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Yumbe District Investment Profile

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Yumbe District Investment Profile YUMBE DISTRICT INVESTMENT PROFILE Uganda YUMBE DISTRICT | Figure 1: Map of Uganda showing the location of Yumbe District 2 YUMBE DISTRICT INVESTMENT PROFILE SNAPSHOT ONYUMBE Geography Location Northern Uganda Neighbours South Sudan, Moyo, Adjumani, Arua, 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 Cassava, beans, groundnuts, Simsim, millet and maize Market target 71million Infrastructure and strategic positioning Transport network Road network, Communication: MTN, Airtel, Africel, UTL, the internet Website www.kamwenge.go.ug GEOGRAPHY  Yumbe District was created in  The district covers a total area November 2000 from Arua District of 2,411sq km2, 80.01 percent of which is arable, 17.08 percent  It is bordered by South Sudan to forested and 9.9 percent covered by the north, Moyo District to the east, water bodies and wetlands Adjumani to the southeast, Arua to the south, Maracha to the southwest and Koboko to the west. YUMBE DISTRICT INVESTMENT PROFILE 3 DEMOGRAPHY  The majority (89%) of the  Yumbe 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-  The 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.  Yumbe 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.  Refugees 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  The 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%  The major food crops include cassava, beans, groundnuts, Simsim, millet and maize.  Tobacco 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  The people also engage in Involvement of Refugees in general retail and whole sale, the Local Economy metal and wood fabrication,  The refugee community is also art and crafts production, fish engaged in economy activity, farming and livestock farming. including farming, retail  The increasing demand for business and casual labour, to goats is attracting investment complement relief aid. in Animal husbandry. There  Bidi 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  Yumbe has great potential as  Yumbe 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, Paidha, and strategic infrastructure Koboko, Yumbe and Nebbi development. Districts.  The district has two major roads  Construction 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.  Two roads are earmarked to be tarmacked within the Vision 2040 Planning framework. YUMBE DISTRICT INVESTMENT PROFILE 7 Abundant Natural  Quality clay for making bricks, Resources tiles and other products.  Yumbe has abundant natural  Furthermore, 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.  A small stretch of River Nile;  The district has abundant  Three central forest reserves land and rainfall of about Mt Kei natural forest reserve; 1250mm enough for commercial Lodonga forest and Koloa forest agriculture. reserve. Tourism Potential The Lodonga Minor Basilica church is dedicated to Blessed Virgin Mary  Potential tourist attractions include the following:  1961, the Basilica attracts  The 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  The Takwa Mosque which  The 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  The Kei Forest has fly, birds Regimes and trees which are not found  Uganda’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.  Yumbe 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  A 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 Kampala, 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  The 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  Investors 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  In 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)  In 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  Some 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
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