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A GLOBAL / COUNTRY STUDY AND REPORT ON INFRASTRUCTURE OF UGANDA Submitted to SOM LALIT INSTITUTE OF BUSINESS ADMINISTRATION IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ASMINISTRATION In Gujarat Technological University UNDER THE GUIDANCE OF Professor Kalika Bansal Submitted by (STUDENT NAME) [Batch : 2010-12, Enrollment No.:____] MBA SEMESTER III/IV SOM LALIT INSTITUTE OF BUSINESS ADMINISTRATION MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad APRIL, 2012

Students Declaration

We, __________________________________, hereby declare that the report for Global/ Country Study Report entitled ________________________________________________________in (Name of the country) is a result of our own work and our indebtedness to other work publications, references, if any, have been duly acknowledged. Place : .. (Signature) Date : (Name of Student) ------------------------------------------------------

Institutes Certificate Certified that this Global /Country Study and Report Titled is the bonafide work of Mr./ Ms .. (Enrollment No..), who carried out the research under my supervision. I also certify further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate. Signature of the Faculty Guide (Name and Designation of Guide) (Certificate is to be countersigned by the Director/HoD)

PREFACE (SEPARATE PAGE) _______________________________________________________

ACKNOWLEDGEMENT (SEPARATE PAGE) ________________________________________________________

TABLE OF CONTENTS

LIST OF TABLES Trade of Uganda (in Billion Dollars)

LIST OF FIGURES $ Currency of United States % Percentage

List of Abbreviations NDP National Development Plan GDP Gross Domestic Product EIB European Investment Bank IFI International Financial Institutions UEB Uganda Electricity Board IDA International Development Association USH Uganda Shillings IMF International Monetary Funds EU European Union SARS Severe Acute Respiratory Syndrome US United States (Of America) AAI Airport Authority Of India MW Mega Watts ICT Information and Communications Technology HIPC Heavily Indebted Poor Country BOT Build Operate Transfer SPV Special Purpose Vehicle B2B Business 2 Business UN United Nations ACP African Caribbean & Pacific EPA Economic Partnership Agreement AGOA African Growth & Opportunity Act EBA European Banking Authority UPTOP Uganda Programme for Trade Opportunities & Policy

EXECUTIVE SUMMARY

This report has been prepared to analyse the current infrastructure scenario of Uganda and with its development what are the benefits with the Indian context. Here is a brief about the report. Uganda is landlocked country with over 27000 Km of Road Connectivity which is partially paved. The main Airport of the country is Entebbe Airport. Its capital is Kampala. The telecom and transport sectors are strong sectors of Uganda, while Education, Finance & Energy Sectors are relatively young and less developed. Infrastructure is an emerging sector with huge growth potential. Real Estate is the most developing Industry in the sector. Political Dissonance, lack of trained workforce and strong chances of natural calamities are repulsive factors in the infrastructure industry. Instability in market and inefficiency in planning are major threats to the Industry. Partnership between Public and Private Sector in Infrastructure can enhance the growth of the Industry. Developing and managing a supply chain can enhance the profitability of the sector, and also reduce the inefficiencies in its planning. Grants by EIB and various private sector banks have been approved for Wate Management. Uganda is poised to achieve a high GDP growth. According to a feasibility study it will need $15 Billion for Infrastructural development and it must invest this fund heavily in rail, road, transport and telecom sectors. According to NDP, Uganda should achieve status of a middle income country by 2030.To achieve this, it requires to train the workforce. Despite political, natural and economic instabilities, Uganda continues to get financial assistance from outside, significantly, from the World Bank. India has strong EXIM ties with India, Indias membership with African Development Bank is a proof in itself. BHELs intentions to invest in Uganda will further enhance ties between the two countries. Many JVs have been formed between companies from Uganda and India. Further, India also provided heavy technical assistance and foreign trade to Uganda. Several bilateral agreements have also been concluded in the fields of trade, technical and economic cooperation. Under Focus Africa programme, India provides financial assistance to various Trade Promotion Councils of Uganda. Under IAIFT India is providing India is developing and executing

Pan African Projects , while $5 Billion credit line has also been approved for various African Nations. Thus the bottom line is that Uganda is a developing country with booming infrastructure, but Political & Financial instabilities, lack of planning and financial assistance come in its way. India is providing full support and co-operation to Uganda through various ways of Financial and Technical Assistance to help Uganda achieve its target by 2030.

PART I ECONOMIC OVERVIEW OF THE SELECTED COUNTRY

Demographic Profile

As of 2012 the polulation of Uganda is 34,612,250.The major population of Uganda is youth and children considering the facts that 49.1 % of the population is 0-14 years old , 48.1 % is 15-64 years old and the rest 2.1 % is 65-100 years old. Men consist of 17367389 i.e -% of polulation whereas women consist of 17244861 ie % of population. The median age for men is 15 years whereas it is 15.1 years for women.The estimated polulation growth rate is 3.58 %.Roughly 13% of polulation are located in cities and urban centers whereas remaining 87% of polulation lives in villages. The birth rate is 47.49 Births/ 1000 men and the death rate is 11.71 Deaths / 1000 men.The sex ratio of Uganda is 1.01 Males/ 1 Female Other details are as under Infant mortality rate total: 62.47 deaths/1,000 live births male: 66.05 deaths/1,000 live births female: 58.77 deaths/1,000 live births (2011 est.) Life expectancy at birth total population: 53.24 years male: 52.17 years female: 54.33 years (2011 est.) Total fertility rate:6.69 children born/woman HIV/AIDS Prevalence Rate:6.5% People living with HIV/AIDS:1.2 million HIV/AIDS Deaths caused by AIDS:64,000 Ethnic groups Baganda 16.9%, Banyakole 9.5%, Basoga 8.4%, Bakiga 6.9%, Iteso 6.4%, Langi 6.1%, Acholi 4.7%, Bagisu 4.6%, Lugbara 4.2%, Bunyoro 2.7%, other 29.6% (2002 census)

Religions Roman Catholic 41.9%, Protestant 42% (Anglican 35.9%, Pentecostal 4.6%, SeventhDay Adventist 1.5%), Muslim 12.1%, other 3.1%, none 0.9% (2002 census) Literacy total population: 66.8% male: 76.8%

Economic Overview

Peasant agricultural production has been the predominant economic activity since precolonial times. Despite an active trade in ivory and animal hides linking Uganda with the east coast of Africa long before the arrival of Europeans, most Ugandans were subsistence farmers. Cotton cultivation increased in importance after 1904, By 1910 cotton had become Uganda's leading export. After cotton the government encouraged the growth of sugar and tea plantations.Uganda enjoyed a strong and stable economy in the years approaching independence. Agriculture was the dominant activity, but the expanding manufacturing sector appeared capable of increasing its contribution to GDP, especially through the production of foodstuffs and textiles. Some valuable minerals, notably copper, had been discovered, and water power resources were substantial. The economy deteriorated under the rule of President Idi Amin Dada. In 1972 he expelled holders of British passports, including approximately 70,000 Asians of Indian and Pakistani descent and such a mass expulsion and undermined investor confidence in Uganda.Succesive governments attempted to restore international confidence in the economy through a mixture of development plans and austere government budgets. The manifesto also set out specific goals for achieving this selfsufficiency: diversifying agricultural exports and developing industries that used local raw materials to manufacture products necessary for development. In 1989, Uganda faced devastating losses in export earnings and sought increased international assistance to stave off economic collapse.

