ARUA DISTRICT INVESTMENT PROFILE

Uganda DISTRICT

| Figure 1: Map of showing the location of

2 Arua District Investment Profile SNAPSHOT ONARUA

Geography Location: West Neighbors: Maracha, , , , , area: 4,274.13 Km2 Arable land area: 3,718.86 Km2

Socio-Economic Characteristics Population (2016 projection): 820,500 Refugees and Asylum seekers (April 211,749 (26%) 2017): Languages: Lugbara, English, Kiswahili, Lingala and Arabic Main Economic Activity: Agriculture Major tradeables: Cassava, Sweet Potatoes and Plantain Market target: 71 million, including DRC and

Infrastructure and strategic positioning Transport network: ; (road network) Communication: MTN, Airtel, Africel, UTL, the internet

GEOGRAPHY

ÂÂArua district lies in the ÂÂIn total the district covers an North-Western Corner of Ugan- area of 4,274.13Km2, of which da. It is bordered by Maracha about 87% is arable. It is located district in the North West; Yum- 520 km from and only be in the North East; Democratic 80 km from the South Sudan Republic of Congo in the West; Border. Nebbi in the South; Zombo in the South East; and in the East.

Arua District Investment Profile 3 DEMOGRAPHY

ÂÂArua town is very busy and cos- ÂÂThe refugees, mainly from South mopolitan, with major languag- Sudan are of diverse ethnic es: English, Kiswahili, Lingala backgrounds; Dinkas, Kuku, Nuer, and Arabic and many local Kakwa, Madi, and Siluk and have dialects widely spoken, and mul- close ethnicity with the locals tiple cultures freely celebrated. who are Kakwa, Madi, Alur and This demonstrates the unique Lugbara. This partly explains welcoming and inclusive charac- the peaceful coexistence in the ter of the local population. community. ÂÂAs at 2016, the district had ÂÂArua promotes the government’s an estimated population of exemplary refugee settlement 820,500, of which 36,731 9 (4.5 model that allows refugees percent) were refugees. By May to interact freely and set up 2017, Arua hosted 151,039 refu- investments, which provides gees, accounting for 18 percent an opportunity to harness their of the district population. potential to accelerate local eco- nomic development. Generally, the refugee and host communi- ties enjoy a cordial relationship, which offers a favourable envi- ronment for doing business.

100 90 80 70 60 50 40 30 20 10 0 2014 2015 2016 2017

4 Arua District Investment Profile MAIN ECONOMIC ACTIVITIES

ÂÂThe economy of Arua depends Beans 5% mainly on agriculture which Sorghum 5% employs over 80% of the house- Finger Millet 4% holds1. Of those employed in Others 7% agriculture, 86% are engaged in the crop sector, 0.6% in animal Banana 6% rearing, and 0.9% in fishing. Maize 4% ÂÂBoth food and cash crops are grown. The major food crops Sweet Potatoes 16% include cassava, beans, ground- nuts, simsim, millet and maize. Cassava 53% Tobacco is the major cash crop and is the main source of livelihood for majority of the Some Refugees have come population in the district. There with skills and capital and is renewed interest in the pro- have established small motion of coffee production in businesses. many areas of the district now. “Investing in these ÂÂWith the total production vol- communities offers a ume of 275,994 Metric Tons of strong business case for major crops, Arua has a strong both the private sector agricultural raw material supply and the locals. base for value adding agro-pro- Mr. Shapan Andeku, District Planner ARUA cessing industries. ÂÂOther non-agricultural activi- ties include: general retail and Involvement of refugees in whole sale, metal and wood the local economy fabrication, art and crafts pro- About 47% of the refugees are duction, fish farming and live- ÂÂ actively engaged in the local stock farming. Tobacco is also economy. Majority engages in grown extensively for income farming, retail business and ca- generation. Honey production sual labour. Ability and potential and trade is a known income to generate income is critical for generating activity. boosting the local economy.

Arua District Investment Profile 5 WHY INVEST IN ARUA DISTRICT?

