HOIMA DISTRICT INVESTMENT PROFILE

Uganda DISTRICT

| Figure 1: Map of showing the location of

2 District Investment Profile SNAPSHOT ONHOIMA

Geography Location Western Uganda Neighbours , , Kyankwazi, , DRC District area 5,735.3 Km2 Arable land area 3,612.2 Km2 (67%)

Socio-Economic Characteristics Population (2016 projection) 617,600 Refugees and Asylum seekers (April 2017) 45,000 Languages Runyoro, Main Economic Activity Agriculture Major tradeable Cassava, , Sweet Potatoes, Rice

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

GEOGRAPHY

ÂÂHoima District is located in the distance of about 220 km from mid-western region of Uganda. . It has risen to become a It shares boarders with Masindi major destination for the country and Buliisa Districts in the North, thought after investment following Kyankwazi District in the East, and the discovery of crude oil. in the South. The ÂÂThe district has a total area of district stretches to the national 5,735.3 Km2 with a land area of boundary of DRC in the Western. The 3,612.17 Km2. The western border is District Headquarters is situated at completely covered by Hoima Municipal Council, a road amounting to 2,123.13 Km2 of water.

Arua District Investment Profile 3 DEMOGRAPHY

ÂÂThe population of Hoima District ÂÂRefugees are hosted in Kyang- is estimated at 617,600 people. wali refugee settlement located Though the district is mostly in the South West of the district. occupied by the native Banyoro, Given its proximity to Eastern the discovery of oil has attracted Congo, more than 80 percent of various ethnic groups especially the settlement’s population are the Baganda, Banyankole, Bakiga Congolese and Lugbara. ÂÂHoima promotes the govern- ÂÂThe district is known to host ref- ment’s exemplary refugee ugees from various parts of the settlement model that allows region, including DRC, Rwanda, refugees to interact freely and , Somalia, Burundi set up investments, which pro- and Kenya. In 2016, refugees, vides an opportunity to harness who were estimated at 43,000 their potential to accelerate accounted for seven percent of local economic development. the district population. As at May Generally, the refugee and host 2017, refugees totaled 45,000. communities enjoy a cordial relationship, which offers a fa- vourable environment for doing business

50

40

30

20

10

0 2014 2015 2016 2017

Refugee Population Share of district Population

4 HOIMA District Investment Profile MAIN ECONOMIC ACTIVITY

ÂÂAgriculture is the major eco- Cassava nomic activity in the district, 42% engaging about 63% of the Rice working population. 7% ÂÂThe commonly grown crops and leading in volume are Cassava, Banana 7% Maize and Sweet Potatoes and rice. With the total production S. Potatoes 18% volume of major crops amounts Maize to 157,498 Metric Tons. 26% ÂÂFishing also a major economic being the main activity and activity, mostly on Lake Albert. others are retail business and casual work to generate income. ÂÂThe people are engaged in other A study by the Refugee Studies informal non-farm activities to Centre (2013), University of generate income including retail Oxford found evidence of robust merchandising, market vending, trade activity, not only within restaurants, health care clinics. the settlement, but also with the Additional activities are welding, wider local community. carpentry, vehicle repair work- shops and related occupations. ÂÂThe recent discovery of petro- leum in the district has created new expectations, subsequently attracting people to engage in the many farm and non-farm activities that tap into the value chain.

Involvement of refugees in the local economy ÂÂA large percentage of the refugees (90%)1 are engaged in economic activities, agriculture | Women in Business

HOIMA District Investment Profile 5 WHY INVEST IN HOIMA DISTRICT?

