Govt borrows Shs700b for Namanve industrial park

Government has secured $200m (about Shs735b) for development of infrastructure at Kampala Investment Business Park (KIPB) in Namanve, Mukono District.

The revelation was made yesterday by the State minister for Investment and Privatisation, Ms Evelyn Anite, during the ground breaking ceremony for the infrastructure development at Namanve.

“It [cost] is $200 million and the taxpayers are going to be able to fund the loan. The financier is UK Export Finance,” Ms Anite said.

She said the infrastructure development will enable ministry of Finance to take action on non-compliant investors who take up land for investment in the industrial park but don’t start work within the stipulated 18 months.

“Development period is only 18 months. If you don’t develop the land, we withdraw it but that has been hard for us because every time we have wanted to withdraw it, they [investors] would tell us, ‘you have not done your part,’ which is the infrastructure,” Ms Anite said.

“But once we have the infrastructure, it is going to be strictly 18 months. You don’t develop, we withdraw the land from you and give it to people who are serious. We have about 60 companies who have held the land longer than the 18 months without clear reasons. We want the 500 companies that were cleared in the park to be in this place and create jobs,” she added.

The key infrastructure to be installed include tarmacking the road network within the industrial park, bridges, traffic management systems, solar lighting and a water distribution network, which include a reservoir, a sewerage network and waste treatment system.

The UK Minister for Africa, Mr Andrew Stephenson, said his government is committed to the project. “On its [Uganda] path to middle-income status, we understand the importance of developing infrastructure and strengthening Uganda’s manufacturing base. That is why I am delighted to be here for construction of the infrastructure of this industrial park,” he said.

Speaking on behalf of the investment community in the industrial park, Mr Joseph Yiga said: “The major challenges in this industrial park are many but there has been lack of security lights, poor drainage system, poor sewage disposal and lack of tarmacked access roads to all premises.”