Existing Infrastructure ÂÂArua Airstrip serves the North- ern Region. It is an important ÂÂThere are 61 bridges to enable centre for passenger and cargo accessibility to the rural areas. air traffic between Uganda, DRC ÂÂMajor government investments and South Sudan making it sec- are in infrastructural transfor- ond-busiest airport in Uganda, mation such as the tarmacking after Entebbe. Arua Airport’s of the Arua to High- services further strengthens the way and the tarmacking of the District’s status as a trade and -Arua-Koboko- road. ÂÂInvestment hub: Electricity is The tarmac roads are in very supplied by West Nile Ener- good condition and are regularly gy Company (WENERECO), a maintained. partnership of a private investor ÂÂThe district has a total road and the Government of Uganda network of 1,831km. Of these, which manage the West Nile 546Km are trunk roads, 304km Rural Electrification Project. The are feeder roads while 981km project generates 1.5 MW of are community access roads. thermo electricity serving up to 2,800 customers in Arua, , Yumbe and Nebbi Districts.

| Arua Airfield

6 Arua District Investment Profile |  Nyangak hydro power dam  to enhance tradein theregion. tion andmarket linkageservices park for dedicated tradefacilita- officean developmentof the chains. The project willinclude on to theinternational value and MediumEnterprises to get Accelerator Park for localSmall space, Business andanExport will alsooffer hugewarehouse markets. The fully serviced Zone processed for theinternational timber andmineralswillbe from thesecountries suchas Republic whileraw materials South Sudan, andCentral African Democratic Republic of Congo, destinationsinEasternexport specifically the Uganda targeting for andjobcreationin exports is expected to beakey driver Arua Municipality. Arua SEZ, on a12.274-hectare land, in op a$12.7million Free Zone launched theproject to devel- a developer’s license andhas (Arua SEZ)wasrecently issued Special Economic Zone Limited EconomicSpecial Zone: Aru a District Investment Profile Arua     viding internet services. has upto six internet cafés pro- television stations. The district while WBS andDSTV arerelay is stationedin Arua district stations in Arua. BTN television There arethree (3)television approximately 850,000people. ment owned UBC andBBC serve stations includingthegovern- tions inthelocality. The booster radio stationsand2booster sta- communication. There are4 much-preferred instant/quick television networks enablingthe internet, aswell asradioand including MTN, Airtel, UTL, the mobile telephone networks enjoys goodaccess to major Communication:district The Hotel. Courts Hotel and White Castle Hotel Arua. OtherareGolden Breeze hotel andGoldenCourt Heritage Park Hotel, Desert comfortable ambience include hotels withampleamenitiesand blocks.and apartment A few permanent residentialhouses buildings,cial office buildings, including permanentcommer- hosts awiderangeof housing Accommodation: Arua town Arua

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WHY INVEST IN ARUA DISTRICT? NDPII (2015/16-2019/20) A Regional Trade and Planned Infrastructure Investment Hub projects to boost economic activity ÂÂArua District is a lucrative regional trade hub facilitating ÂÂARUA will be upgraded into one trade linkages among many of the Four Regional Cities in districts in Northern Uganda Uganda and cross border trade with ÂÂThrough the planned Standard South Sudan and the Democratic Gauge Railway Network, Arua Republic of Congo. It targets will be directly connected to a market of approximately 71 Mombasa million people2. ÂÂA ferry to the Rhino camp to ÂÂIts location in the vicinity shorten the route from the of three countries enables a Northern Uganda to Kampala. natural concentration of a large, diverse and business minded ÂÂArua Airfield will be upgrad- population who demand and ed to an international Airport. supply a wide range of goods Plans include a modern airport and services. terminal with capacity for 200 passengers, paving the runway ÂÂArua hosts branches of some of and widening it to 45 metres the reputable Banks: Bank of Af- (148 ft), and extending it to 2.5 rica, Barclays Bank Uganda Ltd, km (8,200 ft). Ltd, Diamond Trust Bank Ltd, Housing Finance ÂÂArua will be part of the new ICT Bank Ltd and Stanbic Bank Ltd, infrastructure that have regional and interna- ÂÂProposed development of A Spe- tional business connections. cial Economic Zone in Arua ÂÂInvestors have opportunities ÂÂThe Government is continuing to locate in Arua and expand work on the Nyangak Hydro business activities into the Power Station to ensure sustain- neighbouring districts Koboko, able power supply for domestic 2 Assuming the whole of Uganda (34 million and industrial use in the district. people), South Sudan (12.4 million people) and North East DRC – six provinces (24.6 WHY INVEST IN ARUA DISTRICT? IN ARUA WHY INVEST million people).

