Major Boost For Uganda’s FDI Inflows: 15 Qatar Companies Are Now Seeking Partnerships With Local Firms
Fifteen Qatar companies are seeking to establish themselves in Uganda through partnerships with local firms, Private Sector Foundation Uganda-PSFU Executive Director Gideon Badagawa has confirmed.
The companies are in six sectors ranging from manufacturing and agro-processing. They will be led to Uganda by the Qatar Development Bank beginning from 10 September.
Their entrance to Uganda comes at a time when the country is making commendable strides in improving Foreign Direct Investment (FDI) flows.
In 2018, the FDI inflows to Uganda stood at USD 1.3 billion, an increase from USD 803 million recorded in the previous year.
Bagadawa said the engagement will facilitate the understanding of companies from both countries on the opportunities available on each side.
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Ambassador Simon Ajiku, the acting Head of Mission at the Uganda Embassy in Qatar, said the engagement will help develop deeper ties with Qatar. It will also boost trade between the two countries.
Qatar investors have little presence in the country with most of the Middle East companies being from Saudi Arabia, the United Arab Emirates, and Jordan.
Previously, during a meeting with Qatari investors, Ugandan minister said that Qatari investors present in the country enjoy exclusive benefits including tax regulations.
In 2017, President Yoweri Kaguta Museveni promised to open an investment office in Doha. The office will offer free entry and exit permits to investors.
“Let the Islamic Bank come up in Uganda; it will save investors from the challenge of high-interest rates,” he said.
A report by Ernest and Young dubbed EY attractiveness 2019 noted that in 2018 foreign direct investments in Uganda created 6,000 jobs under 17 unnamed projects.
Featured Image Courtesy: www.undp.org
