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BUSINESS OPPORTUNITIES
IN UGANDA
FACT PACK
Business Sweden in Nairobi
2017
BASIC FACTS
Population: 39 million (2015)
Area: 241,038 sq. km (km2)
Capital: Kampala
Languages: English (official), numerous
indigenous languages
Currency: Uganda Shilling (UGX)
GDP: USD 27.5 billion (2015)
GDP growth: 5.1% (2015)
Inflation: 5.2% (2015)
Exports: USD 2.3 billion (2015)
Imports: USD 5.5 billion (2015)
Swedish Export: SEK 102 million (2015)
Swedish Import: SEK 62 million (2015)
MAP OF UGANDA AND SURROUNDING
TERRITORIES
3 MARCH, 2017 BUSINESS SWEDEN 2
UGANDA BRIEF FACTS
SOURCES: WORLD BANK, UN COMTRADE, NATIONAL BOARD OF TRADE – KOMMERSKOLLEGIUM
UGANDA
KENYA
TANZANIA
SOUTH SUDAN
DR CONGO
RW
BUR
Kampala
BUSINESS SWEDEN 3 MARCH, 2017 3
UGANDA’S POLITICAL AND ECONOMICAL ENVIRONMENT
HAS BEEN EVENTFUL THE PAST FIFTY YEARS
SOURCE: BUSINESS SWEDEN ANALYSIS, UGANDA BUREAU OF STATISTICS, EAST AFRICA COMMUNITY SECRETARIAT, BBC
THE DISCOVERY OF LARGE OIL DEPOSITS IS EXPECTED TO STIMULATE UGANDA'S GROWTH THE COMING YEARS
1962
Independence
Uganda
becomes
independent
from United
Kingdom
Military coup
Milton Obote
loses his
leadership in
coup led by
Army chief Idi
Amin
1971 1972 1979 1986 2000 2006 2009 2014 2040 2016
Deportations
Idi Amin orders
approx. 60,000
Asians who are not
citizens to leave
the country
Regional conflicts
Idi Amin declares
himself president
for life and claims
parts of Kenya
Uganda engages
in border clashes
with Tanzania
New president
National
Resistance
Army rebels take
Kampala and
install Yoweri
Museveni as
president
Establishment of EAC
East African
Community is
established and
Uganda becomes
part of it
Tanzania
invasion
Tanzania
invades
Uganda
leading to
Idi Amin’s
fall
Oil discovery
Commercial oil
reserves
discovered
estimated at 6,5
billion barrels
Oil discovery
Discovery of
additional
commercially
viable
deposits of
2.5 billion
barrels of oil
Rapid growth
GDP expands by
13% after the
state rebased its
calculations to
incorporate new
sectors in the
economy
Election
President Museveni
was re-elected in
February, 2016, for
another five-year term
Vision realised
Uganda’s 2040
vision is expected
to have
transformed
Uganda to a
middle income
economy
OVERVIEW OF UGANDA’S 2040 VISION
BUSINESS SWEDEN 3 MARCH, 2017 4
UGANDA’S VISION AIMS TO TRANSFORM THE COUNTRY
TO A MIDDLE INCOME COUNTRY BY 2040
SOURCE: UGANDA VISION 2040
Government will make investments in better urban systems that enhance productivity, liveability
and sustainability
Government also aims to strengthen urban infrastructure and public service facilities to enable
better service delivery such as basic physical infrastructure, housing and social amenities
Government will make investments in strategic areas and take private sector market driven
actions
Public-private partnerships will be promoted and encouraged for investments in strategic areas
and areas of national interest
Continuous institutional restructuring will be implemented and new public management
techniques will be adopted
New reforms such as deregulation of bureaucratic government rules and procedures will be
implemented, enabling efficient and effective service delivery while harnessing synergies
Quasi-Market
Approach
Socio-Economic
Transformation
Approach
Business
Approach
THE MULTI-DIMENSIONAL APPROACH AIMS TO TRANSFORM THE COUNTRY TO A MODERN AND PROSPEROUS SOCIETY
OPPORTUNITIES AND CHALLENGES IN THE UGANDAN MARKET
BUSINESS SWEDEN 3 MARCH, 2017 5
THE BUSINESS SITUATION IS IMPROVING, BUT POOR
INFRASTRUCTURE IS STILL A CHALLENGE
SOURCE: BMI UGANDA OPERATIONAL RISK REPORT, BUSINESS SWEDEN ANALYSIS
Government is investing in infrastructure upgrade and
provides incentives for investments, including tax
deductions and exemptions +
Uganda is part of the East African Community, which
gives access to a large market and additional the
community together works on regional upgrades
Labour costs are low and the working-age population
is growing. Labour force is in general low-skilled but
the country is open for foreign workers
Tax levels are high and there is red tape for
bureaucratic procedures
-
+
+
-
-
Electrification is low, only 20% have access to
electricity and energy cost is high and supply is
unreliable
Transport network is of poor quality and transporting
goods across the country is expensive. Additionally,
Uganda does not have access to any seaports
-
-
THE MEMBERSHIP IN EAST AFRICAN COMMUNITY GIVES ACCESS TO A MARKET OF AROUND 140 MILLION PEOPLE
NOMINAL GDP 2015-2020E USD BILLION
MAIN DRIVERS OF THE ECONOMY
3 MARCH, 2017 BUSINESS SWEDEN 6
UGANDA’S ECONOMY IS GROWING FASTER THAN THE
AVERAGE OF SUB-SAHARAN ECONOMIES
SOURCES: BUSINESS SWEDEN ANALYSIS, WORLD BANK COUNTRY PAGE UGANDA AND WORLD BANK DATA
GDP TABLE, NEW VISION, IHS Inc.
