically designed to promote investment in key sectors. These include B2 (Agro-processing), E (Manufacturing), C2 (Mining specific minerals), and G3 (Rare skilled professionals). To encourage participation, the statutory fees for these categories were substantially reduced from $ 2,500 to $ 400 annually.

The government further took a deliberate effort to reduce the cost of doing business in the country with the removal of the compulsory security bond fees and the introduction of a repatriation agreement. This agreement is between DCIC and the employer of the expatriate. At the end/termination of the contract, the expatriate will be removed from Uganda at the expense of the employer.

Applicants must meet specific criteria to qualify, including obtaining a Uganda Investment Authority (UIA) license, a valid mining license (for extractives), a Tax Clearance Certificate, and Interpol clearance, among others. The government emphasises the importance of protecting opportunities for Ugandans; therefore, companies hiring expatriates must demonstrate the absence of qualified local candidates.

The work permit application process is now fully automated and globally accessible online, with a standard processing period of 7 working days upon submission of all required documents. While physical interviews may be requested for verification purposes, they are not mandatory for all applicants.

Are there any planned interventions in visa policy and facilitation?

The government has planned interventions to improve facilitation and accessibility for travellers. Among them is a new business visa category designed for short-term visits ranging from a week to a month, intended to support business travel and improve monitoring of such movements.

There is also consideration for a 3-month multiple-entry tourist visa to encourage repeat visits and promote tourism.

 How has your military background shaped your leadership and decision-making as Commissioner of Immigration?

 My military background has shaped my leadership by instilling discipline, structure, and strategic clarity. It has also emphasised the importance of organisation and teamwork, which are crucial for managing complex processes.

In the military, decisions often carry immediate consequences; similarly, in immigration control, each decision impacts national security and public trust. This awareness has improved my focus on accuracy, thorough assessment, and accountability in decision-making.

Adapting to international standards, such as those from ICAO, further strengthened my capability to harmonise local procedures with global best practices, ultimately ensuring that Uganda maintains secure, fair, and efficient immigration services.

Uganda’s Ministry of Foreign Affairs on the Role of BRICS and Diaspora Networks in National Development

World Business Journal talks to Gen. Odongo Jeje Abubakhar, the Minister of Foreign Affairs at MoFA, about diplomatic missions to improve bilateral relations with key partners and advance the nation’s interests globally, while also highlighting the economic benefits of BRICS membership and initiatives to leverage diaspora engagement for national growth.

How is Uganda strengthening bilateral relations with key partners to support its growing value-added exports and market access needs?

Our 39 diplomatic missions play a crucial role in advocating for the nation’s interests on the global stage.

Engagements with international organisations, such as the Group of 77 (G77), the Non-Aligned Movement (NAM), and the Forum on China-Africa Cooperation (FOCAC), as well as our recent inclusion as a partner state in BRICS, facilitate valuable exchanges of business opportunities and collaboration.

Through platforms like the Joint Ministerial (JMC) and Joint Permanent Commissions (JPC), we actively negotiate for improved market access for our products. For instance, our collaboration with Algeria has enabled successful exports of milk, while negotiations with Tanzania have cut transit fees for trucks from $500 to $142 and secured an additional 10,000 tonnes of sugar.

These collaborations improve access to international markets, enable the acquisition of hard-to-produce products and foster technology transfers.

What are the key objectives and expected benefits from BRICS membership?

Historically, Africa has struggled to secure development funding due to politicisation. BRICS offers an opportunity for uninhibited access to investment. For example, in September last year, China committed $50B for African investments, free from political ties. This funding can be directed toward infrastructure, trade, and connectivity projects.

The global economy is shifting, as dollar reserves have decreased from 70% to under 40% in 20 years and the combined GDP of Europe, the U.S., and Japan has fallen from over 40% to 23%. Meanwhile, the BRICS nations’ share of global GDP has increased to about 33%.

BRICS membership is expected to facilitate access to essential resources, strengthen international ties, and support sustainable economic development, benefiting the nation and the broader Global South.

In what ways are diaspora networks influencing economic growth and development back home?

We recognise the crucial role of Ugandans abroad in driving our nation’s development. To leverage this potential, we have conducted diaspora meetings in key regions, including the Middle East, Europe, and the USA. Participants have expressed concerns about unclear property ownership through intermediaries.

To address this, we encourage the formation of business associations that can pool resources for collective investment. We are also developing initiatives to incentivise diaspora engagement, focusing on co-investment opportunities that yield tangible benefits for Uganda. Through these partnerships, we aim to mobilise capital and strengthen the diaspora’s contribution to our economic growth.