LAST WEEK saw the signing of a trade protocol between South Africa and Uganda which could herald a new era in trade relations between the two countries.
The co-operation agreement will be followed by specific programmes of action including a South African trade mission to Uganda later this month.
At a function hosted by the Johannesburg Chamber of Commerce and Industry, minister E Kategaya, Uganda's first deputy prime minister and minister of foreign affairs, spelt out his country's investor attractions.
Uganda has a growing economy with a current inflation rate of around 6% and is free of foreign exchange regulations.
Business can be totally foreign owned and registered without the requirement of Ugandan participation.
Tax holidays of up to six years, no import duty on capital equipment, and no VAT for foreign investors are some of the incentives.
The Ugandan economy is agriculturally based and is in dire need of food processing industries. All garments are imported, and power generation is a further area where South Africa could play a role.
Trade can be conducted on a credit basis, and the Ugandan Chamber of Commerce will vet local business people for trade credibility at the request of an investor.
SA exports to Uganda are valued at R87 million per annum while imports from Uganda are worth R2 million a year.