Overview of Industries in Trade and Commerce

Peasant agricultural production has been the predominant economic activity since precolonial times. Despite an active trade in ivory and animal hides linking Uganda with the east coast of Africa long before the arrival of Europeans, most Ugandans were subsistence farmers. By 1910 cotton had become Uganda's leading export. In the following decades, the government encouraged the growth of sugar and tea plantations. Following World War II, officials introduced coffee cultivation to bolster declining export revenues, and coffee soon earned more than half of Uganda's export earnings.

Growth structure of economy When coffee replaced cotton as Uganda's principal export in the 1950s, it was still produced in the pattern of small peasant holdings and local marketing associations that had arisen early in the century. The economy registered substantial growth, but almost all real growth was in agriculture, centered in the southern provinces. The fledgling industrial sector, which emphasized food processing for export, also increased its contribution as a result of the expansion of agriculture.

Direct Economic Involvement

By 1987 the Ugandan government was directly involved in the economy through four institutions. First, it owned a number of parastatals that had operated as private companies before being abandoned by their owners or expropriated by the government. Second, the government operated marketing boards to monitor sales and regulate prices for agricultural producers. Third, the government owned the country's major banks, including the Bank of Uganda and Uganda Commercial Bank. And fourth, the government controlled all imports and exports through licensing procedures. In July 1988, officials announced that they would sell twenty-two companies that were entirely or partially government owned. These parastatals included the electric power company, railroads and airlines, and cement and steel manufacturers. Banking and exportimport licensing would remain in government hands, along with a substantial number of the nation's hotels. By late 1989, however, efforts to privatize parastatal organizations had just begun, as personal and political rivalries delayed the sale of several lucrative corporations. The International Development Association (IDA) awarded Uganda US$16 million to help improve the efficiency of government-owned enterprises. Funds allocated through this Public Enterprise Project would be used to

pay for consultancy services and supplies, and to commission a study of ways to reform public-sector administration. Budgets Uganda registered a substantial budget deficit for every year of the 1970s except 1977, when world coffee price increases provided the basis for a surplus. Deficits equivalent to 50 to 60 percent of revenues were not unusual, and the deficit reached 100 percent in 1974. Government expenditures increased during the early 1980s, and the rate of increase rose after 1984. In 1985 civil service salaries were tripled, but in general, the Ministries of Defense, Education, and Finance, and the Office of the President were the biggest spenders. The government implemented measures to reform the tax system in FY 1988 and FY 1989. A graduated tax rate, with twenty-five grades, rose from a USH 300 minimum to a USH5,000 maximum to account for all classes of income earners. Uganda operated under a separate development budget during the 1980s. This budget consisted of domestic revenues and expenditures on development projects, but it excluded revenues from foreign donors. The development budget increased from FY 1981 to FY 1988, primarily because of inflation, but was trimmed slightly in FY 1989. The Ministry of Finance and Ministry of Defense consumed most of the development budget, however, in part because agricultural and livestock projects were often funded by foreign donors. The Ministry of Housing also received nearly 17.3 percent of FY 1988 development allocations, and much of this amount was earmarked for renovations on government-owned tourist hotels.

Rehabilitation and Development Plan

In June 1987, the government launched a four-year RDP for fiscal years 1988-91. It aimed to restore the nation's productive capacity, especially in industry and commercial agriculture; to rehabilitate the social and economic infrastructure; to reduce inflation by 10 percent each year; and to stabilize the balance of payments. The plan targeted industrial and agricultural production, transportation, and electricity and water services for particular improvements Throughout the decade, official wages failed to keep up with the rising cost of living, and most wage earners were able to survive only because they had access to land and raised food crops. By the mid-1980s, typical average wages at the official exchange rate were only US$10 a month for factory workers, US$20 a month for lower-level civil servants, and US$40 a month for university lecturers. In the late 1980s, the converted value of these wages declined even further as the value of the

shilling dropped. In addition, the decline in industrial production in the 1970s and 1980s had reduced the proportion of high-paying jobs. As a result, more industrial workers pursued black market activities in order to support themselves. But the Museveni government tried to improve the status of wage laborers. The 1987 RDP aimed to enhance the country's self-sufficiency by increasing the number of skilled workers in industry. During the late 1980s, the government initiated a number of programs to improve working conditions in industry and provide training for industrial workers as well as government administrators. The Occupational Health and Hygiene Department implemented several projects to minimize occupational hazards in industry and to improve workers' health care.. Makerere University also established several training programs in surveying skills, agriculture, environmental studies, pharmacy, and computer science. By the late 1980s, the government, which had become the single major employer in the country, experienced significant problems as a result of almost two decades of economic decline and lax accounting procedures. A major problem was the lack of an accurate count of public wage earners, and to meet this urgent need, the government conducted a census of civil servants in 1987.Low wage scales led to the second serious problem confronting the government--i.e., corruption and inefficiency in the public sector. Both in government departments and parastatals, charges of corruption were widespread and were often attributed to low earnings.. Then in an attempt to streamline the civil service, the government announced plans to eliminate 30 percent of the nation's civil service jobs, leaving about 200,000 people employed by the government. This plan was not implemented, however. A labor survey in 1989 revealed that more than 244,000 people still worked for the national government, in addition to those in parastatal organizations.