28,3 29,9
31,6 33,4
35,4 37,4
2015 2016e 2017e 2018e 2019e 2020e
CAGR*
* COMPOUND ANNUAL GROWTH RATE
Large public sector infrastructure projects, together with
growth in the industry and service sectors are expected
to be the main growth drivers for Uganda’s economy the
coming years
Strong regional demand and regulatory integration
within the East African Community are also expected to
support Uganda’s growth the coming years
Uganda's medium-term economic outlook is expected to
be significantly boosted by the discovery of
commercially viable oil wells on Lake Albert. The
government and involved oil companies are expecting
initial production during 2017–18
Foreign-financed construction of the Karuma and Isimba
hydropower plants and the Mombasa-Kampala standard
gauge railway are expected to support construction
sector growth
CONTRIBUTION TO GDP BY SECTOR (2015)
CHARACTERISTICS
The agriculture sector is still strong in Uganda and the
country is among the leading producers of coffee,
bananas and oil seed crops. The agricultural sector is
also strong in other products such as tea, cotton,
tobacco, essential oils and flowers
The manufacturing, mining and utilities sector is also a
large contributor to the economy
Oil production is expected to be a key driver for
growth the coming years
Manufacturing is still relatively small and dominated
by smaller companies and low value added goods or
basic consumer goods
The ICT sector, although relatively small, is the fastest
growing sector in the economy. The Ugandan
government has invested in improved network and
digitalisation of government institutions which opens up
for further growth
3 MARCH, 2017 BUSINESS SWEDEN 7
AGRICULTURE IS STILL A MAIN CONTRIBUTOR TO
UGANDA’S ECONOMY
SOURCES: BUSINESS SWEDEN ANALYSIS; UGANDA BUREAU OF STATISTICS, UGANDA COMMUNICATIONS
COMMISSION (UCC), UGANDA INVEST, PWC UGANDA
24%
21%
16%
7%
6%
26%
Agriculture, Hunting,Forestry & Fishing
Manufacturing, Mining& Utilities
Wholesale, Retail,Restaurants & Hotels
Construction
Transport, Storage &Communication
Other activities
THE ICT SECTOR IS THE FASTEST GROWING SECTOR AND THE GOVERNMENT IS FOCUSING EFFORTS IN DIGITALISATION
SWEDISH EXPORTS TO UGANDA, 2011-2015 MSEK
SWEDISH IMPORTS FROM UGANDA, 2011-2015 MSEK
3 MARCH, 2017 BUSINESS SWEDEN 8
EXPORTS TO UGANDA ARE DECLINING BUT IMPORTS
ARE ON THE RISE
SOURCE: UN COMTRADE
682
172 148 109 102
2011 2012 2013 2014 2015
SWEDISH EXPORTS TO UGANDA, 2015
Devices and other equipment
for telecoms 40%
Manu-factured goods 40%
Paper and pulp 8%
Chemicals & related products
11%
Crude materials and fuels
1%
27
50 50
31
62
2011 2012 2013 2014 2015
SWEDISH IMPORTS FROM UGANDA, 2015
Food & live animals*
99%
Misc-ellaneous
manufactured goods
1%
* MAINLY COFFEE, TEA, FRUITS AND CUT FLOWERS
Oil Refinery Project 2018 – 2020
The discovery of commercially
viable oil reserves in the country is
intended to initially increase
electricity supply. When completed
in 2020, the USD 3 billion oil
refinery is expected to have a
capacity of 60,000 barrels a day.
