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French firms to invest over Shs15b in Uganda
French Ambassador Xavier Sticker (left) and Deputy Speaker of Parliament Thomas Tayebwa toast during Bastille Day celebrations in Kampala at the weekend. PHOTO | COURTESY/THOMAS TAYEBWA
What you need to know:
- Speaking at the Bastille Day celebrations at his residence in Nakasero, Ambassador Sticker said there are more than 40 French companies in Uganda, which is three times more than 15 years ago.
French companies in Uganda invested $1.6b (Shs5.8 trillion) in 2023, which is 53 percent of foreign direct investments recorded in the country during the same period, French Ambassador Xavier Sticker revealed on Friday.
Speaking at the Bastille Day celebrations at his residence in Nakasero, Ambassador Sticker said there are more than 40 French companies in Uganda, which is three times more than 15 years ago.
“Their turnover exceeds 2 percent of Uganda’s Gross Domestic Product (GDP), in sectors as diverse as energy, infrastructure, logistics, transport, engineering, agriculture, services, and distribution,” he said.
Over the next three years, Ambassador Sticker revealed, the companies “plan to invest $4 billion or Shs16 trillion, according to the results of a survey by France’s foreign trade advisers in Uganda.”
The key component of these investments is by the French oil giant TotalEnergies EP, which operates the Tilenga development project that straddles the districts of Nwoya (inside Murchison Falls National Park) and Buliisa, south of the River Nile. Tilenga encompasses 400 oil wells drilled by three oil rigs.
TotalEnergies EP is also a major shareholder (62 percent) in the East African Crude Oil Pipeline (EACOP), which will transport Uganda’s crude oil to the Tanzanian Indian Ocean Tanga port en route to the international market, alongside Tanzania Petroleum Development Corporation (TPDC) and Uganda National Oil Company (UNOC), each with a 15 percent stake, and China’s CNOOC with eight percent. The bulk of funding for EACOP is, however, coming from China.
Ambassador Sticker further revealed that the French development agency Agence Française de Développement’s (AFD) portfolio of ongoing projects had grown to more than Euros 800m (about Shs3.5 trillion) mainly in the water, energy, and urban development sectors.
Water support
“One of this year’s emblematic achievements is likely to be delivery in December of a major water treatment plant and a network that will supply water to a million Ugandans, from the border with Tanzania to Mbarara,” he said.
“The “French team” remains available to provide long-term expertise and funding for sustainable infrastructure, accelerate the phase-out of charcoal and promote Ugandan entrepreneurship,” he added
Ambassador Sticker also hinted at the cooperation between the UPDF and the French Forces stationed in Djibouti, in support of peace operations in Somalia and the Democratic Republic of Congo. He, however, did not offer more details.
The guest of honour at the Bastille Day celebrations, the Deputy Speaker of Parliament, Mr Thomas Tayebwa, said the Uganda-French cooperation has covered many strategic sectors of Uganda’s social-economic endeavours such as energy, education, agriculture, oil and gas, and infrastructure.
“Through these partnerships there have been very many positive results for Uganda which has contributed to the country’s development,” he said..
