28 March 2007

Uganda to become Africa's Bangalore

Uganda could out-compete India on price for call centres

Commonwealth Business Council taking initiatives for setting-up of an IT Park

by R Jai Krishna

NEW DELHI: The Commonwealth Business Council (CBC) is working on a proposal for developing Uganda as Bangalore of Africa.

The CBC is also taking initiatives for setting-up of a state-of-the-art IT Park in the African country, apart from drafting an IT Policy framework.

According to a recent CBC report, Uganda is best bet for IT companies as it has a strong English-speaking young workforce, who constitute over 40 per cent of the overall population like India.

Moreover, the country has a strategic Time Zone of GMT+3 hours, which enables the country to serve companies in the Middle East, Europe and African countries, and also offers lower cost of labour, for the IT companies.

Though not a proven location like India, Uganda has a high-end IT talent base which could be expanded. The country is also in the process of formulating IT policies and developing infrastructure, apart from a body equivalent of Nasscom to be set-up.

The CBC report states that companies moving into Uganda will have a first mover advantage in Africa, especially in the context of a good Tax holiday, grants and other benefits being extended by the government there.

With these benefits in mind, the CBC is in the process of setting-up a state-of-the-art IT and Business Services Park within the Kakungulu satellite city, situated about 18 kms from the airport.

The IT Park, will constitute of offshore development centres, call centre, back office/ data processing centre, and data centres. The proposed park is to be enabled by high speed Wi-Fi internet access and data connectivity, IP telephony, high security and controlled access infrastructure. With transport links to and within the park, Uganda government will be offering single-window clearances for the interested companies.

The Ugandan government also plans to have residences comprising of studios, apartments and luxury condos. Hotels, and convention centres, schools, colleges and also hospitals and medical centres, will also be part of the proposed park.

The CBC has also formulated a draft for Uganda’s IT policy, and has proposed 100 per cent tax exemption for lease income, capital gains and services provided in the IT parks, apart from 100 per cent tax compensation for companies and their staff located within the premises for 20-years from commencement.

The CBC has urged for a simplified and quick clearance of work permits, and dependent permits for IT park staff.

© CyberMedia News

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