Adoption of new Investment Code
20 Feb 2019
The new law, enacted on 20 February 2019, strengthens the Uganda Investment Authority, establishing it as a one-stop investment centre. Also, it includes provisions on protection from expropriation with the Constitution, providing for prior payment of compensation. It removes redundant provisions under the old Code, such as restrictions on foreign investment in animal and crop production, as well as monetary thresholds for an investor to qualify for incentives. The monetary thresholds, as well as proscribed areas to foreign investment, are yet to be detailed by the Minister of Finance. Similarly, the old investment incentives have been scraped and left to the Minister to prescribe.
Further, the new Code requires foreign entities in Uganda to register with the Investment Authority and failure to do so is punishable by a fine of UGX20-million or a term of imprisonment of four years, or both. This provision will apply even to foreign investors that were doing business before the new Code was passed.
Finally, the law lists criteria for qualification for investment incentives, which includes a requirement to export 80% of goods produced, the use of 70% of locally sourced raw materials, among others.
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Type:
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Entry and establishment (Ownership and control)
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Treatment and operation (Nationalizations and expropriations, Operational conditions)
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Promotion and facilitation (Investment facilitation , Investment incentives)
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Industry:
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