Uganda To Unveil A Sh3 Trillion Investment To Unlock Country’s Potential
The Government of Uganda, through a state-owned investment company, is planning to inject up to Sh 3 trillion (USD 813 million) which is meant to boost industrial activities that are less tapped by the private sector companies.
Uganda Development Corporation will venture into agricultural and manufacturing sectors which will include a hotel, a fruit processing plant, sugar milling and more plants for cereals, cocoa and cassava.
Chief Executive Officer Patrick Birungi said that the firm will invest in the sectors and eventually divest them to the private sector which will spur its potential.
“The state will disburse a third of the planned cost and the agency will mobilize the rest from the private sector, multilateral lenders and its own funds, he said. The government has committed to increasing the company’s capitalization to 500 billion shillings in five years, from 70 billion shillings, to boost investment, he said.
In 2018, the Government drafted a new national policy to boost its industrial growth and cut its trade deficit, among them, was plans to build about 22 industrial parks to attract investors.
The proposed policy seeks to review laws that promote industrial development including the Industrial Licensing Act, Investment Code Act, and the East African Common External Tariff.
In order to cut imports of clinker-cement making ingredient, the government is planning to perform a feasibility study and exploration for clinker in the northeastern Karamoja region by 2019.
The state-owned firm has also expressed interest to invest in the iron and steel industry as part of its plans to venture into glass-sheet manufacturing.
Exploration for salt and associated chemicals is ongoing in the country and UDC plans to undertake glass-sheet manufacturing and invest in the iron and steel industry, he said.
The Energy and Mineral Development Ministry estimates that the East African country has 3 million tons of iron ore and its reserves are estimated to have more than 21 million tons.
Featured Image Courtesy: The EastAfrican.co.ke