YUMBE DISTRICT INVESTMENT PROFILE

Uganda DISTRICT

| Figure 1: Map of showing the location of

2 YUMBE District Investment Profile SNAPSHOT ONYUMBE

Geography Location Northern Uganda Neighbours , Moyo, , , Mara- cha and Kobok District area 2,411sq km2 Arable land area 1931.211 km2

Socio-Economic Characteristics Population (2016 projection) 534,300 Refugees and Asylum seekers (April 2017) 272,707 Languages Aringa Lugbara (majority), Kak- wa, BARI, Madi and Alur Main Economic Activity Agriculture Major tradeable , beans, groundnuts, Simsim, and Market target 71million

Infrastructure and strategic positioning Transport network Road network, Communication: MTN, Airtel, Africel, UTL, the internet Website www.kamwenge.go.ug

GEOGRAPHY

ÂÂYumbe District was created in ÂÂThe district covers a total area November 2000 from of 2,411sq km2, 80.01 percent of which is arable, 17.08 percent ÂÂIt is bordered by South Sudan to forested and 9.9 percent covered by the north, to the east, water bodies and wetlands Adjumani to the southeast, Arua to the south, Maracha to the southwest and to the west.

YUMBE District Investment Profile 3 DEMOGRAPHY

ÂÂThe majority (89%) of the ÂÂYumbe promotes the gov- people in the district are eth- ernment’s exemplary refugee nic Lugbara. Other ethnicities settlement model that allows include the Kakwa, Madi and refugees to interact freely and the Alur. The dialects spoken set up investments, which pro- in the district include: Arin- vides an opportunity to harness ga Lugbara (majority), Kak- their potential to accelerate wa, BARI, Madi and Alur. The local economic development. other spoken languages are Generally, the refugee and host Kiswahili and English. communities enjoy a cordial relationship, which offers a fa- ÂÂThe 2014 National Population vourable environment for doing and Housing Census estimat- business. ed the district population at 484,822, with 52 percent women and 48 men. In 2016, the popu- lation was estimated at 534,300. ÂÂYumbe is one of the refugee hosting districts. By May 1, 2017, the refugee population had risen to 272,707, from 144,701 regis- tered at the end of 2016. ÂÂRefugees in the district mainly come from the South Sudan. They are hosted in Bidi bidi settlement area where they are allocated plots of land to build homes and to farm. They are also encouraged to interact free- ly, set up shops and other retail businesses.

4 YUMBE District Investment Profile MAIN ECONOMIC ACTIVITY

ÂÂThe economy of Yumbe District Major crops grown in Yumbe District

is heavily dependent on Sorghum agriculture which employs over Beans 5% Ground 11% nuts 5% 80% of the population. Others 4% ÂÂThe major food crops include cassava, beans, groundnuts, Simsim, millet and maize. ÂÂTobacco is the major cash crop and main source of livelihood Maize 28% for most of the population in the district. It is grown mainly in the fertile highlands areas and river banks/ valleys. Cassava 38%

Potatoes 9%

YUMBE District Investment Profile 5 ÂÂThe people also engage in Involvement of Refugees in general retail and whole sale, the Local Economy metal and wood fabrication, ÂÂThe refugee community is also art and crafts production, fish engaged in economy activity, farming and livestock farming. including farming, retail ÂÂThe increasing demand for business and casual labour, to goats is attracting investment complement relief aid. in Animal husbandry. There ÂÂBidi Bidi settlement has various is enormous demand for markets where refugees sell goats particularly among the products. Entrepreneurs have Muslim communities who set up small shops to fix slaughter them in fulfilment motorcycles and build furniture of some religious and cultural and other products. ceremonies.

| Goat rearing is becoming a lucrative enterprise

6 YUMBE District Investment Profile WHY INVEST IN YUMBE DISTRICT??

Existing Infrastructure

| Nyangak dam that generates power to Yumbe

ÂÂ Yumbe has great potential as ÂÂYumbe has reliable thermos an investment location which electricity. a 1.5 MW thermos Government is committed to plan serves up to 2,800 unlock through prioritized customers in Arua, , and strategic infrastructure Koboko, Yumbe and development. Districts. ÂÂThe district has two major roads ÂÂConstruction of Nyangak II radiating from Yumbe town; 81 dam in Paidha will provide km from Yumbe Town to Arua extra 3.5MW of hydro power to and 36 km from Yumbe town to improve access to power in the Koboko, all of which are gravel districts. surfaced. ÂÂTwo roads are earmarked to be tarmacked within the Vision 2040 Planning framework.

YUMBE District Investment Profile 7 Abundant Natural ÂÂQuality clay for making bricks, Resources tiles and other products. ÂÂYumbe has abundant natural ÂÂFurthermore, some recent resources which if sustainably studies have revealed a exploited will provide a strong presence of petroleum materials raw materials base. in the northern parts of the district. ÂÂA small stretch of River ; ÂÂThe district has abundant ÂÂThree central forest reserves land and rainfall of about Mt Kei natural forest reserve; 1250mm enough for commercial forest and Koloa forest agriculture. reserve.

Tourism Potential

The Lodonga Minor Basilica church is dedicated to Blessed Virgin Mary ÂÂPotential tourist attractions include the following: ÂÂ1961, the Basilica attracts ÂÂThe Lodonga Basilica: the first pilgrims within and outside Catholic Basilica in Sub Saharan Uganda every December 8 Africa. Dedicated in because of a Virgin Mary

WHY INVEST IN YUMBE DISTRICT? WHY INVEST apparition at the church.

