Uganda is steadily carving its path toward industrialization, and at the heart of this transformation are the industrial and business parks spearheaded by the Uganda Investment Authority (UIA).
These parks are more than clusters of factories they are hubs of job creation, value addition, infrastructure development, and regional economic revitalization.
As the country moves toward its Vision 2040 goals, the development and expansion of these industrial parks are emerging as one of the most strategic drivers of Uganda’s economic growth.
Over the past decade, the UIA has overseen the establishment of eight publicly owned industrial parks in various parts of the country.
These include the Kampala Industrial and Business Park (Namanve), Luzira, Bweyogerere, Jinja, Mbale, Soroti, Mbarara SME Park, and Kasese.
The government has ambitious plans to increase the number to at least 25 parks by 2026. Each of these parks has been strategically located to spur development in both urban and rural areas, extending economic opportunity beyond the capital city.
The economic impact of these industrial parks is already tangible. As of the end of the 2023/24 financial year, over 625 companies had been allocated land within the UIA’s industrial and agribusiness parks.
Of these, 294 were fully operational, 194 were under construction, and 139 were in the preparatory stages.
The combined activities in these parks have so far created over 122,000 direct and indirect jobs nearly 20,000 of which were added just in the last year.
These parks have also proven to be magnets for investment. UIA figures show that capital investment in these zones has grown to over USD 3.3 billion.
The surge in investment is driven by both foreign and domestic investors. While Ugandan firms account for about 43% of all investments in the parks, a substantial portion also comes from China, India, and other global partners.
Domestic investment in 2024/25 alone totaled USD 719.9 million and is expected to generate more than 8,000 jobs.
One of the key features that make these parks attractive is the ready infrastructure. Each park is designed with essential services like power, water, roads, ICT infrastructure, and waste management systems.
This reduces the setup costs for businesses, speeds up operations, and creates a more predictable environment for industrial activities.
Companies like Quality Chemicals, Plascon Paints, Orion Transformers, and East African Medical Vitals have already taken advantage of these facilities to manufacture everything from anti-retroviral drugs and malaria-fighting paint to medical gloves and industrial equipment.
But the benefits of industrial parks go beyond job numbers and investment statistics. They are transforming entire communities. Take Kapeeka Industrial Park in Luweero District, for example.
Since its development, the local economy has boomed local government revenue rose from UGX 300 million to UGX 1.5 billion in just a few years. Schools, health centers, housing, and markets have sprung up around the park, offering a visible testament to how industrialization can uplift surrounding communities.
The agro-industrial component of many parks is also playing a vital role in supporting Uganda’s farmers.
Parks like Soroti and Kapeeka have established processing plants for mangoes, pineapples, maize, and other crops, enabling farmers to move from subsistence to commercial farming.
These parks also offer cold storage, credit access, and technical training to farming communities, improving productivity and incomes.
The development of these parks is also helping Uganda diversify its economy and reduce dependence on raw exports.
By encouraging manufacturing and value addition, Uganda is now producing a wider range of goods locally, including electronics, household items, and food products.
This not only reduces the country’s import bill but also boosts exports, strengthening the trade balance.
Furthermore, these parks are helping to position Uganda as a competitive regional hub. Parks in areas like Mbale, Soroti, and Kasese have opened up trade routes with Kenya, South Sudan, and the Democratic Republic of Congo.
The industrial growth taking shape around these towns is building a more balanced national economy, one where no region is left behind.
With continued support, investment, and expansion, industrial parks are expected to play an even bigger role in Uganda’s push to become a middle-income economy.
They align directly with the goals of the National Development Plan IV and Vision 2040, both of which emphasize industrialization, job creation, and export-led growth.
In conclusion, Uganda’s industrial parks are more than just spaces for production they are engines of economic transformation.
Through job creation, increased investment, rural development, and value addition, they are laying a strong foundation for long-term prosperity.
As Uganda positions itself for greater regional and global competitiveness, these industrial hubs will remain central to its growth story.