President Yoweri Kaguta Museveni has urged European investors to take advantage of Uganda’s economic opportunities, particularly in infrastructure, energy, manufacturing and agriculture, saying investment in productive sectors is key to expanding markets, creating jobs and accelerating economic transformation.
The President made the remarks today at State House Entebbe during a meeting with European Union Ambassadors and investors, where he highlighted Africa’s growing population and expanding market as a major opportunity for European businesses seeking investment and stronger economic partnerships.
“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.
President Museveni attributed political instability in some African countries partly to identity-based politics, including tribalism, religious divisions and ideological misunderstandings, as well as a failure to appreciate the role of the private sector in driving economic growth.
He said Uganda had learnt from these challenges and emphasised the need for a stable political and economic environment that enables private businesses to invest, expand production and create employment.
The President welcomed ongoing and proposed European investments in Uganda, particularly in infrastructure and other productive sectors, saying such projects would strengthen economic links between Uganda and the European market.
“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 asked.
On energy, President Museveni said the cost of electricity remained a critical factor in Uganda’s competitiveness, particularly for manufacturers seeking to produce goods at affordable prices.
While welcoming private-sector investment in hydropower generation, he called for greater attention to electricity tariffs, arguing that affordable power was essential for industrial expansion and economic growth.
He identified affordable electricity, railway transport and accessible financing for productive investments as key priorities for strengthening Uganda’s manufacturing sector.
The President cited the Uganda Development Bank as an important source of financing for businesses engaged in productive activities, explaining that the government had retained the institution to support investments capable of expanding production and creating jobs.
He also urged the European Investment Bank to channel more financing into strategic infrastructure, particularly railway development, electricity generation and distribution, and selected road projects.
President Museveni encouraged European investors to explore opportunities in construction and financing models,including tolling arrangements where appropriate.
The President also reaffirmed the government’s support for tax incentives aimed at attracting investment, particularly in manufacturing, and emphasised the importance of enabling eligible businesses to benefit from a 10-year tax holiday.
He said the government priority was to encourage investors to establish businesses, increase production and employ Ugandans, arguing that the resulting economic activity would also generate public revenue through indirect taxation.
“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,” President Museveni said.
He maintained that investment incentives should support productive enterprises that create employment and expand the country’s economic base.
President Museveni also highlighted opportunities in agriculture, irrigation,fish farming and agro-processing, saying Uganda had abundant raw materials that could support industrial development and value addition.
He cited maize and soya beans as examples of locally available agricultural produce that could attract investment in animal-feed manufacturing and other processing industries.
The President called for greater investment in agricultural processing to improve the utilisation of local raw materials, strengthen livestock production and increase market opportunities for farmers.
He added that the government was preparing to expand irrigation and fish farming as part of efforts to boost agricultural productivity, improve household incomes and provide alternative livelihoods for communities living near environmentally sensitive wetlands.
President Museveni welcomed investments aimed at addressing environmental challenges associated with oil development, stressing the need to safeguard Uganda’s freshwater resources.
He noted that environmental sustainability was closely linked to the conservation of forests and other natural resources.
