KAMPALA — President Yoweri Kaguta Museveni has urged African countries to place wealth creation and domestic production at the centre of their development strategies, warning that investment in infrastructure alone cannot guarantee economic transformation.
The President made the remarks on Thursday while officiating at the inauguration and handover ceremony of the Kampala Marriott Hotel and Marriott Executive Apartments in Nsambya, Makindye Division.
President Museveni said some African economies have struggled to achieve sustained growth because leaders have failed to distinguish between development and wealth creation.
“Many of the African economies have not grown because of the mistakes of the leaders. They fail to distinguish between development and wealth,” he said.
The President explained that although development is often associated with infrastructure such as roads and other public facilities, such investments must be accompanied by activities that generate wealth, create employment and expand production.
He identified commercial agriculture, services, information and communication technology (ICT) and manufacturing as key sectors through which Uganda can create wealth and strengthen its economy.
From importer to investor
President Museveni used the business journey of Capital Shoppers Ltd chairman Ponsiano Ngabirano to illustrate the transition he wants Ugandan businesses to make—from importing finished products to supporting local production.
He congratulated Mr Ngabirano for growing his business from a small grocery shop in Nakasero into a major enterprise that has expanded into the hospitality industry.
The President particularly praised Mr Ngabirano for moving from importing milk to distributing locally produced milk, describing the shift as an example of how businesses can contribute to domestic production.
“I want to congratulate Mr Ngabirano, from being an importer to now an internal distributor,” he said.
President Museveni also cited Nigerian businessman Aliko Dangote, who started as an importer of cement before moving into manufacturing and later expanding his investments into the petroleum sector.
He encouraged Ugandan importers to consider investing in local manufacturing, saying such a transition would create jobs, increase tax revenues and strengthen the national economy.
“Importers, provided you are clear with our strategy, you will progress well,” he said.
NSSF investment welcomed
The President also welcomed the National Social Security Fund’s decision to invest in the Marriott development, saying investing workers’ savings in productive domestic projects can generate greater economic benefits.
He contrasted the investment with placing the funds in foreign bonds, which he argued would have a more limited impact on Uganda’s domestic economy.
President Museveni also commended Cardinal Emmanuel Wamala for making land available for the project and welcomed Marriott International’s continued expansion in Uganda.
He said Africa’s growing population and expanding consumer market present significant opportunities for investors in tourism and hospitality.
“I am very glad to see that Marriott is beginning to see where the market potential is, because the African population is growing rapidly,” he said.
Marriott expands hospitality capacity
The Kampala Marriott Hotel and Marriott Executive Apartments form a dual-branded hospitality development comprising 181 hotel guestrooms and suites and 96 fully serviced apartments.
The development includes six restaurants and bars, wellness and business facilities and 1,293 square metres of meetings and events space.
Its Kampala Grand Ballroom can accommodate up to 985 guests, adding capacity for conferences, business meetings and other large-scale events.
According to information presented at the ceremony, the project has created more than 350 direct jobs, with about 95 per cent of the employees being Ugandan nationals.
More than 120 women are employed across the two properties, while about 90 per cent of procurement is sourced locally, providing business opportunities for Ugandan suppliers.
The opening also marks the debut of the Marriott Hotels and Marriott Executive Apartments brands in Uganda and brings Marriott International’s presence in the country to seven properties across five brands.
Government highlights investment incentives
Finance Minister Henry Musasizi described the development as evidence of Uganda’s growing appeal as an investment and tourism destination.
Mr Musasizi said the Government provides a 10-year tax holiday for qualifying new investments, clarifying that corporate income tax becomes applicable once an investor begins making profits.
He said investments of this nature contribute to the economy through tourism, employment, increased business activity and government revenue.
However, he noted that skills development remains a major challenge in Uganda’s hospitality industry, particularly given the limited number of specialised training institutions.
The Minister pledged to work towards expanding training opportunities while encouraging private investors to support skills development.
He also commended Capital Shoppers Ltd for undertaking the project and Marriott International for partnering with the Ugandan company to establish and manage the facility.
Marriott pledges community support
Marriott International’s Regional Vice President for Sub-Saharan Africa, Johan Cronjé, said the company remains committed to supporting communities in areas where it operates.
Mr Cronjé said the company’s approach goes beyond providing hospitality services and includes supporting community initiatives such as school infrastructure and other social programmes.
He said Uganda’s tourism industry continues to show strong potential, driven by increasing visitor demand, investment and infrastructure development.
According to Mr Cronjé, the new development will increase Uganda’s internationally branded accommodation capacity while strengthening Kampala’s ability to host conferences, business meetings and international events.
Ngabirano raises tax concerns
Mr Ngabirano attributed the growth of his business to what he described as Uganda’s peace, stability and conducive investment environment.
He thanked President Museveni and the Ministry of Finance for their support during the construction of the project and credited NSSF for investing 30 per cent in the development.
“What started as a small grocery in Nakasero turned into a supermarket and now we are opening a big franchise,” Mr Ngabirano said.
He said the hotel currently employs about 400 people and is expected to employ more than 1,000 people by the end of the year.
However, Mr Ngabirano, who also presented concerns on behalf of the Uganda Hotels Association, called for a review of taxes affecting hotels, saying high taxes remain a challenge to the competitiveness of the hospitality industry.
He also called for increased investment in hospitality training, more land for hotel development and government support for additional accommodation facilities along the Kampala-Entebbe corridor.
The hotel’s management said approximately 97 per cent of its workforce is Ugandan, underscoring the project’s contribution to local employment.
The opening comes as Uganda’s tourism sector continues to expand. According to the Uganda Tourism Statistical Abstract 2025, tourism generated Shs5.8 trillion in earnings in 2025, contributed an estimated 5.9 per cent to national GDP and supported more than 876,000 jobs.
The Marriott properties are also partnering with universities, hospitality colleges and technical institutions to provide internship and training opportunities for students and future hospitality professionals.