The value of foreign direct investments (FDI) in Uganda experienced a remarkable 80% growth in 2022, primarily driven by substantial investments in the oil and gas sector, according to the latest collaborative report by the Bank of Uganda, Uganda Investment Authority, and Uganda Bureau of Statistics.
The 20th edition of the survey aimed to provide insights into the distribution of foreign investments, focusing on location, source, type, and size in the year 2022. The report identified a staggering 13 trillion dollars’ worth of gold deposits alongside the dominant FDI in oil and gas.
FDI inflows surged from 1,648.2 million dollars in 2021 to 2,952.9 million dollars in 2022. The substantial increase was attributed to the progress in the Mining (oil) sector, transitioning from exploration and appraisal to the development phase. The Final Investment Decision (FID) in February marked a pivotal moment, initiating the commercial phase, including construction, drilling, and appraisal of wells in the Tilenga and Kingfisher areas, as well as the East African Crude Oil Pipeline project.
Allocation of the FDI revealed 1 billion dollars directed to mining projects, 800 million dollars for transportation of pipeline equipment and parts, and 500 and 200 million dollars for the ICT and finance sectors, respectively.
Uganda’s success in attracting significant investment defies the challenging global environment outlined in the UN Conference on Trade and Development’s World Investment Report 2023. The report indicates persistent challenges in international business and cross-border investment, with ongoing geopolitical tensions and economic uncertainties.
Despite a global downward trend in FDI, Uganda’s robust performance contrasts with Africa’s overall decrease of 44 percent in FDI inflows to 45 billion dollars. The country managed to attract investments mainly from the Netherlands (38%), the United Kingdom (37%), and Mauritius (7%), with additional contributions from Kenya and Switzerland, totaling five and 3 million dollars, respectively.
