INTERVIEWWITH THE MANAGING DIRECTOR OF UGANDA INVESTMENT AUTHORITY, DR. MUHEIRWE.
February, 1998

Since we started in 1981, we have attracted more than 2,000 licensed projects worth 4.8billion dollars. The reason why Uganda has been at the fore-front of the investment attraction is that their is political stability and financial stability. Politically we had elections, parliament and a constitution and this makes the investors feel confident that the political climate is favorable and the President who is committed to the goals of the business. As far as the financial stability is concerned on the Macro-economic level, we think since 1991 we have had a stable economy with an inflation below 10% and with the growth rate averaging to 7.5%, the manufacturing sector is growing at the rate of more than15% and agriculture is also growing plus building and construction is growing at 19%. As far as we are concerned politics and finance has played a big role in encouraging growth and investment in this country. Secondly their has been government commitment to the private sector this can be seen by the rate at which state companies have been privatized and by the end of next year government wants to make sure that all public companies are privatized, government to show how committed it is to the private sector they have created a body known as Uganda Investment Authority which is specifically there to encourage private investment. We are supposed to act as run stock center for any investor, we provide him with everything he needs, from the work permits to all the utilities he needs e.g. Land, telephones and secondary licenses if he wants and advice him if there is a problem. The Third issue is the Infrastructure, compared to the last 10 years government has improved on the infrastructure of this country. Compared to neibouring countries our infrastructure is a step forward this at least makes the condition favorable for the investors. Labour is relatively cheap compared to our neighboring countries, trainable and most of them have basic education. Lastly is the growing market, we have a population of 20 million people and we are in the middle of Africa. Around us we have a market with a homogeneous population of about 200 million this is a big advantage for any investor who is looking for a big market and long term prospects.

Q: In your own opinion what are the main opportunities going to be offered to the foreign investors.

MD. We have opportunities in the energy sectors, we are trying to privatize Uganda Electricity Board at the same time encouraging more to produce power and sell it to the private sector. In Telecommunications we are privatizing Uganda Post and Telecommunication, we are looking for investors. Water Sector, we are also looking for investors. Mining is another opportunity plus Agricultural sector which we have an advantage because of the good climate. We have no winter, summer or spring. We are looking for companies that can invest in the processing the local produce so that they can be exported in the finished form and their is a fast market for processed produce.

Q: What has been the main investment project that you are most proud of.

MD: The biggest project recorded was the Kasese cobalt (France) they want to invest 100 million US dollars and the second that is coming on stream is the Electricity project being financed by the AES (America) they are going to set up a new power station on the River Nile worth 400 million USD and the third is the Arab constructors from Egypt they are also going to put up another plant along the Nile they will be producing 400-500 mega watts with the investment worth 600 million USD. From the American side the first company that was licensed by Uganda Investment Authority was known as Agro-management group which is involved in production of Insecticide they have so far invested 1.6 million USD, Colgate palm olive, coca cola, starlight communications and global telecommunication.

Q: What is your personal perspective of the American Investors and what uniqueness are they bringing in the country.

The biggest benefit we are getting from the American investors is the Technology, new ways of doing things, market and creation of jobs for people in Uganda. E.g. Agro-management does not participate in planting flowers, it buys them from the farmers and process them for exporting hence creating jobs and markets for the farmers. Telecommunication companies like the star-com and swift global also show the companies new technology.

Q: What is the Uganda Investment Authority doing in exposing investment opportunities that are flourishing in the country to the outside countries especially Europe and America.

MD: We do what we call Image Building Outward Missions. We go abroad and most of the times together with the president and address the people about Uganda and the investment opportunities. We are also going for BI-lateral agreements to protect the investment.

Q: What has been a satisfying personal achievement you and your team have done in Uganda Investment Authority since you started.

MD: The most important was creating awareness both in the government and the private sector, now everyone is aware that the private sector is very important because its the one which will make the economy closer to the market.

Q: What message would you send to our readers

MD: There are so many opportunities they should come and take advantage of them, the market is big and Uganda Investment Authority is here for any body who may come from any where.