Overview of different economic sectors/Industries

Manufacturing industries, based primarily on processing agricultural products unavailable in Uganda. The mining industry had almost come to a standstill. The rudiments of industrial production existed in the form of power stations, factories, mines, and hotels, but these facilities needed repairs and improved maintenance, and government budgets generally assigned these needs lower priority than security and commercial agricultural development.. Industrial growth was a high priority in the late 1980s, however. The government's initial goal was to decrease. Engineers and repair people ,in particular, were in demand, and government planners sought ways to gear vocational training toward these needs. Energy Mining Manufacturing

Energy

In the 1980s, local officials estimated that charcoal and fuel wood met more than 95 percent of Uganda's total energy requirements. So, the government sought alternate energy sources to reduce the nation's reliance on forestry resources for fuelwood. Alternative technologies were sought for the tobacco-curing and brick and tile manufacturing industries, in particular, because they both consumed substantial quantities of fuelwood. More than 80 percent of fuelwood consumption was still in the home-- primarily for cooking--and to reduce this dependence, the government attempted to promote the manufacture and use of more fuel-efficient stoves. Even this modest effort was difficult and expensive to implement on a nationwide basis, in part because cooking methods were established by long-standing tradition

In the 1980s Uganda imported all its petroleum products. The transportation sector consumed about 69 percent of the available supply, while the aviation and industrial sectors required 9 percent and 5 percent, respectively. Roughly 17 percent of Uganda's petroleum imports were for domestic use. Uganda relied on Kenyan road and rail systems to transport oil imports. Several international companies were also exploring for oil in western Uganda in 1989.

Manufacturing

In the late 1980s, most manufacturing industries relied on agricultural products for raw materials and machinery, and as a result, the problems plaguing the agriculture sector hampered both production and marketing in manufacturing. Processing cotton, coffee, sugar, and food crops were major industries, but Uganda also produced textiles, tobacco, beverages, wood and paper products, construction materials, and chemicals.

Construction Material

Eight companies produced steel products in Uganda, Their most widely used products were gardening hoes and galvanized corrugated sheets of steel. The production of steel sheets declined dramatically in 1987, leaving some factories operating at only 5 percent of capacity.The government attempted to rejuvenate the industry in 1987 by assessing the availability of scrap iron and the demand for steel products and by providing US$2.7 million in machinery and equipment for use by the government-operated East African Steel Corporation.The nation's two cement-producing plants at Hoima and Tororo, both operated by the Uganda Cement Industry, also reduced production sharply, from more than 76,000 tons of cement in 1986 to less than 16,000 tons in 1988.

Consumer Goods

The production of beverages, including alcoholic beverages and soft drinks, increased in the late 1980s, and officials believed Uganda could achieve self-sufficiency in this area in the 1990s. In 1987 three breweries increased their production by an average of 100 percent, to more than 16 million liters. In the same year, five soft drink producers increased output by 15 percent to nearly 6 million liters. In addition, Lake Victoria Bottling Company, producers of Pepsi Cola, completed construction of a new plant at Nakawa.

Sugar production was vital to the soft drink industry, so rehabilitating the sugar industry promised to assist in attaining self-sufficiency in beverage production.

Uganda's dairy industry relied on imports of dried milk powder and butter to produce milk for sale to the general public. Processed milk registered an increase of 29.5 percent, from 13 million liters in 1986 to 16.9 million liters in 1987. To improve the local dairy industry, the government rehabilitated milk cooling and collection centers, milk processing plants, and the industry's vehicles. And in the late 1980s, the Ministry of Agriculture, Animal Husbandry, and Fisheries imported 1,500 in-calfreisian heifers to form the nucleus of a restocking effort on private and government farms. Production of wheat and corn flour increased in 1987.

Mining

Although the government recognized the existence of several commercially important mineral deposits, it had not conducted comprehensive exploration surveys for non-oil minerals and, therefore, lacked estimates of their size. In the early 1970s, copper, tin, bismuth, tungsten, rare earths, phosphates, limestone, and beryl were being mined by commercial companies. The mining sector employed 8,000 people and accounted for 9 percent of exports. By 1979 almost all mineral production had ceased, and in 1987 only the mining and quarrying sector recorded any growth. Mining output increased an estimated 20 percent, largely because of the rapid growth in demand for road and housing construction materials, such as sand and gravel. In 1988 the government established a National Mining Commission, intended to encourage investment in the mining sector through joint ventures with the government.

TOURISM

Revenue from tourism, including restaurants, hotels, and related services, is more than any other sector of the economy. Recognizing the role tourism could play in economic development, the government assigned high priority to restoring the tourism infrastructure in its RDP.

BANKING AND CURRENCY

Uganda's years of political turmoil left the country with substantial loan repayments, a weak currency, and soaring inflation. During the 1970s and early 1980s, numerous

foreign loans were for nonproductive uses, especially military purchases. Debts climbed while the productive capacity of the country deteriorated. To resolve these problems, the government tapped both external creditors and domestic sources, crowding out private-sector borrowers.. Banking Government-owned institutions dominated most banking in Uganda. In 1966 the Bank of Uganda, which controlled currency issue and managed foreign exchange reserves, became the Central Bank. The Uganda Commercial Bank, which had fifty branches throughout the country, dominated commercial banking and was wholly owned by the government. The Uganda Development Bank was a state-owned development finance institution, During the 1970s and early 1980s, the number of commercial bank branches and services contracted significantly. Whereas Uganda had 290 commercial bank branches in 1970, by 1987 there were only 84, of which 58 branches were operated by governmentowned banks. This number began to increase slowly the following year, and in 1989 the gradual increase in banking activity signaled growing confidence in Uganda's economic recovery.

AGRICULTURE

Uganda's favorable soil conditions and climate have contributed to the country's agricultural success. But technological improvements had been delayed by economic stagnation, and agricultural production still used primarily unimproved methods of production on small, widely scattered farms, with low levels of capital outlay. Other problems facing farmers included the disrepair of the nation's roads, the nearly destroyed marketing system, increasing inflation, and low producer prices. These factors contributed to low volumes of export commodity production and a decline in per capita food production and consumption in the late 1980s. The decline in agricultural production posed major problems in terms of maintaining export revenues and feeding Uganda's expanding population. Despite these serious problems, agriculture continued to dominate the economy. Agricultural output was generated by about 2.2 million small-scale producers on farms with an average of 2.5 hectares of land. The 1987 RDP called for efforts both to increase production of traditional cash crops, including coffee, cotton, tea, and tobacco, and to promote the production of nontraditional agricultural exports, such as corn, beans, groundnuts (peanuts), soybeans, sesame seeds, and a variety of fruit and fruit products. Crop Livestock Fishing

 Forestry

Coffee

Coffee continued to be Uganda's most important cash crop throughout the 1980s. The government estimated that farmers planted approximately 191,700 hectares of robusta coffee, most of this in southeastern Uganda, and about 33,000 hectares of arabica coffee in high-altitude areas of southeastern and southwestern Uganda. When the NRM seized power in 1986, Museveni set high priorities on improving coffee production, reducing the amount of coffee smuggled into neighboring countries, and diversifying export crops to reduce Uganda's dependence on world coffee prices. Cotton

Cotton provided the raw materials for several local industries, such as textile mills, oil and soap factories, and animal feed factories. And in the late 1980s, it provided another means of diversifying the economy. The government accordingly initiated an emergency cotton production program, which provided extension services, tractors, and other inputs for cotton farmers. At the same time, the government raised cotton prices from USh32 to USh80 for a kilogram of grade A cotton and from USh18 to USh42 for Grade B cotton in 1989. However, prospects for the cotton industry in the 1990s were still uncertain.

