Uganda has pitched itself as a low-cost manufacturing and investment destination for South Korean businesses seeking access to the wider African market, as the country seeks to grow its economy to $500 billion by 2040.
The pitch was made at the Uganda–South Korea Trade and Investment Meeting held at The Westin Seoul Parnas under the theme, “Boosting Trade and Investment Between Uganda and South Korea.”
The meeting, co-hosted by the Uganda government and the South Korea International Trade Association (KITA), brought together Ugandan government officials, the Uganda Investment Authority (UIA), Korean government representatives and business leaders.
Uganda’s Second Deputy Prime Minister, Dr Crispus Kiyonga, who led the Ugandan delegation, said the country’s economy had grown to about $70 billion, with real gross domestic product (GDP) expanding by an average of more than six per cent annually over the past decade.
He said economic growth was expected to exceed 10 per cent once commercial oil production begins later this year.
Dr Kiyonga said Uganda had put in place incentives aimed at attracting foreign investors, including business registration in as little as 45 minutes, a 10-year tax holiday, exemptions on imported machinery and access to land for strategic investments.
Investors operating in industrial parks, he added, would benefit from a 10-year income tax exemption on rental income and full depreciation on mining exploration equipment.
“Uganda is strategically located at the heart of Africa,” Dr Kiyonga said, adding that the country’s membership of the East African Community (EAC), Common Market for Eastern and Southern Africa (COMESA) and the African Continental Free Trade Area (AfCFTA) gives investors access to a market valued at more than $3.1 trillion.
He also highlighted Uganda’s youthful and largely English-speaking population, noting that more than 73 per cent of Ugandans are below the age of 30.
Coffee deal
The investment meeting has already yielded a business deal, with Uganda signing a memorandum of understanding with GVCC Co Ltd, a coffee company based in the South Korean port city of Busan.
The agreement, signed on Monday, provides for Besmark Coffee Company Ltd to become Uganda’s exclusive supplier to GVCC, which will serve as the exclusive distributor of the coffee in South Korea.
The first consignment of two containers of Ugandan coffee is already being shipped, according to the Ugandan delegation.
The companies plan to use Busan as a processing and re-export hub for Ugandan coffee destined for other Asian markets, including Japan and Southeast Asia.
GVCC chief executive Soo-jung Lim said the company became interested in Ugandan coffee after meeting the Ugandan delegation at an exhibition in Busan.
Uganda’s ambassador to Japan, who is also accredited to South Korea, Tophace Kaahwa, said Ms Lim was targeting one 20-tonne container of coffee a day, equivalent to about 3,500 tonnes annually.
He called on Ugandan farmers to increase coffee production to meet the anticipated demand.
Richard Nuweyesiga, the director of investment at UIA, said Uganda was seeking Korean investment in four priority areas: agro-industrialisation, tourism, science and technology, and mineral development.
He urged Korean companies to combine their capital and technology with Uganda’s natural resources.
“Use Korean capital, use Korean technology, tap into Ugandan resources,” Nuweyesiga said.
He said Uganda had 49 per cent of East Africa’s arable land and produces more than five billion litres of milk annually, creating opportunities for investment in value addition for coffee, fish and dairy products.
Manufacturing opportunities
During a panel discussion, Ugandan officials outlined products they believe Korean companies could manufacture locally rather than import.
Richard Okot, an assistant commissioner at the Ministry of Trade, Industry and Cooperatives, said Uganda’s central location would help manufacturers reduce transport and logistics costs when serving markets in Kenya, Tanzania, the Democratic Republic of Congo, South Sudan and Rwanda.
He cited vehicle parts and filters, medical devices, diagnostic equipment and pharmaceuticals among products that could be manufactured locally through joint ventures.
Okot also identified coffee and cocoa as areas where Ugandan and Korean companies could establish integrated value chains, with some processing undertaken in Uganda and finished products completed in South Korea.
Eng Simon Tebasulwa Kelanzi, the commissioner for nuclear energy at the Ministry of Energy and Mineral Development, invited Korean investors to explore opportunities in iron and steel processing, wind and solar energy and nuclear applications.
Amos Mpungu, the commissioner for information technology at the Ministry of ICT and National Guidance, encouraged Korean technology companies to consider Uganda for software development, business process outsourcing, artificial intelligence and other digital services.
He cited South Korea’s transformation from an agrarian economy into a technology powerhouse as an example of what Uganda could achieve through technology partnerships.
Seoul responds
Kwang-yong Chung, director general for African and Middle East affairs at South Korea’s Ministry of Foreign Affairs, said Africa was emerging as an important engine of global economic growth.
He said South Korea wanted to translate its strong government-to-government relations with African countries into increased trade and investment.
Mr Chung said South Korea planned to host the next Korea-Africa Summit in 2029, building on the inaugural summit held in 2024, and was considering making it a regular event.
He also pointed to Korean support for distance learning at Makerere University and vocational training programmes in Uganda.
Uganda and South Korea established diplomatic relations in 1963. Dr Kiyonga said South Korea’s development assistance to Uganda had surpassed $500 million in health, education and infrastructure.
Before the main meeting, a business matchmaking programme brought together six Ugandan companies and Korean firms operating in areas including electronics, biotechnology and financial technology.
The meeting followed a diaspora engagement in Seoul over the weekend, where Ugandan officials encouraged citizens living in South Korea to invest their capital and skills back home.
Members of the Ugandan community also raised concerns over the absence of a resident Ugandan embassy in Seoul. Uganda’s consular services for South Korea are currently handled from Tokyo, where the ambassador is non-resident.
The trade and investment meeting continues through September 10, with sector-specific engagements and further business discussions expected.
