UFZA and NEC sign MoU for free port zone at Entebbe International Airport

By George Mangula

The Uganda Free Zones Authority (UFZA) and National Enterprise Corporation (NEC) have signed a memorandum of understanding (MoU) to construct the initial phase of a public free port zone at Entebbe International Airport.

The MoU was signed by the Executive Director of UFZA, Richard Jabo and the Managing Director of NEC, Lt Gen. James Mugira, at NEC offices in Bugolobi, Kampala.

UFZA acquired five  acres of land from Civil Aviation Authority CAA) for development of Free Port facilities in 2018. This is part of the Master Plan for the rehabilitation and expansion of Entebbe International Airport.

Works on Entebbe Airport Free Zone will commence upon conclusion of the Feasibility and Master Plan in Q2 of the FY2019/20.

The Free Port Zone is estimated to create about 200 direct jobs upon completion. The target sectors include; food processing (fish, beef and dairy); horticulture (flowers, fruits and vegetables); logistics (cold storage, warehousing and transshipment) and Mineral processing, among others.

A free zone is a geographic area where raw materials and goods may be landed, handled, manufactured or reconfigured for export without being subjected to export and import duties.

A free zone can take the form of a manufacturing or processing facility, a science and technology parks or even a tourism development zone. The idea is encourage productivity and value addition in order to boost exports. The opportunity to create free zones in Uganda is provided for under the Free Zones Act of 2014, which also created the Uganda Free Zones Authority (UFZA).

UFZA is responsible for the establishment, development, management, marketing, supervision and control of free zones. It is a semi-autonomous government agency under Ministry of Finance, Planning and Economic Development. Many Ugandans are, however, unaware of the law, the authority and what it does as well as the opportunities there are for investment and big money.