Tea

Favorable climate and soil conditions enabled Uganda to develop some of the world's best quality tea. Production almost ceased in the 1970s, however, when the government expelled many owners of tea estates--mostly Asians. Many tea farmers also reduced production as a result of warfare and economic upheaval. Successive governments after Amin encouraged owners of tea estates to intensify their cultivation of existing hectarage. Mitchell Cotts (British) returned to Uganda in the early 1980s and formed the Toro and Mityana Tea Company (Tamteco) in a joint venture with the government. Tea production subsequently increased from 1,700 tons of tea produced in 1981 to 5,600 tons in 1985. These yields did not approach the high of 22,000 tons that

had been produced in the peak year of 1974, however, and they declined slightly after 1985.

Tobacco

For several years after independence, tobacco was one of Uganda's major foreign exchange earners, ranking fourth after coffee, cotton, and tea. Like all other traditional cash crops, tobacco production also suffered from Uganda's political insecurity and economic mismanagement. Most tobacco grew in the northwestern corner of the country, where violence became especially severe in the late 1970s, and rehabilitation of this industry was slow. In 1981, for example, farmers produced only sixty-three tons of tobacco. There was some increase in production after 1981, largely because of the efforts of the British American Tobacco Company, which repossessed its former properties in 1984. Although the National Tobacco Corporation processed and marketed only 900 tons of tobacco in 1986, output had more than quadrupled by 1989.

Sugar Uganda's once substantial sugar industry, which had produced 152,000 tons in 1968, almost collapsed by the early 1980s. By 1989 Uganda imported large amounts of sugar, despite local industrial capacity that could easily satisfy domestic demand. Achieving local self-sufficiency by the year 1995 was the major government aim in rehabilitating this industry. The two largest sugar processors were Kakira and Lugazi estates, which by the late 1980s were joint government ventures with the Mehta and Madhvani families. The government commissioned the rehabilitation of these two estates in 1981, but the spreading civil war delayed the projects. By mid-1986 ,work on the two estates resumed, and Lugazi resumed production in 1988. The government, together with a number of African and Arab donors, also commissioned the rehabilitation of the Kinyala Sugar Works, and this Masindi estate resumed production in 1989. Rehabilitation of the Kakira estate, delayed by ownership problems, was completed in 1990 at a cost of about US$70 million, giving Uganda a refining capacity of at least 140,000 tons per year.

International Trade The twenty-thousand Ugandan shilling banknote, issued by the Bank of Uganda. Since assuming power in early 1986, Museveni's government has taken important steps toward economic rehabilitation. The country's infrastructure notably its transport and communications systems which were destroyed by war and neglectis being rebuilt. Recognizing the need for increased external support, Uganda negotiated a policy framework paper with the IMF and the World Bank in 1987. It subsequently began implementing economic policies designed to restore price stability and sustainable balance of payments, improve capacity utilization, rehabilitate infrastructure, restore producer incentives through proper price policies, and improve resource mobilization and allocation in the public sector. These policies produced positive results. Inflation, which ran at 240% in 1987 and 42% in June 1992, was 5.4% for fiscal year 1995-96 and 7.3% in 2003. Investment as a percentage of GDP was estimated at 20.9% in 2002 compared to 13.7% in 1999. Private sector investment, largely financed by private transfers from abroad, was 14.9% of GDP in 2002. Gross national savings as a percentage of GDP was estimated at 5.5% in 2002. The Ugandan Government has also worked with donor countries to reschedule or cancel substantial portions of the country's external debts. Uganda is a member of the WTO.

Uganda is becoming increasingly dependent on the import of capital through loans and grants, the import of services, and of manufactured goods. The value of imports was consistently double the value of exports throughout the 1990s, and in 1999 the ratio of imports to exports came close to being 3 times in size. Apart from cash-crops such as tea and coffee, Uganda's principal exports in 1998 were US$39.9 million of fish and fish products, US$47.4 million of iron and steel, and US$47.2 million worth of electrical machinery and supplies. It should be noted that the EU banned the import of fish from Uganda between 1999 and mid-2000 as some supplies were poisonous; although this ban has now been lifted this event seems likely to effect future sales. The main recipient of these exports in 1998 was the EU, which received 50.9 percent of the total; broken down individually, the key countries were the Netherlands, which imported 6.3 percent, Switzerland (6.2 percent), Germany (5 percent), and Belgium (3.7 percent). Other key export-partners are the United States which regularly receives around 25 percent, and Kenya which received 4.6 percent in 1998.

Uganda's imports in 1998 consisted of US$130.3 million of road vehicles, US$111.6 million of petroleum.

Trade (expressed in billions of US$): Uganda Exports 1975 1980 1985 1990 1995 1998 .026 .345 .387 .147 .461 .512 Imports .200 .293 .327 .213 1.058 1.409

Source: International Monetary Fund. International Financial Statistics Yearbook 1999.

US$72.4 million in cereals, and US$53.65 million of medical goods and pharmaceuticals. These imports were predominantly sourced from the EU, which supplied 17.3 percent (the United Kingdom being the main partner, providing 5.6 percent), neighboring Kenya supplied 12.3 percent, Japan 4.5 percent, and India 4.1 percent. The countries of East Africa have been trying to create a meaningful intraregional trade organization since the 1960s. The signing of the East African Cooperation (EAC) treaty between Uganda, Tanzania, and Kenya in 1999 was a continuation of this historic aim; however, in practice little has been done to reduce tariffs . Uganda is also a member of the Common Market for Eastern and Southern Africa (COMESA), which in 1996 introduced an 80 percent tariff reduction on trade within COMESA countries; by 2001 Uganda was one of the only members to implement this reduction in full.

Trade Relations Between India and Uganda

Uganda and India have been actively engaged in trade with one another for a number of years. This trade relationship has been significant in contributing to economic benefits for both countries. Relations between India and Uganda have been problem-free, but episodic, the Federation of Indias Chambers of Commerce and Industry notes. The Indian community played a prominent role prior to and in the early years of Ugandas independence, a factor that resulted in cordial relations from 1962 till the Idi Amins take-over in 1971. Ugandas relations with India suffered most notably in 1972 when Amin expelled them from the country. In the late 1980s, Indian nationals started returning to Uganda and repossessing most of the properties they had lost at expulsion.

