Intervention 13: Reviving Jinja’s Industrial Base, Gazetting and Developing 2 (Two) Regional Industrial Parks in Kamuli and Iganga

Industrialisation offers greater prospects for ‘increased employment, more export earnings, wider tax base, increased purchasing power, increased integration with agriculture, product diversification, greater efficiency, and technical skills for modernization and higher productivity throughout the whole economy’.39Jinja already has two established industrial zones, including the old industrial complex in Central Division and Jinja Industrial and Business Park with an acreage of 182. The park is operational and 90 per cent of the land here has been allocated and investors are in the final stages of plan approval. To attract new industrial players as well as increase the competitiveness of the existing industries, the Busoga Consortium is routing for the redevelopment of the old industrial complex in Jinja as well as a subsidised electricity tariff for medium and heavy industrial consumers. The Private Sector Foundation Uganda notes that ‘the high cost of electricity remains one of the key contributors to high operating costs for manufacturers and the service industry’. Instead of demanding royalties as home to the three main electricity generation plants, the Busoga Consortium is convinced that a significant reduction in power tariff for medium and large industries will reduce the cost of doing business, make current industries competitive and attract new industrial players. This will consequently enable firm growth and directly increase the demand for raw materials and labour. The Consortium is, therefore, urging a reduction of the tariff for medium industrial consumers and large industries to UGX 250 per unit of electricity.

Intervention 14: Private Sector Development

Busoga’s private sector is dominated by Micro, Small and Medium Enterprises (MSMEs), with several enterprises contributing to the employment of people in the non-farm private sector. Evidence generated during the consultative process for this agenda shows that the majority of enterprises were operating on a micro to small scale, with more than 98 per cent of the enterprises categorised as micro enterprises and employing fewer than five persons each. The informal sector, however, remains an important source of employment and economic livelihood for many people, especially in the non-agriculture sub sectors.

• Land measuring 600 acres has been identified at Kasolwe Ranch in Kamuli and earmarked for the establishment of an industrial park.
• Another piece of land measuring 530 acres has been identified at Butende in Iganga District for the construction of an industrial park and acquisition plans are underway.
• Every district should allocate land for a mini agro-processing and industrial park.
• Working in partnership with the Uganda Investment Authority (UIA), the Busoga Consortium will attract and parcel out land in the parks to private sector players for industrial development. To ensure that these parks are accessible and have the requisite amenities, the
• Busoga Consortium’s proposed ring roads will provide the connectivity and established agro-processing industries will benefit from the proposed reduced electricity tariff.
• In addition, the Busoga Consortium, in partnership with the UIA, will demarcate these industrial parks and provide for access roads (tarmac), electricity and water connectivity and parcel the land into plots of about 5 acres for each anticipated factory.
• The Busoga Consortium will promote the sub-region as an investment destination for players keen to invest in agriculture and mineral development. An incentive-based investment programme will be agreed with Government to enable accelerated development of the industrial parks.