country analysis uganda

8/13/2019 Country Analysis Uganda

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Jogendra walvoikar

12065

Marketing (2012-14)

Country: Uganda.


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Ugandaofficially the Republic of Uganda, is

a landlocked country in East Africa. Uganda

also lies within the Nile basin, and has a varied

but generally equatorial climate. The officiallanguage is English. Luganda, a central

language, is widely spoken across the country,

Uganda has substantial natural resources,

including fertile soils, regular rainfall, and

sizeable mineral deposits of copper and cobalt.

The country has largely untapped reserves of

both crude oil and natural gas. While agriculture

accounted for 56% of the economy in 1986,

The current estimated population of Uganda is

35 million. Uganda has a very young population,

with a median age of 15 years.

Country analysis.

Climatic condition.

Ugandas weather in generalStraddling the equator, there is little year round fluctuation in temperature and no real winter orsummer. The hottest months are January and February when the average daytime range is 24-33C (52-91F) with peaks of up to 40C/104F in the far north. The south has two wet seasons:from mid- September to November and March to May. The dry season from December toFebruary means only that it rains less and the gorilla parks remain fairly wet during thesemonths. The second dry season- from June and July- is considerably drier. Still, with 1000 to2000mm (39.4-78.7in) of rain every year, it can rain at almost any time. The north, includingMurchison Falls and Kidepo Valley, has one continuous wet season from March to Novemberand a more obvious dry season from December to February.

So we can say that Uganda climate is good agriculture.

http://www.safaribookings.com/uganda/climate
http://www.safaribookings.com/uganda/climatehttp://www.safaribookings.com/uganda/climatehttp://www.safaribookings.com/uganda/climate


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Natural resources

Uganda has substantial natural resources, including fertile soils, regular rainfall, small deposits

of copper, gold, and other minerals, and recently discovered oil. Uganda has never conducted a

national minerals survey. Agriculture is the most important sector of the economy, employing

over 80% of the work force. Coffee accounts for the bulk of export revenues.

http://www.forbes.com/places/uganda/

Agriculture

Ugandais endowed with a warm climate, ample fertile land and regular rainfall all of whichprovide one of the best environments for agricultural production in sub-Saharan Africa.

Agriculturehas for several years formed the backbone of Ugandas economy contributingapproximately 37% of the Gross Domestic Product (GDP). Agricultural products contribute

nearly all of Uganda's foreign exchange earnings, with coffee (of which Uganda is Africa's

leading producer) contributing the largest percentage of 19% of the country's exports. Exports

of non-traditional products, including hides, skins, vanilla, vegetables, fruits, cut flowers, and

fish are growing, while traditional exports such as cotton, tea, and tobacco continue to be

mainstays

Industrial manufacturing

UgandasIndustrial manufacturingsector is relatively small. The sector is dominated bysubsidiaries of multinational corporations. The presence of subsidiaries of multi-nationalcorporations is largely attributed to the Government of Ugandas privatisation programme which

commenced in the mid 1990s

Financial service industry

Financial service industryin Uganda comprises the Banking, Insurance, Microfinance andinvestments sectors, remains dominated by the banking sector. The banking Sector has beendescribed as generally sound and well capitalized.

Food & Drink

Private consumption in Uganda is anticipated to have grown strongly over 2013; price growth(which is forecast at 5.3% for the year) has increased slightly,
http://www.forbes.com/places/uganda/http://www.forbes.com/places/uganda/http://www.forbes.com/places/uganda/


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Infrastructure

BMI View: 2012 was a tough year for the Ugandan construction market, which was badlyaffected by high interest rates, limiting real GDP growth to an estimated 2.8%.

http://www.pwc.com/ug/en/industries/financial-services.jhtml

Gross Domestic Product of the country.

http://databank.worldbank.org/data/views/reports/chart.aspx

GDP of the country is rising, so its good sign for the business.

