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Kyegegwa District Investment Profile

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Kyegegwa District Investment Profile KYEGEGWA DISTRICT INVESTMENT PROFILE Uganda KYEGEGWA DISTRICT | Figure 1: Map of Uganda showing the location of Kyegegwa District 2 KYEGEGWA DISTRICT INVESTMENT PROFILE SNAPSHOT ONKYEGEGWA Geography Location Western Uganda Neighbors District area 1,747 KM2 Arable land area 1,747 KM2 Socio-Economic Characteristics Population (2014 Census) 281,637 Refugees and Asylum seekers (April 2017) 24,457 Languages Kiswahili Main Economic Activity Agriculture Major tradeables Maize, Bananas, beans, Groundnuts, Cassava, Millet, Irish Potatoes, Sweet Potatoes, Citrus Fruits and Pineapples Infrastructure and strategic positioning Transport network Road network, Communication: MTN, UTL, Internet GEORGRAPHY  Kyegegwa District is located in  It covers a total area of 1,747 Km2 Western Region of Uganda and bordered by Kibaale District to the north, Mubende District to the east, Kiruhura District to the south, Kam- wenge District to the southwest and Kyenjojo District to the northwest. KYEGEGWA DISTRICT INVESTMENT PROFILE 3 DEMOGRAPHY  Kyegegwa is one of the Ugandan  The 2014 Population and districts that are hosting refu- Housing Census results re- gees from Democratic Republic ported Kyegegwa population of Congo, Rwanda and Burundi. of 281,637. 141,043 (50.1%) The refugees are registered in a people were males and 140,594 reception center, allocated plots (49.9%) were females. The of land in a refugee settlement reported population was 92 and supported to build homes, persons per km2 farm and establish income generating business. This effort is in line with Uganda’s trans- formational approach of making refugees in Uganda self-reliant and locally integrated with the host communities thus allevi- ating their restriction, lack and uncertainty. 350000 300000 250000 200000 150000 100000 50000 0 1 2 3 4 Local Population Refugee Population 4 KYEGEGWA DISTRICT INVESTMENT PROFILE MAIN ECONOMIC ACTIVITIES  The main occupation of the people of Kyegegwa is crop and livestock farming. Small scale farmers working on an average of two acres per household dominate the farming com- munity. They cultivate mainly maize, bananas, beans, ground- nuts, cassava, millet, potatoes, sweet potatoes citrus fruits and pineapples for food and sale. A few large scale farmers with farms of more than 6 acres are | Bee keeping in Kyegegwa emerging, growing pineapples, citrus fruit, and bananas for the market.  Other major income generating activities are: Aquaculture/Fish farming; Trade in agricultural produce and livestock; Beekeep- ing and honey processing. Pineapples 6% | Fish farming in Kyegegwa Coffee Beans 16% 9% Maize 36% Banana 33% KYEGEGWA DISTRICT INVESTMENT PROFILE 5 WHY INVEST IN KYEGEGWA Extensive Natural Enabling Environment resources  Transport infrastructure  Kyegegwa has abundant natural Kyegegwa has one tarmac resources including fertile road passing through district arable land covering a total area from Kampala to Fortportal. It of 1,747 Km2. The district has has, in addition, a few grav- fairly well distributed rainfall el surface roads including: throughout the year with annual Kyegegwa to Kagadi through rainfall ranging from 1,200mm Kibale; Kyegegwa to Kamwenge – 1,500mm. The Temperatures through Biguli; and Kyegegwa range from 20˚C to 25˚C in to Mbarara through Ibanda and all parts of the district. Two Kazo. These gravel surface roads rivers Katonga and Muzizi flow are in good state and regularly through the district. These rivers maintained. They are scheduled and the Ngata, Hapuyo and for upgrading to tarmac under Kakabala Wetlands are sufficient the Second National Devel- water sources which should be opment Plan (NDPII) 2015/16 sustainably harnessed to enable - 2020/21. commercial agricultural and livestock production.  Energy infrastructure | The Katonga River Enough and stable power is supplied for commercial and domestic use. The Kyegegwa Ru- ral Electricity Cooperative Ltd, a four year old company, acquired a concession from Uganda Elec- tricity Generation Company Ltd to manage and distribute power in the district.  