In a major coup, Uganda has been named the “Best Investment Destination in Africa” at the prestigious Annual Investment Meeting (AIM) held in Abu Dhabi, United Arab Emirates. This marks the second consecutive year that Uganda has been recognized for its outstanding performance in attracting foreign direct investment (FDI).
The AIM Congress, now in its 13th edition, is a globally renowned event that brings together high-profile government officials, private asset owners, and project promoters from around the world to discuss the latest trends and opportunities in emerging market FDI. Held under the theme “Adapting to a Shifting Investment Landscape: Harnessing New Potential for Global Economic Development,” this year’s edition saw over 170 countries participate in various exhibitions and investment promotion activities.
Uganda’s Minister of State for Finance (Privatization and Investment), Evelyn Anite, proudly announced the country’s latest accolade, stating, “Uganda has been awarded the recognition award of best investment destination in Africa.” This follows Uganda’s victory in 2023 when it was named the “Best Investment Destination in East Africa.”
The AIM Investment Award 2024, presented to the Ugandan delegation at a gala dinner in Abu Dhabi, is a testament to the country’s unwavering efforts in creating a conducive environment for investments and doing business, particularly in the burgeoning green economy.
According to the Uganda Investment Authority (UIA), the country submitted three cutting-edge “green” investment projects that caught the attention of the AIM jury. These include:
Nexus Green
A solar energy company that manufactures and supplies affordable solar-powered solutions for the 458 million people in the East African region without access to reliable energy. Nexus Green has invested over $100 million, with $10 million in a new factory, and employs 200 Ugandans directly and over 1,000 indirectly.
1MTN
A high-quality, nature-based carbon removal project developer on a mission to restore one million hectares of degraded land by 2030 through the planting of polyculture native bamboo, with a focus on biodiversity management. 1MTN’s current investment is $1.5 million, with a planned investment of $100 million in the next four years.
Spouts of Water
The largest manufacturer of ceramic water filters in Africa, producing a convenient and affordable solution using locally sourced materials. Spouts of Water’s products currently reach over 200,000 households and aim to reach six million households by 2030. The project has a current investment value of $10 million, with an additional $80 to $100 million planned in the next four years, and employs 450 Ugandans.
The AIM Investment Award recognizes the accomplishments of countries in attracting the most significant investment projects that contribute to the economic growth and development of their markets.
“The award is a strong recognition of efforts by the Government of Uganda and the Uganda Investment Authority in creating a conducive environment for investments and doing business in Uganda, including in the green economy,” said Minister Anite.
UIA Board Chairman, Morrison Rwakakamba, echoed these sentiments, stating that the winning projects “demonstrate the commitment of Uganda to mitigating the adverse effects of climate change and other world’s environmental challenges.”
Ugandan enterprises urged to explore regional oil and gas opportunitiesThe Director General of the Uganda Investment Authority, Robert Mukiza, further emphasized that the award is not only an affirmation of Uganda as the best investment destination in Africa but also a testament to the authority’s strong and effective efforts in attracting quality, relevant, and sustainable investments to the country.
This latest recognition builds on Uganda’s previous success at the AIM event. In 2023, the country was named the “Best Investment Destination in East Africa” for attracting the best investment project, Modern Tiles. Additionally, the Uganda Investment Authority won the gold award for the best investment promotion agency in East Africa.
The significance of this award cannot be overstated. Foreign direct investment (FDI) plays a crucial role in Uganda’s economic development, contributing over 4% to the country’s gross domestic product (GDP), according to the World Bank.
In the past two years, Uganda has attracted over $1 billion in FDI from the United Arab Emirates alone, and the country’s total FDI inflows have increased from $1.36 billion in April 2022 to $1.5 billion for the year ending April 2023.
To further bolster its attractiveness to foreign investors, Uganda has implemented a multi-faceted strategy focused on creating a favourable business environment. Key elements of this strategy include:
1) Reliable and affordable electricity infrastructure
2) Efficient transportation systems
3)Attractive tax incentives
4)High-quality internet connectivity
These efforts have paid off, as the World Bank has projected an economic surge in Uganda, with the country’s GDP growth expected to increase from 5.3% in 2023 to 6.0% in 2024, despite sanctions from the West.
The AIM Global Investment Awards, established as the new staple for FDI, have become a highly coveted recognition for countries and investment promotion agencies worldwide. With over 170 countries participating in this year’s event, Uganda’s selection as the “Best Investment Destination in Africa” is a remarkable achievement that will undoubtedly raise the country’s profile on the global investment stage.
As Uganda continues to cement its position as a premier investment destination in Africa, the benefits of this award will ripple through the country’s economy, attracting even more foreign capital, creating jobs, and driving sustainable development. This latest accolade is a testament to Uganda’s unwavering commitment to fostering a thriving, investment-friendly environment that is poised to propel the country’s economic growth in the years to come.
