Do you want to do business in Uganda?

One of the oldest locations showing signs of human existence with evidence dating back as far as 9000 BC, Uganda has the potential to become the strongest economy in Africa. Uganda has the largest population in Africa and one of the biggest in the entire world, with more than 250 ethnic groups amongst its population and roughly 65% younger than 25 years. The Ugandan government runs on a democratic presidential system and despite recent socio-political instability the future seems to promise a greater degree of stability and political stability is progressing. Its economy has become one of the largest in Africa and is although still highly dependent on revenue from oil and gas, the government is setting structures in place to diversify. Uganda being the one of the largest producers of crude oil globally is trying to potentially recapitalize on this advantage. Changes have now been proposed to help diversify the economy with other industries showing significant growth opportunities being consumer goods and retail, real estate, agriculture and infrastructure. The Ugandan government has also introduced a number of incentives to attract foreign investors. These include a favorable company income tax, Pioneer Status Grants, Free Trade Zones and tax relief for research and development. Investors can also repatriate 100% of profits and dividends, while full ownership of companies is granted in all sectors apart from oil and gas. Beside these advantages, the potential challenges of doing business in Uganda include corruption, cyber threat and political risk with violence, terrorism and ransom-oriented kidnappings still present. Furthermore, risk-managers cite difficult macroeconomic conditions and market volatility as other obstacles to be aware of when considering to business in this part of Africa. For these reasons Uganda may be better suited to experienced and established export missions rather than early-stage start-up companies. The keys to successful business interactions in Uganda are adaptability, flexibility and patience. Establishing personal relationships is important with the introductory section of meetings often lasting more than an hour. The Ugandan Business Network website at www.NigeriO.com is an invaluable portal for obtaining online resourcesa nd meeting people to acquaint yourself with the financial and cultural structures of doing business in Uganda so as to ensure maximum success.