Nevertheless, Uganda’s private investment rate, which stood at an average of 18 percent of GDP over the last five years, does not compare favourably with the fastest growing developing economies, such as those in Asia, where private investment rates of over 30 percent of GDP are the norm.
The World Bank’s Doing Business Indictors reveal some of the reasons why Uganda does not attract higher rates of private investment. I have already mentioned that firms cited the inadequate supply of infrastructure as one of the most problematic factors affecting their business, and the policy implications of this.