ABOUT UGANDA

Amongst all the countries in the African continent, Uganda, officially the Republic of Uganda, is a landlocked East African nation known for its diverse landscapes, including the snow-capped Rwenzori Mountains and immense Lake Victoria. It is often referred to as the “Pearl of Africa” for its natural beauty. The capital of Uganda is Kampala, which is its largest and most populated city, serving as the main economic and administrative hub. According to the report of the World Bank, Uganda is classified as a Low-Income Nation, actively pursuing ambitious development goals to achieve middle-income status. The currency of Uganda is the Ugandan Shilling (UGX), and the value of 1 Indian Rupee is approximately 42.55 Ugandan Shillings (or 1 UGX is approximately 0.0235 INR) as of today’s exchange rates (June 2025). The population of Uganda is estimated to be around 45.9 million in 2024. Its neighbouring countries are South Sudan to the north, Kenya to the east, Tanzania and Rwanda to the south, and the Democratic Republic of the Congo to the west. The official language of the country is English, while Luganda and Swahili are also widely spoken. The majority of the Ugandan population practices Christianity and Islam, with traditional African beliefs also present. Currently, Uganda has one major international airport, Entebbe International Airport (EBB), which serves as the primary gateway for international air travel. As a landlocked country, Uganda relies heavily on the seaports of Mombasa in Kenya and Dar es Salaam in Tanzania for its international trade, with most cargo moving via road.

The corporate income tax rate in Uganda is generally 30% for both resident and non-resident companies. There are various incentives and tax holidays offered, particularly for investments in priority sectors like agriculture, tourism, and mineral value addition, often with specific investment thresholds. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a rental property for your office.

Establishing a business in Uganda has to be done with utmost care, keeping in mind the laws of the country. The Uganda Investment Authority (UIA) is the primary government agency facilitating foreign investment and offers guidance on setting up businesses. A foreign investor who is planning to start his business in Uganda can form many different company types in the country, such as a Limited Liability Company (LLC), a Branch Office, or a Partnership. A Limited Liability Company (LLC) formed and registered in Uganda generally allows foreign investors to own 100% of the company, provided they meet the minimum investment thresholds (currently US$250,000 for foreign investors seeking an investment license).

In case an investor is planning to establish an LLC in Uganda or a corporate business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Uganda and we will also guide you about how to follow the procedure while formulating your company in Uganda.

Types of Business which can be started in Uganda:

• Agriculture & Agro-processing: Agriculture is the backbone of Uganda’s economy, with vast arable land and multiple harvests per year. Opportunities are immense in commercial farming (coffee, tea, cotton, sugar cane, maize), value-added agro-processing (food, beverages, edible oils), cold storage, irrigation schemes, and manufacturing of agricultural inputs.
• Oil & Gas: Uganda has confirmed commercially viable oil reserves in the Albertine Graben. With the Final Investment Decision reached for oil production and the East African Crude Oil Pipeline (EACOP) project underway, opportunities are significant in upstream exploration, midstream infrastructure, and downstream services.
• Mining: Uganda is rich in various mineral resources, including significant gold deposits, copper, iron ore, phosphates, and rare earth elements. Opportunities exist in exploration, extraction, mineral processing (value addition), and related services.
• Tourism & Hospitality: Known for its diverse wildlife (gorilla trekking), national parks, and cultural heritage, tourism is a key growth sector. Opportunities are vast in developing eco-tourism lodges, safari operations, cultural experiences, hotels, and related hospitality services.
• Infrastructure & Construction: Driven by ambitious development plans (roads, railways, power plants, oil infrastructure), there’s a continuous need for investment in public works, housing, and urban development. This offers strong opportunities for construction, engineering, and material supply firms.
• Information & Communication Technologies (ICT): A rapidly growing sector with increasing mobile and internet penetration. Opportunities include expanding telecom infrastructure (fiber optics, 5G), digital services, e-commerce platforms, fintech solutions, and IT support services.
• Manufacturing: The government is pushing for industrialization and import substitution. Opportunities lie in manufacturing goods for local consumption (e.g., textiles, building materials, consumer goods) and processing agricultural and mineral raw materials for export.
• Energy (Renewables): With significant hydroelectric potential and abundant sunshine, opportunities exist in developing hydropower projects, solar power installations (both on-grid and off-grid), and other renewable energy solutions to meet the growing energy demand.