Existing Infrastructure ÂÂCommunication: The district ac- cess to major mobile telephone ÂÂRoad transport: Good road net- networks including MTN, Airtel, work. Major roads include: 1) the UTL as well as the internet. Kampala–Hoima Road connect- Almost every major street has ing to the Central and Western internet kiosk, providing access regions; 3) Hoima-Kaiso Tonya to a variety of services. There are Road, linking oil-area to the rest four radio stations and one local of the country. television station. However, with digital service providers, locals have access to all paid-stations like the rest of the country. ÂÂAccommodation: Hoima town is very rich in accommodation, including more than 20 well serviced hotels, apartments and | Kaiso -Tonya Road, connecting to the oil fields bungalows for short and long stays. Some of the high-end Hotels include Riviera, Kolping, Glory Summit, Milka Eco Resort, Kijungu Hill, Crown Hotel

National Development Plan (NDPII, 2015/16- 2019/20) Planned | Muzizi Hydropower station Infrastructure projects to boost economic activity ÂÂCity development: Hoima will be established as one of the Strategic Cities of Uganda. ÂÂRoad Transport: 1) -Ma- sindi-Hoima-Kyenjojo Road, connecting most of the Western region; 3) Ikamiro-Kingfisher | One of the magnificent accommodation facilities in Hoima Road-providing access to the

6 HOIMA District Investment Profile lone oil field; 3) Hoima- road; and 4) Masindi-Biiso road. ÂÂAir transport: The proposed Hoima Airport will be developed near the Kaiso-Tonya oil fields and the , | Oil and gas excavation facility with capacity to handle large ÂÂThe District has a considerable passenger and cargo aircrafts. amount of oil deposits, estimat- ÂÂWater Transport: Engine-thrust ed at between 2.5 billion to 3.5 ships will be introduced to billion barrels in Lake Albert. An upgrade the transportation oil refinery, is planned in Buse- services across the Lake Albert ruka Sub-county, Hoima District, between Uganda and DRC. approximately 40 kilometres ÂÂEnergy: Muzizi mini Hydro Pow- from Hoima municipality. Plans a er Station (45 MW); Construction ÂÂre underway to construct of the oil pipeline; a pipeline to transport ÂÂConstruction of oil refinery. crude oil from the oilfields to Tanga, , a port on the . Abundant Natural Resources | Kabalega Falls ÂÂMinerals: The district is en- dowed with favorable geological conditions associated with rich and diverse mineral resource base and substantial economic potential. Some of the known mineral resources have a mining history while others are yet to be exploited: selected minerals ÂÂWater: Freshwater resources are include: Gold salt, Kaolin, sand- in abundance. Lakes and rivers stones, siltstones, shale, Ilmenite, include Lake Albert, rivers Kafu, Zircon, Monazite, Zona time and Nkusi, Waaki, Wambabya, and Casserites. Rutoba. It is also endowed with large wetland swamp areas. ÂÂLand: Hoima has abundant land 67 percent of which is Arable.

HOIMA District Investment Profile 7 Tourism Potential Skilled and Productive workforce ÂÂRich archaeological and historic cultural sites including, burial ÂÂHoima district is endowed with grounds for kings, stone-age industrious, technically capable sites, Forts constructed by colo- and affordable manpower. nialist to fight resistance. ÂÂThe district has reputable insti- ÂÂForest reserves: Bugoma Cen- tutions offering training in fields tral Forest Reserve consisting such as catering, Business and of 23 species of mammal, 225 Accounts, office administration, species of bird, and 260 species nursing, oil and gas of tree; Budongo Forest Reserve ÂÂThe shriving business op- consisting of 360 bird species, portunities and prospects of some 290 butterflies, 130 moths, the oil industry are attracting 465 trees, and 24 mammals, of young people back home to which 9 are primates. take advantage of employment ÂÂAnimal habitats and water falls: opportunities but also start their N own businesses. ÂÂNational Park offers opportu- nity to track rhinos and various Administrative support other species; Kibale National ÂÂOne-stop centre at the district Park- home to a remarkable 13 headquarters to support invest- WHY INVEST IN HOIMA DISTRICT? WHY INVEST primate species; the newly es- ment start-ups tablished Wildlife Re- ÂÂDistrict Investment Committees serve offers opportunity to view (DICs) to spearhead investment species such as the Jackson’s attraction, facilitation and after- hartebeest, Uganda Kob, Buffalo, care in different sectors. and Warthog. Attractive Incentive regimes ÂÂUganda’s incentive package for both domestic and foreign investors provides generous terms, particularly for medium- and long-term investors whose projects entail significant plant and machinery costs. Below is a snapshot of selected incentives. | Mparo Tombs-Burial Grounds of Kings The incentive structure is cur-

