Uganda has built one of the most successful track records in the East Africa region in pursuing macro-economic reforms. Investors there are currently enjoying market-based policies that have helped create an attractive investment environment.  The country is steadily becoming an important destination for large investment from local, regional and foreign sources.

The government has made it clear that private sector is important in growing the economy. Thus a legal and institutional framework has been adapted to encourage foreign investments.

For many investors, Uganda is an attractive investment destination for the following reasons;
• Its strategic location as the gateway to the great lakes region guarantees access to the Common Market for Eastern and Southern African States (COMESA) and the East African Community (EAC) with a combined market of over 400 million consumers. Uganda’s products have duty and quota free access into the US market under the provisions of the Africa Growth and Opportunity Act (AGOA). Under the Generalized System of Preference (GSP) Uganda is entitled to preferential duty treatment in European and US markets.
• A fully liberalized and stable economic environment with a Government committed to creating a market-friendly environment
• Excellent natural resources for agricultural production, mining and for tourism
• Low cost labour

Investment guarantees

Security of investments is guaranteed under the Constitution and the Investment Code 1991
Uganda is a signatory to major international investment institutions such as;
• Multi lateral Investment Guarantee Agency (MIGA) under which foreign investors can insure their investments in Uganda against non-commercial risks including expropriation, currency transfers, breach of contract and civil strife.
• The Overseas Investment Insurance Scheme provides insurance cover for UK companies against the perceived political risks of investing in foreign markets.
• Overseas Private Investment Corporation (OPIC) guarantees American investment in Uganda.
• Other international memberships include The International Center for the Settlement of Investment Disputes (ICSID), the Convention of the Recognition and Enforcement of Foreign Arbitration Awards, the Convention on the Settlement of Investment Disputes between States and Nationals of other States; and The African Trade Insurance Agency (ATI).
• Uganda has also signed bilateral investment treaties (BITs) and double taxation treaties (DTTs) with several countries.
• Membership to the World Intellectual Property Organization which enforces respect of rights of individuals and firms with regard to intellectual property.

The Incentive Regime

Along with an excellent macro-economic record, Uganda provides a competitive incentive regime for private sectors.
• Uniform corporate tax of 30%
• Import duty exemptions for plant and machinery
• Duty draw-back facility for exporters
• A fully liberalized foreign exchange regime and unrestricted movement of capital in and out of the country.
• Special initial allowance (accelerated depreciation)of 50-75% on plant and machinery
• 100% initial allowance for training, scientific research and mineral exploration expenditures
• First Arrival Privileges in the form of duty exemptions for motor vehicle and personal effects to all investors and expatriates.