294 ViewsLord Popat, Prime Minister’s Trade, Envoy to Uganda and Rwanda Uganda should take advantage…
Uganda has one of the best climates in Africa that is moderate with cool temperatures, and receives rainfall throughout the year. The country has rich and green vegetation with tropical rain forests and water bodies covering most parts of the country. The River Nile, one of the longest rivers in the world, starts its long journey to Mediterranean Sea from Uganda. Uganda is home to the Lake Victoria, the largest lake in Africa and also the second largest fresh water lake in the world.
Uganda lies astride the equator and enjoys a unique location at the heart of sub-Saharan Africa within the East African region. The country has been able to achieve macro-economic stability when clouds of uncertainty rocked many regions of the world. Uganda is one of the fastest growing economies in Africa with GDP growth rate averaging 7.7% per annum since the year 2000, making the country the fastest growing economy in East Africa.
In order to provide information to investors to Uganda, this energy sector profile has been prepared as a guide on the potential investment opportunities in the country. The profile gives highlights on investing in a number of areas including: design, construction, sales and service support of biomass plants; assembly and marketing of solar units in Uganda; manufacture and marketing of charcoal briquettes; and acquisition, installation and services of micro hydro dams in Uganda.
Uganda’s overall national development objectives are accelerated economic growth, through increased productivity and enhanced agricultural and industrial production, thereby increasing employment opportunities, an equitable distribution of income, and reduction of poverty. The realization of these objectives requires, amongst others, that quality energy services are available in a sustainable, cost-effective and affordable manner to the people.
Energy policies integrate economic, social and environmental objectives in such a way that improves the well being of the current generation whilst safeguarding the welfare of future generations.
1.5 Rationale behind the project
Energy is a vital force in the economic growth and development of any society and has been tightly linked with the Millennium Development Goals (MDGs). With the revitalization of the Ugandan economy coupled with a steady increase in population growth, additional demands for energy have been created. However the national grid has limited coverage and extension to rural folks is rather slow. Only 5% of the total population is connected to the national grid and further more the grid power is unreliable characterized by load shedding and continuous power outages. In the rural areas only about 2% of the households have access to grid power. Thus there is need for alternative power sources especially in the renewable sector.
The investment cost includes all the costs such as licenses, land, connection to utilities, initial training etc.
Infrastructure and utilities account for 44% of the total investment, which is evaluated at US $ 4,338,650. The assumption is that the initial investment cost is covered from equity and loan.
Major Input Requirements
Net Present Value Analysis
Personnel and Labour Costs
Uganda has the most flexible and competitive labor market in Africa (Doing business 2007, World Bank). The workforce is well educated, English-speaking and low cost. Uganda’s laws protect both workers and investors’ rights alike. The education system has made Uganda’s labor high quality and competitive. Unskilled labour is also readily available. The table that follows gives a picture of the average labor costs for various categories of workers.
Monthly Staff & Labour Costs
Estimated Capital Costs
2.3 Manufacture and marketing of charcoal briquettes
Purpose of the project
Uganda’s largest population of about 80 percent relies on the use of firewood and charcoal as their major source of fuel. There is a growing preference of smokeless solid fuel in Uganda and this makes briquette use a viable option.
Projected capacities and sales and preferred technology
The plant will manufacture 70 tons of briquettes per day which will be marketed as a replacement for firewood and charcoal. The raw material will be dried organic Municipal Solid Waste (MSW) collected from households and surrounding markets in Kampala.
Utility costs for the first year
Projected Capacities and Sales
Planned products and services
These shall depend on the installed capacity at the various sites as the demand already exists due to low levels of rural electrification. The power generated from each head will depend on the available head and flow rate. The figure below depicts the various power outputs using E-Watt technology for a given water head and corresponding flow rate.
Preliminary Financial Viability Analysis of the Proposed Investment
Estimated Capital Costs
4.0 USEFUL CONTACTS
Uganda Convention UK, Copyright ©2018 A Trade & Investment Forum
12 Eric Wilkins House, Avondale Square, Old Kent Rd, London SE1 5ES. firstname.lastname@example.org