Uganda makes pitch to US investors, eyes increased trade and investment

WASHINGTON D.C. – The Ugandan government has intensified its efforts to attract US investors, despite challenges hindering trade and investment between the two nations. Speaking at a business breakfast meeting in Washington D.C. on June 20th, Wilson Mbadi, State Minister for Trade, Industry, and Cooperatives, acknowledged existing bottlenecks but emphasized Uganda’s commitment to addressing them.

“I want to assure you that we are working hard to address the challenges,” Mbadi said. “We recognize the importance of trade and investment in driving economic growth and development. Uganda has a lot to offer, from its strategic location to its abundant resources and favorable climate. We urge US companies to take advantage of opportunities in sectors like oil and gas, agriculture, and tourism.”

Mbadi noted that despite Uganda’s comparative advantage in various economic fields and duty-free, quota-free access to the US market, the country is yet to fully utilize the available opportunities.

He cited bottlenecks such as inability to meet phytosanitary standards demanded by the US market, insufficient post-harvesting infrastructure, and limited value addition to many products.

Robinah Kakonge, Uganda’s Ambassador to the United States, echoed Mbadi’s sentiments, highlighting Uganda’s abundant opportunities in oil and gas, agriculture, and tourism. “Uganda is open for business, and we invite you to take advantage of the opportunities we offer,” she said.

Mr. Odrek Rwabwogo, Chairperson of PACEID, set the tone for the discussions by highlighting Uganda’s historical development trajectory and its potential for growth.

Dr. Olivier Kamanzi, Uganda Trade Representative to Chicago, and Ms. Elizabeth Namugenyi Kibirige, Director Budget and Administration at the IFC, also addressed the meeting, emphasizing Uganda’s commitment to creating a conducive business environment.

US investors expressed interest in Uganda’s potential but raised concerns about high levels of red tape, corruption, and onerous tax regimes. They stressed the need for local technological development and technology transfer through reverse engineering.

Representatives from the Boeing Company, an aircraft manufacturer, attended virtually, and other US private sector companies operating in various fields participated in-person.

The meeting aimed to strengthen economic and commercial diplomacy between Uganda and the US, promoting mutual benefits and growth. With Uganda’s economy growing at a rate of 6%, the country is poised to become a key player in regional trade and investment.

This move comes as Uganda seeks to diversify its trade partners and reduce dependence on traditional markets. The country’s exports to the US, mainly coffee and cotton, totaled $13 million in 2020, with the US being one of Uganda’s largest trade partners.

The Ugandan government’s efforts to boost trade and investment with the US are timely, given the African Continental Free Trade Area (AfCFTA) initiative, which aims to create a single market for goods and services across Africa.