This page summarizes Doing Business 2014datafor Uganda. Table lists the overall "Ease

of Doing Business" rank (out of 189 economies) and the rankings by each topic.

TOPICSDB 2014

Rank

DB 2013

Rank Change in Rank

Starting a Business 132 126 -6
http://www.pwc.com/ug/en/industries/financial-services.jhtmlhttp://www.pwc.com/ug/en/industries/financial-services.jhtmlhttp://databank.worldbank.org/data/views/reports/chart.aspxhttp://databank.worldbank.org/data/views/reports/chart.aspxhttp://www.doingbusiness.org/data/exploreeconomies/uganda#starting-a-businesshttp://www.doingbusiness.org/data/exploreeconomies/uganda#starting-a-businesshttp://www.doingbusiness.org/data/exploreeconomies/uganda#starting-a-businesshttp://databank.worldbank.org/data/views/reports/chart.aspxhttp://www.pwc.com/ug/en/industries/financial-services.jhtml


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TOPICSDB 2014

Rank

DB 2013

Rank Change in Rank

Dealing with Construction

Permits 143 130 -13

Getting Electricity 178 177 -1

Registering Property 126 128 2

Getting Credit 42 40 -2

Protecting Investors 115 113 -2

Paying Taxes 98 96 -2

Trading Across Borders 164 164 No change

Enforcing Contracts 117 114 -3

Resolving Insolvency 79 68 -11

http://www.doingbusiness.org/data/exploreeconomies/uganda
http://www.doingbusiness.org/data/exploreeconomies/uganda#dealing-with-construction-permitshttp://www.doingbusiness.org/data/exploreeconomies/uganda#dealing-with-construction-permitshttp://www.doingbusiness.org/data/exploreeconomies/uganda#dealing-with-construction-permitshttp://www.doingbusiness.org/data/exploreeconomies/uganda#getting-electricityhttp://www.doingbusiness.org/data/exploreeconomies/uganda#getting-electricityhttp://www.doingbusiness.org/data/exploreeconomies/uganda#registering-propertyhttp://www.doingbusiness.org/data/exploreeconomies/uganda#registering-propertyhttp://www.doingbusiness.org/data/exploreeconomies/uganda#getting-credithttp://www.doingbusiness.org/data/exploreeconomies/uganda#getting-credithttp://www.doingbusiness.org/data/exploreeconomies/uganda#protecting-investorshttp://www.doingbusiness.org/data/exploreeconomies/uganda#protecting-investorshttp://www.doingbusiness.org/data/exploreeconomies/uganda#paying-taxeshttp://www.doingbusiness.org/data/exploreeconomies/uganda#paying-taxeshttp://www.doingbusiness.org/data/exploreeconomies/uganda#trading-across-bordershttp://www.doingbusiness.org/data/exploreeconomies/uganda#trading-across-bordershttp://www.doingbusiness.org/data/exploreeconomies/uganda#enforcing-contractshttp://www.doingbusiness.org/data/exploreeconomies/uganda#enforcing-contractshttp://www.doingbusiness.org/data/exploreeconomies/uganda#resolving-insolvencyhttp://www.doingbusiness.org/data/exploreeconomies/uganda#resolving-insolvencyhttp://www.doingbusiness.org/data/exploreeconomies/ugandahttp://www.doingbusiness.org/data/exploreeconomies/ugandahttp://www.doingbusiness.org/data/exploreeconomies/ugandahttp://www.doingbusiness.org/data/exploreeconomies/uganda#resolving-insolvencyhttp://www.doingbusiness.org/data/exploreeconomies/uganda#enforcing-contractshttp://www.doingbusiness.org/data/exploreeconomies/uganda#trading-across-bordershttp://www.doingbusiness.org/data/exploreeconomies/uganda#paying-taxeshttp://www.doingbusiness.org/data/exploreeconomies/uganda#protecting-investorshttp://www.doingbusiness.org/data/exploreeconomies/uganda#getting-credithttp://www.doingbusiness.org/data/exploreeconomies/uganda#registering-propertyhttp://www.doingbusiness.org/data/exploreeconomies/uganda#getting-electricityhttp://www.doingbusiness.org/data/exploreeconomies/uganda#dealing-with-construction-permitshttp://www.doingbusiness.org/data/exploreeconomies/uganda#dealing-with-construction-permits


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Business opportunities available in Uganda :

1. Food processing : Much of the food consumed in Uganda is imported. And the countryspends several million of dollars annually on food importation alone. This creates huge

opportunities for businesses that can produce and process foods locally.

