Ugandan government courts Indian investors with promises of high returns

KAMPALA, Uganda — The Ugandan government is enticing Indian investors to tap into the country’s vast investment potential, promising high returns and what it calls some of Africa’s most attractive incentives.

Speaking at the annual India-Africa Conclave, Minister of State for Investment and Privatisation Evelyn Anite urged Indian businesses to take advantage of Uganda’s underexploited sectors.

“Uganda has so many unexploited sectors and offers the best incentives for all investors,” Anite said. She noted that while some investors like businessman Ashish Monpara did not ask for free land, the government is willing to provide it to those in manufacturing who have less capital.

Anite invited Monpara, founder of the Modern Group, to share his success story. Since entering Uganda in 2017, Monpara has built seven factories with a combined investment of $200 million.

“I started my journey in Gujarat and moved to Uganda in 2017 with one factory, Modern Tiles. Since then, we’ve expanded into sugar, tiles, fertilisers, power generation, and agriculture on 2,000 acres of land,” Monpara said.

He claimed a 150% return on investment, citing a 10-year tax holiday, duty-free machinery imports, and efficient clearance through the Ministry of Finance.

“You won’t find gatekeepers here,” he said, crediting the government for its support through challenges.

The Modern Group’s investments in Uganda include:

• Modern Distillers (2017)
• Kaliro Sugar (2018)
• Modern Gas (2018)
• Modern Aluminum (2019)
• Modern Organic Fertiliser (2019)
• Modern Sanitiser (2020)
• Modern Tiles (2020)
• Lamborghini Drinks & Beverages (Modern Spirits) (2022)
• Modern Power (2023)
• Kidera Sugar (2023)

In an interview after the event, Monpara said his story resonated with many investors, proving that Uganda’s investor-friendly policies are genuine.

Trade Relations

Trade between Uganda and India continues to grow. India is a key trading partner and investor, with exports to Uganda dominated by pharmaceuticals, machinery and textiles. Uganda primarily exports gold, coffee and natural products to India.

According to the Observatory of Economic Complexity, trade between the two countries has remained balanced since 2023. That year, India exported $1.23 billion worth of goods to Uganda, while Uganda exported $1.5 billion to India.

In June alone, India exported $40.5 million worth of goods to Uganda and imported $3.1 million, resulting in a trade surplus of $37.4 million for India.

Factory Launch

Last week, President Yoweri Museveni, represented by Minister of Trade, Industry and Cooperatives Francis Mwebesa, officially launched the Kaliro Sugar factory.

“This factory represents the spirit of Uganda’s economic transformation, adding value to agricultural produce, creating jobs, and reducing imports while unlocking new export markets,” Mwebesa said.

Monpara described the factory as a “promise to the farmers that their sweat will bring prosperity, to the youth of Busoga, that dignified jobs await, and to Uganda that each tonne of sugar strengthens our economy.”

The factory plans to expand its crushing capacity to 8,000 tons per day and produce up to 230,000 tons of sugar annually within two years. It is expected to double its direct employment to 3,000 jobs.