Private businesses urged to invest in free zone parks to cut down costs

As a way of boosting exports and triggering the transition to special economic zones, the Uganda Free Zones Authority has called upon private sector companies to register as free zone operators.

According to the Director of Business Development and Investor Support at the authority, Rebecca Nalumu, only 30 players are registered as Free Zone operators despite the many incentives that come with a free zone operator’s license.

“Uganda Free Zones Authority plays a facilitation role in creating an enabling business environment for the Private Sector to flourish.  We have 31 Private Free Zones, 33% of which are involved in Argo-Processing and 7.4% in other manufacturing,” Nalumu said.

She was speaking on Thursday during a sensitization workshop on the Free Zones Scheme in Uganda with members of the Uganda Manufacturers Association.

Nalumu said investing in free zones will help Ugandan manufacturers manage costs and increase production for the continental market, which came into force in January 2020.

“Uganda Free Zones Authority plays a facilitation role in creating an enabling business environment for the Private Sector to flourish.  We have 31 Private Free Zones, 33% of which are involved in Argo-Processing and 7.4% in other manufacturing,”

Rebecca Nalumu, Director of Business Development and Investor Support at Uganda Free Zones Authority

She said the authority is placing a lot of emphasis on the leather industry because globally, value-added products from leather are made in free zone locations.

“The leather industry is top on our agenda, but we are expanding these processes to include coffee, cocoa and other industries, and shall massively reach out to everybody who ventures in exports to invest in the free zones,” she said.

The manufacturers welcomed the move saying it is in the right direction, although others complained that the law excludes them from participating in the free zones.

UMA’s manager, policy and advocacy, Muhammad Mabirah Muzamil said the structure of the law has left a number of local investors outside the available pool of benefits, such as the free zone parks, and called for the amendment of the law. 

Earlier on Wednesday, the Uganda Free Zones Authority members met with HortiFresh, the apex Association for Fresh Fruit and Vegetable Exporters and producers in Uganda.

HortiFresh members and the Uganda Free Zones Authority discussed collaboration on developing infrastructure at the airport such as, cold storage and warehouses, to improve facilitation for the fresh fruits and vegetables sector.

UFZA was set up by an Act of Parliament under the Ministry of Finance to establish free economic zones where goods can be manufactured for export.