State Minister of Industry David Bahati met with a delegation of Chinese investors, encouraging them to establish factories in Uganda by highlighting the country’s conducive investment conditions.
The minister detailed the Ugandan government’s ambitious plans to bolster industrial development through the construction of industrial parks.
This initiative, he says, “aims to boost exports and reduce imports as part of a broader strategy of import substitution.”
Bahati highlighted the economic gains Uganda achieved last year, noting that the country “saved over $300 million” through export promotion and import substitution efforts.
He urged the Chinese investors to capitalize on these opportunities by increasing their investments in Uganda.
To sweeten the deal, he promised free land and a 10-year tax exemption for any investor who injects more than $10 million into the economy, alongside a waiver on import duty for machinery.
The meeting underscored Uganda’s commitment to creating a favorable regulatory environment and offering incentives designed to diversify the country’s power generation mix, which have been pivotal in attracting investors and spurring industrial growth.
In 2023, Uganda witnessed the commissioning of 40 large industries and over 1000 small-scale industries, collectively generating more than two million jobs.
This development trajectory, Bahati said, is a testament to the government’s effective policies and the potential awaiting new investors.
