Investments grow despite elections, strife

Dr Kigozi said that while the number of projects remained the same at 29, monetary values rose to $408 million, from $122 million in January. The number of jobs planned also rose four-fold to 12,265, from 2,590 in January.

Licensed investment projects for 2010 have “surprised” officials, their value more than tripling in February, despite anxiety about general elections or the outbreak of political strife in North Africa and the Middle East, which are sources of marginal foreign direct investment inflows.

The biggest increases occurred in the finance and manufacturing sectors, Uganda Investment Authority Executive Director, Maggie Kigozi, told journalists last week.


Investments in the finance, real estate and services sector rose to US$ 150 million, almost five times the January investments of US$ 33 million, with 14 projects and 1754 planned jobs. Manufacturing totaled US$ 132 million, up from US$ 17 million in January, with 6 projects and 6,168 jobs.

In keeping with the trend, the majority of projects (38%) are Ugandan-owned, with a total value of US$ 214 million and more than 10,000 jobs planned.

Foreigners planned $194 million worth of investments, led as is tradition by the U.K.($104 million), followed by Norway at $65 million, Netherlands (US$ 7.7 million) and China (US$ 6.5 million).

Only one Middle-Eastern country, Iran, registered a planned investment worth US$ 5 million.
Dr Kigozi said on average only 60% of these projects will come to fruition. She would not name the businesses or persons behind these projects, as investors do not like their projects announced until they are ready to launch them, fearing that this would warn off competitors.

Daily trading on USE
The Uganda Securities Exchange commenced daily trading this week, up from three days a week, in response to growing demand from local and regional investors. This means the trading floor will be open for selling and buying shares from Monday to Friday, except public holidays.
“This development offers investors maximum opportunity to execute investment decisions and respond promptly to market changes,” USE Chief Executive Officer, Joseph Kitamirike, said.
The change is a response to the growing activity of regional investors on the USE, particularly with the cross-listing of various Kenyan companies, and the desire for regional investors to trade on all East African exchanges at the same time and to effect investment decisions without delay.
“We cannot keep our market closed on days when we can be trading across the border. ” Kitamirike said.
The four East African stock markets including the Nairobi, Dar el Salaam and Rwanda Stock Exchange, are expected to integrate under the protocols of the Common Market.

New Orange handsets
Orange has launched a new range of products, including its second Android device on the market, the Samsung Galaxy Tab, with an operating system, a seven-inch touch-screen and multi-touch screen.
“This gadget can do a lot of things at the same time. It is both a phone and a modem. You can also use it to watch live TV and listen to the radio,” Orange’s Chief Executive Officer, Philippe Luxcey, told journalists while presenting the products at the Orange offices on Monday.
Luxcey also presented an Android-powered IDEOS smart phone that can be used as a 3GB+ modem, as well as “unlimited 3G+ internet” connectivity.  The Samsung Galaxy Tab costs Shs 1,699 million while the Android-powered IDEOS smart phone costs Shs 499,000.

Coffee Exports Slump
Uganda’s coffee exports fell 26 percent in February, after a dry spell cut yields, the Uganda Coffee Development Authority has said.

Shipments declined to 193,965 60-kilogram (132-pound) bags from 262,793 bags a year earlier, the agency said last week in its monthly report. Exports surpassed an earlier forecast of 185,000 bags, though they were lower than the 215,180 bags shipped in January.

Shipments in the 12 months through September may climb 16 percent to 3.1 million bags because of an anticipated improvement in weather and yields from new tree plantings. Exports from the start of the season on Oct. 1 through February declined 7.6 percent to 1.1 million bags, according to a tally of UCDA figures. – Agencies
Uganda earned $243.6 million from coffee beans last season, compared with $291.3 million a year earlier. Robusta accounts for about 85 percent of Uganda’s annual output.

Dfcu share price up with profits
Dfcu’s share price maintained its 3% gain last week, as investors dashed to purchase shares in the bank after it declared intentions to pay higher dividends to its shareholders.
At the Uganda Securities Exchange where the bank is listed, its share price closed at Shs930 on Thursday, maintaining its gains from Shs900 last weeks.  Mr William Nyakatura an equity dealer at African Alliance, an investment firm, attributed the surge in the DFCU share price to the 20 per cent rise in the company’s profitability which has made it more attractive. “It’s positive news on the side of investors. We see the price rising because it is still at fair value,” he said.