The Foreign Direct Investments (FDI) inflows to Uganda registered a growth – expanding by 1.4 percent, rising from net inflows of USD2,952.9 million in 2022 to USD2,993.5 million in 2023. The increase was primarily driven by intensified activity in the Mining (oil) sector, transitioning from the exploration and appraisal phase to the development phase following the Final Investment Decision (FID) concluded in February 2022. This milestone initiated major construction works towards the development of the Tilenga, Kingfisher, and EACOP projects.
97.4 percent of FDI inflows in 2023 were linked to oil sector activities, with 67.3 percent directed to the Mining sector and 30.1 percent to the Transportation sector, primarily for pipeline development. Additionally, the Finance sector accounted for 3.6 percent of FDI inflows.
The major FDI sources included the Netherlands, France, Kenya, and Tanzania. Attracting foreign private capital remains a key policy priority for Uganda. The Government is committed to further liberalizing investment restrictions, removing regulatory hurdles, strengthening international relations, and enhancing the business environment to maintain Uganda's appeal as a prime destination for foreign direct investment (FDI).
Key information points include:
- FDI Growth: FDI inflows grew by 3%, rising from USD 2.9 billion in 2022 to USD 3.0 billion in 2023. Additionally, the FDI stock increased by 9.6 %, rising from USD16.6 billion in 2022 to USD18.2 billion in CY2023, driven by increased inflows in equity, reinvested earnings, and related debt.
- Sectoral Contributions: In 2023, 57% (USD1.7 billion) of the FDI inflows were attributed to activities in the mining sector. 24% (USD0.7 billion) was directed towards the transport sector particularly the oil pipeline, and 9% to the finance sector.
- Source Countries: The majority of FDI originated from the Netherlands (55%), France (20%), Kenya (6%), Tanzania (5%) and the United Kingdom (4%).
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