Covid-19 pandemic did not deter the 2020 Uganda-UK convention from being a success. The virtual event was organized digitally via Zoom thanks to a dedicated team of Ugandans in United Kingdom led by their chairman, Willy Mutenza. The theme; Uganda’s Untapped Investment Potential resonated with the core objectives, including; promoting and facilitating bilateral trade between UK, Europe, Diaspora and Uganda plus facilitating foreign direct investment in Uganda as well as providing a platform for businesses to expand into new markets among others.
Ambassador Julius Peter Moto, Uganda's High Commissioner noted that the convention focused on three sectors; Real Estate, Agribusiness and Finance and Banking which fit within the government of Uganda’s National Development Plan III objectives. These are critical sectors for economic growth and development.
He emphasized that Uganda is open for business in oil and gas, tourism, minerals, ICT business, Industrialization and agriculture. He attributed this to peace and stability, favorable investment laws and incentives, a large population, trainable manpower coupled with improved infrastructure.
On the other hand, Subhash, former president, London Chamber of Commerce said Uganda is amongst the top 20 fastest growing economies of the world thanks to 6.5% growth with a human resource potential of 75% below the age of 30. “The slow growth of the agriculture sector at only 3.8% is, however, disappointing given that the country is endowed with natural resources,” he opined. Subhash commended the legal system as fairly stable and this attracts international investments.
Diasporans key in development
HRH Nabagereka Sylvia Nagginda, cited Diasporans’ contribution to Uganda’s economy. According to the World Bank 2018 report on migration and remittances, Ugandans globally remitted US$ 1.3 billion in 2018. Sadly, the remittances are likely to shrink due to Covid 19. Nevertheless, Nabagereka encouraged Ugandans and investors to look further at ventures that are more inclusive and empower women.
Dr Sara Reis, head of research and policy at UK Women’s Budget Group explained that emerging evidence on the impact of Covid-19 suggests that women’s economic and productive lives will be greatly affected. “In Uganda most women work in the informal sector, earn less, save less and hold less secure jobs and less access to social protections,” she said. Their capacity to absorb economic shocks is therefore less than that of men.
Meanwhile, at the 5th Uganda-UK Convention in London in 2015, Nabagereka presented a paper on the role of Ugandan women in sustainable economic development. She urged the Government and private investors to put them at the centre of policy and investment decision making.
State of real estate industry
Judy Rugasira Kyanda, Managing Director Knight Frank Uganda, pointed out that in East Africa region Uganda has the highest return on investment in the real estate due to its resilience.
“Uganda gets high returns in the office, residential and retail sectors. This makes it an attractive destination for property investments,” she stressed. She added that rentals have also been good and stable.
Similarly, the low to middle income residential sector is very attractive given the housing shortage. Rugasira encouraged people to invest in the low cost housing starting with schemes like build to rent or rent to buy.
Michael K Mugabi, Managing Director, Housing Finance Bank (HFB) said that Uganda has one of the highest urbanization rates of 5% in Africa coupled with fast growing population. This is an indication of many opportunities for developers and investors in real estate. “Many customers in the diaspora are reaping from the investment options in the real estate sector,” Michael added. Due to the immense stress Covid-19 has put on diaspora clients, HFB has put in place relief in form of restructuring loans and mortgages.
Edwin Musiime, CEO- Crest Group - NTV Host, The Property Show quoted Russell, an American financial politician who said that, “Real estate is an imperishable asset ever increasing in value……” and appealed to diasporans to invest in real estate. Also, Allan Mugisha, CEO SM Cathan suggested that government resurrects institutional housing to public workers like teachers and servicemen.
Eric Olanya, country director for the UK Department of international trade recapped that they hosted the UK-Africa investment summit in London in January where Uganda signed deals worth millions of pounds. He added that the biggest push for DIT business in Uganda has been using the UK export finance to support sovereign loans, like funding the Kabaale International Airport development and Namanga Industrial Park.
Olanya advised investors to take advantage of the new platform “Africa deal room” (asokoinsight.com/deals/dit/investor) to bring together ventures that are seeking investment.
Elsewhere, Mathias Katamba, Managing Director, DFCU Bank discussed the importance of investment clubs and SACCOs while Anthony Kituuka, ED, Equity Bank Uganda gave an insight on some of the transformations adopted during Covid -19 like fintechs such as mobile money.
Paul Omara, CEO, Ngetta Tropical Holdings Ltd gave an insight on the role of staple crop processing zones in laying out the foundation for Uganda’s Agro-industrialization and contribution to lifting millions of Africans out of poverty. Besides, Perez Ochieng, Director & CEO, SACOMA elaborated on the challenges and requirements for Agro-products from Uganda to access the European market.
Vice Chairman of the Convention, Bernard Magulu closed by attributing the success of the convention for the last 10 years to the collaboration and good will of Ugandans in the UK and dedicated partners including; Uganda government and friends plus private sector.
Willy Mutenza the convention founder hailed diasporans and business community for the support and quoted Cesar Chavez; “We cannot seek achievement for ourselves and forget about progress and prosperity for our community....” The 11th Convention is scheduled for 11-12th September 2021 at London Plaza Hotel. For more information and registration visit http://www.ugandanconventionuk.org/
By Ritah Mukasa
