Foreign private capital flows are an important source of financing for developing economies. It is therefore of paramount importance to understand the size, type, and direction of both inward and outward investments and design interventions to attract and retain foreign private capital.

FDI inflows registered a record high growth of 79.2%, from net inflows of US$1,648.2 million registered in CY2021 to US$2,952.9 million in CY2022. The significant boost in FDI inflows during 2022 was largely attributed to the progression in activity in the Mining (oil) sector - the transition from the exploration and appraisal phase to the development phase following the conclusion of the Final Investment Decision (FID) in February 2022. The FID marked a significant milestone that launched major construction works towards the development of Tilenga, Kingfisher, and the EACOP projects. Consequently, 62.4% of FDI inflows received in CY2022 was solely attributed to activity in the oil sector, of which 35.4% was channeled directly to the Mining sector,

Notable FDI inflows were registered through the ICT (17.6%), and Finance (7.3%) sectors. FDI inflows were largely sourced from the Netherlands, United Kingdom, Mauritius, Kenya, and Switzerland. Attracting foreign private capital remains an important policy objective for Uganda. The Government continues to liberalize investment restrictions, eliminate regulatory barriers, nurture international relations, and improve the business environment, ensuring that Uganda remains an attractive destination for FDI.

For details: https://www.bou.or.ug/bouwebsite/Statistics/Reports/PSIS.html