Over 150 acres of land in industrial parks yet to be allocated — AG

KAMPALA - Over 150 acres of land in industrial parks are unallocated, years after the establishment of the parks in the country, according to the latest audit report by the Auditor General.

The report presented to Parliament by Auditor General Edward Akol points out that although the Uganda Investment Authority (UIA) has made strides in establishing industrial and agricultural parks, some land remains unallocated to active investors.

“Portions of land in several parks measuring 155 acres remain unallocated to active investors,” the report states.

Auditors warn that the continued existence of idle land within established parks undermines the very objective for which the parks were created, which is to accelerate industrialisation, attract investment and create jobs.

The report further notes that failure to fully utilise allocated land is weakening the Authority’s mandate.

“Failure to develop allocated land undermines UIA’s mandate to promote industrial growth and job creation. It results in idle public assets, delays in economic transformation, and increased vulnerability to land encroachment,” the report observes.

In line with UIA mandate, the Authority established 10 public industrial parks and supports 5 privately owned parks.

Additionally, seven agricultural parks have been developed, with more underway.

They are aimed at promoting targeted investment, supporting Micro, Small and Medium Enterprises (MSMEs) formalisation, and enhancing regional competitiveness through integrated infrastructure and operational one-stop centres (OSCs)

According to the report, the Government-owned parks constitute 4,178 acres, part of which have been allocated to 628 companies. Of these, 307 (49%) are fully operational, 195 (31%) are under construction, and 122 (19%) remain in the pre-start phase.

The Authority supports five public-private parks covering approximately 2523.5 acres, of which 51 companies have been allocated land, with 45 (88%) of them operational.

Land tenure

The auditors also raised concerns about land tenure security. According to the report, UIA lacks formal land titles for large parcels of land across the country, exposing public assets to potential disputes.

“The Authority lacks land titles for several parcels of land across 21 districts in the country measuring 26,371.91 acres,” the report notes, warning that this poses a significant risk to long-term investment planning.

The findings also come against the backdrop of a 2016 Presidential Directive instructing UIA to establish 25 additional regional industrial parks.

Although the Authority mobilised approximately 56,960 acres of land through engagements with 16 District Local Governments, no new industrial park has been established under the directive nearly a decade later.

“However, at the time of audit, the Authority had not established any new industrial park in fulfilment of the Presidential directive, 10 years later,” the report states.

Auditors caution that leaving land idle not only slows down industrial expansion but also exposes it to encroachment and speculative holding, which could further delay Uganda’s industrialisation ambitions.

Infrastructure questions

On Infrastructure development, the auditors said many parks lack critical infrastructure such as solid waste management systems, high voltage power, roads and proper drainage channels.

Citing the example of Kampala Industrial and Business Park, Namanve, the auditors warned that insufficient infrastructure undermines the functionality and attractiveness of industrial parks, constraining agricultural productivity, industrial growth, and job creation.

Akol recommends that the Uganda Investment Authority intensify stakeholder engagement and secure dedicated funding to address bottlenecks affecting land allocation and park development, ensuring that public land earmarked for industrialisation is fully and productively utilised.