Indians contribute 60 per cent of GDP - Bahati

The Ministry of Finance has said the Indian community contributes more than half of the country’s GDP, according to recent statistics.

While opening the second day of the India-Uganda Trade Mission on Wednesday, Mr David Bahati, the minister of State for Industry, said about 60 percent of the country’s gross domestic product comes from the investments established by Indians in the country.

Mr Bahati urged investors to consider setting up factories in Uganda given the available incentives and regional market.

“When you invest in Uganda, you are trading in East Africa and Africa. We have negotiated tax incentives for you when you invest in Uganda. Uganda has the highest rate of return to give confidence to potential investors that the country is good for investment. We are rated as the happiest people in the continent,” he said.

He urged investors to take advantage of the 312 million tonnes of untapped iron ore and tap into the $1b steel market.

The minister also asked them to establish refineries to exploit the local gold deposits valued at $1.2 trillion, establish data centres to help the country with connectivity; and invest in coffee and cocoa processing and tourism.

Mr Bahati said Uganda is pursuing the import substitution agenda which will expose the investors to various negotiated markets as long as they are manufacturing the goods in Uganda.

The two-day India-Uganda Trade Mission, which began on Tuesday and ended on Wednesday, was organised by Equity Bank and the Confederation of Indian Industry.

The event brought together a delegation of entrepreneurs from India and leading Ugandan business people to strengthen bilateral trade between the two nations.

It aims to foster new partnerships, increase investment, and enhance trade cooperation between India and Uganda.

Equity Bank Uganda managing director Anthony Kituuka said the event aims to connect Uganda and India to explore investment opportunities and foster long-term business partnerships. 

“Equity Bank is committed to promoting the socio-economic prosperity of the people of Africa, and we are excited to create a platform that facilitates networking, benchmarks business opportunities, and provides valuable market intelligence, which are essential elements for driving growth and success in Uganda and the East African region. We believe this inaugural trade mission will inspire the Indian private sector players to explore Uganda’s untapped opportunities, which Equity Bank has experienced firsthand,” Mr Kituuka said.

The Indian High Commissioner to Uganda, Upender Singh Rawat, said the India-Uganda Trade Mission represents a tremendous opportunity for both countries.

“By harnessing our combined strengths, we are opening new avenues for trade and investment that will create lasting economic impact,” he said.