UGANDA, MALAYSIA EXPLORING POSSIBILITY OF AIR LINKS

By R. Ravichandran

PUTRAJAYA, June 20 (Bernama) -- Uganda and Malaysia are exploring the
possibility of direct air links between the two countries, said Ugandan Minister
of State for Foreign and International Affairs Oryem Henry Okello.

He is also inviting Malaysian companies to explore downstream ventures in
the oil industry as Uganda recently discovered enormous oil deposits.

Elaborating on the air links, Okello said this would help increase flight
frequency between Uganda and Malaysia to reap the many existing business
potential and benefits.

"This will enable us to tap into not only the tourism market but also boost
trade between the two countries," he told Bernama on the sidelines of the
Langkawi International Dialogue (LID) 2011 here.

Okello said he hoped both countries would be able to sign an initial
agreement on the collaboration soon.

Malaysia's main airport is the KL International Airport (KLIA) in Sepang
while the Entebbe International Airport is the principal international airport
of Uganda. It is located near Entebbe on the shores of Lake Victoria, 35km from
the capital, Kampala.

On opportunities in the oil industry, he said Kampala practised an open-door
policy and invited Malaysian companies to seek business opportunities in
oil-related businesses.

Asked whether Petronas was involved in Uganda's oil exploration, he said: "I
was told Petronas is already working in Uganda, they have their contacts and
management team. (And) I hope they will undertake downstream petroleum
investments in Uganda."

According to reports, Uganda's extractable oil deposits should be in
excess of two billion barrels, with oil revenue estimated at US$2 billion a year
for the next 20 years.

Okello listed Uganda's competitive advantages as being one of the best
English-speaking countries in the world with highly educated and skilled youths
prepared to work in various sectors.

Uganda also had large land mass, especially for cultivation, and a liberal
investment policy and tax regime, he said.

He urged Malaysians not to lose out to Chinese and Indian investors, who had
already stamped their mark in the country.

"Being located in the heart of Africa, Uganda could be Malaysia's gateway
into Africa.

"So, Uganda can be a hub for industries not only to cater to the Ugandan
market but also the entire region," he said.

Uganda, a landlocked country in East Africa and known as the "Pearl of
Africa," has a population of 34 million, with its main exports being coffee,
fish and fish products, tobacco, tea, sesame, corn and cotton.

Okello assured Malaysian companies of Uganda's political stability and
internal security contrary to negative reports portrayed by misinformed sources
and those out to tarnish the country's good image.

He said that many Ugandan students pursued higher studies in Malaysia but
expressed hope that the Malaysian government would offer them employment
opportunities.

As agriculture is the mainstay of Uganda's economy, Okello said he hoped the
country could learn from Malaysia on modern agricultural methods.

-- BERNAMA