While commemorating the Bastille Day on July 12 2024 H.E. Xavier Sticker the Ambassador of France to Uganda announced that French Firms are to invest over $4b in Uganda, to boost Uganda’s economy.
His announcement came from the results of a survey by France’s foreign trade advisers in Uganda that predicted their (French Companies) contribution to the economy in the next three years. “Over the next three years, French companies plan to invest $4 billion or Shs 16 trillion in Uganda” he said
He also highlighted the impact of investments by French companies in Uganda, noting that their turnover currently exceeds 2 percent of Uganda’s GDP in sectors like energy, infrastructure, logistics, transport, engineering and agriculture.
In 2023 French companies invested $1.6b (Shs5.8 trillion) in Uganda, which is 53 percent of foreign direct investments recorded in the country during the same period. Having more favourable policies to support the operation of foreign companies in the country boasts economic growth and benefits many Ugandans largely through employment.
H.E. Xavier Sticker also noted support worth more than €800 million from French Development Agency (AFD) in sectors like water and energy, including planned delivery in December 2024, of a major water treatment plant and network that will supply water to a million Ugandans from the border with Tanzania to Mbarara.
“One of this year’s emblematic achievements is likely to be delivery in December of a major water treatment plant and a network that will supply water to a million Ugandans, from the border with Tanzania to Mbarara,” he said
The over 40 French companies operating in Uganda employ over 3000 Ugandans and contributed 53% of total Foreign Direct investment to our country last financial year, with most of it going to the oil and gas sector.
“The “French team” remains available to provide long-term expertise and funding for sustainable infrastructure, accelerate the phase-out of charcoal and promote Ugandan entrepreneurship,” he added
Foreign Direct Investments (FDI) can foster and maintain economic growth, in both the recipient country and the country making the investment. On one hand, developing countries have encouraged FDI as a means of financing the construction of new infrastructure and the creation of jobs for their local workers and keeping the cooperation between countries.
The Ministry of Finance, Planning and Economic Development (MoFPED) notes that Foreign Direct Investment (FDI) inflows into Uganda grew from $1.36billion in April 2022 to $1.5 billion for the year ending April 2023. FDI contributes over 4% of Uganda’s gross domestic product (GDP), according to the World Bank. This is still below the averages of 5.4% and 5.5% for low-income countries and Sub-Saharan Africa respectively.
FDI refers to ownership of a stake in a company or project made by an investor, company, or government from another country. FDI has the potential to spur economic growth through facilitating technology transfer, employment creation, skills and knowledge development, and foster capital formation and these collectively contribute to the country’s development.
Among the companies that are to contribute to this economic growth is the French Oil giant TotalEnergies EP, which operates the Tilenga development project that straddles the districts of Nwoya (inside Murchison Falls National Park) and Buliisa, south of the River Nile. Tilenga encompasses 400 oil wells drilled by three oil rigs.
TotalEnergies EP is also a major shareholder (62 percent) in the East African Crude Oil Pipeline (EACOP), which will transport Uganda’s crude oil to the Tanzanian Indian Ocean Tanga port enroute to the international market, alongside Tanzania Petroleum Development Corporation (TPDC) and Uganda National Oil Company (UNOC), each with a 15 percent stake, and China’s CNOOC with eight percent
Bastille Day is celebrated to commemorate the date of the storming of the Bastille, a fortress in Paris known as Bastille Saint-Antoine. The event occurred on July 14, 1789, during the earliest stages of the French Revolution. Bastille Day is celebrated with huge fervour and joy.
The Bastille Day celebrations in Uganda were held at Ambassador Xavier Sticker’s residence in Nakasero. The event brought together numerous stakeholders from the media fraternity and the political scene. Among those who joined the commemoration was the Deputy Speaker of Parliament, Thomas Tayebwa.
While giving his speech, the Deputy Speaker of Parliament, Thomas Tayebwa hailed the cooperation between Uganda and France in the areas of trade, investment and diplomatic relations as a formidable uniting factor that ought to be fostered for further growth.
“We are looking forward to increasing the trade volumes between our two countries and the European Union in general. We hope that the newly established chamber will also contribute to reduction of the balance of trade which stood at US$57 million in favour of France, according to 2023/2024 figures,” said Tayebwa.
According to Tayebwa, the recent establishment of the French Chamber of Commerce in Uganda on 04 July 2024, will galvanise the operations and impact of French companies in the country.
He called for more investment by French companies in the areas of agro-industrialisation and agribusiness, mineral beneficiation of oil and gas, and tourism development.
“Uganda is ready to continue improving the investment environment to attract strategic investors and ensure good return on their investment. French companies in Uganda numbering over 40, are today reputed to employ around 3,000 Ugandans and directly contribute strongly to revenue through taxation,” Tayebwa said.