East Africa’s Fastest Growing Economy - Why You Should Invest in Uganda

Uganda is expanding at a rapid pace, much like its neighbors Kenya and Tanzania which are also situated in East Africa and are also developing countries. Before COVID-19, the World Bank projected a growth of 7.5% to 7.7% in 2019. 

Not only that, but throughout this time period, Uganda was successful in maintaining inflation rates that were lower than 5%. The following is a good summary of why you should invest in Uganda.

Good Investment Climate

As a result of the political and social stability that has prevailed in Uganda since 1986, the country enjoys a favorable investment climate that makes investing there a good idea.

The foreign investment policy is also an area the government has improved. Because of these measures, the country's economy has grown by 6.5% year prior to the outbreak of COVID-19.

The state predicts a rise in the rate of return on investment from 5 percent to 7 percent over the next few years. As compared to the average rate of return by investors in certain European and Asian countries, which is 4.5%, this number is rather high. However, this has made Uganda a good location for your business investment.

Market Access via Trade Treaties

It is in the best interest of investors to put their money into Uganda since the nation has positioned itself to become an integral member of a number of different trade groupings, such as COMESA, the EAC, and SADC, to name just a few.

Consider the example of COMESA, which stands for the Common Market for Eastern and Southern Africa. This is a trade agreement that provides the sub-Saharan country with access to a market that has more than 400 million people who are scattered over 19 different nations. 

Free trade in these kinds of locations gives credibility to the idea that Uganda is an attractive location for investment.

Infrastructure Growth

With the fast improvement of Uganda's economic and social infrastructure, Uganda is a good place for investment. The government, for instance, does not restrict foreigners from owning all of their private investments.

Foreign direct investments (FDIs) are fantastic for a country's Economy, and these kinds of policies are guaranteed to attract more of them. If you're an investor in Uganda, this indicates that doing business in the country will be simple and fruitful.

It is important to note, however, that foreign direct investment (FDI) is only permitted from outside the nation with minimum security of $100,000.

Increased Government Expenditure

The government of Uganda has taken significant steps, including raising its spending, in order to increase the country's chances of attracting foreign direct investment. As was just indicated, the government has taken measures to guarantee that high standards would be maintained throughout the administrative and regulatory procedures and this is believed to increase the nation's FDI.