Museveni urges European investors to tap into Uganda’s economic opportunities
The President identified agriculture, irrigation, fish farming and agro-processing as promising investment areas, saying Uganda's abundant agricultural resources offer significant opportunities for industrial development and value addition
ENTEBBE, October 26, 2026 – President Yoweri Museveni has urged European investors to take advantage of Uganda’s vast investment opportunities in infrastructure, energy, manufacturing and agriculture, saying increased investment in productive sectors is critical to job creation, market expansion and economic transformation.
The President made the call on Thursday during a meeting with European Union [EU] ambassadors and investors at State House Entebbe, where he highlighted Africa’s rapidly growing population and expanding consumer market as major opportunities for European businesses seeking to strengthen their economic presence on the continent.
“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,” Museveni said.
He noted that Africa’s expanding population presents significant opportunities for trade and investment, but stressed that political stability, sound economic policies and private-sector development remain essential to unlocking the continent’s economic potential.
Museveni attributed political instability in some African countries partly to identity-based politics, including tribalism, religious divisions and ideological differences, as well as a failure to recognise the private sector as a key driver of economic growth.
He said Uganda had learnt from these challenges and was committed to maintaining a stable political and economic environment conducive to investment, increased production and employment creation.
The President welcomed ongoing and proposed European investments in Uganda, particularly in infrastructure and other productive sectors, saying such projects would deepen economic ties between Uganda and Europe while creating opportunities for businesses in both markets.
“All these projects are music to my ears. By constructing these projects here, you are linking the market of Uganda to that of Europe. Why can’t anyone see that?” he asked.
Affordable electricity critical to industrial growth
Turning to energy, Museveni emphasised the need to reduce electricity costs, saying affordable power was essential to improving Uganda’s industrial competitiveness and attracting more investment in manufacturing.
Although he welcomed private-sector participation in hydropower generation, the President expressed concern over electricity tariffs, arguing that high energy costs undermine the ability of manufacturers to produce competitively priced goods.
He identified affordable electricity, efficient railway transport and accessible financing as key requirements for accelerating industrialisation and expanding Uganda’s manufacturing base.
Museveni cited the Uganda Development Bank [UDB] as a critical institution in financing productive enterprises, explaining that the government had maintained its support for the bank to facilitate investment in sectors capable of generating employment and increasing domestic production.
He also called on the European Investment Bank [EIB] to increase financing for strategic infrastructure projects, particularly railway development, electricity generation and distribution, and selected road projects.
On road infrastructure, the President encouraged European investors to explore opportunities in road construction and financing, including toll-road arrangements where economically viable.
Museveni further reaffirmed the government’s commitment to providing investment incentives, particularly for manufacturers, saying eligible investors should benefit from the 10-year tax holiday intended to stimulate industrial development.
He explained that the government’s priority was to attract investments that create jobs, expand production and strengthen the economy, rather than focusing primarily on direct taxation of businesses.
“We are not interested in direct tax. What we want from you is jobs and production, and I will get taxes indirectly through consumer tax and income tax,” Museveni said.
He maintained that investment incentives would ultimately benefit the government through increased economic activity, employment and tax revenues generated as businesses expand.
Museveni seeks investment in agriculture and agro-processing
The President identified agriculture, irrigation, fish farming and agro-processing as promising investment areas, saying Uganda’s abundant agricultural resources offer significant opportunities for industrial development and value addition.
He cited maize and soya beans among the agricultural commodities that could support investment in animal-feed manufacturing and other agro-processing industries.
Museveni said increased investment in agro-processing would help Uganda maximise the value of its agricultural produce, strengthen livestock production, create employment and expand market opportunities for farmers.
He urged European investors to establish processing facilities that would utilise locally available raw materials, reduce wastage and increase the country’s capacity to produce value-added products for domestic and export markets.
The President also disclosed that the government was preparing to expand irrigation and fish farming to boost agricultural productivity, improve household incomes and provide alternative livelihoods for communities living near environmentally sensitive wetlands.
He said such interventions would not only support food production and economic development but also contribute to environmental conservation by reducing pressure on fragile ecosystems.
On environmental protection, Museveni welcomed European investments aimed at addressing environmental challenges associated with oil development, emphasising the importance of safeguarding Uganda’s freshwater resources.
He stressed that sustainable economic development must go hand in hand with the protection of forests, wetlands and other natural resources.
The meeting also provided an opportunity for the government, European diplomats and investors to discuss Uganda’s investment priorities and explore ways of strengthening cooperation in infrastructure development, industrialisation, agricultural transformation and environmental sustainability.
Museveni reiterated that Uganda remained open to European capital, technology and business partnerships that would support increased production, employment creation and the country’s long-term economic transformation.
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