Advantages of Starting Business in Uganda:

• Abundant Natural Resources: Possesses extensive fertile agricultural land, confirmed oil & gas reserves, diverse mineral wealth, and significant tourism potential.
• Favorable Investment Climate: The government actively promotes Foreign Direct Investment (FDI) with various incentives, tax holidays, and a generally liberalized economy.
• Strategic Location: Despite being landlocked, its central East African location makes it a potential hub for accessing regional markets (EAC, COMESA).
• Young and Growing Population: A large and youthful demographic provides both a growing consumer market and a readily available workforce.
• Regional Market Access: As a member of the East African Community (EAC) and Common Market for Eastern and Southern Africa (COMESA), it offers access to a large regional market.
• Improved Ease of Doing Business: Continuous government efforts to streamline business registration and licensing processes have improved the investment environment.

Business Opportunities for Indians in Uganda:

There are excellent business opportunities in Uganda for new investors who are planning to start their business abroad. India and Uganda share strong historical ties, and India is one of Uganda’s top trading partners and a significant source of FDI. Indian investors, with their proven expertise in manufacturing, pharmaceuticals, IT services, agriculture, and infrastructure development, can find vast opportunities. There is significant potential in agro-processing, especially for value addition to agricultural products, and in the nascent oil and gas sector.

Imports & Exports:

Many goods are imported and exported from Uganda. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Uganda to India:

• Coffee
• Edible vegetables and certain roots and tubers
• Wood and articles of wood; wood charcoal
• Cotton
• Spices
• Cocoa and cocoa preparations
• Oil seeds and oleaginous fruits

Major items which are imported in Uganda from India:

• Pharmaceutical products
• Vehicles (passenger cars, commercial vehicles, two-wheelers)
• Machinery and mechanical appliances
• Plastics and plastic articles
• Paper and paperboard
• Organic chemicals
• Textiles and apparel

Manufacturing:

Opportunities in manufacturing are being strongly promoted by the Ugandan government for import substitution and value addition. This includes agro-processing (e.g., sugar, edible oils, beverages, dairy), textiles and apparel, pharmaceuticals, building materials, and light consumer goods, catering to both domestic and regional markets.

Mining:

The mining sector is a key focus for future growth, especially with recent gold discoveries and increased government attention. Opportunities exist in the exploration, extraction, and particularly the value addition of minerals like gold, copper, cobalt, and phosphates.

Major Indian companies which are currently working in Uganda:

Many prominent Indian companies and businesses run by Persons of Indian Origin (PIO) families have a significant presence in Uganda:

• Madhvani Group: One of Uganda’s largest conglomerates with interests in sugar, tourism, manufacturing, and real estate.

• Mehta Group: Diverse investments including sugar, packaging, and floriculture.

• Mukwano Group: Major player in fast-moving consumer goods (FMCG), plastics, and soap.

• Ruparelia Group: Significant presence in banking, education, hospitality, real estate, and floriculture.

• Tata Group: Various ventures including Tata Coffee (tea), Tata Motors (vehicles), and Tata Africa (various trade).

• Bharti Airtel: A major telecommunications provider.

• Bank of Baroda: Has a strong banking presence.

• Pharmaceutical companies: Several Indian pharma companies are major suppliers of medicines and healthcare products.

• GDP = $48.77 billion (2023)

• GDP Growth = 6.2% (projected for 2025 by World Bank)

• Ease of doing business rank = 116 (2020)

• GDP per Capita = $1,214 (2024 est.)

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