President Museveni has urged European investors to take advantage of Uganda’s investment opportunities in infrastructure, energy, manufacturing and agriculture, saying investment in productive sectors is essential to job creation, market expansion and economic transformation.
The President made the remarks at State House Entebbe during a meeting with European Union ambassadors and investors, where he highlighted Africa’s rapidly growing population and expanding consumer market as significant opportunities for European businesses seeking new investment destinations and stronger economic partnerships.
“This is what we have been advising our European friends to look at, because Africa is a big potential market with its fast-growing population,” Museveni said.
He attributed political instability in some African countries partly to identity-based politics, including tribalism, religious divisions and ideological misunderstandings. He also pointed to the failure to recognise the private sector’s role in driving economic growth as a challenge to development.
Museveni said Uganda had learnt from these challenges, stressing the importance of maintaining a stable political and economic environment in which businesses can invest, expand production and create employment.
The President welcomed ongoing and proposed European investments in Uganda, particularly in infrastructure and other productive sectors, saying such projects would strengthen economic connections between Uganda and European markets.
“All these projects are music to my ears. By constructing these projects here, you are linking the market of Uganda to that of Europe. Why can’t anyone see that?” he asked.
He urged European investors and financial institutions to support strategic infrastructure projects capable of lowering production and transport costs, improving connectivity and strengthening Uganda’s competitiveness.
Museveni specifically called on the European Investment Bank to increase financing for railway development, electricity generation and distribution, and selected road projects.
On road infrastructure, he encouraged European investors to explore construction opportunities and alternative financing arrangements, including tolling where appropriate.
Museveni identified the cost of electricity as a major factor affecting Uganda’s competitiveness, particularly for manufacturers seeking to produce goods at affordable prices.
While welcoming private-sector investment in hydropower generation, he called for greater attention to electricity tariffs, arguing that affordable and reliable power was essential for industrial expansion.
He identified affordable electricity, efficient railway transport and accessible financing for productive investments as key priorities for strengthening Uganda’s manufacturing sector.
The President also highlighted the role of the Uganda Development Bank in providing financing to businesses engaged in productive activities.
He said the government had retained the institution to support investments that increase production, create jobs and expand the country’s economic base.
Museveni reaffirmed the government’s support for tax incentives intended to attract investment, particularly in manufacturing, and emphasised the importance of enabling eligible businesses to benefit from a 10-year tax holiday.
He said the government’s priority was to attract investors who would establish businesses, increase production and employ Ugandans, arguing that the resulting economic activity would also generate public revenue through indirect taxation.
“We are not interested in direct tax. What we want from you is jobs and production, and I will get taxes indirectly through consumer tax and income tax,” Museveni said.
He maintained that investment incentives should prioritise productive enterprises that create employment, expand industrial capacity and contribute to long-term economic growth.
The President also identified agriculture, irrigation, fish farming and agro-processing as sectors with significant investment potential, citing Uganda’s abundant raw materials as a foundation for industrial development and value addition.
He pointed to maize and soya beans as examples of locally available agricultural produce that could support investment in animal-feed manufacturing and other processing industries.
Museveni called for increased investment in agricultural processing to improve the utilisation of domestic raw materials, strengthen livestock production and create additional market opportunities for farmers.
He added that the government was preparing to expand irrigation and fish farming to boost agricultural productivity, improve household incomes and provide alternative livelihoods for communities living near environmentally sensitive wetlands.
On environmental protection, Museveni welcomed investments aimed at addressing environmental challenges associated with oil development, emphasising the need to safeguard Uganda’s freshwater resources.
He also underscored the importance of conserving forests and other natural resources, noting that environmental sustainability remains an important consideration in the country’s development agenda.
The meeting provided a platform for discussions on Uganda’s investment priorities and the potential role of European capital, technology and business partnerships in supporting economic transformation.
Museveni’s appeal focused on attracting investment that expands production, improves infrastructure, strengthens local industries and creates employment, while positioning Uganda to benefit from growing regional and international markets.