Wednesday June 7 2017

Flower farms licensed as Free Zones

By Jonathan Adengo


Uganda Free Zones Authority (UFZA) has issued two developer’s Licences to M/s Fiduga Limited and M/s Royal Van Zanten Limited.

The companies are meant to develop Free Zones in Mukono and Mpigi Districts in Uganda.

A Free Zone is a special designated area where goods introduced into the area are generally regarded, so far as import duties are concerned, as being outside the Customs territory. These include Export Processing Zones or Free Port Zones.

Ms Evelyn Anite, the minister of State for Privatisation and Investment, speaking during a field tour at Nsimbe estates recently, said the two companies that are already in the business of exporting, will further contribute to towards addressing the export gap by investing up to a tune of US$ 365 million (about Shs1.3 trillion) by 2021.

“This feeds into the Government’s Vision as enshrined in the National Development Plan II and Vision 2040 which are Frameworks aimed at ensuring that Uganda attains Middle Income Status,” she said.

Uganda Flower Exporters Association (UFEA)’s executive director, Ms Juliet Musoke, said: “This year we exported more flowers compared to the previous year 2015.”

In 2015 the country through UFEA members exported 6,300 tonnes of flowers worth $27.5 million (Shs99 billion).
Ms Musoke also said in the year ending 2016, UFEA
exported more than 6,500 tonnes of flowers, 200 tonnes more than what was exported the previous year.

The chairman board of directors of UFZA, Eng Frederick Kiwanuka said: “Licensing these two companies today brings the number of licensed Free Zones in Uganda to five including M/s Arua SEZ Limited which is setting up a Special Economic Zone in Arua District., M/s Uganda Wood Impex Limited in Kalungu District and M/s Nilus Limited in Jinja Municipality.”

The benefits
M/s Fiduga Limited and Royal Van Zanten Ltd Fiduga Ltd projects are likely to hire 927 workers while Royal van Zanten Ltd anticipates to create 1,625 jobs by 2021, majority Ugandans. This will mean enhancement of the skills of the local community and improving their social economic standards.