MUSEVENI URGES EUROPEAN INVESTORS TO EXPAND PARTNERSHIPS IN UGANDA’S KEY ECONOMIC SECTORS

ENTEBBE, Uganda — President Yoweri Kaguta Museveni has called on European investors to expand partnerships with Uganda in infrastructure, energy, manufacturing and agriculture, emphasising the importance of private investment in creating jobs, strengthening trade and accelerating economic transformation.

The President made the call on Thursday, October 22, 2026, during a meeting with European Union ambassadors and investors at State House Entebbe, where he highlighted Uganda’s investment opportunities and Africa’s growing population as an expanding market for European businesses.

President Museveni said stronger economic cooperation between Uganda and Europe could benefit both sides by connecting markets, increasing production and supporting long-term commercial 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,” he said.

The President attributed political instability in some African countries partly to identity-based divisions, including tribalism, religious differences and ideological misunderstandings. He stressed that political stability and recognition of the private sector’s role were essential for attracting investment and sustaining economic growth.

Infrastructure and affordable energy

President Museveni identified affordable electricity, railway transport and accessible financing as priorities for improving Uganda’s industrial competitiveness.

While welcoming private-sector participation in hydropower generation, he urged investors and relevant institutions to pay attention to electricity tariffs, noting that affordable power would help manufacturers reduce production costs and compete effectively in regional and international markets.

He also called on the European Investment Bank to consider increased financing for strategic infrastructure, including railway development, electricity generation and distribution, and selected road projects.

The President encouraged European companies to explore road construction and financing opportunities, including tolling arrangements where appropriate, as Uganda seeks to improve transport connectivity and facilitate trade.

He further highlighted the Uganda Development Bank’s role in financing productive enterprises capable of expanding industrial output and generating employment.

Tax incentives and job creation

President Museveni reaffirmed the government’s commitment to investment incentives, particularly for eligible manufacturers, saying the priority was to encourage businesses to establish operations, increase production and employ Ugandans.

He defended the use of tax incentives, including a 10-year tax holiday for qualifying businesses, arguing that increased economic activity could generate government revenue through indirect taxation.

“We are not interested in direct tax. What we want from you is jobs and production,” he said.

Agriculture and value addition

The President also highlighted opportunities in agriculture, irrigation, fish farming and agro-processing, citing maize and soya beans as raw materials that could support animal-feed manufacturing and other processing industries.

He said greater investment in agricultural value addition would strengthen domestic supply chains, expand markets for farmers and support livestock production.

The government, he added, was preparing to expand irrigation and fish farming to improve agricultural productivity, increase household incomes and provide alternative livelihoods for communities near environmentally sensitive wetlands.

On environmental protection, President Museveni emphasised the importance of safeguarding freshwater resources and conserving forests while pursuing economic development.

The meeting underscored Uganda’s interest in strengthening economic relations with European partners through investment, technology transfer, infrastructure development and private-sector cooperation.

For Uganda, the government’s message was clear: European investment should help transform local resources into competitive products, create employment and build a stronger foundation for sustainable economic growth.