Foreign Direct Investments (FDI) are pivotal for any country looking to maximize the potential of its economy. A number of African countries significantly East African countries continue to stet up their game in establishing a conducive business environment for the private companies and large scale investors as they look for business investment opportunities in the continent.
A number of French companies have ventured into the Ugandan market and have seen a successful performance. Other than the probable normal factors that have been considered such as security, potential market and business incentives that sweeten ease of doing business in a country, it is clear that the cutting edge is the country’s strategic location.
This is probably an ingredient that may not be mentioned as much but Uganda’s geographic location has helped a handful of French firms to reap maximum benefits they would not have raked elsewhere. Renault and Total are among the high-flying companies in the country that have established a firm presence in the nation. They have attested to the conducive business climate but not entirely helping them to make sales or record better operations.
Uganda is described as a major link that serves the corridors of North East Africa and Southern Africa hence enabling these firms to access the opportunities in between and reach the audience as well, not to overlook its role in Eastern Africa. Its strategic reasons has encouraged more firms to flock in the country though facing tough competition regionally.
The country is well positioned along the River Nile basin that adds a plus to its business climate. It is an avenue of transport for some companies, not only limited to French firms. There are business opportunities to be unlocked that could add an advantage to the companies.
Most French firms are adamant to remain in the country and expand their reach as they look to establish their names in the prevailing market. With a firm foundation in Uganda, they can easily cross borders.
Uganda should be able to pull off something spectacular with the growth interest of French firms to invest in Tanzania. This may not really cause a rift between the Tanzania and Uganda but the level of competition to benefit from these massive investments should drive them to create conducive business environments.