News and Views
More jobs expected from Uganda investments
Uganda's investments body, the Uganda Investment Authority last week announced that it licensed 40 new projects in April with an estimated planned investment of $106m (Ugs265b).
It expects about 3,490 employment opportunities for the month. Though there was a reduction in the number of jobs expected from 6,986 in March, planned investments rose to $106m (Ugs265b) from $74m (Ugs185b) in April. According to Ms Maggie Kigozi the UIA executive director, out of the 40 projects, 21 are Ugandan owned with a planned investment value of $63m (Ugs157.5b) and an employment expectation of 1,711 jobs. This represented 52.5% of all investments that were licensed in the month.
“China licensed seven projects worth $12m, with a planned employment value of 593 jobs. Most of China's investments are in construction and manufacturing sectors,” explained Kigozi.
Rwanda also invested about $9m in the financial and real estate services sector, while Turkey, a new entrant in the market had a $9m investment in a construction project as well.
Other countries that licensed projects during April were India, United Kingdom, the Netherlands, Kenya, Pakistan and Canada.
Kigozi said UIA was getting more concerned with the increasing rate of inflation that is triggered by the rising fuel prices and low food supply due to both climate changes and high demand for food by the neighboring countries of South Sudan, Kenya, DRC and Rwanda.
“We understand that there is a high rate of inflation and the cost of living is high but we need to keep peace because it's essential to all our investment promotion activities and the current trend of riots and demonstrations does not auger well with our efforts,” she stressed.
In March this year, local and foreign investors expressed concern over the increasing rate of inflation, as this had caused consumers, and the manufacturers to feel the pinch due to the high cost of importing raw materials.
The Uganda Investment Authority is a government agency responsible for attracting more foreign direct investments and domestic direct investments for job creation.