Feasibility study for a support to the development of Ugandas investment policy

To exploit Uganda’s comparative advantage further and to sustain economic growth, prudent macro-economic management is essential.  Uganda will need increased investments, particularly from the local private sector and in the form of foreign direct investment (FDI), from foreign investors and Ugandans in the Diaspora, to raise capital, labour skills and technical know-how in the global market.  This will enable Uganda to catalyse export diversification and other forms of inward investments.

The Uganda Investment Authority (UIA) completed the implementation of its three-year corporate plan in June 2004 and is envisaging a major planning exercise aiming to come up with a strategic plan and programmes for its future operations. The strategic plan should recognise and take into consideration the challenges created by the dynamic environment in which UIA operates. It must remain globally competitive in attracting investments into Uganda, focusing its resource utilisation onto its core functions in order to achieve significant and measurable results (targeted, cost effective investment promotion, proactive and focused investment facilitation and aftercare, effective policy advocacy and facilitating land acquisition/development for investors, etc).

The global objective of this study was to show how the Government should deal with the changing business environment in Uganda and how it should improve the efficiency of the current arrangements to attract foreign and domestic investment, including remittances from Ugandans living abroad. In particular the consultants had to examine whether and how the UIA needed to change its strategy of focusing mainly on FDI to increasing its support and encouragement for local investors and designing initiatives to build their capacities.

The consultants had to develop a proposal for an additional EC support to the Government’s investment policy fully in line with the existing strategies for the development of the private sector.

The study was expected to indicate, among other things, the identified priorities for action, a review of the components currently being financed or considered for future funding by the donors to Uganda’s investment development strategy, the legal and institutional reforms required and private-public sector partnership linkages.