Today, the number of people of Indian origin in Uganda is estimated at between 12,000 and 15,000. Out of this, about 5,000 hold Indian passports and the remaining hold British, Canadian, Ugandan and other passports.

Most Indian nationals in Uganda are occupied with business, owing to their good entrepreneurial acumen. There is also an inflow of new entrants, mostly in the category of professional or skilled and semi-skilled workers.

Many of the prominent Indian nationals are executives in the banking and insurance sectors, as well as that for Information Technology.

The volume of trade between India and Uganda has increased. Between 1984 and 2003, the volume rose from $5.6m to $105.5m. In subsequence, Indias exports to Uganda, have also increased.

India is now the second biggest exporter to Uganda (after Kenya). Exports constitute around 8.5% of Ugandas total imports.

Major exports items are: pharmaceuticals, bicycle and bicycle parts, automobile

components, tyres, small industry and agro-processing machinery, 2-wheelers, textile fabrics, sports goods etc.

According to the federation, Indian products account for 30% of the total pharmaceutical imports into Uganda. India is the largest exporter of pharmaceuticals/chemicals to Uganda, states the federation. Indias performance in the field of tyres and tubes is also satisfactory, with a share of 25%. After Kenya, it is the second biggest exporter of tyres and tubes in Uganda. Imports from Uganda are, however, negligible. India-Uganda trade is tilted largely towards India. Mainly raw hides and skins, cobalt & allows, teak wood, scrap etc are imported in very small quantities. Information at the Uganda Investment Authority (UIA) shows also that India is potentially, the largest investor in Uganda. Among the Indian companies registered with the Authority are Tata Group of Companies; APTECH Uganda; Roadmaster Cycles; and Mahindra Tractors.

SWOT ANALYSIS OF INFRASTUCTURE STRENGTHS:

Emerging Industry:
The infrastructure Industry is at a nascent stage. So there is a long way to go for the industry. The life of the industry goes with the economy, which is the end user of the Infrastructure.

Huge Growth Potential:

The Uganda's infrastructure Industry has a huge potential to grow. Even at todays nascent stage the industry is growing at the rate of fifteen percent, which is almost double than that of the current GDP rate of the country.

Improves the Productivity:

The infrastructure improves the productivity of the economy by increasing the life of the structures.

Availability of raw materials

There is sufficient availability of raw materials in the region.

Real Estate Development

It is on a high and is attracting the focus of the industry towards construction.

WEAKNESS:
Distance between projects reduces business efficiency. Chances of Natural disadvantages are there. Training itself has become a challenge. Lacks of clear define process and procedures for construction and its management.

 Low financial support.

OPPORTUNITIES:
Public sector projects through Public Private Partnerships will bring further opportunities. Developing supply chain through involvement in large projects is likely to enhance the chances in construction. Financial supports like loan and insurance and growth in income of people is in support of construction industry.

THREATS:
Long term market instability and uncertainty may damage the opportunities and prevent the expansion of training and development facilities. Lack of political willingness and support on promoting new strategies. Natural abnormal casualties such as earth quake and floods are uncertain and can prevent the construction boom. Inefficient accessibility in planning and concerning the infrastructure and signs. Political and security conditions in the region and Late legislative enforcement measures are always threats to any industry in Uganda.

PART II INDUSTRY SPECIFIC STUDY

Chapter 1:

Introduction of the infrastructure Industry and its effect in the economy of Uganda:

Uganda's case is a common one in Africa with inadequate infrastructure holding back development and economic growth. The government and its development partners are aware of this restraint and are taking active steps to address this problem. Although significant efforts have been made to develop and rehabilitate the existing physical and non-physical infrastructure, potential investment opportunities still abound. For instance, the communications and energy sectors still require further investment particularly from the private sector. The Government of Uganda is seeking private in the energy sector given the bright prospects of Uganda's economy. With less than 10% of the mainstream capacity of 2,700 megawatts of power exploited, Uganda has the potential to be a major power supplier in the Sub-Saharan African region. Other areas with possible investment potential could include storage, education, communication & related services, general construction/real estate development and medical services. Uganda has gazetted over 1000 hectares of prime industrial land to be developed into fully serviced industrial estates and export processing zones. The Uganda Investment Authority, which holds the government interest in the proposed project, is actively courting private sector participation in the development of industrial estates and export processing zones.

EFFECT OF THE INFRASTRUCTURE on the economy of Uganda: Quality of Life:

The quality and cost of living in Kampala and other major towns in the country compares favourably with what investors may hope to find elsewhere in Africa. Modern first class hotels, serviced apartments are to be found in the urban centres. Leisure facilities exist for such pass-times as golf, horse riding and equestrian sports, tennis, white water rafting and sailing on the Lake Victoria. Uganda's education system is still among the best in Africa and provides good quality education at different levels. Foreign investors and their expatriates can enrol their children at a number of reputable international schools in the country. Unfurnished housing accommodation in Kampala goes for between US$500 and US$2000 per month.

Education
There are presently eleven universities in the country and a number of polytechnics with Makerere University being the major national higher institution of learning. All levels of skills and training needed for a growing economy are to a great extent addressed. Particular emphasis has been placed by the country on the development of the science-based skills such as medicine, research, engineering and technology. The country generally boasts of an impressive literacy rate by any standards and this is likely to improve following the recent introduction by Government of the Universal Free Primary Education. Ugandan labour is relatively cheap and large percentage of the population can speak and write English which should prove a major asset for foreign investors wanting to come to Uganda.

Structure and Function of the infrastructure Industry in Uganda:

The infrastructure of Uganda includes four sectors. Telecommunications Road & Transport (Logistics) Real-Estate Energy

1) Telecommunications
The Telecommunication sector is growing with the introduction of new technology. Uganda has two national telecom operators, namely, Mobile telecommunications Network (MTN) - a South Africa led consortium, and Uganda Telecom Limited (UTL), which was privatised in 2000. The companies provide mobile cellular phone networks, paging services and other modern communication services to meet the business needs of users. Service delivery is improving steadily with various players introducing new products into the market. For instance, MTN announced plans to set up a fibre-optic network in Uganda, expected to be operational by the second quarter of 2001.

2) Road & Transport (Logistics)

Uganda continues to invest heavily in the development of its infrastructure. Uganda's excellent road system is well linked to its principal trading partners, Kenya and Tanzania. The bulk of the country's imports and exports are handled through the port of Mombasa in Kenya. Road transport costs per ton range from US$40 - 50 per ton and delivery time from Mombasa to Kampala is normally four days at most. The costs by rail are up to 50% cheaper and this mode of transportation is recommended for bulk cargo. The main airport at Entebbe currently handles more than 40 international flight connections per week to various cities in Europe, thus easing travel in and out of the country. Direct flights exist to London, Paris, Brussels, Johannesburg, Cairo, Tehran, Dubai and Moscow. In addition, a number of international courier firms such as DHL, TNT and

Skypak are actively represented in the country making delivery of urgent documents and materials easy.

