II.  Leading Trade Prospects for U.S. Business

Best prospects for U.S. exporters are in the food processing
industry and infrastructure projects funded by multilateral donors.
Good investment opportunities exist in the food and dairy
industries, wood and wood products industries, and building and
construction.  These are the areas that the Uganda Investment
Authority targeted in their June, 1994 trade mission to the United
States.

Uganda's agricultural land is considered among the best in Africa,
with two seasons of good rainfall and low temperature variability.
The country produces a wide range of food, most of which is grown
organically.  Two thirds of the food produced is for subsistence
use and only one third is marketed.  Most of the country's
industrial production is based on agriculture.

Opportunities exist in fruit and vegetable processing, particularly
for canning pineapple and producing frozen or pulps or juice
concentrates from various tropical fruits, including passion fruit,
mango, pineapple and papaya.

Good opportunity exists in edible oil production equipment; Uganda
is aiming for self sufficiency in edible oil production, as well as
export to the PTA countries.

There is export potential for equipment for processing staple food
crops.  Staple food crops grown in Uganda include plantains, finger
millet, sorghum, maize, beans, cassava, sweet potatoes, groundnuts
(peanuts), rice, wheat and Irish potatoes.  There are a large
number of small maize mills in the country, but only four that
would be considered large, and four others that are medium sized.
Many grain mills are being rehabilitated.

In the budget speech for FY 94/95, the cotton industry was targeted
for rehabilitation.  There will be good government support for
increased capacity in cotton ginning.

Major development projects are financed by donors or international
organizations.  Projects include rehabilitation of electrical and
power generating and transmission systems, roads, health facilities
and telecommunications.  Projects are being funded by aid agencies
of numerous countries and the European Union as well as the World
Bank, African Development Bank and United Nations organizations.