Uganda has been named and awarded the top investment destination in Africa at a recent Annual Investment Meeting (AIM) in Abu Dhabi. The East African country has attracted over $1 billion worth of Foreign Direct Investment (FDI) from the United Arab Emirates (UAE) in the past two years and has increased its total FDI to over $1.5 Billion in 2023.
According to Business Insider Africa, Uganda through its investment authority has won the Best Destination for Investment in Africa Awards 2024.
The news was confirmed by the state minister for Investment Evelyne Anite who stated that the award was bagged at the Annual Investment Meeting (AIM).
Uganda has been awarded a recognition award of best investment destination in Africa,” said Anite.
The new award received by Uganda follows a similar feat they achieved in 2023 where they were named the best investment destination in East Africa.
The Ministry of Finance, Planning and Economic Development (MoFPED) revealed that Foreign Direct Investment inflows in the country are on an upward trend.
The Ministry noted that FDI inflows into Uganda increased from $1.36 billion in April 2022 to $1.5 billion for the year ending April 2023.
In addition to the recognition, the World Bank also has a positive outlook on Uganda’s economy despite sanctions from the West projecting an economic surge in the country.
According to World Bank Statistics, FDI contributes over 4% to Uganda’s Gross Domestic Product (GDP). The World Bank also predicts Uganda’s economy to grow from 5.3% in 2023 to 6.0% in 2024.
The positive results for Uganda are not a mere stroke of luck because the Ugandan government has gone the extra mile to strategically implement some measures to attract FDIs focusing on creating a favorable business environment.
The multi-faceted strategy put in place by the Ugandan government driving an increased FDI inflow includes reliable electricity, tax holidays, efficient transport infrastructure, and reliable high-speed internet.
The AIM Global Investment Awards was set aside to recognize and celebrate the top-performing investment promotion agencies worldwide.
The event featured over 170 countries that participated in various exhibitions and promoted investment opportunities in their various countries.
Uganda was singled out for its stellar performance in attracting investments and the general favourable conditions for businesses to thrive in the country.
What to know
- According to the World Bank economic growth in Uganda has accelerated slightly despite external shocks. GDP grew by 5.3% during the first quarter of 2024, supported by an oil-related construction boom and robust growth of agriculture, despite volatile weather conditions.
- According to the Bank of Uganda, the Netherlands remained the primary source of foreign direct investment (FDI) inflows, accounting for 38% of the total, closely followed by the United Kingdom, which contributed 37%. Other significant source countries included Mauritius (7%), Kenya (5%), and Switzerland (3%).
- The AIM Congress 2024 held in Abu Dhabi was themed “Adapting to a shifting investment landscape. Harnessing new potential for global economic development”. The event lasted for two days.
