| Competitive advantage |
| 2006/08/18 |
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New Vision (Kampala)
A DELEGATION from a big Chinese concern is looking at investment prospects in Uganda. The Chinese National Aeronautics Technology Corporation (CATIC) has met President Museveni, who outlined the country's focus on investment, the numerous opportunities, and the vast regional market. In many areas, Uganda has a favourable investment climate. Macro-economic stability - stable, single-digit inflation, a liberal foreign exchange regime, liberal trade and marketing - form a good foundation. A fairly well trained workforce would give efficient but affordable labour. There are still some infrastructure problems like energy, but these are being worked on, and in a few years Uganda should have adequate and stable power. Tax and other incentives are also being offered to various investors to ease the cost of doing business. But most of all is the sheer potential. Museveni pointed to horticulture, with Uganda's vast array of fruit all being produced organically. Virtually every part of the country produces one type of fruit or another, most of it of a quality rare elsewhere in the region. This opens opportunities for fruit-processing plants. While the energy concerns are being addressed, in the short-term, with the construction of the Bujagali and Karuma dams, these two projects will generate only 450 megawatts of electricity, which is unlikely to meet long-term needs. The Ugandan part of the River Nile was estimated by one study to have the potential to generate 2,300MW, which can be exported. China is looking to invest financial and technical capital. Uganda must offer the areas where it would have a competitive advantage. |