8 Arua District Investment Profile Yumbe, Moyo, Adjumani, Nebbi, ÂÂAvailability of wind energy (wind Maracha, Amuru, Zombo. In these speed ranges between 3.2 -3.9). districts, the investor may link This is sufficient for small scale to agricultural raw materials electricity generation especially suppliers and technical services for water pumping. subcontractors, and at the same ÂÂProspect of oil and gas along the time supply its products to the Albertine Graben. markets. Skilled and Productive Abundant Natural workforce Resources ÂÂArua district is endowed with ÂExistence of natural forests  industrious, technically capable which are potential for biomass and affordable manpower. energy supply for household, institutional and industrial use. ÂÂReputable technical institu- tions offer training in catering, ÂPresences of Rural Growth  Business and Accounts, office Centers that still relay on diesel administration, and nursing and generators are eligible for grid annually release graduands. extension or off grid power Women and the youth are par-

supply system. DISTRICT? IN ARUA WHY INVEST ticularly socially enabled to work ÂÂThe high level of solar radiation hard and earn income. (average radiation 5.0 -5.6/kWh/ ÂÂThe district is 4th largest in pop- m2/) could be turned into en- ulation size after Wakiso, Kam- ergy for commercial/productive pala and Kabale, thus capable of use e.g. milling, husking, fruit providing a sufficient labour pool. juice production, cooling of meat and hair dressing.

| Nile river ferry crossing | Construction of Nyangak hydro power station

Arua District Investment Profile 9 Tourism Potential ÂÂThe Albert Nile is host to unique tourism opportunities along its 210-km course from the north end of Lake Albert through to the border with Sudan. These oppor- tunities spot the districts of Neb- bi, , Arua, Amuru, Adjumani, and Moyo through which the river flows. Rich wildlife reserves, Water Falls, landmark historical sites, stunning landscapes and extraordinary cultural heritage are among those which could easily become international tour- | Olewa falls on River Enyau ism attractions. Moreover, Arua District is greatly endowed with natural attractions: Ajayi Game Reserve, Imvepi – Enyau Valley Forest, Ambitambe Crater Lake

WHY INVEST IN ARUA DISTRICT? IN ARUA WHY INVEST and Olewa Falls. Mountain sites include Mt. Kei, Mt. Wati (home to | A cultural dance in Arua a Lugbara ancestor), Liru Hill (an- cestral home of Kakwa people).

10 Arua District Investment Profile Administrative Support Attractive Incentive Regimes ÂÂUganda through its political, le- gal and institutional structures, ÂÂUganda’s incentive package its strong economic and social for both domestic and foreign policies as well as the effi- investors provides generous cient local government organs terms, particularly for medium- provides a conducive investment and long-term investors whose environment in Arua district. projects entail significant plant and machinery costs. Below is a ÂÂInvestors are assisted by the snapshot of selected incentives. different departments in the The incentive structure is cur- local government depending on rently under revision. For details, the issues at hand. refer to www.ugandainvest.go.ug/ ÂÂUganda Investment Authority downloads/ (UIA) is promoting the One Stop Category 1- Initial Allowanc- Centre concept at the district es: Initial capital expenditures level where the Chief Commer- which are deductible once from cial Officer is the facilitator the Company’s Income: of new investors, to fulfil all required steps in investment »» 75% of cost of plant and start up. machinery for an investment located outside Kampala, ÂÂUIA has established District Entebbe, Jinja area; Investment Committee (DICs) to spearhead investment attrac- »» 100% of scientific research tion, facilitation and aftercare in expenditure; different sectors. »» 100% of training expendi- ture; Attractive Incentive Regimes »» 100% of mineral exploration expenditure; ÂÂProposed Special Economic Zone » 25% of start-up costs are in Arua to reduce the cost of » deductible over four years. doing business ÂÂInvestors assisted to access suitable land for industrial and agricultural development. WHY INVEST IN ARUA DISTRICT? IN ARUA WHY INVEST Arua District Investment Profile 11 Category 2- Annual Deprecia- Category 3 - Other Annual De- tion Allowances: The following preciation Allowances include: allowances, under declining bal- »» 5% on Industrial Buildings, ance method, are provided for Hotels & Hospitals; assets as specified in 4 classes below: »» 20% on Farming - General farm works; »» Class I: 45% on Computers & Data handling equipment; »» 20% on Horticultural Plant and Construction of » Class 2: 35% on Automobiles, » Green-houses using straight Construction and Earth mov- line depreciation ing equipment; ÂÂIn addition to the above » Class 3: 30% on Buses, Goods » incentives, there is a zero rate Vehicles. Tractors, Trail- of import duty on plant and ers, Plant & Machinery for machinery as well as a uniform farming, manufacturing and corporate tax rate of 30%. mining; ÂÂThe depreciation allowanc- » Class 4: 20% on railroad cars, » es, plus the deductible initial Locomotives, Vessels, Office capital allowances are provided furniture, fixtures etc. without discretion to eligible

WHY INVEST IN ARUA DISTRICT? IN ARUA WHY INVEST investors in order reduce their taxable income during the cru- cial early years of a project. The investor therefore keeps a high proportion of its cash flow and income for further investment.

