Uganda invites investment in manufacturing facilities
Uganda's High Commissioner to India is inviting foreign investment in manufacturing, specifically in cotton spinning, iron and steel, and food processing. The country offers 100% foreign ownership and duty-free import of raw materials to boost its export sector.
Why it matters
This initiative represents an effort by an African nation to attract Indian capital and industrial expertise to diversify its economy and increase value-added exports.
Uganda is encouraging export of processed raw materials and wants other countries to set up manufacturing facilities in that country, said its High Commissioner to India Joyce Kakuramatsi Kikanfunda in Coimbatore city on Thursday (July 16).
Speaking at the United Economic Summit organised by the Indian Economic Trade Organisation, she said Uganda produces a significant quantity of cotton and is rich in minerals. It will also be an oil and gas producing country from this month.
Currently, it exports agricultural produce, gold, and raw materials to India and imports textile products, machinery, automobiles, pharma, and iron and steel.
Since Uganda has iron ore and cotton, businesses can set up iron and steel plants and cotton spinning mills there. It permits 100% ownership of projects by overseas companies. The country wants to encourage export of value-added raw materials and offers 0% duty on import of raw materials not available in Uganda.
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