The Ugandan Investment Authority (UIA) is predicting a 20% rise in FDI flows in 2011 into the country.

The group believes that the majority of this investment will be aimed at its petroleum, mining and agriculture industries. According to UIA’s figures, FDI in 2010 was $1bn, and it believes this will rise to $1.2bn this year.

Uganda is east Africa’s third largest economy and has been actively seeking foreign investment in recent years.

Its oil reserves have been estimated at 2.5 billion barrels, and next year it will become a crude oil producer when Tullow Oil begins producing at its Kasamene location. The company also recently began oil production at the Jubilee field off the coast of Ghana.