Uganda - Investment Opportunities in Uganda Ugandas economy...

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Investment Opportunities in Uganda:Uganda’s economy being still young provides much wider potential and the choice of investmentopportunities for the prospective investor than that in the case of more developed economies.Uganda's existing comparative advantage is heavily concentrated in agriculture, forestry andmineral resources and their primary processing.The potential investment opportunities have been identified based on the availability of domesticnatural resources, the existence of surplus domestic labour, the good market prospects, the "highvalue low transport costs" to export markets.The prominent opportunities available include the following:Floriculture Industry:Inspite of being a relatively new industry in Uganda dating back only to 1993,commercial floriculture has emerged as a major non-traditional agriculturalexport sector with the major exports being roses and chrysanthemum cuttings. The industry hascontributed significantly to the national economy in terms of foreign exchange earnings,employment opportunities and rural development. The rise of the industry can prove to beinstrumental in the economic recovery program by ensuring increased wealth to the masses,boosting the country’s export revenue base and creating a sustainable source of income for thepeople.DIValues inUSDMillionInflow1999140.22000180.82001151.22002184.62003202.22004295.52005379.82006400.22007367.9200878
Competitive Advantage:The country’s competitive advantage lies in its favorable climatic conditions, low productioncosts and a wide range of donor support. The main destinations of Ugandan flowers are theNetherlands, Germany, United Kingdom, France, Norway, and Sweden. Other possible marketsthat Uganda could favorably tap include Kenya, Rwanda, South Africa, the United Arab Emiratesand Austria.Investment Opportunities:Investment opportunities exist in expansion of the rose industry and other floricultural plants,production of propagation material, establishment of soil analysis laboratory and services andmanufacture of greenhouse plastics and associated packaging materials.Forestry:Owing to its household uses forestry is of high economic importance to Uganda. The energysector is characterized by a heavy dependence on Bio-mass. There are 4.9 million hectares ofnatural forests and woodlands in Uganda, which cover 24% of the land area. The majority of thisforest area (81%) is woodland, 19% is tropical high forest and less than 1% is forest plantations.Despite being very small (5% of Uganda's land area), it produces a handful of resources and ishighly productive as it holds 35% of the country's total biomass resourceCompetitive AdvantageUganda has the richest biodiversity among the East African countries and is regarded as one ofthe important centers of biodiversity. This is due to the overlapping between the dry East Africansavanna and those of West African rain forests. As a result a wide range of forest products can be

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