3) Real-Estate
In Uganda large amount of land is available for the use. Land is considered as a big benefit for the development of any country. The prices in real estate are fluctuating in different regions of Uganda with ample resources in the land Investors may acquire land on leasehold basis for renewable periods of up to 99 years. Land can be obtained from private owners, local councils and other government agencies. Land in Kampala is more expensive than land in other areas of the country. The Uganda Investment Authority (UIA) maintains a database of land that is available for investors. In addition, the UIA owns large tracts of land in various parts of the country.

4) Energy
This has been Uganda's major infrastructure constraint. In spite of having a potential hydroelectric power generation capacity of some 2,700 megawatts, Uganda currently produces less than 200 megawatts of energy. National demand for electricity continues to expand rapidly on account of the fast growing economy. Uganda has taken steps to address this deficiency, three private power projects have been commissioned and has added another 700 MW to Uganda's energy production by the year 2003. The private projects include the Kalagala Falls Power Project promoted by Arabian International Construction Ltd - Egypt and Nile Independent Power promoted by Applied Energy Services, USA. Together, these two projects are investing an estimated US$1 billion. Work on all the projects is already underway.

SWOT Analysis of the sectors in Infrastructure in Uganda(Business Activities Point of View):

1) TELECOMMUNICATION

Strength
Sector rapidly grew leading to coverage in 90% of the country One of the most competitive sectors in Uganda Price point has decreased rapidly, making phones affordable to growing masses of Ugandans Six months from the introduction of mobile money transfer, MTN and Zain registered approximately 250,000 clients onto the mobile money transfer service moving over 40 billion shillings in transactions. Voice SMS service offered. Uganda telecom recently launched solar-powered GSM phone.

Weakness
Penetration has leveled off Price point may not lower further Value-added services slow in developing (compared to other regional countries like Kenya and Rwanda)

Opportunities
Value-added services including mobile banking and other SMS-based options East African fiber optic cable will lead to vast internet opportunities Sector deregulated in 2000

Threats
Low literacy rates limits rural penetration Rapid expansion sector may have too much competition Urban market is near full maturation

2) Road & Transport Strength & Opportunities

Demand for transport growing faster than GDP Increasing interest from IFI, institutional investors & some specialized operators Availability of instruments to mitigate risks

Weakness & Threats

Weak legal framework for PPP/PSP Risk of head to head competition between various modes Region perceived as high risk (political risk, regulatory risk)

3) Real Estate Strength & Opportunities

Vast available land resource FDI in real estate is also increasing Increasing prices of land

Weakness & Threats

Lack of regulation from government Irregularity in the pricing of the land

4) Energy

Strength

Fast growing demand (especially for power) Availability of vast under-exploited resources (hydro & thermal generation) Reasonable openness towards private foreign investors (but less so in water & sewage)

Weakness
Limited pool of suitable local partners Weaknesses in the legal & regulatory framework

Opportunities
Increasing interest from IFI and institutional investors High priority for national governments and regional cooperation bodies/initiatives

Threats
EAIO region perceived as a high risk area

Chapter 2(Part A):

Comparitive position of Infrastructure with India and Gujarat (Achievements & Challenges):

Transport Achievements Transport Relatively low cost of moving goods across borders. Trucking sector is liberalized and more mature than other parts of Africa. Challenges Improving infrastructure and transport services to hinterland countries particularly South Sudan. Addressing bottlenecks at regional ports.

Roads Achievements Roads Adequate road density and high traffic volumes. National network is in relatively good condition. Challenges Providing adequate funding for road maintenance. Improving rural road quality and connectivity. Improving road safety conditions

Railways Achievements Kenya-Uganda railway is one of the more heavily used railways in East Africa. Challenges Boosting traffic and productivity

Air Achievements Liberalized air transport markets with growing traffic and good connectivity to East African hubs. Challenges Boosting air safety standards.

Water Resources Achievements Well endowed with water resources relative to benchmarks. Challenges Managing conflicts between alternative water uses. Protecting water resources, such as wetlands, from encroachment, degradation and pollution Irrigation Development of irrigation has been strategically planned around areas of high cultivation. Exploiting major potential for development of high-return, small-scale schemes on the eastern side of the country.

Water Supply & Sanitation Achievements Achievement of MDG for sanitation and close to achieving MDG for water based on expansion of intermediate service levels. Efficiency of water utility improved significantly due to use of performance contracts. Challenges Expanding supply of utility water to keep pace with rapid urbanization. Increasing access to improved water and sanitation services for poor households. Addressing stubbornly high system losses and further improving cost recovery.

Power Sector Achievements Power Major power sector reform. Recent doubling of power generation capacity. Accelerating electrification, particularly in rural areas. Challenges Addressing very high system losses and improving cost recovery of the utility.

Information and Communication Technology (ICT) Achievements Early and successful ICT sector reform. Huge expansion of mobile telephony penetration and footprint with highly competitive market. Terrestrial connection to new submarine cables via Kenya.

Challenges Optimizing industry tax burden. Reducing costs of broadband services.

Trend of business with India:

India, one of Asias fastest growing economies, plans to establish a Shs48 billion knowledge centre in Kampala to promote international trade in Africa. Mr K.T Chacko, the director Indian Institute of Foreign Trade, revealed the plan at a conference aimed at getting the input of beneficiaries of the India-Africa Institute of Foreign Trade (IAIFT) in Kampala.

Pan African project

It is meant to be a Pan-African project that will promote the marketing of products from Africa to the world. There will be a huge opportunity for acquiring professional knowledge, Mr Chacko told Daily Monitor on the sidelines of a conference. The institute which will kick off at the Uganda Management Institute (UMI) this year, before getting its headquarters due in 2013, will train students in management courses including; International Business, Masters in Business Administration and several executive development programmes. Mr Deo Lukonji Bbosa, the acting director of UMI said IAIFT will initially be hosted at faculty of business and competiveness at the institute.

Strengthen cooperation
The institute is part of efforts by the Indian government to strengthen economic cooperation and trade with African nations, under its PanAfrican Project. The programme was initiated at the first India-Africa Forum Summit held in New Delhi in 2008. At the second summit in Ethiopia last month, Indias Prime Minister Manmohan Singh also announced a $5 billion credit line for African nations pursuing development goals. The initiatives come at time when major powers in several parts of the world are scrambling for a share of business and mineral resources in Africa.