Making Soya Milk, Tofu and Yogurt

Build your own Small Soya Processing Plant, produce and sellsoy milk Tofu, Yogurt and Soya Food recipe...

With less than US$10,000 of total investment, you build yourown soya processing plant and make up to US$1,000 of monthlynet profit!

Start a Flour or Maize Milling Plant

Flour or Maize milling in Zambia, Malawi and other African countries present huge businessopportunities....

In these countries, there is scope for establishing flour or maize mills in all important commercialcentres in the rural or urban areas.Process maize, produce good quality flour and let people enjoy maize meal!


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2. Tourism and hospitality :Uganda is one of the most visited vacation destinationsin Africa. Because Uganda plays host to many visitors annually, there are opportunities

for investors to make money off these visitors.

3.

Transportation: Uganda face huge problems of transport not only because of badroads but as well by limited means of transportation. This situation presents to you

business opportunities in the transport sector.

(http://www.africa-do-business.com/kampala.html)

Site selection for starting a business in Uganda.

It will be feasible to start the business kampala city. It is the capital of the country, with good

infrastructure, market, power supply etc. kampala City, the capital of Uganda, is one of thefastest growing cities in Africa. The population is reaching 2 million and its economy is

booming. Kampala is now characterised by a landscape of new infrastructures and buildings:

roads, shopping malls, hotels, apartments, etc.

Business Which I Would Like To Start.

Fruit processing

There are limited fruit processing industries in Uganda. There is demand for fruit juices for

outstrip production. In order to meet this demand, a range of fruit juices are imported into the

country. This is a strong indication of the existence of investment opportunity in fruit juice

processing, for local and export markets.

Introduction http://www.ugandainvest.go.ug/

Fruit Juice Canning is a method of preserving fruit juice sealed in an airtight container, which

prevents microorganisms from entering and proliferating inside. The products may include:Canned fruit cocktail consisting of a mixture of fruits, such as; mangoes, tangerine, lemons,

apples, and passion fruits. There is an increasing demand for canned fruits as they can be sold in

both locals and foreign markets.


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Production Capacity

It is projected that at least 100 Dozens of 300m liters (1,400 ltrs) of canned juice can be

produced a day.

Production Technology & Process

The canning process involves placing fruit juice in jars or similar containers and heating them to

a temperature that destroys microorganisms that cause food to spoil. During this heating process

air is eliminated from the jar and as it cools a vacuum seal is formed. This seal prevents air from

getting back into the product bringing with it contaminating micro-organisms.

Capital Investment Requirements and Equipment:

This project may be operated on both small and large scale depending on the size and nature of

the market. The fixed capital investment required to start it is approximately 27,170 USD as

shown in the table below: Raw Material Requirements for 12 Months: It is projected that in a

month, at least 42,000 kgs of fruits, 36,000 jar cans & labels are required to meet the projected

production capacity. The revenue per annum is USD 748,800, with an operating cost of USD

656,473 at a net profit of 12%. The payback period is 4 months.

Market Analysis

The demand for canned juice is very high in super markets, hotels and for export. Foreign

markets will constitute about 80% of the total market size.


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Project cost:

Capital Investment Requirements in US$

Operating Costs in US$


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General Costs (Over heads)

Profitability Analysis in US$

Sources of Supply of Raw Materials:

Raw materials will be locally supplied from Eastern, Western Kasese, North Eastern, and

Central parts of Uganda, which are the leading and major fruit producing regions.


