Uganda's relationship with South Africa

The State Visits by His Excellency Yoweri Kaguta Museveni, President of The Republic of Uganda and former President of the Republic of South Africa Nelson Mandela (RIP) and various working visits by the former President Mbeki and President Jacob G Zuma have strengthened bi-lateral relations and inspired confidence in the business community.

South Africa is one of the fastest growing sources of foreign direct investment for Uganda. South African investments include areas like telecommunications (MTN Uganda), Breweries (SAB Millers), Finance (Stanbic Bank), wholesale and retail (Shoprite Checkers, Metro Cash and Carry, Woolworths, Game), poultry (Bokomo), energy (Eskom) and many others.

Trade relations between the two countries continue to grow from strength to strength even though there is an imbalance in South Africa’s favour. Uganda’s exports to South Africa include cotton, gold, fish fillets, tobacco, coffee and fresh flowers. South Africa’s exports include machinery, motorcars, plastics, chemicals and electronics, parts and accessories, petroleum, live animals, books and news print, textiles, footwear, vehicles, aircrafts and house hold goods. South Africa could strengthen links in a number of areas including information technology, health services, agro-processing, biotechnology and chemicals.

A solid framework for co-operation exists between the two countries. South Africa and Uganda concluded a Convention on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income in 1997. In May 200 they signed an Agreement on the Promotion and Protection of Investments. In 2002, South Africa and Uganda signed a Bi-Lateral Trade Agreement. The two countries have signed an agreement establishing a Joint Permanent Commission of  Cooperation. It will enhance cooperation in areas like defence, trade and investment, foreign relations, health, agriculture and education.