Uganda Government has secured euro.2 Million for the construction of seven free border export zones starting in October2020, Trade and Cooperatives Minister, Amelia Kyambadde has confirmed.
The free border export zones will not only help Uganda to harmonize regional markets but also facilitate the increase in export earnings, value addition, provide employment and promote investment.
“Each of the seven boarder export zones will cost a minimum of UGX 400 Million drawn from the European Union grant of Euros 2M which is strictly meant to be utilized within a given period,” she said.
Between 2014-2019 the ministry using funds (EUR 1.26) under the Regional Integration Implementation Project (RIIP) supported by COMESA conducted environmental impact assessments, and developed master plans, architectural designs, BOQS and construction tender documents for Katuna, Lwakhakha, Busia, Oraba, Elegu and Kikagate.
In the second phase of the RIIP project which started in 2018, BEZ has been allocated EUR 1.7million to develop startup facilities on each of the BEZ sites as prioritized by the districts. Consequently, the Ministry finalized procurement of contractors to construct venture facilities at each site to attract more public private investments to the sites.
In the last three weeks of August 2020, the minister said she had launched the construction of investment venture facilities at Lwakhakha with a central market and related facilities, at Busia a ware house and related facilities, at Oraba a commercial building and extension of electricity and other related facilities and at Katuna a ware house and related facilities. These facilities will be ready for use by close of this year.
In addition, Government has secured USD $2 million from the World Bank under the Great Lakes Trade Facilitation Project (GLTFP) for the development of Mpondwe BEZ (Kasese District) and preparation of feasibility studies for Bunagana BEZ (Kisoro District). The procurement process for the development of Mpondwe BEZ is ongoing and construction will commence in October 2020.
Full scale development of all the 18 sites is scheduled for the period 2021/22to 2029/30 in line with the project proposal currently before the Development Committee of the Ministry of Finance.
The BEZ program is key to positioning Uganda‘s exports into the region and driving the development goals of the country including import substitution and wealth creation. The relevancy of the project has become even more paramount at the outbreak of Covid – 19 pandemic. BEZ provides opportunities to continue trading regionally amidst covid- 19 measures.
The storage and warehousing facilities to be established in the BEZs will facilitate and ease movement of goods across the borders.
