Uganda the next best investment destination?

A delegation from

Transnet Freight Rail

(TFR) was set to visit

Uganda earlier this

month to look at developing

rail link opportunities between

Southern Africa and the landlocked

East African country – one of the

“many South African investors”

that are reportedly looking east for

new opportunities.

This according to the South

African high commissioner to

Uganda, Lekoa Solly Mollo.

He told FTW that the “pearl

of Africa” had not been as

well marketed as a trade and

investment destination in the past,

compared to many of its regional

counterparts such as Rwanda,

Kenya and Tanzania.

However, this was about to

change. According to Mollo, the

South African High Commission

has been working with a

number of Ugandan and South

African businesses and logistics

stakeholders to market the country

as a key destination. This includes

establishing the Forum of South

African Businesses in Uganda

(Fosabu) to provide a “joint voice”

for the SA business community

interested in doing business in the

country.

Mollo said Fosabu had paved

the way for businesses by lobbying

the Ugandan and South African

governments for a better operating

environment. “We have monthly

feedback meetings to highlight

challenges and escalate them

to the relevant authorities,” he

commented.

The SA High Commission to

Uganda has identified trade and

investment opportunities in high

growth sectors such as agriculture

and agro-processing, minerals,

petroleum support services and

transport infrastructure.

It was widely stated in Uganda

that one could plant a broomstick

in the rich soil and it would grow.

“This has drawn a number of

South African investors from the

agricultural and agro-processing

sector,” said Mollo.

“Agriculture employs over 70%

of Uganda’s population, with its

biggest exports currently focused

on agricultural raw materials

such as coffee, cocoa, fruit, maize,

vanilla, spices. But there is vast

potential for agro-processing

around this.”

CAPTION

Workers pick coffee beans on a fairtrade

coffee plantation in Uganda.