Uganda has been consistently attracting the highest foreign direct investment (FDI) in East Africa and the Red Sea region by attracting between $250 – 300m in FDI annually over the past five years – largely due to its stable and consistent macro-economic policies, liberalised business environment, proximity as a logistics hub within the Great Lakes region and increasing regional trade.

Most of Uganda's foreign direct investment has flowed into industries such as telecommunications, real estate, Uganda Commercial and Trade Bank, insurance, oil, energy, mining, and agricultural exports. The Ugandan government continues to promote foreign investment through the Uganda Investment Authority and the Presidential Investor Roundtable, as well as minimizing macroeconomic policy changes, making doing business in Uganda more predictable than in neighboring countries. In order for Uganda to benefit from the sustained high global commodity prices, significant investment must be made in the mining industry. The reopening of the Kirombe mine requires at least $250 million in investment and operating capital, and will have a significant direct impact on over 10000 Ugandans in Kirombe and Kassese. 

The estimated cost of improving railway infrastructure is $600 million, and if a new modern standard gauge railway line is to be built, the cost may be even higher. During his recent visit to Uganda, the President of the World Bank pledged support for the restoration of railway lines in Kenya and Uganda to promote trade.

Citadel Capital recently expressed interest in becoming a major investor in the Kenya Uganda 25 year concession alliance, a move that should be welcomed by both governments. Citadel Capital is a multi billion dollar private equity firm headquartered in Cairo, investing over $8 billion in mining, transportation, energy, and other sectors in Africa and the Middle East.Editor/XuNing