ASB Group of Companies, one of the Turkey’s largest holdings concerns is to set up operations in a Special Economic Zone (SEZ) in Uganda.
The SEZ is located at Kaweweta, Nakaseke district, north west of Kampala.
‘This ushers in a critical investment in manufacturing and agribusiness, particularly livestock and meat production in Uganda.’
The project will accelerate infrastructure development, create 15,000 – 20,000 jobs, increase on productivity, technological transfer, and is projected to cause a GDP growth of the Ugandan economy,” Matia Kasaija, the Minister of Finance said at the announcement.
Sitki Ayan, the Chairman of ASB Group said: ‘Our main target is to turn Kaweweta Free Zone into Uganda’s primary gate-way for the entry of FDI, and there will be economic spill-over effects to the national economy.”
ASB Group of Companies plan to invest in the livestock, coffee, cotton and other agro based processing which they will export to the European, Middle East and other international markets, helping to boost Uganda’s economy.
According to a statement from the Uganda Free Zones Authority, the project will attract local farmers to contract farming formula and will bring in about 200 entities into the Kaweweta Special Economic Zone.
In Uganda, the Kaweweta Special Economic Zone will be the first of its kind. However these SEZs have been in existence in East Africa, including Kenya, Tanzania and Rwanda have had such zones.
The UAE, China, Malaysia, Singapore and other developed economies, have grown as a result of Free Zones. In most of them, the government has taken the lead in establishing the Free Zones to attract both domestic and foreign private investments.
Free Zones are generally regarded as controlled geographic areas where goods are landed, handled, manufactured or reconfigured, and re-exported without the intervention of the customs authorities.
The Uganda Free Zones Authority which was established in 2014, has been negotiating with the ASB Group to develop the SEZ in Nakaseke.
The Zone will be a specially demarcated duty free enclave for the purpose of production, processing, packaging and export of agribusiness products.
Richard Jabo, Executive Director of Uganda Free Zones Authority said: “The policy objectives of Government in adopting Free Zones schemes was to increase Uganda’s export potential and increase jobs, thereby reducing the current trade deficit. The investments that will be realised feed into these policy objectives.”
In many other parts of the world, the world SEZs are seen as hotspots for innovation and speed of delivery that raises competitiveness.
Via: http://www.busiweek.com
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