KAMPALA
Nearly half of the land allocated to investors in Uganda’s industrial parks remains undeveloped, raising concerns about weak planning and enforcement in the government’s industrialisation drive.
The Civil Society Budget Advocacy Group (CSBAG) executive director, Julius Mukunda, said lax monitoring has allowed investors to hold onto land and incentives without establishing factories. He was speaking to journalists at CSBAG offices in Ntinda on Sunday, citing findings from the latest Auditor General’s report.
At Namanve Industrial Park, Uganda’s largest industrial hub, about 46% of the land allocated to companies is still idle.
“Government gives investors land and tax incentives, but there is little follow-up to ensure they actually build factories and create jobs,” Mukunda said.
Industrial parks were designed to accelerate industrialisation by clustering factories, providing infrastructure, and attracting investment to boost exports and employment. However, Mukunda noted that delays in project implementation have undermined these objectives.
“If investors are given five years to establish factories but fail to do so, government should repossess that land and allocate it to serious investors,” he urged.
Mukunda warned that idle land not only slows industrial growth but also burdens the country financially. He pointed out that Uganda borrowed heavily from development partners, including the World Bank, to finance infrastructure in industrial parks.
“When projects stall, Uganda must still repay the loans even though the expected benefits exports, jobs, and revenue are not realised,” he said.
CSBAG has called on government to strengthen enforcement mechanisms and improve planning before rolling out new industrial parks across the country.
