For the seventh consecutive year, Uganda has witnessed an increase in Foreign Direct Investment (FDI), with a 68.3 percent increase in the FY 2022/23, marking the most significant annual increment to date. The increase in FDI is primarily attributed to developments in the oil industry as the country gears up for its inaugural oil production. The FDI influx increased from USD 1,688.56 million in the FY 2021/22 to USD 2,842.65 million in the FY 2022/23.

Source: BOU

Uganda Foreign Direct Investment (USD Millions)

Government is focused on enhancing the impact of public investment on growth through the implementation of policies that foster efficiency in public investment. The COVID-19 lockdowns, among other shocks however negatively affected the speed of implementation and management of the public investment cycle, leading to reduced growth outcomes. The growth of NDPIII was anticipated to be highly influenced by public investments, notably the 69 core projects and other associated projects. By March 2022, of these 69 projects, 33 (or 48%) were under implementation. Of these, 4 projects (6%) were on track, while 29 projects (42%) were behind schedule.