LONDON/KAMPALA – The UK government has extended a $200m (about UGX735b) loan to the Ugandan government to help improve basic infrastructure in Kampala Investment Business Park, Namanve in Mukono District.
The funding was announced on Sunday, January 12, 2020, by the UK Minister for Africa, Mr Andrew Stephenson, during the commissioning of the project.
“We have a deep commitment to bring sustainable growth. Uganda has long been an important sustainable partner to the UK and we have priorities for both governments, jobs and prosperity for all our people,” Mr Stephenson said.
“On its [Uganda] path to middle-income status, we understand the importance of developing infrastructure and strengthening Uganda’s manufacturing base. That is why I am delighted to be here at this grounding breaking event for construction of the infrastructure of this industrial park,” he added.
The State Minister for Investment and Privatisation Ms Evelyn Anite said the money will be paid back using taxpayers’ money.
The government will use the money to set tarmac the roads in the industrial park, build bridges, put up solar lighting, a water reservoir, a sewerage network and waste treatment system.
Ms Anite said the infrastructure will enable ministry of Finance to take action on non-compliant investors who take up land for investment in the industrial park but don’t start work within the stipulated 18 months.
“Development period is only 18 months. If you don’t develop the land, we withdraw it but that has been hard for us because every time we have wanted to withdraw it they [investors] would tell us, ‘you have not done your part’ which is the infrastructure” Ms Anite said.