TRENDS AND IMPACTS OF FOREIGN INVESTMENT IN DEVELOPING COUNTRY AGRICULTURE

UGANDA
Trends and impacts of foreign investment in
developing country agriculture
BOX 4
Distribution of enterprises engaged in agriculture among Uganda’s 1 000 largest
taxpayers in 2005/2006
The data on the largest taxpayers during 2005/2006 do not show dominance of foreign-owned
companies in the agricultural sector. For example, the total number of companies ranked among Uganda’s
top 50 taxpayers shows almost double the amount of domestic companies compared to foreign-owned
companies. Three foreign-owned companies were ranked among Uganda’s top 50 taxpayers, compared
with five domestic-owned companies. These companies were engaged in producing and processing of
tobacco, sugar and edible oil.
Source: Uganda Investment Authority
5.1 Transnational Corporations (TNCs)
in agricultural production in
Uganda
Uganda had 25 large foreign-owned companies 14
engaged in commercial agriculture. These
companies paid total taxes of at least US$90 000
during 2005/2006 15 . The largest tax paying
companies were engaged in tobacco processing
(BAT (U) Ltd); sugar processing (Kinyara Sugar
Works Limited) and edible oil processing (Bidco
(U) Ltd). These three companies were ranked
among Uganda’s 50 largest taxpayers in
14 Wagagai was recorded twice as Wagagai
Chrysanthemum Ltd and Wagagai Ltd The company has
been counted once for this study.
15 Metro Cash and Carry Limited has since closed its
operations in Uganda.
138
Distribution of enterprises engaged in agriculture among Uganda’s
1 000 largest taxpayers in 2005/2006
Ranking Number of companies
Foreign-owned Domestic-owned
1-10 1 0
11-20 1 1
21-30 0 0
31-50 1 4
51-100 1 0
101-500 12 6
501 -1000 9 9
Total 25 20
2005/2006 (Table 6). The data also show that
20 domestic-owned companies in agriculture
and related activities were among Uganda’s top
taxpayers.
Most of the largest foreign-owned companies
were concentrated in produce farming, processing
and export of various products. The majority of
TNCs were in coffee processing and export (five
companies); fish processing and export (three
companies); chrysanthemum growing and export
(two companies) and the supermarket business
(two companies). Foreign-owned companies
also performed the following functions in the
agricultural value chain: input supply; sale of
agricultural produce on the domestic market; and
testing of agroproducts, e.g. fish.
Activities of foreign affiliates
The foreign-owned companies in the coffee,
flowers and fish sectors operate as limited liability