The facility will be located in the
Western part of the country, not far
from Lake Albert
BUSINESS SWEDEN 3 MARCH, 2017 9
LARGE ONGOING INFRASTRUCTURE PROJECTS ARE AN
INTEGRAL PART OF UGANDA’S GROWTH PLANS
SOURCES: BUSINESS SWEDEN ANALYSIS, UGANDA CIVIL AVIATION AUTHORITY, NEW VISION, UGANDA MINISTRY OF ENERGY & MINERAL DEVELOPMENT
Standard Gauge Railway 2013 – 2017
Construction has already started in
Mombasa, Kenya and once complete,
the new line will connect Mombasa to
Malaba, then onward to Kampala then
Kigali. The construction that will join
Kampala through Malaba to Nimule in
South Sudan is at an estimated cost of
USD 3.3 billion
Kampala
Airports Upgrade and Development
2014 – TBD
The USD 386 million project to upgrade
the Entebbe International Airport in
Entebbe and develop regional airports
with the latter expected to improve
upcountry infrastructure and boost
tourism. The overall vision is to make
the Ugandan aviation industry the
safest, most efficient and affordable in
Africa and beyond
Bus Rapid Transit 2014 – TBD
Uganda’s BRT project which is
part of a larger mass rapid transit
project is being implemented in
the greater Kampala metropolitan
area The project’s estimated
budget is USD ~650 million
Gulu
Kasese
Malaba
BUSINESS SWEDEN 3 MARCH, 2017 10
THERE ARE A NUMBER OF BUSINESS OPPORTUNITIES
FOR SWEDISH COMPANIES IN UGANDA
Establishment of information and
communication infrastructure and
broadband services
Business Process Outsourcing and
Information Technology Virtual
Zones (ITVZ)
ICT business services incubation
and training facilities
Establishment of Internet Service
Provider facilities in additional areas
ICT
Construction of office buildings
Building shopping malls and
complexes
Construction of residential villas,
apartment complexes and housing
estates
Construction of hotels, resorts and
lodges
Real Estate
UN is annually procuring goods and
services worth 28 BN SEK in Africa
One of UN’s two main procurement
hubs in Africa is located in Entebbe.
Swedish companies has
successfully supplied solutions in
healthcare, prefabricated shelter
solutions, civil security and water
and sanitation
Business with the United Nations
Expansion and upgrade of the
International airport and
development of regional airports
countrywide
Supply of buses, operation and
maintenance of fleet, stations and
terminals
Consultancy and service providers
for BRT
Infrastructure
Power generation stations to
increase electricity supply
Oil, natural gas and petroleum
exploration in other potential regions
of the country
Rural Electrification projects
Generation of energy using
renewable sources and solar power
Construction of new hydro power
plants
Energy
Healthcare
The government increases
investments in healthcare
E-health facilities will be
upgraded to enable
teleconsultation
An advanced telemedicine
project is being piloted
Disease burden is increasing and
pharmaceutical demand is unmet
SOURCE: BUSINESS SWEDEN ANALYSIS, UGANDA INVESTMENT AUTHORITY, UGANDA CHAMBER OF
COMMERCE & INDUSTRY, BMI UGANDA OPERATIONAL RISK REPORT
Business Sweden’s assignment is to facilitate for Swedish companies to grow
internationally and for foreign investors to invest in Sweden
We promote Sweden as an attractive, innovative and competitive business partner. An
important part is to support Swedish companies in reaching export markets with their
products and services
We are jointly owned by the Swedish government and the private sector, represented
by the Ministry for Foreign Affairs and the Swedish Foreign Trade Association
Business Sweden offers a variety of consultancy services, for example the following:
FROM STRATEGIC ADVICE TO HANDS-ON ESTABLISHMENT SUPPORT
BUSINESS SWEDEN 3 MARCH, 2017 11
BUSINESS SWEDEN IN EA CAN ASSIST YOU FURTHER
Our team in Eastern Africa
Robin Theresa Julia Brenda Anna-Paula Juliet Niclas
NAIROBI
Meshack Olive
Market Analysis
Deepen your knowledge
on local market dynamics
in your sector
Recruitment
We support in finding and
recruiting the right local
representatives
Visiting Programme
Searching and visiting
relevant partners, e.g.
distributors
Business Support
We offer office space and
administrative support on
the ground
CONTACT US
BUSINESS SWEDEN IN KENYA
Business Sweden Eden Square, 3rd floor, off Westlands road Box 13799, 00800 Nairobi T +254 20 3749760
www.business-sweden.se/kenya
