The Uganda Free Zone Authority (UFZA) has signed a memorandum of understanding with the National Enterprise Corporation (NEC) to construct a public free port zone at Entebbe International Airport.
NEC is the commercial arm of the Uganda People’s Defense Forces (UPDF).
The MoU was recently signed by the Executive Director of UFZA Mr. Richard Jabo, and the Managing Director of NEC, Lt Gen.James Mugira, at NEC offices in Bugolobi, Kampala.
It is still not clear how much it will cost government to construct it.
The MoU was signed by UFZA Executive Director Richard Jabo, and the Managing Director of NEC, Lt Gen. James Mugira, at NEC offices in Bugolobi, Kampala.
A statement from UFZA indicated that the authority had 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 quarter two of the 2019/20 [financial year],” the statement said.
The sectors expected to set up in the zone include food processing (fish, beef and dairy), horticulture (flowers, fruits and vegetables), logistics (cold storage, warehousing and transhipment), and mineral processing.
Most of these would benefit from the closeness to the airport since the target is for export. The Free Zones are schemes set up by Government to boost export-oriented investment.
According to UFZA 2017/18 report, the number of declared Free Zone areas grew to fourteen as at June 2018.
The growth, the authority reports, came along, for the first time, with some exports attributed to free zones, which, indeed, was a positive development on the aim of the free zones establishment.
Free Zones are customs-controlled areas where goods introduced into the designated area are generally regarded so far as import duties are concerned as being outside the Customs territory.
The Free Zones are schemes set up by Government to boost export-oriented investment.
NEC, on the other hand, was established in 1989 by an Act of Parliament, to serve as a commercial arm of the Ministry of Defence /Uganda People’s Defence Forces and to produce goods and services that are beneficial to the Defence Forces and the general public.
Its commercial ventures are undertaken through its Subsidiaries and Joint Ventures.
NEC has handled construction and Engineering works of the Defense Forces, Government Departments and Agencies such as Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), Kiira Motors Corporation, etc under similar arrangements.
