Facts & Figures


With its flexible, pro-business tax regime; the most affordable and skillable labour in sub-Saharan Africa; continuously lowering cost of doing business; and unparalleled regional market access, Uganda is the increasingly the destination of choice for investors in the region.


Almost US $1 Trillion: the combined economy of East Africa, one of the fastest growing regions in the world.

200 million: the combined population of the East Africa Community (EAC) members by 2023, forecast by the IMF.

US $0.75 Trillion: The EAC GDP (in PPP) by 2023, forecast by the IMF.

6.3%: Uganda’s average per annum GDP growth for the last 30 years. The IMF forecasts Uganda’s GDP to grow by 6% per annum from 2019-2023

US $440: The average yearly wage of an unskilled production operative in Uganda (excluding social security costs) – the lowest labour costs in the region.

45 million: Uganda’s population forecast for 2023. Uganda frequently enjoys high rankings from the likes of the Gobal Competitiveness Report and the WEF for its recruitment potential, workforce trainability and women and youth engagement in the labour force.

10 Years: The tax holiday available s available to exporters who export at least 80% of their produce of finished goods, subject to certain conditions.

17%: Growth of exports to sub-Saharan Africa in 2017 – the highest in the world.

US $1,659: the amount by which the annual cost for skilled labour is forecast to grow between 2017- 2022 (to US $2024) – the slowest rate in East Africa.

100%: The allowance available for scientific research expenditure, training expenditure, and mineral exploration expenditure in the year of expenditure.

0%: Customs duty on plant and machinery importation. Additionally, a VAT deferral facility is available where VAT is deferred on importation of plant and machinery and subsequently waived upon approval by the relevant authorities.

0%:  tax on income derived from agro processing and exportation of consumer and capital goods (subject to certain conditions).

2%: The deduction on income tax payable granted to any employer whose workforce contains at least 5% people with disabilities.


A resident taxpayer is entitled to a foreign tax credit for any foreign income tax paid by the taxpayer in respect of foreign-source income included in the gross income of the taxpayer. The foreign tax credit allowed is subject to the income tax rate (i.e. 30%) in Uganda.

There is a new ten-year income tax exemption for developers and operators in industrial parks or free zones. The exemption applies to income derived by a person from letting or leasing facilities whose minimum capital investment is USD10 million for foreigners or USD 300,000 in the case of a citizen or USD 150,000 in the case of a citizen whose investment is placed up country. {The investment capital requirement for operators is USD 10 million for foreign operators and USD 1 million for Ugandan citizens} Delete.

There is also the introduction of an exemption for income tax for existing operators or other persons carrying business outside the industrial park of free zone, whose investment capital is at least USD 10 million for a foreigner or USD 300,000 in the case of a citizen or USD 150,000 in the case of a citizen whose investment is placed upcountry. The exemption is limited to the following activities:

  • Processing of agricultural goods.
  • Manufacture or assembly medical appliances, medical sundries or pharmaceuticals, building materials, automobiles, household appliances.
  • Manufacture of furniture, pulp, paper, printing and publishing of instructional materials.
  • Vocational or technical institutes.
  • Logistics and warehousing, information technology, or commercial farming.
  • Manufacture of tyres, footwear, mattresses or toothpaste

Other requirements are that 75% of raw materials should be locally sourced, subject to availability, and the person should employ at least 75% of citizens who earn an aggregate wage of at least 75% of the total wage bill. This new exemption favours industrialisation using local materials.