 Other economic powers competing for Africa include; China and the European Union which have initiated various trade agreements with African governments such as the European Partnership Agreements.

Indian Perspective
BHEL (Bharat Heavy Electricals Limited ) a major player in Indian economy is planning to invest in Uganda for the development of the Electricity and power generation in the country. The labour in the country is found to be cheap in comparison to other African nations so for infrastructure improvement Uganda is the best suited and has seen increase in Indian colaboration. Recently oil has been found in the fields of Uganda and India is exploring the opportunities for its petroleum needs. Uganda has flexible foreign investment rules so with the use of it Indian investors are gaining good returns over their investment in the infrastructure sector. There has been an establishment of Foreign agreement of $20 million with a target to bring growth in the transactions for both the countries. Uganda is growing in comparison to other African nations also Uganda is also prime importer of Indian products so with the development of Uganda, Indian exports will also sees a rise of 12% every year since 2002.

Chapter 2(Part B):

Policies and Norms of Uganda for Infarstructure Industry for cooperation and licensing:
Authorities in International Trade

Uganda Export Promotion Board - UEPB carries whose mandate "to facilitate the development, diversification, promotion and co-ordination of all export related activities that lead to export growth on a sustainable basis. Uganda Revenue Authority - Maximizing central government tax revenue while optimizing resource utilization by ensuring a fair and equitable tax administration. Uganda Investment Authority - Uganda offers an exceptional opportunity for your business in the heart of Africa. Located almost in the center of the widespread African Market, Uganda is already the preferred home of several leading Global Corporations and International Organizations. Uganda is one of the fastest growing economies (+6%) and one of the most liberal countries for foreign investment in Africa. A place where opportunities for business are plenty, it is an ideal place to set up a bridgehead to access Africa. Uganda Investment Authority provides pro-active assistance in all aspects for investing in Uganda. Uganda Manufacturers Association - UMA's role is to promote, protect and coordinate the interests of industrialists in Uganda.To act as a watchdog and an effective mouth piece for it's members.,To initiate discussions and exchange of information amongst members on industrial issues, Uganda Manufacturers Association advises Government on key policies affecting the industry

ICT and Infrastructure policy (Key strategic issues and suggested remidial actions) The rapid developments witnessed during the recent years in the field of ICT directly impact on the economic, social and cultural life and are now broadly linked to the ability of countries to keep pace with the advances. The disparity among countries as measured by the digital divide separating them is a major challenge facing the developing countries in regard to economic revival and the guarantee of a secure future for their people. Uganda is consequently working within the scope of a comprehensive and integrated plan intended to promote the communications technology sector with a view to supporting the countrys development effort and fulfilling the requirements for boosting investment and opening up the economy to the outside world in the context of an external environment characterized by economic globalization, competition in trade, industry and technology.

Infrastructure: policies Key Strategic Issues: 1. Any action to deal with infrastructure and content development should stem from a national e-strategy reflecting each countrys conditions and priorities. To ensure sustainability of the e-strategies relevant stakeholders should be involved in their development and implementation and appropriate financial and technical support offered to developing e-strategies. 2. The urgent need to mobilize massive resources for investments in information and communication technology in the developing countries especially the least developed countries. 3. The need for the provision of ICT equipment at the lowest cost. 4. Special attention should be given to inclusion of remote and underserved areas and disadvantaged groups including women, youth and persons with disabilities in deployment of infrastructure.

5. Enabling Public Private Partnership (PPP) for the deployment of national ICT infrastructure 6. Investing in and deploying broadband communication technologies to enhance capacity of ICT infrastructure. 7. Seek affordable and sustainable solutions for infrastructure development. 8. The need to develop and strengthen Libraries, Archives and Documentation Centres. Actions: 1. Develop national policies and implementation mechanisms to address specific obstacles to ICT deployment. 2. a) Government should source financing for ICT innovations in order to turn them into productive enterprises. b) ICT development debt swaps under the HIPC for e-government initiatives. 3. a) Government should promote manufacture of ICT equipment locally. b) Government should reduce and where possible waive all taxes on ICT equipment and software and put in place mechanisms for follow up. 4. Establish a universal access fund for infrastructure especially geared to underprivileged areas and disadvantaged groups including women, youth and persons with disabilities. 5. Create incentives for local and Foreign Direct Investment

6. a) Establish a National Information Portal to promote dissemination and access to information in the public and private sector domain b) Establish a National Internet Protocol backbone network, and adequate connectivity to the Global Information Infrastructure (GII). c) Establish infrastructure that addresses ICT applications of crosscutting sectors like health, education, agriculture, local administration, etc. 7. a) Government to promote and support development of appropriate ICT solutions that are affordable and sustainable. b) Promote and guide the establishment of community radio stations so as to increase levels of information dissemination and public participation. 8. a) Government should promote and where necessary invest in strengthening libraries, archives and documentation centers. b) Create national and regional Resource Centres.

Policies and norms of India related to Infrastructure:

POLICY IN INDIA It is a republic with a federal structure and well-developed independent judiciary with political consensus in reforms and stable democratic environment. GDP at current prices stood at US $ 479.40 billion and present growth rate is 5.4 percent (2001-02) with a low inflation rate of 1.9%. India is the 4th largest economy in terms of Purchasing Power Parity (PPP). It has a rapidly growing consumer market of more than 300 million people and has developed as one of the largest costcompetitive technical workforce nations with large pool of skilled manpower and Professional management including engineers, lawyers, managerial personnel, accountants etc. India was identified by 82 percent of US companies as their top destination for software outsourcing and there is a promising future in the burgeoning information technology industry. In the recent years India has also adopted conducive foreign investment policies and well-balanced package of fiscal incentives with free repatriation of profits and capital investment. While the Government has so far been the predominant provider of infrastructure facilities, social obligations of governance have led to increasing pressures on finances of the service providers resulting in inadequate availability of resources for improvement of existing systems and additions of capacity. The immediate requirement of funds for development of new facilities and improvement of existing ones has been estimated at US$ 500 billion in various sectors. Requirement of funds during 2005-06 for Power, Roads and Port sectors is expected to be US$ 12.2, 2.7 and 0.7 billion respectively. The Government has been putting in place legal and policy structures in vital sectors of telecom, roads, oil & gas and ports to foster private participation. Fiscal incentives are being provided for projects in these sectors and private participation is being sought for bringing in technology, management and financial resources in setting up new capacities and improvement of existing ones. Government has also been participating in the development of private projects as partner cum facilitator.

