By Spy Uganda
The State House Investors’ Protection Unit (SHIPU) has called for stronger coordination among government agencies and the private sector to remove persistent bottlenecks undermining investment and private-sector growth in Uganda.
The call was made during a high-level stakeholder engagement hosted by SHIPU, bringing together senior officials from government ministries, departments and agencies (MDAs), as well as representatives of the private sector, to discuss ways of creating a more predictable and investor-friendly business environment.
The engagement was chaired by Prof. Pamela Kasabiiti Mbabazi, Executive Chairperson of the National Planning Authority (NPA), who urged Uganda to reduce its dependence on foreign capital and place greater emphasis on domestic and regional investment.
“Whereas foreign direct investment is important, no country the world over has transformed just by foreign direct investment. So Uganda cannot build a resilient $500 billion economy principally on foreign capital,” Prof. Mbabazi said.
She called for a strategic approach to regional planning based on geographic comparative advantage, arguing that Uganda’s different regions should develop economic activities that match their unique resources and strengths.
SHIPU was established on May 1, 2023, following a Presidential directive aimed at ensuring investors are not frustrated, delayed or obstructed by public officials.
Reflecting on the unit’s progress, SHIPU Head Col. Edith Nakalema said the institution has helped domestic and foreign investors recover about USD 152 million, equivalent to approximately Shs557 billion, through its interventions.
She said the recovered funds have been returned to the investment cycle, helping affected businesses regain access to capital that had been tied up in disputes and other challenges.
However, Nakalema said land and financial fraud remain among the biggest obstacles facing investors. According to SHIPU’s records, the unit currently has 1,852 serious investor concerns, with land and financial fraud accounting for 719 cases, or about 39 per cent of the register.
“Land and financial fraud cases are the highest concerns and core drivers,” Nakalema said.
She said the prevalence of such cases continues to undermine investor confidence and can leave substantial amounts of private capital tied up in disputes.
One of SHIPU’s major interventions has been the Uganda Electronic Investors Protection Portal (EIPP), launched on December 13, 2023, in partnership with the National Information Technology Authority-Uganda (NITA-U).
The platform was introduced to simplify the process through which investors lodge complaints and follow up on cases, reducing reliance on intermediaries and limiting opportunities for corruption.
According to SHIPU, digital case submissions have increased from 9 per cent to 70 per cent, enabling the unit to process more cases, including high-value investor complaints.
The portal has also earned recognition, with SHIPU receiving the AAPAM Presidential Award for its work in strengthening investor protection through digital systems.
The stakeholder meeting also highlighted efforts by other government institutions to address investment-related fraud.
Brig Gen Henry Isoke, Head of the State House Anti-Corruption Unit (SHACU), said the proportion of land-related cases handled by the unit has declined significantly in recent years.
“Two years back, land cases constituted about 50%, but now we are at about 29% to 30%, indicating that a lot of progress is being done,” Isoke said.
He, however, revealed that SHACU is currently handling gold-related fraud cases valued at approximately Shs700 billion, underscoring the scale of financial risks still confronting investors and businesses.
The engagement brought together representatives from key institutions involved in Uganda’s investment, regulatory, justice and economic management systems, including the National Planning Authority, Judiciary, Parliament, Office of the Director of Public Prosecutions, Uganda Police Force, Bank of Uganda, SHACU, Ministry of Finance, NITA-U, Uganda National Bureau of Standards, Uganda Registration Services Bureau, Uganda Free Zones and Export Promotions Authority and the Electricity Regulatory Authority.
The private sector was represented by organisations including the Uganda Manufacturers Association, Uganda Agribusiness Alliance, Kampala Capital City Traders Association and Federation of Uganda Traders Associations.
The gathering underscored the need for government agencies to work more closely with businesses to resolve investor concerns, strengthen accountability and create conditions that allow private capital to grow.
As Uganda pursues its long-term ambition of building a larger and more resilient economy, stakeholders said protecting investors, reducing fraud and improving the efficiency of public institutions will remain critical to unlocking both domestic and foreign investment.
