Development of Entebbe free zone takes off

BUSINESS

ENTEBBE - Developing part of Uganda's first free zone has commenced and is expected to be completed in the next six months. 

The five-acre site located next to Entebbe International Airport's new cargo centre shall be developed by the National Enterprise Corporation, the business arm of the Uganda army. It was handed over by Uganda Free Zones Authority (UFZA) on Wednesday. 

The free zone is expected to benefit different sectors like agro-processing, mineral processing, warehousing, storage, and simple assembly, according to Hez Alinda, UFZA executive director. 

A free zone is a designated area where goods are regarded as being outside the customs territory, as far as import duty is concerned.  

It usually takes the form of manufacturing or processing facilities, science, and technology parks or even a tourism development zone.  

"All operators in this public free zone will process their products for onward export through Entebbe International Airport," Alinda said. 

So far, UFZA has licensed up to 22 privately owned free zone parks around the country. These include; Kampala, Wakiso, Tororo, Arua, Jinja, Masaka and Mukono, dealing in agro-processing and minerals value addition. 

The project is projected to cost about sh48b. Eng. Frederick Kiwanuka, UFZA board chairperson said the government has already allocated sh12.5b for the project's first phase while the balance shall be availed in the subsequent financial years. 

"On completion, the project will support increased production, quality assurance and value addition to commodities that are widely produced by the masses to improve household incomes, create employment and eliminate poverty as well improve Uganda's exports," he added.