Government Financing
Infrastructure projects typically involve large capital expenditures in order to create physical assets that will subsequently be used for the production of economic and social services in the long term. They are complex activities requiring specific expertise and resources for both the construction and operating phases, significant financial outlays, and the need for some parties to bear the risks associated with the project. Historically, the tendency has been for infrastructure financing, construction and operation to be primarily within the public sector, although contracting out some specific construction or operational tasks was undertaken by the private sector. Highways, telecommunications, power, railroads, hospitals, prisons and schools are common examples of utilities that were funded by the state. These were viewed as having natural monopoly characteristics, involving externalities, or as not appropriate for a userpays approach, and thus not suitable or feasible for private sector provision.

Private Sector in Infrastructure Financing

Since the late 1980s, there has been a profound reassessment of public policy towards the infrastructure sectors as a result of technological change, better appreciation of the linkages between incentive structures and operational efficiency, and greater acceptance of a user pays philosophy (Grimsey and Lewis, 2004). Consequently, there has been a shift towards private management (private sector participation) and private ownership (privatization) of these industries, as well as the competitive provision of services within parts or all of these sectors (liberalization) for two major reasons. First, because of the generally poor performance of state-owned monopolies. Second, because of the rapid globalization of world economies, which has brought into sharp focus the economic costs of inadequate infrastructure, prompting several developing countries to seek new

initiatives to promote competition, involving private and foreign interests in the provision of infrastructure.

Chapter 3

Business Opportunities in future in Infrastructure:

Uganda must invest at least $20-billion in infrastructure over the next five years to drive economic growth and put the East African nation on the path to transformation into a middle-income economy by 2030, a new study has shown. The study, by consulting firm Deloitte, shows that, for Uganda to achieve the aspirations of the National Development Plan (NDP), the country must invest heavily in energy, rail, road, airport and telecoms infrastructure. According to the Uganda Infrastructure Fund (UIF) feasibility study, the country currently faces an infrastructure funding deficit of $15-billion, having managed to secure funding commitments totalling $5-billion from various financiers. The NDP, Ugandas development blueprint, outlines President Yoweri Musevenis governments vision to improve road and rail networks, create employment opportunities, improve labour force distribution and the training of human resources, and use the private sector as the engine of growth and development. The plan envisages that Uganda will be a middle-income economy by 2030. The study suggests that an initial government investment of $300million, in the form of equity or debt, could provide sufficient seed capital for the UIF, whose total capital is projected at $1-billion in the early phase, with the balance being, raised from private investors. It reveals that, with a legal and regulatory framework that facilitates private investment in infrastructure (through a publicprivate partnership framework), the UIF has the potential to create significant private-sector development opportunities.

 Uganda continues to attract high levels of foreign investment despite unrest, endemic corruption and wildly fluctuating currency prices. The strength of the countrys natural resources have ensured that industrial construction projects continue to take place, but to date these have had little impact on the countrys antiquated infrastructure. The construction sector is forecast to demonstrate year-on-year (y-oy) growth of 14.9 % in 2011, taking the industry value to US$2.6bn. Uganda received a US$120mn loan from the World Bank with which to carry out vital improvement work to the countrys national electricity grid, according to Engineering News. The work, which is part of a drive to connect more citizens to the network, will address power shortages across the country and reduce the need for businesses to rely on expensive diesel generators. The Ugandan government has received a US$120mn loan from the World Bank (WB) to finance a project to upgrade the national electricity grid. The five-year project will consist of building 137km of transmission lines and substations, along with offering technical support and connecting approximately 6,500 new customers to the grid in the countrys south-western region. The funds will also be used to move people residing on land through which the line will run.

Future Trade Opportunities between India & Uganda

Ugandas abundant natural resources like oil, gas, minerals and many more yet to be discovered imply Uganda has a good future ahead. He urged Ugandans, regardless of political differences, to rally behind government to harness the extraction of these resources now. Technology is another factor brightening up Ugandas future. That Uganda has chance to adopt sophisticated technologies, like Brazil did 40 years ago, to harness innovation and productivity in agriculture and transport sector. He said technology transfer is cheaper and more affordable today than 40 years ago. Thirdly, are trade opportunities coming with creation of the East African Community. Moving together, he said, the region has higher bargaining power in world trade whereby a mere 1% increase in our share of the world trade will bring us $70m. The ever widening middle class is an additional opportunity for Uganda. He defined this as Ugandans living on between $2-$20 per day. By 2030, one in every two Ugandans will be in this middle class. This will increase local consumption/market, which is an incentive for increased production. He said government must attract more Foreign Direct Investments to nourish this middle class. The demographic dividend arising from a growing population whereby in future there will be fewer children and elderly people to support. Uganda has lots of land near urban centers which is an advantage to be harnessed to increase food production. China will soon start outsourcing low-skill manufacturing jobs perhaps as many as 85m over the next 10 years. Katongole says Ugandas young labor force stands to benefit from this. Uganda also has a relative proximity to US and Europe, the major destinations for Chinese products.

Existence of the growing number of younger entrepreneurs in both business and industry. The social media revolution exposes these younger entrepreneurs to knowledge, curiosity and readiness to take business risks. The ever improving quality of corporate governance in Uganda. There is increasing dependence on market research, relationship trust, ethical business standards, quality consciousness and global branding among todays business class. The advent of capital markets and venture capital is further evidence. Katongoles paper prescribed urgent necessary regulatory reforms in the energy sector to take the development pace to another level. Potential for trade between Gujarat & Uganda Following sectors have high potential to develop trade between Gujarat and Uganda

Agriculture and Agro Processing Dairy Industries Technical Skill Up Gradation Petro-Energy Research The progressive State like Gujarat can play a decisive role in the development of Uganda. India has emerged as one of the largest investors and trading partners of Uganda in the last two decades. These include manufacturing, agro-processing, banking, sugar, real estate, hotel, tourism, textiles, pharmaceuticals, construction and the ICT sector. Srivastava points out that bilateral trade between both countries has grown from $5.6m in 1984 to more than $262m in 2007, while planned investment from India was $377.25m, the largest from any foreign country.Relations between India and Uganda date back to the 19th Century, when over 30,000 Indians were brought to Uganda during the colonial times to build the railway line from Mombasa to Kampala.

CONCLUSION According to the report and SWOT analysis we can conclude that the infrastructure sector Uganda is growing rapidly. among the infrastructure sector logistics and energy are the developing sectors. the sector is on the verge of developing but due to corruption and political turmoil there hasnt been significant growth. Uganda has recently changed its foreign policy hence lot of investments are about to pump in to the country. World Bank India, china and various other countries are investing in Uganda. Especially India with various trade agreements and infrastructure projects investing in Uganda. so investment in infrastructure sector of Uganda will give great returns.