Members of Parliament have urged the government to prioritize the development of industrial parks in different regions of Uganda, citing concerns over unused land intended for industrial growth. During a plenary session on October 3, 2024, chaired by Speaker Anita Among, the legislators highlighted the slow progress in establishing these parks, which they believe are critical for regional economic development.
Hon. Milton Muwuma, representing Kigulu County South, raised concerns over the lack of progress in Iganga District. Land had been identified in Busolwe for an industrial park, but no development has taken place. He noted that former Prime Minister Ruhakana Rugunda had engaged stakeholders to move the project forward, but recent updates suggest there have been changes, and the way forward is unclear.
Similar concerns were raised by Hon. Pius Wakabi of Bugahya County, who highlighted that eight years ago, the government secured land in Kabale Sub County, Hoima District, for an industrial park, yet construction has not begun. Wakabi noted that even though people were relocated, the land is now being encroached upon, and no action has been taken to start the project.
Ntoroko County MP, Hon. Ibanda Rwemulikya, expressed frustration over the situation in Fort Portal City, where land was earmarked for an industrial park but remains undeveloped. He emphasized that the park could boost economic activity in the region, especially given its proximity to the Democratic Republic of Congo, which could enhance trade opportunities.
The issue of funding also came under scrutiny. Hon. Karim Masaba questioned why UGX 32 billion, which had been budgeted for infrastructure development in the Mbale Industrial Park, has not been released. This money was intended for road construction and the installation of culverts in the park, but progress has stalled.
Hon. Martin Ojara Mapenduzi, representing Bardege-Layibi Division, brought up the long-standing plan to establish an industrial park in Gulu District. Over 13 years ago, the Uganda Investment Authority (UIA) reached out to Gulu’s local government with plans to develop an industrial park, but the project has since gone quiet. Despite providing land for the project, no further steps have been taken.
The concerns raised by the MPs were based on a report by the Public Accounts Committee (COSASE), which reviewed the financial statements of UIA for the year ending June 30, 2023. The report found that UIA was behind schedule in implementing a presidential directive that aimed to establish 22 industrial parks by 2020. While the directive was issued several years ago, UIA has only managed to set up active industrial parks in Kampala, Luzira, Bweyogerere, Jinja, Mbale, Soroti, and Kasese.
Table: Status of Industrial Parks in Uganda
| Region | Progress | Issues Raised |
|---|---|---|
| Iganga District | No progress on Busolwe site | Change in project direction |
| Hoima District | Land secured, no construction | Encroachment on project land |
| Fort Portal | Land secured, undeveloped | No economic boost yet |
| Mbale District | Budgeted funds not released | Delay in infrastructure work |
| Gulu District | Land provided, no progress | 13-year delay in project |
Minister of State for Finance, Planning and Economic Development (Privatization and Investment), Hon. Evelyn Anite, attributed some of the delays to financial constraints. She explained that cash flow challenges have affected several projects, including the industrial parks in Mbale and Kapeka. However, she assured Parliament that funds for the Namanve Industrial Park had been secured through a loan approved by Parliament, and construction there is ongoing.
Anite acknowledged that while land had been identified in Pader District for an industrial park in the Acholi sub-region, the government lacks the necessary funds to begin infrastructure development. Similarly, the government has not received funding to acquire land in Iganga District for a new industrial park.
The Minister explained that the government has shifted its focus to areas where local governments are willing to provide free land for industrial park development. So far, land has been secured in 28 locations across 18 zones in Uganda. She committed to submitting a treasury memorandum to Parliament within six months, outlining how the recommendations made by the Committee, particularly those with financial implications, would be addressed.
The delays in the development of industrial parks across Uganda have raised concerns about the government’s ability to meet its industrialization goals. Lawmakers emphasized that speeding up these projects is crucial for boosting economic activity, creating jobs, and enhancing trade within and outside the country. The MPs continue to call for more transparency and action to ensure that these critical infrastructure projects are completed.