8 YUMBE District Investment Profile ÂÂThe Takwa Mosque which ÂÂThe district has a one-stop annually brings together centre led by the District pilgrims from Kenya, DRC, Commercial Officer to facilitate Tanzania and Rwanda to investment start-up. undertake Mauled and other functions. Attractive Incentive ÂÂThe Kei Forest has fly, birds Regimes and trees which are not found ÂÂUganda’s incentive package anywhere in the world. A rear for both domestic and foreign type of honey is produced in this investors provides generous forest terms, particularly for medium- and long-term investors whose Skilled and Productive projects entail significant plant Workforce and machinery costs. Below is a snapshot of selected incentives. ÂÂYumbe district is endowed with The incentive structure is industrious, technically capable currently under revision. and affordable manpower. The For details, refer to www. growing young population is ugandainvest.go.ug/downloads/ skilled and trainable to engage in farm and non-farm activities. Category 1- Initial Allowances: Initial capital expenditures Administrative Support which are deductible once from

the Company’s Income: IN YUMBE DISTRICT? WHY INVEST ÂÂA District Investment Committee (DICs) is in place »» 75% of cost of plant and to spearhead investment machinery for an investment attraction, facilitation and located outside , aftercare in different sectors. Entebbe, Jinja area; The DIC is a 10-member task »» 100% of scientific research force comprising five local expenditure; government representatives: LCV » 100% of training chairman, Chief Administrative » expenditure; Officer, District Commercial Officer, District Planner and the »» 100% of mineral exploration Lands officer while the other expenditure; 5 members chosen from the »» 25% of start-up costs are private sector. deductible over four years.

YUMBE District Investment Profile 9 Category 2- Annual Depreciation ÂÂThe depreciation allowances, Allowances: The following plus the deductible initial allowances, under declining capital allowances are provided balance method, are provided for without discretion to eligible assets as specified in 4 classes investors in order reduce their below: taxable income during the crucial early years of a project. »» Class I: 45% on Computers & The investor therefore keeps Data handling equipment; a high proportion of its cash »» Class 2: 35% on Automobiles, flow and income for further Construction and Earth investment. moving equipment; »» Class 3: 30% on Buses, Goods District Specific Direct Vehicles. Tractors, Trailers, Incentives: Plant & Machinery for farming, manufacturing and ÂÂInvestors assisted to access mining; suitable land for industrial and agricultural development. The Class 4: 20% on railroad cars, »» district has earmarked some Locomotives, Vessels, Office land for investors across sectors. furniture, fixtures etc. Category 3 - Other Annual Depreciation Allowances include: »» 5% on Industrial Buildings, Hotels & Hospitals; »» 20% on Farming - General farm works; »» 20% on Horticultural Plant and Construction of Green- houses using straight line depreciation ÂÂIn addition to the above incentives, there is a zero rate of import duty on plant and machinery as well as a uniform

WHY INVEST IN YUMBE DISTRICT? WHY INVEST corporate tax rate of 30%.

10 YUMBE District Investment Profile EXISTING INVESTORS (SELECTED)

ÂÂIn May 2013 the Government excess supply of mangoes in the of Uganda in partnership with district. Farmers are paid cash Makerere University Food on delivery for their mangoes at Technology and Business the prevailing market rates. Incubation Centre, through the ÂÂSome farmers have stated Presidential Initiative for value investing in commercial farms addition, acquired a $400,000 in the district regions such as mobile fruit-processing factory Kululu, Ariwa, Kochi, Kerwa in form of a truck to process Romogi and Midigo. raw mangoes into pulp. The pulp is preserved and sold to ÂÂExisting investments in juice processors downstream. Tourism sector include two The mobile factory moves from two-star hotels namely Premiar one sub-county to another Fedaericus Hotel Ltd. and to process farmers’ mangoes Praford Hotel Ltd. and pineapples, absorbing the

Mobile fruit processor in Yumbe District

YUMBE District Investment Profile 11 INVESTMENT OPPORTUNITIES IN YUMBE

ÂÂCommercial crop production: in the district are not Large scale production of highly producing enough of these demanded commodities such commodities, for example as Cassava, Maize and Beans. Yumbe district imports Other crops that should be Cassava flour from Soroti grown commercially to meet and Tanzania. the consumption demand of ÂÂCommercial goat rearing: increased refugee population Large scale goat rearing are Millet, Sorghum, Groundnuts, for the markets in Southern and Simsim. High value crops: Sudan, West Nile, DRC, fruits and vegetables are in high Rwanda and Kenya and demand. Currently the farmers the Middle East countries farming methods, overgrazing is a compelling investment herds of cattle, goats and sheep. opportunity. The pressure of increased population of frequent migrants ÂÂInvesting in mineral resources: from Southern Sudan and Aerial surveys have been carried Eastern Congo, fleeing from out in the south western part civil and political conflicts in of the District and revealed those countries has seriously potential for the presence of contributed to this situation. petroleum products. Further Investment in large scale tree surveys are being conducted. planting and large scale tree ÂÂDeforestation and nurseries is an opportunity for environmental degradation in substantial income generation, the whole of West Nile region reforestation and revival of has resulted from tree cutting the environment, creation for firewood, opening land for of jobs that can diversify crop cultivation and using poor sources of income for the local communities. KEY CONTACTS

Name Position Phone Contact Email address Mr. Taban Yasin LCV Chairman 0782388650 [email protected] Mr. Batemyetto Jacob, Ag. Chief Administra- 0772461970 [email protected] tive Officer Mr. Victor Guma District Planner 0703526920 Mr. Dalili Sebi District Commercial 0782953709 [email protected] Officer

14 YUMBE District Investment Profile YUMBEArua 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