DOING BUSINESS IN UGANDA

In the last few years, Uganda’s economy has improved and is continuously improving. Experts believed that the country’s economy has great potential as it has several major resources like mineral deposits, lots of natural resources, fertile land and regular rainfall. A number of natural resources and manmade attractions make Uganda the greenest and most scenic of all the African countries; the country has lots of friendly people too. There are lots of quality medical facilities, first class hotels and restaurants, resorts and beaches and entertainment facilities can be found here. With these, the country will experience rapid economic growth and development.

In Africa, Uganda’s economy is the fastest rising due to its political stability and economic policies. Political stability is the main success of business in Uganda. Uganda’s economy is on the upward trend because of the implementation of structural development programs. Agriculture continues to dominate the business with coffee bringing at least 80% of its export earnings. Manufacturing and other sectors are also gaining success.

INVESTMENT INCENTIVES

(a)  Investment Capital Allowances

–          Initial Capital allowance on plant and machinery: 60-75%

–          Start up cost spread over 4 years: 25% p.a

–          Scientific research expenditure: 100%

–          Training expenditure: 100%

–          Mineral exploration expenditure: 100%

–          Initial Allowance on hotel, hospitals and Industrial buildings: 20%

–          Deductible annual Allowances (depreciable assets) – Depreciation rates of assets range: 20-40%

–          Depreciation rate for Hotels, Industrial Buildings and Hospitals: 5%

(b)  Duty and Tax free import of Plant and Machinery

(c)  First Arrival Privileges in the form of duty exemptions for personal effects and motor vehicle (previously owned for at least 12 months) to all investors and expatriates coming to Uganda.

(d)  Export Promotion Incentive and Facilities

–          Manufacturing Under Bond

–          Duty exemption on plant and machinery and other inputs

–          Stamp duty exemption

–          Duty draw back – a refund of all or part of any duty paid on materials, human and animal drugs and raw materials.

–           Ten year tax holiday

–          Duty remission scheme for exporters involved in value addition

BANKS IN UGANDA

•    ABC Capital Bank
•    Bank of Africa
•    Bank of Baroda
•    Bank of India (Uganda)
•    Barclays Bank
•    Cairo International Bank
•    Centenary Bank
•    Citibank Uganda Limited
•    Crane Bank
•    DFCU Bank
•    Diamond Trust Bank
•    Ecobank Uganda
•    Equity Bank
•    Fina Bank
•    Finance Trust Bank
•    Global Trust Bank
•    Housing Finance Bank
•    Imperial Bank Uganda
•    Kenya Commercial Bank
•    National Bank of Commerce
•    NC Bank Uganda
•    Orient Bank
•    Stanbic Bank
•    Standard Chartered Bank
•    Tropical Bank
•    United Bank for Africa