French Companies Pledge Over $4Bn Investment in Uganda Over the Next 3 Years

French Companies Pledge Over $4Bn Investment in Uganda Over the Next 3 Years

French companies have solidified their position as Uganda's leading investors, with plans to inject more than $4 billion into the country over the next three years.

This commitment was announced at a press conference held by the Embassy of France in Uganda at the French Residence.

The event marked a significant milestone in the development of economic relations between France and Uganda and included the formal launch of the first-ever French Chamber of Commerce in Uganda (FCCU).

At the initiative of the Uganda Foreign Trade Advisors (CCEF) section and the Economic Department of the Embassy of France, a detailed study on the impact of French businesses in Uganda was presented.

The report revealed several key insights:

Economic Environment: French companies have thrived in Uganda’s stable political climate and investor-friendly policies, which have provided a conducive environment for their operations.

Investment Growth: From just nine companies in 2010, the number of French enterprises in Uganda has grown to 40 in 2024. These companies generated sales of up to $875 million in 2023 and employed over 3,000 Ugandans, with 30% of these positions held by women.

Significant Investment: Investments from French companies doubled between 2022 and 2023 to reach $1.6 billion, constituting 53% of Uganda's foreign direct investment (FDI) inflows.

The projected investment of over $4 billion in the next three years underscores the robust confidence French businesses have in Uganda’s economic future.

Sectors of Influence:
French firms are active across various sectors, including agriculture, energy, digital technologies, electric mobility, logistics, and transport. Their innovative solutions are crucial for Uganda’s economic transition, particularly in essential services such as off-grid modern energy, water, and mobility.

Notably, three French companies account for 25% of Uganda's solar power capacity, delivering green electricity to over 120,000 homes.

Human Capital Investment:
In 2023 alone, French companies provided over 46,000 hours of employee training and funded scholarships for young Ugandans, enhancing their skills and educational opportunities.

Launch of the French Chamber of Commerce in Uganda

France has become the first European Union country to establish a Chamber of Commerce in Uganda.

The French Chamber of Commerce Uganda (FCCU) aims to bolster economic ties between the two nations and will offer a comprehensive suite of services to promote partnerships between French and Ugandan companies.

The FCCU emerges from the business club (Club d'Affaires de Kampala- CAK), founded in 2017, which now comprises 64 members, half of whom are Ugandan companies.

This integration into the international network of Chambers of Commerce and Industry (CCI) was officially approved by the CCI’s General Assembly on June 25, 2024.

The establishment of the FCCU is expected to pave the way for deeper economic collaboration between France and Uganda.