Why UIA seeks more investors in Edible Oil sector
Kampala, UGANDA: Uganda Investment Authority (UIA) is seeking more investors in edible oil sector due to the growing demand for its consumption.
Uganda has a deficit of over 80,000 metric tons of edible oil annually.
Recent data indicates that Uganda’s edible oil demand stands at 120,000 metric tons against a production capacity of 40,000 metric tons, leaving a deficit of 80,000 annually.
“This deficit comes against a background of a country with a very strong agribusiness sector with value added in agriculture accounting for 25% of Uganda’s GDP in 2017- the highest in the region,” said the UIA Deputy Director for Investment promotion Martin Muhangi.
“There are opportunities in investing in quality animal feeds processing, solvent extraction, a refinery to produce quality oil for export,” he told a visiting Indian edible oil investment mission to Uganda at the UIA head office on Lumumba avenue.
The delegation comprised of members of the Solvent Extractors Association of India.
Mr. Muhangi explained that government is offering several investment incentives for investors in the sector.
He said various opportunities for investment exist in upstream value chain in Uganda.
“Investors can exploit the availability of large tracts of land suitable for mechanized farming of oil seeds and existence of well-developed value chains, particularly in sunflower and soya growing areas in the Midwest and Northern Uganda,” he said.
“In total, nearly 35% of Uganda’s land area is arable land, much higher than the regional average,”.
Uganda has got the fastest growing workforce in the region and flexible labour regulations which is a key advantage for companies investing in labor-intensive operations.
“We have got the highest adult literacy in the EAC and the literacy rate for young people entering the workforce (People aged 15-24) almost 90% in 2015
He added that Uganda has excellent housing and international schools and the lowest cost of living in the region.
Incentive regime included in the country’s tax laws and is accessible to both domestic and foreign investments.
Government offers a 10 year tax holiday incentive in Industrial Parks, Free zones, processing agricultural products, assembling medical appliances, furniture, pharmaceuticals but with capital requirement of $10million
There is also a 10 year Tax holiday incentive for export oriented investments on condition that the investor exports 80% of the products while import duty exemption available on Plant and Machinery. 31.,(G)G$”