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By Prof. Maggie KigoziExecutive Director
Uganda Investment Authority
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FOOD SECURITY: A BUSINESS OPPORTUNITY
3-6 OCTOBER, 2010
MUNYONYO COMMONWEALTH RESORT
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1. Political Stability/ Security2. Economic Stability3. Good Infrastructure4. Markets5. Productive, competitive labour/Women6. Liberalised Banking and Finance7. Streamlined Government machinery8. Justice9. Dialogue10. Quality of Life11. Incentives (Icing on the Cake!)
Vision of National Development Plan (NDP)
“ A transformed Ugandan Society from a peasant to a modern & prosperous country within 30 years.”
Elements of NDP Stability & Peace Knowledge based economy Exploitation of resources
gainfully & sustainably A strong federated East
Africa with an effective African Common market, ….
Private Sector Led Economy
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Vision
Make Uganda the leading investment destination.
Mission
“Promote and facilitate investment projects ,provide serviced land and advocate for competitive business environment”.
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Source: UIA Database
0
2000000000
4000000000
6000000000
8000000000
10000000000
12000000000
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009
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Source: UIA Database
Achievements: Planned Employment, 1991-2009
0
100000
200000
300000
400000
500000
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Year
Em
plo
ym
en
tntt
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Annual FDI Inflows : 1990 - 2008
-100
0
100
200
300
400
500
600
700
800
900
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: Various UNCTAD WIRs
Valu
e (
US
$ m
ill.
)Achievements in FDI
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Manufacturing
28%
Fin, Ins, Real Est & Biz
Svs
15%
Agriculture
13%
Transport, Storage &
Comm
12%
Wh & Ret, Cat & Accom
Svs
12%
Electricity, Gas & Water
7%
Construction
7%
Mining & Quarrying
3% Community & Personal
svcs
3%
Sector Performance 1991 - 2009
SECTOR PERFORMANCE 1991 - 2009
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1. Climate
2. Water
3. Land
4. Organic
5. Market
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Poverty Reduction vs Millennium Development Goals
Source: MFPED
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MARKET
Uganda - 32* million
East Africa - 130* million
Great Lakes Reg -190* million
COMESA
- 19 member countries
- 400 million people.
- Imports over US$ 170bn p.a.
AGOA - US
EU – EBA
China – Easy Access
Japan – over 173 agric. products
Etc.
*Source: CIA World Fact Book - 2009
UGANDA
Leaders Vision Strategy Plan Land Human
Resource Tourism Agriculture Minerals Infrastructure
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Lions on the Move
Africa Growth Rate
Africa Growth Rate
Agriculture ( Crops and Livestock)
Information & Communication Technology
Tourism
Services (Education, Medical & Finance)
Mining
Energy for Rural Transformation
Crops
Horticultural
Products
Floriculture
Fruits
Vegetables
Growing
and
Processing
CropsOil seeds
Horticultural
Products
Palm oil
Soya Beans
Growing
and
Processing
Sun Flower
Crops
Coffee, Tea,
Cotton
Oil seeds
Horticultural
Products
Coffee
Cotton
Tea
Growing
and
Processing
LivestockFish
Cattle, Goats
Pigs
Growing/rear
and
Processing
Cage Farming
Nile Perch
Fish Fillet
Processing
LivestockFish
Cattle, Goats
Pigs
Growing/rear
and
Processing Fowl
Ostrich
Turkey
Chicken
Agriculture - The science or practice of cultivating the land and keeping or breeding animals (I.T Act)
Agro-Processing - in relation to agricultural products of pastoral, agricultural, or other farming operations, means an industrial or manufacturing process that substantially transforms or converts raw agricultural produce in order to convert the produce into a different chemical or physical states and includes the activities that take place between slaughter or harvest of the raw product in order to change it or preserve it (I.T Act)
Seeds for Sowing - All seeds spores and cut plants, imported specially treated
Chemically defined compounds used as fertilizers
Imported inputs by persons engaged in horticulture, aquaculture, agriculture or floriculture
Poultry parent stock imported by persons engaged in poultry farming
Preparations for cleaning dairy apparatus Refrigerated trucks ,insulated tankers and Heat
insulated milk tanks for the dairy industry
The income of a person derived from the exportation of finished consumer and capital goods for a period of ten years where the person exports at least 80% of his or her production of goods.
