Is Uganda a Good Country to Invest for Foreigners?

Insights – Is Uganda a Good Country to Invest for Foreigners? | 8 min read | October 22, 2024

In today’s market, where low-risk investments with good returns are hard to find, Uganda is more than just a good country to invest in!

With steady economic growth and a rising youth population, the country carries great potential to thrive in the coming future. To top it off, it offers a unique combination of some of the most significant factors that drive foreign investments.

Curious to know what these factors are? Keep on reading!

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Table of Content

Introduction
Market Overview: Is Uganda a Good Country to Invest In?
Real Estate as Uganda’s Hottest Investment Sector
Key Drivers for Investments in Uganda

Uganda’s Strategic Position in Africa
Population Growth and Urbanization

8 Reasons Why Investing in Uganda is Highly Promising
Investment with TLG Living Group

Market Overview: Is Uganda a Good Country to Invest In?

Uganda is a rapidly emerging country that is gaining increasing attention for its economic growth.

Uganda’s 5.2% GDP Growth in 2023 and youthful population make it an attractive site for investors.
According to the World Bank, Uganda has had a steady annual GDP growth % since 2020 which is a promising factor for fast returns on investment and profits.
As per the Bank of Uganda, FDI or Foreign Direct Investments in the country increased by 79.2% from 2022 to 2023, crossing $2.9 billion.
New investments are being welcomed by the government with benefits for foreigners, including tax-free land acquisition (for certain industries), access to industrial parks, and advocacy, among other tax incentives.
Uganda’s Minister of Finance Planning and Economic Development or MoFPED recently proposed tax amendments relating to income tax exemptions and stamp duty payments.

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Real Estate As Uganda’s Hottest Investment Sector

Expected to reach $365.60bn industry value this year, real estate is one of the most dramatically growing sectors in Uganda.
The capital city, Kampala, is undergoing rapid urbanization with high demand for housing, office spaces, and retail outlets.
As more people move to urban areas, developers too race to meet the growing demand for modern infrastructure. For foreign investors, this presents a golden opportunity!
Besides the growth potential, the currently low property prices make the country even more attractive.

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Key Drivers for Investments in Uganda

Uganda’s Strategic Position in Africa

Uganda is situated in East Africa, surrounding countries like Kenya, Tanzania, Rwanda, and South Sudan.

Due to its location, the country has multiple practical advantages including direct access to several major markets in Africa thus, becoming an ideal place for logistics, trade, and real estate.

Foreign investors can not only capitalize on Uganda’s internal market but can also tap into the larger East and Central African markets.

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Population Growth and Urbanization

Uganda has one of the fastest-growing populations in Africa.

Furthermore, the median age in the country is 15.9 years old. This signals a growing, youthful, and large workforce in the near future. In such circumstances, consumer demand and economic activities in the country can only be expected to thrive! Additionally, a growing urban population is also a promising factor for good investments. In the capital city of Kampala, the annual growth rate is 5.6% with a population expected to grow by 57.8% in the next 10 years.

This rapid urbanization has created a high demand for modern housing, commercial buildings, and retail outlets, making real estate one of the most lucrative sectors for foreign investors.

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8 Reasons Why Investing in Uganda is Highly Promising

Economic and population growth are well-known drivers of increasing investment opportunities. However, there are many other micro factors that, in particular, make Uganda highly attractive, especially for real estate investments.

These are,

1. High Rental Yields

Uganda offers some of the highest rental yields in Africa. Furthermore, in urban areas like Kampala ROIs are often much higher averaging at 8-10%.

For investors working with TLG Living Group, the ROI is even higher with an average ROI of 14%!

2. Strong Demand for Rental Properties

With an increasing influx of people towards city areas due to urbanization and a growing population, the demand for rental sites in Uganda is at an all-time high.

3. Potential for growth and income generation

Not all investors are the same and so, no matter what your goal is Uganda’s real estate sector can help you.

For example, if you’re looking for a steady income generation, then there are many unique sites promising regular sizeable rents. Similarly, if you’re looking to grow your investment portfolio, then modern apartment complexes are a good idea.

4. Low Entry Costs

Initial costs, such as registration fees, for purchasing a site in Uganda are only a fraction of the total property value which makes entry into the market very easy with a good appreciation.

5. Government Incentives for Investors

The Ugandan government actively promotes foreign investment by offering incentives such as tax exemptions, tax holidays, and subsidized land for real estate development. These policies help reduce the cost of doing business and increase profitability for investors.

6. Tourism Industry Expansion

Uganda’s rich biodiversity, national parks, and cultural heritage are driving its tourism sector. This creates a strong demand for hotels, lodges, and hospitality properties, offering a profitable niche for real estate investors.

7. AIM Awards and Recognition

Uganda’s growing reputation as an investment hub has not gone unnoticed.

On May 8, 2023, Uganda was awarded for its Best FDI Project in the East Africa Community Region, being recognized as the best investment destination in the region, at the Africa Investment Market (AIM) Awards ceremony in Abu Dhabi.

8. Growing Expatriate Community

Driven by international organizations, NGOs, and foreign companies, Uganda is seeing a growing expatriate population, especially in particular neighborhoods.

This increases the demand for premium housing, and thus, investors targeting high-end residential properties can cater to this segment.

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Investment with TLG Living Group

When it comes to investing in Uganda’s real estate market, TLG Living Group stands out as the partner of choice.

With our modern approach to property development, we offer a range of investment opportunities that are tailored to your particular needs!

Considering investing in Uganda? Our team of experts is here to help you out at each step! Get in touch with us today.

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“The TLG Living Group delivered on my high-expectations and I would highly recommend their Bukoto Living project to anyone who is in the market to buy a home or make a real estate investment in Kampala."

“I would highly recommend TLG as a property developer to anyone who is in the market to buy a modern property in Kampala.“

Azmi Anees

Azmi, with a passion for storytelling, has extensive experience in developing informative content on real estate, finance, technology, education, and lifestyle.

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