Industrial Park Development
The Government aims to have 22 industrial parks around Uganda to facilitate industrial growth and output. The Industrial Parks program has been put in place to foster agro-production and facilitate sustainable development in key areas of the
economy.
The Government of Uganda has acquired land across the country to support investors interested in setting up industrial parks.
Uganda Investment Authority is seeking partners interested in setting up the industrial parks.
Existing infrastructure to support investment, Market size, Tax incentive for industrial park development
Proposed Investment: USD 600 Million
Financing Type: Equity
Project Site/ Location:
Nebbi District, Madi-Okollo District, Yumbe District, Arua, Adjumani, Pader, Zombo,
Packwach, Oyam, Lira, Dokolo, Buliisa, Bushenyi, Kabale, Kisoro, Nakasongola, Mubende, Lwero, Rakai, Iganga.
Project Status: Pre-feasibility
Growth Drivers
· Existing markets for agricultural products and income generation in Uganda, East Africa and Africa.
· Access to tax incentives and tax holidays up to 10 years.
· Land availability for expansion and production for the backward and forward chains.
· Abundant and available resources for production.
· Competitive cost of production in East Africa and Africa.
· Impeccable regional security and strong Government Support.
· Access to high Voltage Power and industrial Water
· Strong investment and promotion of Businesses by the Government of Uganda
· Massive industrial developer migration from emerging markets to frontier markets like Uganda
· Access to the East Africa, Africa and international Markets.
Existing Infrastructure To Support The Investment
· Tarmacked road to all the existing Parks sites.
· Surveying of land and serviced all weather murram roads
· Uganda's transmission network comprised 2,890 km of line length at voltages ranging from 66 kV to 220 KV
· Existing National Water in all Parks,
· Existing soft and hard infrastructure like (Internet)
· Existent Substations in all Industrial Park sites.
Market Size
1.1 Local Market
Market oVtake of industrial park serviced land is at 30% annually and this increases at a 7% annually.
1.2 Current East African Block
Uganda stands to benefit from this regional growth in demand by exporting products to the region. Targeting up to 20% of the EAC market and 5% of the African Market.
Uganda's intra regional trade has grown from 7% to 40% and is expected to grow in the East Africa Region. The Africa Free Continental Trade Area and the existing Common Market protocols like SADAC, COMESA will increase Uganda's export basket annually.
Tax Incentives For Industrial Park Development
1. 10 years tax exemption for leasing or renting an industrial park
2. 10 Years tax exemption for investors operating in the industrial park
3. 10 years tax exemption on VAT for any developer of the industrial park ,specifically
a) feasibility studies
b) design to construction services c)Earthmoving equipment and machinery
d) construction materials)
4. 100% tax allowable on training costs
5 Plant & machinery imported free of duty
Non- Tax Incentives
1. Competitive electricity costs in the region averaging USD 5 cents per kWh.
