A new survey conducted by KPMG International Limited, a multinational professional services network headquartered in the Netherlands, has placed Uganda among the top 10 countries in sub-Saharan Africa for potential investment over the next two years.
According to the survey, KPMG International Limited operates in 147 countries with a workforce of over 227,000 employees, focusing on financial audit, tax, and advisory services. The survey, aimed at investors considering acquisitions or investments in sub-Saharan Africa, asked participants to select the top 10 countries they were contemplating for investment.
The top-ranked investment destination was South Africa, chosen by 50% of respondents, followed by Nigeria at 30%, and Tanzania at 15%. Ghana, Kenya, and Mauritius tied for fourth place, each garnering 14% of the votes. Zambia received 11%, and Uganda secured 10% of the respondents’ preferences, while Mozambique and Zimbabwe both received 6%.
The survey found that nearly half of the respondents, accounting for 48%, identified the oil and gas sector as the most attractive over the specified two-year period. The consumer goods and mining sectors followed closely, with 39% and 37% of respondents favoring them, respectively.
KPMG reported that the survey encompassed 150 senior executives with C-suite-level experience in deal-making within sub-Saharan Africa over the past four years. The respondent group was evenly divided between domestic investors within the region and international investors from outside.
Among domestic investors, 71% were strategic investors, while the remaining 29% were financial investors. For international investors, 69% adopted a strategic approach, with 31% classified as financial investors.
Ijeoma Emezie-Ezigbo, the partner and head of transaction services at KPMG West Africa, emphasized in the report’s foreword the motivation behind their publication. She sought to highlight the investment opportunities in the region and the attractive, high-potential markets. Additionally, Emezie-Ezigbo stressed the importance of risk management strategies and the need for local transaction advisers to mitigate potential downsides.
Mukiza Robert, the director general of Uganda Investment Authority (UIA), responded to the survey findings by asserting that Uganda ranks as the third most rewarding country for investment in Africa. He highlighted Uganda’s secure environment, liberal economic policies, and access to various markets through international trade agreements, making it an extremely profitable investment destination.
Angelo Izama, a director at UIA, echoed the positive sentiment, emphasizing Uganda’s consistency in exceeding expectations. He attributed this success to the fundamentals of businesses operating in Uganda, its open economy, strong property protection, market depth, and access to regional and continental markets. Izama also pointed out Uganda’s commitment to future growth in key areas, such as energy and infrastructure, as factors that make it an attractive investment destination.
Furthermore, he highlighted the government’s support for investors and the upcoming Town Hall meeting, where the President would interact directly with investors, as assets to businesses operating in Uganda.
