Kampala — LAST year both domestic and foreign investors affirmed their confidence in Uganda's economy by taking up more licences and injecting cash into the country, the Investment Authority announced yesterday.

There was an overall increase in investment by 30 per cent compared to the previous year, the officials revealed.

The revelation comes as relief to Uganda's investor keen government even as the country is experiencing economic uncertainty over the shortage of fuel fuelled by riotous events in neighbouring Kenya.

"At least 23 projects licensed last year have come into commercial operation. Uganda Investment Authority salutes all these companies and we promise we will continue to avail them with good customer package," the Chairman of the Uganda Investment Authority, Mr Patrick Bitature said yesterday while releasing the report.

He said Uganda attracted investment worth $2.2 billion (Shs3.8 trillion) of planned investment up from $1.7 billion (Shs3.0 trillion) in 2006. The $2.2 billion came from 374 projects although this was lower than the 424 projects licensed in 2006. In the same year 55,690 jobs were planned compared to the 48,098 jobs recorded the previous year.

Projects licensed included Warid Telecom, Hits Telecom, Rileys Packaging, Rio Tinto (UK), Meridian Africa Airlines Ltd operators of (Air Uganda), Imman Hospital, Bujagali Energy Ltd and Jacosen Thermol Plant Co. among others.

Mr Bitature said the key factors which attracted such investment were largely the stable macro economic policies put up by the government which include successful liberalisation process, privatisation policy and political stability.

Mr Bitature expressed optimism that with the country's successful hosting of the Chogm and the confirmation of the existence of oil in parts of Uganda, more investments are yet to flow into the country.

"A lot needs to be done in attracting investors and they need to be welcomed," he said.

Areas of more Foreign Direct Investment (FDI) attraction included ICT, manufacturing, agribusiness, tourism, health care, education, financial service, forestry, and printing among others.

UIA Executive Director, Dr Maggie Kigozi said corruption; land for investment, infrastructure especially for road and railway, high interest rates costly bank loans, inefficiency and power need to be addressed if the country is to compete favourably.

"Kenya's crisis is still biting both on the side of imports and exports but this should be used as an opportunity for Uganda to develop other avenues," Ms Kigozi said.