Uganda'S Annual Investment Increased By Three Times, And Shoes And Other Manufacturing Industries Contributed The Most.

Uganda's investment in the 2006 / 07 fiscal year is three times higher than that of the footwear industry. The Uganda Investment Authority (UIA) recently released statistics that the total investment registered in UIA between July 2006 and June 2007 amounted to US $2 billion 180 million, a 3 fold increase over the previous fiscal year of 758 million US dollars.

Job creation increased by nearly 60% (from 33870 to 53963).

Most of the investment is in the manufacturing sector, mainly in footwear, beverages, sugar, textiles, building materials, packaging and food processing.

The consumer market is home and neighbouring Sultan, Rwanda, Burundi and democratic Congo.

The manufacturing industry created the highest number of employment, reaching 16682 people, followed by pportation and communications 6557 people, agriculture and forestry and Fisheries 6412 people, 5981 buildings, 5942 hydropower.

About 1/3 investment projects come from Uganda's domestic businessmen. Most of the foreign direct investors come from Asian countries, such as India, Pakistan and China, and neighboring Kenya.

UIA believes that investment growth can improve infrastructure in Uganda, including telecommunications liberalization, rebuild airports and improve passenger and freight pport.

But Uganda also has investment barriers, especially its high electricity and bank interest rates, which are difficult to obtain land, tax policies and lack of diesel and water.

At present, UIA plans to build industrial parks in the capital, and has enough funds to buy more land for industrial parks.