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UIA Secures over 4800 Acres of Land to Set up Industrial Parks

The Authority said in April that 413 investors in the industrial park space had already created about 45,000 direct jobs and 180,000 indirect jobs after pumping $3.5 billion in the sector.
posted onSeptember 29, 2021

Uganda Investment Authority (UIA) secured 3,380 acres of land from six districts in northern Uganda for establishment of industrial parks, taking the total to 4,850 acres, including the 1,270 acres donated by western Uganda districts.

In the north, Nebbi donated 511 acres, Madi-Okollo (515), Yumbe (1,200), Oyam (154, Lira (500) and Dokolo (500). President Museveni directed the Authority to set up 25 industrial parks, regionally and equitably distributed throughout Uganda, in the next five years (current presidential term).

The industrial parks are supposed to have a minimum of 500 acres of land, according to UIA. The President also directed local governments to provide free land for industrial parks development, saying Government, through UIA, will no longer buy land for industrial parks.

The Authority plans to establish five industrial parks each year, totaling 25 in 2025. It’s now mobilizing the land. Investment Minister, Evelyn Anite, says UIA will ensure building of key infrastructure like access roads, industrial power and water, ICT systems, drainage systems, waste management systems, etc.

UIA Director General, Robert Mukiza, urged people to start preparing to snap up opportunities in the industrial parks. UIA and National Enterprises Corporation (NEC), acting on a Cabinet position, have agreed that the UPDF Engineering Brigade builds the industrial parks.

This will reduce cost by about 70 percent, ensuring value for money, quality and timely completion of the parks. UIA says it will allocate at least 20 acres in each industrial park for SMEs to ensure local-local content. “Through the industrial parks there would be increased production of hitherto imported goods hence import substitution and preservation of foreign exchange, boost in exports, creation of jobs and wealth,” reads a news release.

“There would also be increase in government revenues, boost in aggregate demand which translates into more money in circulation, heightened economic activity, economic growth, economic development and transformation of Uganda.”

The Authority said in April that 413 investors in the industrial park space had already created about 45,000 direct jobs and 180,000 indirect jobs after pumping $3.5 billion in the sector.

The implementation of its new strategic plan for the years 2020/2021-2024/25 is expected to create direct and indirect 650,000 jobs by the year 2025. Nine public industrial parks have already been set up in Namanve, Bweyogerere, Luzira, Kasese, Mbarara SME, Jinja, Mbale, Soroti and Karamoja.

Other five private industrial parks are in Kapeeka, Lugazi, Buikwe and Mukono. As of December 2020, UIA had licensed 7,763 investment projects in various sectors, including manufacturing.

The bulk of the 4,200-plus manufacturing industries (factories) in Uganda have been licensed by UIA. Products from the industries are in both local and export markets. They include items like transformers, steel products, vehicles, electronics, plastic products, paper products, sugar and other processed foods, building materials, soaps and detergents, textiles and apparels, footwear, leather products, beverages, minerals, amongst others.

Uganda ranks second after Kenya in attracting foreign direct investment (FDI) in East Africa. According to the United Nations Conference on Trade and Development (UNCTAD) 2020 World Investment Report, FDI flows to Uganda reached a record high of 1.3 billion dollars in 2019, a 20-percent increase from one billion dollars in 2018.

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