Opportunities for Investment, Tourism and Trade in Uganda – Hon. Matia Kasaija Remarks in Malaysia
April 24, 2025 – Kuala Lumpur, Malaysia
Uganda’s remarkable economic success story continues to attract international attention as Hon. Matia Kasaija, Minister of Finance, Planning and Economic Development, presented compelling investment opportunities during the Pearl of Africa Business Forum & Expo in Malaysia.
Speaking to a gathering of business leaders, Minister Kasaija highlighted Uganda’s recent recognition as the best investment destination in Africa at the 2024 Annual Investment Meeting (AIM) in Abu Dhabi, UAE.
“There are very good reasons why Uganda’s reputation as an attractive investment destination has been globally recognized,” the Minister stated, pointing to Uganda’s impressive economic indicators and business-friendly environment.
Strong Economic Growth and Currency Performance
According to Minister Kasaija, Uganda’s economy is on track to achieve its projected annual growth of 6.4 percent in the financial year ending June 2025. Looking ahead, the International Monetary Fund projects Uganda’s real GDP growth to reach an impressive 7.5% in 2025, placing it among the world’s fastest-growing economies.
In a notable achievement, Uganda’s Shilling emerged as the best-performing currency in Africa in 2024, demonstrating remarkable stability in a region often characterized by currency volatility.
Rising Foreign Direct Investment
Foreign Direct Investment (FDI) in Uganda has shown consistent and substantial growth over recent years:
- USD 1.2 billion in 2020
- USD 1.6 billion in 2021
- USD 2.9 billion in 2022
- USD 3.0 billion in 2023
The Minister also noted that private equity funding for SMEs has increased five-fold in just four years, reaching USD 480.5 million by March 2025.
The Ten-fold Growth Strategy
Uganda has set an ambitious goal of increasing its economy from US$50 billion in FY 2022/23 to US$500 billion by 2040 through what Minister Kasaija called the “Ten-fold Growth Strategy.”
Four key sectors are expected to drive this remarkable growth:
- Agro-industrialization
- Tourism Development
- Mineral-based Development (including Oil & Gas)
- Science, Technology, and Innovation (including ICT and Creative Industries)
“Investing in Uganda is very lucrative given the high returns,” Minister Kasaija emphasized, noting that the average Return on Investment (ROI) for Uganda’s economy continues to rise beyond the 14 percent level attained in 2022.
Strategic Market Access
The Minister highlighted Uganda’s strategic position as a member of key regional agreements that provide investors with access to massive markets:
- East African Community (EAC)
- Common Market for East and Southern Africa (COMESA)
- African Continental Free Trade Area (AfCFTA)
These agreements grant access to one of the world’s largest Free Trade Areas, with a combined population exceeding 1.5 billion people and a GDP of approximately US$3.0 trillion.
Uganda also benefits from preferential access to European markets through the “Everything but Arms” scheme.
Economic Transformation Underway
The composition of Uganda’s exports is undergoing significant transformation. Minister Kasaija revealed that in the last 15 years, Uganda has added 31 new products to its export basket, most of them manufactured goods, including concentrated milk, hair products, butter, casein, and paper labels.
“In the historical past, Uganda has relied heavily on commodity exports. That is now changing,” the Minister noted.
The size of Uganda’s economy is predicted to double in the next 5 years, reaching USD 100 billion, with the private sector accounting for approximately 80% of GDP.
Invitation to Investors
Minister Kasaija concluded his address by inviting investors to register businesses through Uganda’s One-Stop Centre at the Uganda Investment Authority (UIA) and to obtain Investment Licenses to benefit from generous tax and non-tax incentives.
“These range from tax holidays to free land, with the aim of reducing start-up costs for investors,” he explained.
The Minister also encouraged potential investors to consider partnerships with local businesses to leverage their knowledge of markets and business culture.
Uganda’s human capital development has also shown progress, with the country recently transitioning from a low to medium Human Capital Development category, achieving an HDI rank of 0.550.
With its stable macroeconomic environment, fully liberalized economy, rich biodiversity, favorable climate, abundant food production, skilled labor force, affordable power tariffs for large industries, and sustained peace and security, Uganda continues to position itself as a premier investment destination not just in Africa, but globally.
For more information on investment opportunities in Uganda, visit the Uganda Investment Authority website https://www.ugandainvest.go.ug