Uganda on track to become Africa’s third largest economy- Chinese investor

Uganda is poised to emerge as one of Africa’s largest economies, driven by its robust industrialization strategy, according to Paul Zhang, the chairman of the Tian Tang Group and Sino Uganda Mbale Industrial Park.

In an interview on Friday, Zhang expressed optimism that Uganda’s expanding industrial parks, coupled with its resource-rich economy and hard-working citizens, will propel the country into becoming the third-largest economy on the continent within the next decade.

“When I was young, over 40 years ago, China was as poor as Uganda and had no industries,” Zhang explained.

“Our government invited foreign businesses to invest, and now, China is the second-largest economy in the world behind USA. I believe that Uganda, with its vast resources and industrious population, can achieve similar growth and become Africa’s third-largest economy within 10 years.”

Industrial Parks as catalysts for growth

Zhang highlighted the pivotal role of Uganda’s industrial parks in driving the nation’s economic transformation.

The country currently boasts 11 operational industrial parks, located in regions such as Mbale, Mbalala, Namanve, Kapeeka, Kasese, and Mbarara. These parks are designed to facilitate local production and create jobs by attracting foreign direct investment.

The Uganda Investment Authority (UIA) has outlined a strategic plan for 2020/21-2024/25 aimed at promoting Uganda as a premier investment destination.

This plan focuses on boosting both foreign and domestic investment, enhancing Uganda’s competitiveness, and accelerating industrialization through the development of serviced industrial parks.

These parks offer integrated infrastructure, including land, electricity, water, waste management systems, ICT infrastructure, and transportation networks.

The industrial parks are intended to attract investors to set up manufacturing facilities for efficient and cost-effective production, benefiting both local consumption and exports.

Mbale Industrial Park success story

Located in Mbale City in eastern Uganda, the Mbale Industrial Park covers 2.51 square kilometers and is managed by the Tian Tang Group. Zhang noted that the park, built from the ground up, now houses over 50 factories and has created more than 6,000 jobs for Ugandans.

“In two years, we expect the industrial park to create 20,000 jobs, speeding up Uganda’s industrialization process and contributing more tax revenue to the government. This will also improve the lives of many Ugandans,” Zhang stated.

He added that the park’s continuous expansion would provide a sustainable boost to Uganda’s economy, emphasizing that the government’s investor-friendly policies, including tax incentives, have played a critical role in attracting investments.

Regional market advantage

Zhang further pointed out that Uganda’s geographical position gives it access to a large regional market. Bordering countries like South Sudan, the Democratic Republic of Congo (DRC), Rwanda, and Kenya, Uganda stands at a strategic advantage for regional trade.

“For example, South Sudan and eastern DRC lack industries and rely on Ugandan factories. This gives Uganda a big market to tap into, not just locally, but regionally as well,” he said.

In addition to job creation, Zhang emphasized that these factories are skilling Ugandans and empowering them to become entrepreneurs.

“We train Ugandans working in these factories and support them in starting their own businesses. This way, Uganda will have a new generation of local investors, equipped with skills and knowledge gained from these industrial parks,” he noted.

Future projections

Zhang envisions creating 30,000 jobs at the Mbale Industrial Park by 2025, further driving Uganda’s economic growth through increased exports and import substitution.

“We aim to build more factories, create jobs, and strengthen Uganda’s position as a manufacturing hub in the region. Our focus on job creation and skills transfer will contribute to long-term economic development,” Zhang concluded.