The Uganda Free Zones Authority (UFZA) and the Uganda Manufacturers Association (UMA) have signed a Memorandum of Understanding (MoU) to help foster collaborations and also promote export-oriented investment and job creation in Uganda.
The MoU was signed on July 6, 2023 at the UMA Head Office.
Speaking at the signing ceremony, held at the UMA headquarters in Kampala, Hez Kimoomi Alinda, the Executive Director of UFZA, noted that the partnership between the two entities is a significant significant milestone in boosting export-oriented investment and job creation in the country.
He noted that by leveraging the strengths of both organizations, they aim to create a conducive environment for businesses to thrive, develop forward and backward linkages, while contributing to Uganda’s economic growth.
He explained that the partnership will not only enable Ugandan manufacturers to compete globally due to the tax and non-tax incentives that they will benefit from after joining the Free Zones Scheme but will also stir the country’s economic development through increased exports and job creation.
The Executive Director of Uganda Manufacturers Association (UMA), Dr. Ezra Rubanda, said the partnership aligns well with UMA’s strategic direction to tap into emerging regional demand for Ugandan products.
“This MoU speaks to UMA’s strategic direction that aims to enhance the competitiveness of our manufacturers through the establishment of Free Zones, facilitating exports and enabling our local industries to thrive in the regional market,” he said.
Dr. Rubanda further emphasized the importance of the partnership in supporting Uganda’s industrial growth trajectory.
He stated that industrial growth trajectory focuses on decentralization, moving industries from the central business area to rural areas.
“The establishment of Free Zones in major districts of the country will catalyze inclusive growth across Uganda, ensuring that economic benefits are distributed more widely,” he said.
Dr. Rubanda expressed the need for a review of the existing law to allow UFZA to expand their threshold from 20% to 50%, providing greater support to local companies.
He was optimistic that the partnership will help enhance the collaborative policy advocacy to review the law and increase the threshold to 50%, enabling more local companies to leverage the incentives offered by the Uganda Free Zones Authority.
The collaboration between UFZA and UMA is expected to enhance policy advocacy efforts to support local companies in benefiting from the incentives offered by the Uganda Free Zones Authority.
The MoU between UFZA and UMA signifies a strong commitment to promoting export-oriented investment, job creation, and inclusive economic growth in Uganda.
Through joint efforts, the two organizations will work towards creating a conducive environment for businesses to thrive, fostering capacity building initiatives, and facilitating market access for Ugandan manufacturers.