In a move set to accelerate Uganda’s industrialization, President Yoweri Museveni has endorsed a proposal to establish a second industrial park, signaling the government’s unwavering commitment to driving economic transformation.
This decision follows a high-level meeting at the President’s Rwakitura residence, where Ms. Lucy Zhang, CEO of the China-Uganda Mbale Industrial Park, presented plans to expand operations. Zhang’s delegation briefed the President on the ongoing success of the Mbale Industrial Park and outlined plans for a new facility at a different location.
The Mbale Industrial Park, located in Uganda’s eastern region, has been a pillar of the country’s industrial growth since its inauguration in 2018. With 75 factories in operation by 2025, it has become a major employer, providing jobs to over 12,000 Ugandans.
The park’s development has been integral to the government’s industrialization agenda, and its expansion into additional factories focused on steel, textiles, electronics, and paper production highlights its potential to support diverse industries.
In addition to providing employment, the park has made significant infrastructure strides, including a multi-million-dollar wastewater treatment system.
Further investment is underway to improve power reliability and road networks to mitigate flooding. These improvements are critical to ensuring that the park’s growth is sustainable and that it can continue to attract international and local investors.
The Uganda-China partnership at the Mbale Industrial Park exemplifies the country’s ongoing commitment to implementing the Buy Uganda, Build Uganda (BUBU) policy, focusing on sourcing raw materials locally.
The park produces a wide range of products including glass, detergents, mobile phones, LED bulbs, and baby diapers, which are not only sold domestically but also exported to neighboring countries like Kenya, Tanzania, and Rwanda. The goal is to reduce Uganda’s reliance on imports and boost local manufacturing capabilities.
The government’s support for industrial growth was underscored by President Museveni’s statement during a recent inauguration ceremony. He emphasized the importance of attracting investors to create jobs and address the nation’s import dependency. This focus on industrialization aims to position Uganda as an industrial hub in East Africa, fostering economic growth and reducing unemployment.
The government is also keen to replicate the success of the Mbale Industrial Park in other regions of the country. Museveni has promised to develop similar parks in Masaka, Kyotera, and Kalungu, with an emphasis on promoting value addition and creating youth employment opportunities. By expanding industrial hubs across Uganda, the government hopes to empower local communities and stimulate regional economies.
The proposal for the new industrial park comes as Chinese investors seek an additional 500 acres of land to further extend the current Mbale facility. President Museveni has called on local residents to cooperate with authorities to ensure the smooth acquisition of land for the expansion. This collaboration is crucial for unlocking the full potential of Uganda’s industrial growth.
With a total investment of $2.5 billion in the Mbale Industrial Park, Uganda is well on its way to realizing its vision of transforming from a primarily trading economy to a fully industrialized nation. The development of this new industrial park is a major step forward in this vision, promising to create even more jobs, stimulate local economies, and position Uganda as a key player in the regional industrial landscape.