The income of a person derived from agro-processing where the person invests in new plant and machinery to process agricultural products for final consumption & processes agricultural products grown or produced in Uganda
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VAT Exempted or Zero rated The supply of unprocessed
foodstuffs, including agricultural products and livestock;
The supply of machinery used for the processing of agricultural or dairy products;
Supply of packaging materials exclusively used by the milling industry for packaging milled products;
Supply of packaging materials exclusively used by the diary industry for packing milk
The supply of feeds for poultry and livestock
The supply of machinery, tools and implements suitable for use only in agriculture;
The supply of specialized vehicles, plant and machinery, feasibility studies, engineering designs, consultancy services and civil works related to agriculture.
Supply of goods or services where the good or services are exported from Uganda as part of the supply;
The supply of milk, including milk treated in any way to preserve it;
The supply of seeds, fertilizers, pesticides, and hoes
The supply of cereals, where the cereals are grown, milled or produced in Uganda;
30% on Specialized trucks, trailers, tractors, plant & machinery used in farming & manufacturing
20% on Farming Costs. i.e. labor quarters, immovable buildings, fences, dips, drains, water & electricity supply works and other works necessary for the farm
20% on Horticulture costs incurred on acquisition of horticultural plant and/or on Construction of a green house.
50-75% on cost base of plant & machinery.
Duty free import of Inputs for use in the manufacture of agricultural equipment imported by a manufacturer.
Interest earned by a financial institution on a loan granted to any person for the purpose of farming, forestry, fish farming, bee keeping, animal and poultry husbandry or similar operations is exempt from income tax – this is to encourage financial institutions to lend to sector.
Supply of veterinary services & equipment is VAT exempt
Bank guarantee to purchase equipment by government through some commercial banks (max of 10% interest rate, tenure up to 8 years, etc)
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Yellow: Residential areas
Cyan: Business, Commercial,
Leisure
Magenta: Industrial plots
Maroon: Rail-served industry
(South-C Sector)
Violet: Inland Container Depots
(South-B Sector)
Blue: Common services (freight
Village, sewerage, electrical and
waste)
Brown: Institutional (Health
Centres, Pro Training Centres,
Conference halls)
Red: Industrial Export
Processing Zone, Business Process
Outsourcing
KIBP MASTER PLANNorth: 100.1 Ha
South-A: 126.9 Ha
South-B: 294,5 Ha
South-C: 375.2 Ha
Crops
1. Tilda
2. BIDCO
3. Mt. Meru
4. Maganjo
5. Brittania
6. Star Coffee
7. Coca Cola Juice (new)
Livestock
1. Sameer
2. Jesa
3. UgaChick
4. Bee Natural
5. Bokomo
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-
50,000
100,000
150,000
Value $'000 103,309 142,691 145,837 124,711 124,436
Volume 31,808 39,201 36,461 31,681 24,965
2004 2005 2006 2007 2008
Source: UBOS
o Success Story Kaweri Coffee Ltd
-
100,000
200,000
300,000
400,000
500,000
2004 2005 2006 2007 2008
Exports by Quantity Exports by Value $ '000
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Highest
• Risky rains•Access potentially there but affordability v. Poor for finance•Inadequate/poor roads•Limited irrigated area•Lack of special support to domestic investors (poor access by them to key decision makers relative to foreigners; no preferential terms for locals)•Low access and high cost of public utilities (esp. Power)•Corruption
High
•Unstable markets•Land rights (new Land Act in place but local community resistance to large land allocation to outsiders).•Good policies but poor implementation•Poor affordability/accessibility of yield-enhancing inputs; poor quality/counterfeits on market•Unfair competition from subsidised & free (food aid) imports
Moderate
•Non-road inadequate public facilities(esp.coldrooms, etc)•Poor sector image: agric looked down upon and trading preferred•Cumbersome procedures
Modest
•Unsupportive research and development agenda
Uganda – Overall Perceptions of Severity of Constraints
Source: Private Sector Investments in Eastern African Agriculture – FAO & PTA Bank
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1. NAADS/Research
2. Extension services
3. Airlines
4. Improved road infrastructure
5. Government/Private Sector Dialogue –
PIRT, PSFU, UMA, UNCCI, Ministry of
Agriculture
UGANDA INVESTMENT AUTHORITY,
P.O.Box 7418 Kampala
Tel: +256 41 301000
Fax: +256 41 342 903
Email: [email protected]
Website: www.ugandainvest.com
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Thank you for listening to me!
