The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | ISAAC KHISA | Uganda’s balance of payment deficit has remained wide for some time now but there are signs that the gap will soon be reduced as the government issues licenses to developers in Free Zones.
Free Zones are geographic areas where raw materials and goods may be landed, handled, manufactured or reconfigured for export without being subject to export duties.
Doreen Kembabazi, the public relations officer of the Uganda Free Zones Authority, a 2-year old government agency mandated to oversee and manage Free Zones, told The Independent in an interview that they have issued licenses to 11 developers, seven of which are in the flower industry.
“Our objective is to promote investment in export oriented manufacturing and processing,” she said, adding that the government is looking at reducing balance of payment through increased export volumes and foreign direct investments.
She said the initiative is also aimed at putting Uganda at par with Kenya, Tanzania and Rwanda in the East African Community which have already done so to promote industrialisation.
This development comes at the time the country’s export earning has remained low compared with the import expenditure for more than a decade.
Data from the Bank of Uganda shows that the country’s expenditure on imports stood at US$4.2million in 2007, US$6.4million in 2012 and US$5.7million in 2016.
On the other hand, the country’s earnings from exports stood at merely US$1.8million, US$2.8million and US$2.9million during the same period under review.
Licensed firms to operate in Free Zones
Arua SEZ Ltd in Arua District
Royal Van Zanten Ltd in Mukono District
Nilus Group Ltd in Jinja District
Wagagai Ltd in Wakiso District
Uganda Wood Impex Ltd in Kalungu District
Uga Rose Flowers Ltd in Wakiso District
Fiduga Ltd in Mpigi District
Jambo Roses Ltd in Wakiso District.
China – Africa International Industrial Co-operation Company Limited
Rosebud Limited in Wakiso
Premier Roses Ltd
