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In the 2023/24 financial year, the Uganda Investment Authority (UIA) licensed 426 investment projects worth $2.61 billion, reflecting a 6.5% growth in project numbers despite a 74% drop in total investment value compared to the previous year. Planned direct jobs surged by 55.9%, with significant contributions from the manufacturing sector and domestic investments.

In the financial year 2023/24, the Uganda Investment Authority (UIA), the government’s lead investment promotion agency, licensed 426 planned investment projects valued at $2.61 billion (UGX 9.63 trillion). This marks an increase of 26 projects compared to the 400 licensed in 2022/23, reflecting a 6.5% growth in the number of licensed investments.

However, the value of planned investments fell by 74% from $10.05 billion the previous year, largely due to the exceptional impact of the East African Crude Oil Project licensed in 2022/23. Despite this drop, the overall trajectory remains positive.

Planned direct jobs rose by 55.9%, from 43,563 in 2022/23 to 67,911 in 2023/24, driven by an increase in locally sourced employment, which grew from 13,832 to 41,920 jobs. The manufacturing sector led in both licensed projects (262, or 62%) and planned direct employment (30,424 jobs, or 45%).

Domestic investment also surged, with 159 locally sourced projects accounting for 37.3% of all licensed projects. UIA credits this to its robust domestic investment promotion activities, including a dedicated Domestic Investment Division.

Industrial parks and infrastructure development

Uganda’s industrial parks continue to drive economic growth. By the end of 2023/24, 625 companies had been allocated land in these parks, up from 514 the previous year. Of these, 294 are operational, 194 are under construction, and 139 are in pre-start stages.

The parks created 122,168 direct and indirect jobs, with 19,460 added in 2023/24 alone. Total capital investment in these parks grew to $3.31 billion (UGX 12.24 trillion), up from $2.99 billion (UGX 11.03 trillion) in 2022/23.

Major innovations within the parks include the production of a single HIV pill, electric vehicles, and smartphones. Investments come from Uganda (43.4%), China (27.5%), India (14.9%), and other countries.

UIA has enhanced efficiency through its One-Stop Centre for Investors, where investment licenses are now issued in 24 hours, down from 48. Additional services like company registration, tax identification numbers (TIN), and work permits have also seen significant time reductions.

The National Small and Medium Enterprises (SME) Portal has formalized 396 MSMEs, creating 6,101 jobs and contributing UGX 134.96 billion to GDP. Regional promotion drives have also highlighted investment opportunities across Uganda, supporting informed decisions for domestic investors.

Efforts are underway to decentralize industrial development through regional industrial parks in districts such as Yumbe, Pader, and Kisoro. The Central Region remains the largest beneficiary, attracting 83% of licensed projects in 2023/24.

With ongoing infrastructure improvements in key industrial parks and partnerships to support private parks, Uganda’s industrial growth remains robust. UIA’s focus on driving sustainable industrialization is evident in the increasing number of industries, jobs, and investments nationwide.