Market infrastructure One of the major sources of income in the district is the Rwensasi Market. This Market is | River Muzizi located in Ruyonza Sub-county, 6 KYEGEGWA DISTRICT INVESTMENT PROFILE 12km along Kyegegwa-Katonga investment attraction, facilita- road. The market, which has tion and aftercare in different been in existence since 1998, sectors. The DIC is a 10 member operates on Thursday of every task force comprised of five local week accommodating approx- government representatives: the imately 500 traders and more District Chairman, the CAO, the than 1,000 buyers from all over DCO, District Planner and the Uganda. The commodities which Lands Officer while the other 5 are sold include: animals includ- members are chosen from the ing cows, goats and sheep; hens, private sector. ducks and turkeys and general merchandise. Attractive incentive regime  Uganda’s incentive package Supportive Local Government structures for both domestic and foreign investors provides generous  The Local Government structures terms, particularly for medium- integrate the political structure and long-term investors whose under the district Chairman and projects entail significant plant the technical structure under and machinery costs. Below is a Chief Administrative Officer CAO) snapshot of selected incentives. in order to effectively provide The incentive structure is cur- the necessary services. Inves- rently under revision. For details, tors are assisted by the differ- refer to www.ugandainvest. ent departments in the local go.ug/downloads/ government depending on the Category 1- Initial Allowanc- issues at hand. UIA is enhancing es: Initial capital expenditures the existing local government which are deductible once from investor services by promoting the Company’s Income: the one stop centre concept at the district level. In this regard, » 75% of cost of plant and the District Commercial Officer machinery for an investment (DCO) is the facilitator of new located outside Kampala, investors, to fulfil all required Entebbe, Jinja area; steps in investment start up. » 100% of scientific research  The Uganda Investment Authori- expenditure; ty (UIA) has further embarked on » 100% of training expenditure; establishing District Investment Committees (DICs) to spearhead » 100% of mineral exploration expenditure; KYEGEGWA DISTRICT INVESTMENT PROFILE 7 » 25% of start-up costs are Category 3 - Other Annual De- deductible over four years. preciation Allowances include: Category 2- Annual Deprecia- » 5% on Industrial Buildings, tion Allowances: The following Hotels & Hospitals; allowances, under declining bal- » 20% on Farming - General ance method, are provided for farm works; assets as specified in 4 classes below: » 20% on Horticultural Plant and Construction of Class I: 45% on Computers » Green-houses using straight & Data handling equipment; line depreciation Class 2: 35% on Automo- »  In addition to the above biles, Construction and Earth incentives, there is a zero rate moving equipment; of import duty on plant and » Class 3: 30% on Buses, Goods machinery as well as a uniform Vehicles. Tractors, Trail- corporate tax rate of 30%. ers, Plant & Machinery for  The depreciation allowanc- farming, manufacturing and es, plus the deductible initial mining; capital allowances are provided » Class 4: 20% on railroad cars, without discretion to eligible Locomotives, Vessels, Office investors in order reduce their furniture, fixtures etc. taxable income during the cru- cial early years of a project. The WHY INVEST IN KYEGEGWA DISTRICT? IN KYEGEGWA WHY INVEST investor therefore keeps a high proportion of its cash flow and income for further investment. 8 KYEGEGWA DISTRICT INVESTMENT PROFILE INVESTMENT OPPORTUNITIES IN KYEGEGWA The Kyegegwa District Local Gov- Agricultural Value addition ernment is focusing on enabling its communities to engage in produc- tive and remunerative agricultural enterprises which should sustain their food and nutrition security as well as lift their livelihood stan- dards through income generation. The key investment opportunities are as below: Livestock marketing infrastructure and logistics Solar fruit drying in Kygegwa  Rwensasi market is well estab-  There are opportunities to lished and its great business strategically invest in large scale potential is assumed from the value addition commodity based fact that it has provided market agribusiness enterprises which platform for a large number of are already being produced and livestock traders over a long sold. These are mainly targeting period. Its service has grown and the participation of the women evolved to include traders who (women groups) and the youth buy animals to supply a much (youth groups) who are the larger wider regional market including category of the population. Such Southern Sudan, Rwanda and enterprises are beekeeping and Burundi. There is demand for honey processing, banana and modern facilities to be built and pineapple dry fruit making for provided around this mar- the export market, wine produc- ket. Investment opportunities tion, and juice making. exist in establishing abattoirs with facilities for cold storage, refrigerated transportation and other items used to preserve carcasses. KYEGEGWA DISTRICT INVESTMENT PROFILE 9 Investment in youth technical Investing in tree planting and institutions tree nurseries  Technical institutions are demanded  Deforestation and environmental to build the capabilities of young degradation in the
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