8 HOIMA District Investment Profile rently under revision. For details, » Class 4: 20% on railroad cars, refer to www.ugandainvest. Locomotives, Vessels, Office go.ug/downloads/ furniture, fixtures etc. Category 1- Initial Allowanc- Category 3 - Other Annual Depre- es: Initial capital expenditures ciation Allowances include: which are deductible once from » 5% on Industrial Buildings, the Company’s Income: Hotels & Hospitals; » 75% of cost of plant and » 20% on Farming - General machinery for an investment farm works; located outside Kampala, Entebbe, Jinja area; » 20% on Horticultural Plant and Construction of » 100% of scientific research Green-houses using straight expenditure; line depreciation » 100% of training expenditure; ÂÂIn addition to the above incen- » 100% of mineral exploration tives, there is a zero rate of im- expenditure; port duty on plant and machinery » 25% of start-up costs are as well as a uniform corporate deductible over four years. tax rate of 30%. Category 2- Annual Deprecia- ÂÂThe depreciation allowances, tion Allowances: The following plus the deductible initial capital WHY INVEST IN HOIMA DISTRICT? WHY INVEST allowances, under declining bal- allowances are provided without ance method, are provided for discretion to eligible investors assets as specified in 4 classes in order reduce their taxable below: income during the crucial early years of a project. The investor » Class I: 45% on Computers therefore keeps a high proportion & Data handling equipment; of its cash flow and income for » Class 2: 35% on Automo- further investment. biles, Construction and Earth moving equipment; District Specific Direct incentives: » Class 3: 30% on Buses, Goods Vehicles. Tractors, Trail- ÂÂInvestors assisted to access ers, Plant & Machinery for suitable land for industrial and farming, manufacturing and agricultural development. mining;

HOIMA District Investment Profile 9 EXISTING INVESTORS (SELECTED)

ÂÂBugambe Tea Estate ÂÂButema Brick Factory: Design- er bricks demanded across the country ÂÂInternational Oil companies (Tullow, CNOOC and TOTAL) ÂÂHoima Sugar Limited, ÂÂBanking services (12 Banks and several Microfinance Institutions) ÂÂTobacco companies including: Alliance One Tobacco Uganda, Continental Tobacco Uganda Ltd, Premier Leaf Tobacco Uganda Limited and Uganda Tobacco Services Ltd. ÂÂMyriad investments in the Hospi- tality Industry, especially hotels:

| Tea plantiation in Hoima District

10 HOIMA District Investment Profile INVESTMENT OPPORTUNITIES IN HOIMA

ÂÂMining (iron ore) ÂÂAgro processing, ÂÂLivestock enterprises & value chain, ÂÂFisheries products value chain, ÂÂFuture petro- chemical industry, ÂÂAccommodation, conference & recreational facilities ÂÂDeveloping tourism sites ÂÂReal Estate & fabrication ÂÂWaste management & treat- ment, ÂÂTransportation services (includ- ing water).

KEY CONTACTS

Name Position Phone Number Email address Mr. Kirungi Kadiri LCV Chairman 0782508990 [email protected] Mr. Batambuze Abdu, Ag. Chief Administrative 0702724803 [email protected] Officer 0772507342 Mr. John Williams District Planner 0772437940 johnwilliamsbyakagaba@ Byakagaba gmail.com Mr. Tumusime John District Commercial 0772360125 [email protected]; Officer [email protected]

HOIMA District Investment Profile 11 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) Layout Design by Grand Brand Ltd 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

12 Investment Profile