The government of Uganda is currently in the process identifying core investors who can implement the Masaka Industrial Park at Mazigo Village, Bukakkata Sub-county in Masaka District. President Yoweri Museveni launched the project and laid a foundation stone at the proposed site back in 2015 but the project has since stalled after Chinese investors reportedly pulled out of the project.
According to the custodian of the selected 22 sites to host industrial parks across the country, Mr Vincent Kityamuwesi Musubire, Uganda Investment Authority is still in talks with new prospective investors who are willing to take up the industrial park.
“The Chinese investors who had earlier showed interest in developing the park wanted a joint venture with the government yet the latter preferred a purely private partnership,” he said. He further added that the government wanted a core investor who can identify other investors to work with and put the project in place, but it has not succeeded in this yet.
Mr Musubire also revealed that of the 22 sites, the government has identified investors for Mbale and Kapeka parks. “Some investors from South Africa have expressed interest to develop Masaka agro-processing industrial park but we are still sourcing more,” he added.
The multi-million dollar Masaka Industrial Park project, which was spearheaded by the China African Friendship Association Uganda in partnership with Chinese Schuan Province, was expected to benefit more than 40,000 locals. It was also intended to house fish fruit processing factories, a coffee processing plant, glass manufacturing factories, a vocational school and hospital and an administration zone. The Chinese investors had promised to inject US $300m into the project.
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Criteria for acquiring space in the Industrial Park
According to Uganda Investment Authority guidelines, an investor intending to acquire land in an industrial park must have a registered company, an investment licence, comprehensive business plan, solid proof of financing and a sketch map of the land utilisation. Upon fulfilling the above conditions, the investor is granted an initial lease of five years, which is extendable to 49 years after completion of physical development.
Masaka District owns 1.5 square miles of land at Mazigo Village, Bukakkata Sub-county, of which 1 square mile was allocated for the industrial park.
