The National Environment Act Cap 153 under the third schedule of the Act
requires EIA to be conducted for large scale agricultural projects, use of pesticides,
introduction of new crops and use of fertilizers.
2.8 Regulation of Investment in the Agriculture Sector
Investment in agriculture like other sectors is generally regulated under some laws.
The Investment code Act Cap 92 regulates both local and foreign investments in
Uganda. Section 10 of the Act prohibits foreign investors from carrying on the
business of crop production, animal production or acquiring or being granted or
leased land for the purpose of crop production or animal production. It restricts
foreign investors to provide material or other assistance to Ugandan farmers in crop
production and animal production or lease land for purposes of manufacturing or
carrying out the activities set out in the Second and Third Schedules to Act. Among
these activities are crop processing, fish processing, meat processing, packaging
industry, and manufacturing of tools, implements, equipment and machinery.
The Act under Section 21 stipulates that an investor who imports any plant,
machinery, equipment, vehicles or construction materials for an investment project
shall benefit from the concessional rates of import duty and other taxes as may be
specified in the Finance Acts from time to time.
The Act provides for enterprises which qualify for incentives under the code.
Under Section 22 an investor in a business enterprise who commences operationafter
the coming into force of the Code shall qualify for incentives if he or she satisfies
three or more of the following objectives:
• the generation of new earnings or savings of foreign exchange through exports,
resource-based import substitution or service activities;
• the utilisation of local materials, supplies and services;
• the creation of employment opportunities in Uganda;
• the introduction of advanced technology or upgrading of indigenous technology;
• the contribution to locally or regionally balanced socioeconomic development; or
• any other objectives that the authority may consider relevant for achieving the
objects of the Code.
Where an investor is a citizen of Uganda and the value of his or her investment is
at least fifty thousand United States dollars, such enterprise qualifies for incentives.
Under Section 23 an investor who intends to avail himself or herself for incentives under the Act may, if qualified in accordance with section 22, apply to the
authority for a certificate of incentives.
A holder of a certificate of incentives shall be entitled to a drawback of duties and
sales tax payable on imported inputs used in producing goods for export as provided
Legal and Regulatory Framework for the Agriculture Sector in Uganda
75
requires EIA to be conducted for large scale agricultural projects, use of pesticides,
introduction of new crops and use of fertilizers.
2.8 Regulation of Investment in the Agriculture Sector
Investment in agriculture like other sectors is generally regulated under some laws.
The Investment code Act Cap 92 regulates both local and foreign investments in
Uganda. Section 10 of the Act prohibits foreign investors from carrying on the
business of crop production, animal production or acquiring or being granted or
leased land for the purpose of crop production or animal production. It restricts
foreign investors to provide material or other assistance to Ugandan farmers in crop
production and animal production or lease land for purposes of manufacturing or
carrying out the activities set out in the Second and Third Schedules to Act. Among
these activities are crop processing, fish processing, meat processing, packaging
industry, and manufacturing of tools, implements, equipment and machinery.
The Act under Section 21 stipulates that an investor who imports any plant,
machinery, equipment, vehicles or construction materials for an investment project
shall benefit from the concessional rates of import duty and other taxes as may be
specified in the Finance Acts from time to time.
The Act provides for enterprises which qualify for incentives under the code.
Under Section 22 an investor in a business enterprise who commences operationafter
the coming into force of the Code shall qualify for incentives if he or she satisfies
three or more of the following objectives:
• the generation of new earnings or savings of foreign exchange through exports,
resource-based import substitution or service activities;
• the utilisation of local materials, supplies and services;
• the creation of employment opportunities in Uganda;
• the introduction of advanced technology or upgrading of indigenous technology;
• the contribution to locally or regionally balanced socioeconomic development; or
• any other objectives that the authority may consider relevant for achieving the
objects of the Code.
Where an investor is a citizen of Uganda and the value of his or her investment is
at least fifty thousand United States dollars, such enterprise qualifies for incentives.
Under Section 23 an investor who intends to avail himself or herself for incentives under the Act may, if qualified in accordance with section 22, apply to the
authority for a certificate of incentives.
A holder of a certificate of incentives shall be entitled to a drawback of duties and
sales tax payable on imported inputs used in producing goods for export as provided
Legal and Regulatory Framework for the Agriculture Sector in Uganda
75