Museveni urges European investors to put money into Uganda’s productive sectors

President Yoweri Kaguta Museveni has called on European investors to put money into Uganda’s infrastructure, energy, manufacturing and agriculture sectors, saying investment in production is the route to bigger markets, more jobs and faster economic growth.

Museveni made the appeal at State House Entebbe during a meeting with European Union ambassadors and investors, where he pointed to Africa’s fast-growing population as a large and expanding market for European businesses.

“This is what we have been advising our European friends to look at, because Africa is a big potential market with its fast-growing population,” he said.

He blamed political instability in parts of Africa partly on identity-based politics, including tribalism, religious divisions and ideological confusion, as well as a failure to appreciate the private sector’s role in driving growth.

Museveni said Uganda had learnt from these problems, and stressed the need for a stable political and economic environment in which private businesses can invest, expand production and create jobs.

He welcomed ongoing and proposed European investments in infrastructure and other productive sectors, saying they would tie Uganda’s market more closely to Europe’s.

“All these projects are music to my ears. By constructing these projects here, you are linking the market of Uganda to that of Europe. Why can’t anyone see that?” he said.

On energy, Museveni said the cost of electricity remained central to Uganda’s competitiveness, particularly for manufacturers trying to produce goods at affordable prices. While welcoming private investment in hydropower generation, he called for closer attention to electricity tariffs, arguing that cheap power was essential for industrial expansion.

He named affordable electricity, railway transport and accessible financing for productive investment as the main priorities for strengthening manufacturing.

Museveni cited the Uganda Development Bank as a key source of finance for productive businesses, saying the government had kept the institution to support investments that expand production and create jobs.

He urged the European Investment Bank to direct more financing to railway development, electricity generation and distribution, and selected road projects. On roads, he encouraged European investors to consider construction and financing models, including tolling where appropriate.

The President reaffirmed government support for tax incentives to attract investment, particularly in manufacturing, including a 10-year tax holiday for eligible businesses.

He said the government’s priority was to get investors to set up businesses, increase production and employ Ugandans, arguing that the resulting economic activity would generate revenue through other taxes.

“We are not interested in direct tax. What we want from you is jobs and production, and I will get taxes indirectly through consumer tax and income tax,” Museveni said.

He also pointed to opportunities in agriculture, irrigation, fish farming and agro-processing, saying Uganda had abundant raw materials to support industrial development and value addition. He cited maize and soya beans as examples of local produce that could attract investment in animal-feed manufacturing and other processing industries.

Museveni said greater investment in agro-processing would make better use of local raw materials, strengthen livestock production and widen markets for farmers. He added that the government was preparing to expand irrigation and fish farming to raise agricultural productivity, improve household incomes and give communities living near wetlands alternative livelihoods.

On the environment, he welcomed investments aimed at addressing the risks linked to oil development, stressing the need to protect Uganda’s freshwater resources. He said environmental sustainability was closely tied to the conservation of forests and other natural resources.