12 Arua District Investment Profile EXISTING INVESTORS (SELECTED)

ÂÂUganda BAATI ÂÂMeridian Tobacco Company »» A leading manufacturer and »» Meridian Tobacco Company supplier of roofing sheets in (MTC) took over the opera- the East African region using tions of B.A.T. Uganda when an ultra-modern continu- the latter closed its oper- ous galvanizing line. It has ations in 2013. Since then branches in Arua and Tororo, it has set up a factory in showrooms in Mbarara Arua which scheduled to be and and sells roofing opened in 2017. products in galvanized, ÂÂBee Natural Honey Ltd aluminum-zinc coated and pre-painted material ranges. »» The largest honey and apiary Production Company with state of the art factory and a wide supply base in Arua and neighbouring districts. The company started business operation in 2007. Its main apiary supply base involves 1,200 beekeepers who are clustered into 15 groups spread in the districts of Arua, Nebbi, Yumbe, Moyo, | Products of Bee Natural Honey Koboko and Adjumani. The company produces honey, The advantages of locating in Arua was bars and propolis and is are: easy supply of raw materials from a wide supply base that reaches engaged in queen breeding DRC. Ready market in Kampala, and colony multiplication. “Rwanda and Kenya. The refugees who have taken up apiary as a business are able to supply Bee Natural. The company has trained the refugees in Quality Honey handling and other aspects of the value chain. MS. Pricilla Kahunde, Production and Quality Control Supervisor Bee Natural Uganda Ltd.

Arua District Investment Profile 13 INVESTMENT OPPORTUNITIES

ÂÂAgribusiness services provision ÂÂValue Addition agribusiness services: »» high demand for food partic- ularly the highly consumed Postharvest handling services staple foods arising from including setting up large-scale the fact that DRC and South agricultural commodities stor- Sudan import huge amounts age facilities and distribution of food commodities from management; quality control Uganda and Arua provides mechanisms and equipment, the transit route for trans- packaging centres and logistics porting these commodities. to distribute commodity items.

There are vast fertile arable »» ÂÂInput supply lands but only less than 50% is under production. Contrac- Provision of inputs; advisory ser- tual arrangements with com- vices; financing agricultural pro- munities can provide land for duction; promotion and training investments in agriculture in new methods of farming and business operations. ÂÂUpgrading of the cottage fish processing industry »» Establishment of fish hatch- ery in the district to produce quality fish fry for Catfish, Tilapia and Mirror carp. This is justified by lack of quality fries for farmers produced within the region. The famers procure fish fries mainly from Kampala, Wakiso and Mpigi Districts which is not cost effective. The hatchery would serve the West Nile Sub Regions and Neighboring Counties

| Grain Warehousing and Logistics Components

14 Arua District Investment Profile »» Establishment of fish feed manufacturing factory for quality feeds with standard formulation. »» Market available in DRC, South Sudan and the rest of the country. ÂÂTourism | Cottage fish processing in Arua The tourism investment oppor- tunities include: »» Provision of Tourism Promo- tion Services dedicated to marketing tourist attractions in the Northern region and building the Northern Ugan- da’s image. INVESTMENT INVESTORS INVESTMENT »» Other appropriate invest- ments are in construction of high end Hotels, Guest hous- es and residential houses. | Bird watching a potential attraction

KEY CONTACTS

Name Position Phone Number Email address Mr. Wadri Sam Nyakua LCV Chairman 0782-448871 [email protected] Mr. Ismael Ochengel Chief Administrative Officer 0772551353 [email protected] Mr. Shaphan Andeku District Planner 0772394429 [email protected] Mr. John Ezuma District Commercial Officer 0782404236 [email protected]

| Albert Nile

Arua District Investment Profile 15 Mrs. Jolly K. Kaguhangire Mme. Rosa Malango Executive Director, Uganda UN Resident Coordinator/ Investment Authority UNDP Resident Representative

Uganda

Uganda Investment Authority United Nations Development The Investment Centre Plot 22B Programme (UNDP) Lumumba Avenue Plot 11 Yusuf Lule Road P.O.Box 7418, Kampala, Uganda Nakasero P.O.Box 7184 Tel: +256-414301000 Kampala, Uganda Fax+256-414342903 Tel: +256-417112100 http//www.ugandainvest.go.ug Fax: +256-414344801 www.undp.org