investment trends and opportunities in uganda's mineral sector

7/27/2019 Investment Trends and Opportunities in Uganda's Mineral Sector

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Eng. Dr. Frank Sebbowa

Executive Director

Mineral Wealth Conference 20131-2 October 2013

Investment Trends and Opportunities

in Ugandas Mineral Sector


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Presentation Structure

1. Investment Environment

2. FDI Trends of Investment

3. Priority Sectors for Investment

4. Opportunities in Mining

5. Incentive Regime

6. Getting your Business Started

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Investment Environment

Basic infrastructure- Transport (Roads, Railways & Airfreight)- Utilities (Power, Telecoms & Water)- Land (Term leases)

Stability (i.e. predictability)- Politics (Stable in more than past 27 years)

- Economy (Giant steps in past 25 years)- Social (no major upheavals)

Policy framework

-Legal / Regulatory Framework in place-Financial-Incentives



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Source: UNCTAD, World Investment Report, 2013


FDI Trends in Uganda


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Actual FDI in the EAC in US $ Millions (2006 2012)

FDI inflows toUganda rose for thethird year runningby 92 % hitting a

record high of US$1.72 billion, makingUganda the highestFDI recipient in theEAC in 2012.Tanzania lost its

position asfrontrunner FDIrecipient in 2012accounting for 44 %of total EAC FDIcompared with

Ugandas 45 %.

Source: UNCTAD, World Investment Report, 2013



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Top 10 Planned FDI Sources by Value (US$)

FY 2009/10 2012/13


China, India andKenya continue to bethe leading sourcesof FDI in Ugandawith Canada comingsecond for the firsttime ever in 2012/13.

Chinas positiveperformance isdriven by largeinvestmentsregistered in Mining

and Quarrying. Inparticular, Chinaalone accounted fortwo fifth of the totalplanned FDI in2012/13.

2009/2010

2010/2011

2011/2012

2012/2013

Inv. (000) Inv. (000) Inv. (000) Inv. (000)China 288,223 India 149,395 Netherlands 200,886 China 359,152Kenya 231,220 Kenya 76,507 United

Kingdom104,394 Canad

a143,588

India 196,702 Netherlands

69,809 Sweden 78,401 Kenya 113,008U.K 95,061 Norway 67,931 Kenya 36,744 India 91,692UAE 35,000 China 56,294 India 25,862 UK 75,697Russia 20,848 Iran 22,724 China 22,687 Italy 30,235Canada 18,631 Turkey 14,515 Sri Lanka 18,460 South

Africa19,568

Nigeria 16,195Mauritius

14,318 South Korea 5,731 CaymanIsland

s

18,122

Togo 12,351 UK 14,254 Iran 5,000 UnitedStates

12,720

Virgin

Islands

8,589 SouthAfrica

13,239 Eritrea 4,210 Sudan 11,332


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FDI per Sector by number of Projects (2010/11

2012/13


The sectoral distribution of FDI forthe three fiscal years indicates thatmost foreign owned projects tend toconcentrate in the Manufacturing,Finance, Insurance, Real Estateand Business Services andAgriculture

The Manufacturing sectormaintained its position as numberone last FY, registering more than

200 percent growth and accountingfor more than half of the totalnumber of foreign projects licensedin 2012/13.

FDI interest in Mining is growing

with the realization of availableupdated data.


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Priority Sectors

Four Priority Sectors Aligned to the NationalDevelopment Plan

1. Commercial Agriculture / agro processing

2. Mining (mineral beneficiation)

3. Tourism

4. Information Communication Technology (ICT)



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Overview of the Mining Sector

1. Uganda has substantial mineral potential which is stillvirgin and under explored

2. High resolution airborne geophysical surveys provide

adequate information on minerals

3. Investment in mining is private sector driven

4. Mining contributes about 0.3 % to the GDP (UBOS:2012)

http://pix77.com/salt-mining-in-uganda/ugandan-salt-mining-7http://pix77.com/salt-mining-in-uganda/ugandan-salt-mining-3


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Investment Opportunities in

Mining

1. Existing projects i.e for joint venture or acquisitiondue to lack of capacity

2. New/green field projects in the mining andbeneficiation of gemstones, precious metals,base metals, industrial minerals, and constructionminerals: priority minerals include Iron ore,Limestone, Uranium and Phosphates

3. Specific PPP projects in Ugandas strategicminerals that contributes effectively to theeradication of poverty in the mineral areas



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Incentive Regime Benefits inMining


Free importation of mining plant and equipment with VATdeferment facilities Under the EAC exemption regime, all spare parts formachinery used in mining imported by licensed mining

companies is free of import duty and all taxes Investment protection under Multilateral InvestmentGuarantee Agency(MIGA) Mineral exploration expenditures are expensed 100%

Externalization of dividends and profits Generous depreciation allowance for all depreciable miningassets


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How UIA Supports Investment

1. Provides Information on investment opportunities

2. Issues Investment Licenses and provides aftercareservices

3. Assists in Securing Secondary Approvals

4. Brokers Joint Venture Partnerships

5. Offers One- StopCentre Services (URSB, URA,Immigration, NEMA, MLHUD)

6. Facilitation and Enhancement of SMEs

7. Facilitates the access to agricultural and industrial land10/23/2013 12Investment Trends and Opportunities in Ugandas Mining Sector


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Setting Up Your Investment

Register

yourcompanyinUganda

Locateprojectsite

Acquireregulatorylicense

Carry out anEnvironmentImpactAssessment(EIA)

Obtainpermits,

otherlicenses

Implementinvestment

Receiveaftercareservices

Acquireinvestmentlicense

from UIA

UIA works with the investor throughout this process through the One-Stop-Centre

NB. The Import and Export business does not require an investment license


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Thank You Very Much


Uganda Investment Authority

Plot 22 Lumumba Avenue

TWED Plaza, 2nd Floor

Tel: +256 414 301 000

Fax: +256 414 342903

[email protected]

www.ugandainvest.go.ugInvest in Uganda
mailto:[email protected]://www.ugandainvest.go.ug/http://www.ugandainvest.go.ug/mailto:[email protected]

investment trends and opportunities in uganda's mineral sector

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