A major scandal has erupted at Uganda’s Namanve Industrial Park, where a $100 million infrastructure development project has stalled due to conflicts among stakeholders and lack of progress. The project, which began in July 2020, was expected to be completed within 42 months but has only achieved 50% completion, prompting an extension of the completion date to September 2025.
At the heart of the dispute are disagreements between Lagan Group Ltd and Dott Services Ltd, joint venture partners in the project.
“The continued clashing of these parties has eventually spread down to other project parties and projects that they intend to implement together,” the document states.
Ugandan government officials are also embroiled in the conflict. Minister of State for Finance, Planning and Economic Development, Evelyn Anite, and Uganda Investment Authority Director General, Robert Mukiza, have clashed over payment of honoraria to UIA staff and a variation of price totaling Euros 8 million.
The document notes that Mukiza’s actions have been contentious, including his attempt to terminate Project Manager Alex Nuwagira’s contract.”The DG took up a different piece of land other than the one that had been recommended for purchase by all project parties,” the document authored to the President reads
The conflicts have also led to a breakdown in communication between the project stakeholders. “To resolve the conflicts, the EPC contract needs to be revised to reflect the original scope sharing between Lagan Group Ltd and Dott Services Ltd,” the document suggests.
The Namanve Industrial Park is a critical component of Uganda’s industrialization strategy, with 190 operational factories currently employing thousands. “If all the above conflicts are not immediately and quickly dealt with comprehensively, the actual project issues may never get resolved,” the document warns.
The document proposes several measures to resolve the conflicts, including enforcing reconciliation among stakeholders and appointing a liaison to monitor progress. “If I were the President, I would interrogate the EPC contract and ensure that 70% of the project scope is fully implemented by Lagan Group Ltd,” the document concludes.
For now, the future of the project remains uncertain, leaving many to wonder if Uganda will ever realize the benefits of its $100 million investment.
*Leadership Intervention Needed to Resolve Critical Delays at Namanve Industrial Park*
The Kampala Industrial and Business Park (KIBP) in Namanve is meant to be a cornerstone of Uganda’s industrial transformation, but the project has encountered numerous roadblocks that threaten its successful completion. With delays, conflicts among stakeholders, and funding issues at the heart of the problems, urgent leadership intervention is required to prevent the project from derailing completely.
KIBP is central to Uganda’s industrialization agenda, as outlined in the NRM Manifesto 2021-2026, and is a key component of the government’s drive to establish 25 industrial parks across the country by 2026. This park alone is expected to host over 300 factories, create 200,000 direct jobs, and contribute significantly to Uganda’s economic growth through value addition and increased export earnings. However, the project, which began in 2020, is currently only 50% complete—well behind schedule. Originally slated to be finished by January 2024, the completion date has been extended by 20 months, to September 2025, but progress has stalled.
One of the main factors hindering progress is a breakdown in relationships between the project’s key stakeholders. The joint venture responsible for implementing the project, Lagan Dott Namanve Ltd—comprising Lagan Group (UK) and Dott Services Ltd (Uganda)—has seen internal conflicts escalate over time. Originally, Lagan Group was to handle 70% of the project, while Dott Services was assigned 30%.
However, in practice, Dott Services has taken on more responsibility, and the two parties have clashed over issues ranging from the quality of work to the mismanagement of funds.
This conflict has led to major delays in the project, with accusations flying between the parties. Lagan Group, acting as overseer, has withheld funds, accusing Dott Services of diverting resources to other projects. Meanwhile, Dott Services is pushing for the release of €8 million in price variation payments to alleviate cash flow problems. This impasse has paralyzed the project, with neither side willing to compromise.
Adding to the problems are conflicts between the State Minister of Finance (Privatization and Investment), Hon. Evelyn Anite, and the Director General of the Uganda Investment Authority (UIA), Mr. Robert Mukiza. These disagreements, which also revolve around the €8 million price variation, have spilled into public view, further straining relations between the project’s key players. Mr. Mukiza and Mr. Andrew Bamanya, the contractor’s authorized representative, are also locked in a legal battle over land purchases and contract management, exacerbating the situation.
The project’s funding has also faced significant challenges. Payments to both the contractor and the UIA’s project management team have been delayed. The Employer’s Representative, who supervises the project, has not been paid since August 2023. Additionally, there has been a failure to acquire land for the Solid Waste Treatment Plant and the Small and Medium Enterprises (SME) park, which together account for 30% of the project’s scope. Without resolving these critical issues, the project risks further delays and increased costs.
To break this deadlock, decisive leadership intervention is required. One potential solution would be to enforce the original agreement that gave Lagan Group a 70% share of the project’s implementation, with Dott Services handling the remaining 30%. This arrangement, which collapsed following a deed of novation, needs to be restored to ensure both parties are accountable for their respective roles.
Beyond enforcing the project scope, it is essential to reconcile the conflicting parties. Public disputes, media statements, and legal threats should be halted immediately. A formal reconciliation process, overseen by government leadership, could help repair relations and allow the project to move forward. Additionally, the Minister of Finance and the UIA Director General must work collaboratively, with each party respecting the boundaries of their respective roles.
Moreover, a series of workshops should be organized, bringing together all key stakeholders to address outstanding project issues. These workshops could serve as a platform to develop a clear action plan for resolving issues such as land acquisition and delayed payments. Regular follow-up meetings would help ensure that these resolutions are implemented in a timely manner.
In terms of oversight, appointing a liaison from State House to monitor daily project activities could provide the necessary leadership to prevent further delays. This individual would report directly to the President, ensuring that all parties are held accountable and that the project progresses as planned.
Namanve Industrial Park is critical to Uganda’s economic future. It has the potential to create jobs, boost export earnings, and play a significant role in industrializing the country. But without immediate intervention, the project risks stagnating, denying Uganda the benefits that come with a fully operational industrial park.
The time to act is now. With strong leadership, reconciliation among stakeholders, and a clear action plan, the project can still be salvaged. If these steps are taken, Namanve Industrial Park could be fully operational by 2025, delivering on its promise of transforming Uganda’s industrial landscape.
