China registered the highest amount of planned Foreign Direct Investments (FDI) in Uganda in 2018/19 according to reports.
In its latest report, the Uganda Investment Authority (UIA) a state agency charged with investment promotion showed china’s planned investments totalled $607.3m, accounting for 45.1% of all the planned investments.
“Things have changed, you see that China which used not to be mentioned among the top investors in Uganda ten years ago is now number one foreign investor,” said Lawrence Byensi, acting executive director of UIA.
Byensi further said that the Chinese investments are mostly in road and manufacturing projects.
The report further showed Ugandan investors as the second source of FDI in Uganda during the 2018/19 period with a total value of $328.7 million.
Lebanon followed with planned investments of $70.6 million followed by India at $58 million and the United Arab Emirates at $55 million dollars.
The sectors that attracted the highest investments in the planned licensed projects during the 2018/19 were manufacturing with 148 projects, agriculture with 51 projects, storage, transport, communication and construction had 17-licensed project among others.
Also Read: Japan sees interaction with Africa as more than just competing with China
Uganda Investment Authority licensed 286 new projects in the period of review with an estimated total value of $1.34b. The potential investments are foreseen to create 59,940 jobs in Uganda.
The report showed that the foreign investors in Uganda collectively account for 75.6% off all last year’s investments compared to domestic investors, which accounted for 24.4%.
According to the Uganda Revenue Authority (URA) figures, china is Uganda’s second-largest trade partner with volumes above $850 million in 2017.
In Uganda, there are about 200 Chinese firms, which deal with construction, communication, trade and hospitality. The Chinese government has funded large infrastructural projects such as roads, factories and power stations. The Chinese government has also encouraged Chinese firms to invest in Uganda.
In 2018, china revealed its plan to invest $620 Million in Uganda’s Largest Mining Project the Sukulu Comprehensive Plant to manufacture fertilizer to meet the growing its demand.
The 51Km Kampala –Entebbe Expressway, 600MW Karuma Hydropower, 183MW Isimba Hydropower station are some of the signature infrastructure projects funded by China in Uganda.
The Export-Import Bank of China-funded the $1.4 billion Karuma dam and provided up to $483 million for Isimba hydropower dams and $350 million for the construction of the Kampala-Entebbe Expressway.