President Museveni has approved a proposal to establish a second industrial park in Uganda, following a briefing from developers at the China-Uganda Mbale Industrial Park. Mr Museveni and First Lady Janet Museveni hosted a delegation led by Ms Lucy Zhang, the chief executive officer of Tian Tang Group, at their country home in Rwakitura, Kiruhura District last Friday.
Ms Zhang on Tuesday told journalists in Kampala that she briefed the President on the latest developments at the Mbale facility and formally expressed her group’s intention to expand its footprint by establishing another industrial park at a new location.
‘The President welcomed the plan and assured us of government support to ensure the success of the expansion,’ she said. ‘Tonight, a team from the Mbale Industrial Park led by Ms Lucy Zhang called on Mama Janet and me at Rwakitura. They updated us on progress at the park and informed us of their intention to set up another industrial park. I welcome their plan and assure them of our support,’ President Museveni wrote on X (formerly Twitter) about the development last Friday. The existing 619-acre park in Mbale City, located in eastern Uganda, has been a cornerstone of the government’s industrialisation drive since it became operational in 2018.
About Mbale industrial park
The facility hosts approximately 75 factories and employs more than 12,000 Ugandans. Recent developments at the Mbale project include plans to launch four new factories specialising in steel, textiles, electronics, and paper production. The park has also seen major infrastructure investments, including a $2.5m (Shs8.99b), wastewater treatment system, as well as government initiatives to enhance power reliability and improve road networks to prevent flooding.
With a total investment of $2.5b (Shs8.99 trillion), the park’s factories produce goods such as glass, detergents, mobile phones, LED bulbs, and baby diapers, using raw materials sourced from both Uganda and China.
The park strives to implement the Buy Uganda, Build Uganda (BUBU) policy by maximising the use of locally-sourced Ugandan raw materials. Its products are sold in the Ugandan market and exported to neighbouring countries in cluding Kenya, Tanzania, South Sudan, Democratic Republic of Congo, and Rwanda. At an inauguration ceremony held in late August, Museveni emphasised that the national industrialisation agenda relies on attracting investors who can create jobs.
‘As a nation, we must focus on sectors that generate wealth and employment for our people. This will also address the need for import substitution, especially for consumer and commercial goods,’ said Mr Museveni.
Key among the new factories are Uganda United Steel Investment Co Ltd and Xinlong Textile and Garment Technology Co Ltd. The President also laid foundation stones for nine other projects, including Hercules Automobile Manufacturing Co Ltd and Changjiang Industry.
President Museveni revealed that Chinese investors are seeking an additional 500 acres of land to expand the current park and urged local residents to cooperate with authorities to secure the land. The push to build more industrial hubs aligns with Mr Museveni’s vision of transforming Uganda from a trading economy into an industrialised nation. He pledged to develop similar parks in the Masaka, Kyotera, and Kalungu districts to promote value addition and youth employment.