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Competition

Although processing is still considered low due to limited extraction of juice and packing, the

positive strides witnessed in the last two years signal improvement as both juice production and

farmers involvement has grown.

By the end of 2010, there were a few fruit juice producers and the market was dominated by

House of Dawda (Britannia Allied Industries Limited) juice productsSplash and Yojus.

However, in 2011, two big companies; Sameer Agriculture Livestock Ltd (SALL) and Coca

Cola joined the local market, each launching a multi-billion fruit juice plant.

Sameer announced that it had invested Shs5.2 billion in a juice plant and would use locally

grown fruits to produce a variety of high quality juices under the brand Diama juice.

Jakana Foods LLC is a major scale commercial producer of all natural fruit juice in Uganda. The

company has been processing and packaging juice since 1994.

Reason I choose these Opportunity:

News :Ugandasfruit juice consumption on the rise as dominant player battles for market.

A fast growing middle class and a more health conscious population is spearheading theincreased consumption of fruit juices.

More Ugandans are consuming fruit juices even though its price remains slightly higher

compared to other soft drinks.

The lowest prices for a fruit juice pack of less than 300mls is Shs1,000 compared to the Shs5,00

charged for some other soft drinks of the same quantity.

Uganda is the number one fruit producing nation in Africa. The country is suitable and has

abundant potential to produce mangoes, citrus, pineapples, tomatoes and a host of other

vegetables. The fertile soils and conducive climate guarantee fruit and vegetable production for

the greater part of the year. Despite this great production potential, the processing of fruits and

vegetables is low and is mainly limited to extraction of juice, drying, bottling and labeling. So

there will be continuous supply of raw material that to at a lower price.

(http://www.monitor.co.ug/Business/Prosper/Uganda-s-fruit-juice-consumption-on-the-rise)


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References

http://www.safaribookings.com/uganda/climate

http://www.forbes.com/places/uganda/

http://www.pwc.com/ug/en/industries/financial-services.jhtml

http://databank.worldbank.org/data/views/reports/chart.aspx

http://www.doingbusiness.org/data/exploreeconomies/uganda

http://www.africa-do-business.com/kampala.html

http://www.ugandainvest.go.ug/

http://www.monitor.co.ug/Business/Prosper/Uganda-s-fruit-juice-consumption-on-the-rise
http://www.safaribookings.com/uganda/climatehttp://www.safaribookings.com/uganda/climatehttp://www.forbes.com/places/uganda/http://www.forbes.com/places/uganda/http://www.pwc.com/ug/en/industries/financial-services.jhtmlhttp://www.pwc.com/ug/en/industries/financial-services.jhtmlhttp://databank.worldbank.org/data/views/reports/chart.aspxhttp://databank.worldbank.org/data/views/reports/chart.aspxhttp://www.doingbusiness.org/data/exploreeconomies/ugandahttp://www.doingbusiness.org/data/exploreeconomies/ugandahttp://www.africa-do-business.com/kampala.htmlhttp://www.africa-do-business.com/kampala.htmlhttp://www.ugandainvest.go.ug/http://www.ugandainvest.go.ug/http://www.monitor.co.ug/Business/Prosper/Uganda-s-fruit-juice-consumption-on-the-risehttp://www.monitor.co.ug/Business/Prosper/Uganda-s-fruit-juice-consumption-on-the-risehttp://www.monitor.co.ug/Business/Prosper/Uganda-s-fruit-juice-consumption-on-the-risehttp://www.ugandainvest.go.ug/http://www.africa-do-business.com/kampala.htmlhttp://www.doingbusiness.org/data/exploreeconomies/ugandahttp://databank.worldbank.org/data/views/reports/chart.aspxhttp://www.pwc.com/ug/en/industries/financial-services.jhtmlhttp://www.forbes.com/places/uganda/http://www.safaribookings.com/uganda/climate


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country analysis uganda

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