Uganda's 2009-10 Planned Investment -23% On Economic Downturn

8th Jul 2010 13:59

KAMPALA, Uganda (Dow Jones)--The value of planned investments in Uganda dropped 23% on year during the fiscal year just ended in June due to the effects of the global economic downturn, Uganda's Junior Finance and Planning Minister said Thursday. Ruth Nankabirwa told reporters in Kampala, the Ugandan capital, that the value of planned investments dropped to $1.6 billion in 2009-10, down from $2.08 billion the previous fiscal year. "Though the figure was lower--resulting from the global financial crisis--an analysis of the priority sectors will reveal that last year was successful in as far as job creation and the adherence to the National Development Plan objectives are concerned," she said. The highest number of licensed projects last fiscal year were in the manufacturing sector followed by construction, real estate and agriculture. Nankabirwa, said that recent developments in Uganda's oil sector, especially the decision of the government to endorse U.K.-based Tullow Oil PLC (TLW.LN) to takeover the interests of Heritage Oil PLC (HOIL.LN) is poised to attract huge capital investments in the country. "Tullow Oil, Total [SA (TOT)] and Cnooc [Ltd. (CEO)] have entered into a new partnership agreement, which is envisaged to greatly boost the level of investments in the sector," she added. Discussions between the Ugandan government and Tullow over the development of oil fields in the Lake Albert basin began Thursday. Nankabirwa said that the entry of India-based Bharti Airtel (532454.BY), in Uganda's telecommunications industry will also mean increased investment in the sector, stiffer competition, and lower tariffs for mobile phone subscribers Uganda, Africa's largest coffee exporter, is expected to soon join the league of oil production countries, starting this year and reach commercial levels in the next couple of years. -By Nicholas Bariyo, contributing to Dow Jones Newswires; 256-75-2624615 [email protected] (END) Dow Jones Newswires July 08, 2010 08:59 ET (12:59 GMT)