Unserviced rural land hampering investments
Apr 19, 2007
Although the Government is working towards boosting investments in districts, lack of serviced land is a major hindrance to the initiative.
By David Muwanga
Although the Government is working towards boosting investments in districts, lack of serviced land is a major hindrance to the initiative.
About 30% of Uganda’s arable land is utilised.
“Although the districts have much land that is fertile, they lack the infrastructure like electricity, pipe water and good roads to make it attractive to investors,†the Uganda Investment Authority’s (UIA) investment executive, Pamela Ayebare, said.
Ayebare said due to the limited infrastructure, most of the prospective investors want to locate within a radius of 100km from Entebbe Airport.
“Serviced land is a big attraction for investments. This is the main reason why investors prefer to
remain around Kampala,†she said.
Ayebare said most land holdings in the country are less than 10 acres especially in Kampala, Mukono and Wakiso whereas for an investment project to make economic sense, it needs at least 500 acres and above.
“The rural areas have no physical plans to guide development,†she said.
Ayebare said UIA has been urging districts to source for large pieces of land and farms with processing facilities, nucleus farms and substantial outgrower schemes in order to facilitate private investments and establishment of commercial farms.
“The call has been made through sensitisation seminars in the districts. Several districts have not sent us information about available land despite continued presence of the district focal officers,†she said at a workshop for the district focal officers at Ridar Hotel in Mukono.
UIA has been collecting information about the land from all the districts and has established a database.
“This land has to be surveyed, registered and copies of the titles availed before the information is captured. The database has about 300 properties,†Ayebare said.
Most of land availed to the investors has been found to have squatters, whose compensation requires a lot of money.
“When the Government is compensating, it is a long process. This has frustrated many investors because if compensation processes are not clear, investors fear to locate,†she explained.
The authority’s executive director, Dr. Maggie Kigozi, says that some district officials and politicians should stop discriminating investors if economic growth is to be realised in the rural areas.
“We have been to some districts with investors, but some politicians and district officials frustrated us. They tell you we don’t want Indians here, we don’t want any investors,†Kigozi said at the workshop.
“Investors start projects and make profits.They create employment and provide services through corporate social responsibility,†she said.
“Districts should develop a strategy of attracting and maintaining investors. One way of doing this is to have land ready for the investors,†Kigozi advised.
“Mostly charged with mobilising locals to appreciate the importance of investment, offering land and having it registered are the local councillors, while district land boards are instrumental in facilitating the leasing process,†she explained.
Kigozi said UIA gives a 75% initial allowance on plant and machinery to upcountry investors, while those who invest in Kampala, Jinja and Entebbe get 50%.
The biggest number of investors in the country are Ugandans followed by those from the United Arab Emirates, India, Kenya, UK, Pakistan, Malaysia, China, Canada and Mauritius.
“China, the Middle East, Iran, Israel and Pakistan are among the promising new sources of foreign direct investments,†Kigozi said.
She said Uganda’s policy of attracting local and foreign investments follows the strategic plan drawn up by the New Partnership for African Development.
“It is under the same policy that the Common Market for Eastern and Southern Africa and East African Community have programmes aimed at attracting investors,†she said
Although the Government is working towards boosting investments in districts, lack of serviced land is a major hindrance to the initiative.
About 30% of Uganda’s arable land is utilised.
“Although the districts have much land that is fertile, they lack the infrastructure like electricity, pipe water and good roads to make it attractive to investors,†the Uganda Investment Authority’s (UIA) investment executive, Pamela Ayebare, said.
Ayebare said due to the limited infrastructure, most of the prospective investors want to locate within a radius of 100km from Entebbe Airport.
“Serviced land is a big attraction for investments. This is the main reason why investors prefer to
remain around Kampala,†she said.
Ayebare said most land holdings in the country are less than 10 acres especially in Kampala, Mukono and Wakiso whereas for an investment project to make economic sense, it needs at least 500 acres and above.
“The rural areas have no physical plans to guide development,†she said.
Ayebare said UIA has been urging districts to source for large pieces of land and farms with processing facilities, nucleus farms and substantial outgrower schemes in order to facilitate private investments and establishment of commercial farms.
“The call has been made through sensitisation seminars in the districts. Several districts have not sent us information about available land despite continued presence of the district focal officers,†she said at a workshop for the district focal officers at Ridar Hotel in Mukono.
UIA has been collecting information about the land from all the districts and has established a database.
“This land has to be surveyed, registered and copies of the titles availed before the information is captured. The database has about 300 properties,†Ayebare said.
Most of land availed to the investors has been found to have squatters, whose compensation requires a lot of money.
“When the Government is compensating, it is a long process. This has frustrated many investors because if compensation processes are not clear, investors fear to locate,†she explained.
The authority’s executive director, Dr. Maggie Kigozi, says that some district officials and politicians should stop discriminating investors if economic growth is to be realised in the rural areas.
“We have been to some districts with investors, but some politicians and district officials frustrated us. They tell you we don’t want Indians here, we don’t want any investors,†Kigozi said at the workshop.
“Investors start projects and make profits.They create employment and provide services through corporate social responsibility,†she said.
“Districts should develop a strategy of attracting and maintaining investors. One way of doing this is to have land ready for the investors,†Kigozi advised.
“Mostly charged with mobilising locals to appreciate the importance of investment, offering land and having it registered are the local councillors, while district land boards are instrumental in facilitating the leasing process,†she explained.
Kigozi said UIA gives a 75% initial allowance on plant and machinery to upcountry investors, while those who invest in Kampala, Jinja and Entebbe get 50%.
The biggest number of investors in the country are Ugandans followed by those from the United Arab Emirates, India, Kenya, UK, Pakistan, Malaysia, China, Canada and Mauritius.
“China, the Middle East, Iran, Israel and Pakistan are among the promising new sources of foreign direct investments,†Kigozi said.
She said Uganda’s policy of attracting local and foreign investments follows the strategic plan drawn up by the New Partnership for African Development.
“It is under the same policy that the Common Market for Eastern and Southern Africa and East African Community have programmes aimed at attracting investors,†she said