The Uganda Investment Authority (UIA) has withdrawn over 500 acres of land in Kampala Business and industrial park- Namanve from investors who have failed to develop it.
The Minister of Investment, Ms Evelyn Anite, said keeping the land idle for long has delayed development in the park.
“Land is a scarce resource and we have to put it to good use. We have withdrawn land from investors who have failed to develop it in industrial parks and given it to investors who want to set up industries,” Ms Anite told journalists at a press conference on Tuesday, 08 February 2022 at Namanve.
She was visiting UIA’s new home in Namanve after the Authority shifted offices from Kampala.
The minister explained that the NRM Government has put in place an expansive incentive regime implemented through UIA to support establishment and flourishing of domestic and foreign investors.
Ms Anite said the incentives include free land in gazetted industrial parks for domestic and foreign investors. She also said there is a 10 year tax exemption on income derived by an investor in an industrial park and outside industrial park who invests in agro processing, manufacture of medical appliances etc. and use at least 70% of local raw materials and employs 70% of Ugandans/East Africans who must take up 70% of the wage bill.
Despite these, however, she said many investors do not develop the land.
“The land in these parks is offered to both domestic and foreign investors, free of charge to establish factories that will result in the creation of jobs, the transfer of skills, import substitution and increased exports,” she said.
The minister said after withdrawing the offer, some investors have put government on legal notice.
Among the affected investors is Mariana Agencies Limited who was allocated 76 acres in Namanve to establish a Soap and Vegetable oil plant or factory in 2014.
“During the 8year period, the investor has only backfilled a portion and no factory was built within the 5year timeline given. UIA withdrew 50 acres to allocate to other serious investors and to be used for the infrastructure development in the park,” she said.
Another is Surgipham (U) Limited which was allocated 3 acres in 2007 for the purposes of investment in a warehousing project. Over 13 years, the land sat idle with no investment on the land. The lease cancelled and the land withdrawn in 2020.
Yet another investor is Divine Oils who were allocated 8 acres for the purposes of setting up a lubricant and oil blending Plant in 2018. They held this land for 3 years and failed to invest as per the lease agreement tenets and the land was withdrawn in 2020. It was reallocated to Mungufeni who plans to invest 6.9 million USD and employ 87 people and Engineers Investments which will invest about 2 million and employ 43 people.
Tirupati Developers Uganda Limited were allocated 8 acres here in Namanve in 2009 to develop ware houses and invest over 9 million USD. During that whole period of over 10 years, they only built warehouses in 2 acres and rented them out contrary to the lease agreement plans. In October 2021, 6 acres were withdrawn and reallocated to a company which intends to invest 20 million USD and employ 590 people.
Zamburi Holdings, which planned to invest about 1 million USD, was offered 0.5 square miles of land in 2020 for purposes of mixed farming. To-date, they have only dug a valley dam, erected temporary fencing and had about 40 heads of cattle. This land was withdrawn in 2021 and reallocated to an investor who will invest 2 million USD and employ 850 people.
“Zamburi holdings has gone to court to stop this benefit to Ugandans,” the minister said.
“I am therefore going to write to the Attorney General to ensure that these cases that are in court are quickly resolved so that land can be accessed by investors ready to develop their projects. Quack investors should not be legitimised by the courts,” she said.
The UIA board chairman, Mr Morrison Rwakakamba, emphasized that with guidance from President Museveni, they are laser-focussed on development of industrial parks.
“We don’t want open spaces but industries. We want to accelerate domestic investment,” he said.
The minister explained that how investors can utilised the idle land with their scarce resources.
“W e decided that if given land in industrial park and an investor develops it up to 30% (domestic) and 70% (foreign), you can mortgage your interest to develop it further and invest in, for example, manufacturing,” she explained.
The minister also stressed that UIA will put its efforts on promoting local investments.
“As UIA, we’re dedicating this year to promotion of domestic investments. We’ve to empower domestic investors and linked with the Parish Development Model,” she said.
Mr Rwakakamba added: “In this year of domestic investment, we want to see more domestic investors. A domestic investor can be an individual, a savings and credit cooperative, an investment club or a group of individuals. We encourage more Ugandans to go industrial.”
The UIA Director General, Dr Robert Mukiza, emphasised that UIA is promoting development of industrial parks in regions.
“We’re taking industrial parks to the regions, we want more Ugandans to invest and own industries. We’ll also take One-Stop Centre investment and business services closer to the people,” he said.
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