Uganda is set to have a motor vehicle assembling plant, one of the 50 enterprises in the first rural industrial park in the country at Kapeeka, Nakaseke district.
Located about 56km from Kampala, the Uganda Liao Shen Industrial Park, commissioned yesterday by President Yoweri Museveni, is a venture co-invested in and managed by Zhong Da Group and Zhang’s Group. Zhang Hao is the chairman of Future Electronic Co. Lt (Hisense’s agent in Uganda).
The ceremony, whose main event was the unveiling of a foundation stone, was witnessed by the vice-governor of Liaoning Province of the People’s Republic of China, Gang Rui; Luwero triangle state minister Sarah Kataike, Minister of State for Higher Education, Science, Technology Dr. Tickodri Togboa as well as Zhao Yali, the ambassador of the People’s Republic of China.
The dignitaries also included 30 investors from Liaoning province, as well as the chairman of Operation Wealth Creation, Gen. Caleb Akandwanaho (Salim Saleh), who provided land on which the park sits. On the same acreage sits Namunkekera Rural Industrial Centre, owned by Saleh.
The concept to establish the industrial park was first mooted to the Government in 2013 by Bing Zhigang, also vice-governor of Liaoning.
The project was approved by the Ministry of Finance and the Liaoning Provincial Bureau of Foreign Trade and Economic Co-operation.
According to the park’s investment manual, infrastructure construction will be complete by the end of the year to pave the way for the first 10 enterprises. These will include an automobile assembling, electronics, tools and machinery, agro-processing, beef processing and packaging and animal feeds processing plants.
By 2020, the park will have 50 diversified industries. Reliable sources said the first automobiles would be trucks and tractors.
Available infrastructure at the park includes a road and telecommunication network, plus 33,000v high voltage electricity power lines.
The first phase will cover 2.6 square kilometres of the 4.6 square kilometres available for the project.
During the commissioning yesterday, Museveni said the park, which is a $600m investment, will offer 10,000 direct jobs.
The establishment of the industrial park, he noted, is beneficial to the economic and trade co-operation between Uganda and the People’s Republic of China.
According to Museveni, who spoke in both Luganda and English, the development of the park will speed up the industrialisation processes of Uganda, create jobs, widen the tax base and promote economic prosperity.
“Ugandans are used to traditional industrial towns, but my task is to teach you the importance of industrial parks. China has industrial trading towns, which produce more value products and employ more,” he observed.
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The President commended Saleh for what he described as “preserving” the land as opposed to partitioning it. Museveni, however, lashed out at supervisors of Namanve Industrial Park, who he said stole the money meant for the project. He was optimistic that with some changes, the project would succeed.
Museveni did not spare tax collectors either, saying there were many forms of taxation in the country that hinder investment and development.
“It is shortsighted to delay or block investment because of tax. Even Valued Added Tax (VAT) must be studied carefully because high VAT pushes up the consumer prices,” he said.
The President revealed that plans are underway to set up similar projects in Ngoma (in Nakaseke) and Kyankwanzi.
What dignitaries said
Describing the project as the starting point of co-operation with Uganda, Gang Rui said Liaoning Province was determined to develop stronger ties with Uganda. He said on Tuesday, his 30-man delegation interacted with the Chinese investors in Uganda.
For ambassador Yali, the event had been made possible with the support of Museveni whose Government he said has provided a conducive environment for investors.
He revealed that China’s president, Xi Jinping, due in South Africa for the China-Africa Cooperation (FOCAC) Summit, will announce his government’s new policies for support to Africa. These, Yali said, will include infrastructure and technical support.
Museveni is one of the leaders attending the two-day summit in Johannesburg co-chaired by Xi and host Jacob Zuma.
Light moments
Among cheerful crowds to witness the commissioning ceremony of the industrial park in Kapeeka was Esteri Kakembo, an elderly woman, who presented Museveni with a cock and a basket of groundnuts which she asked the President to take to the First Lady.
“I am grateful that he has kept the country peaceful and also brought development to the area,” she said.
Former finance minister Syda Bbumba, MPs, several officials from line ministries and the private sector also attended the ceremony.
Liaoning Province at a glance
Liaoning has the largest variety of manufacturing industries in China, including machine tools, metallurgy, transformers, petrochemicals, iron and steel as well as crude oil.
Well-established industries in the province include automobile parts and manufacturing, modern construction, agriculture products and processing, chemicals and steel and non-ferrous metals processing.
Emerging industries include advanced equipment manufacturing, IT, biopharmaceuticals, aviation, new materials, energy and environmental technologies.
Main products: Automobiles, heavy machinery, machine tools, oil, metal and petrochemicals.
Exports: Electro-mechanical products, steel, processed agricultural products, hi-tech products, garments and refined oil.
Imports: Electro-mechanical products, crude oil, coal, agricultural products and iron ore.
- 10,000 jobs to be created
- 49 other industries to be set up
- Infrastructure construction is expected to be complete by the end of the year to pave the way for the first 10 enterprises
