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A fresh storm has hit Uganda’s investment scene after government quietly allocated 150 acres of Kitubulu Central Forest Reserve in Entebbe to Chinese billionaire Paul Zhang, the man behind the controversial Luzira Prison hotel proposal.
The deal — worth a staggering $500 million (about Shs1.7 trillion) — will see Zhang’s Tian Tang Group erect a mega government complex, five-star hotel, hospital, and shopping mall right inside the protected forest land.
FOREST FOR SALE?
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The allocation, championed by State Minister for Investment Evelyn Anite, has triggered outrage from environmentalists, local leaders, and policy experts who accuse the government of “auctioning off” Uganda’s green heritage.
Anite defended the move, saying it’s part of a grand plan to create an “alternative capital city” in Entebbe.
“The government has allocated land in Entebbe to Chinese investors for modern facilities, including a five-star hotel, hospital, and housing estates,” she confirmed. “Our aim is to decongest Kampala.”
Zhang says construction will kick off next month, arguing that Entebbe’s proximity to the airport makes it “strategically perfect” for investors.
“This will transform Entebbe into a modern administrative hub,” he bragged, adding that President Museveni personally approved the deal after Anite introduced him.
LOCAL LEADERS FUME
But not everyone is cheering. Entebbe Mayor Fabrice Rululinda has vowed to block the giveaway, branding it a betrayal of the people and the environment.
“We are not allowing this forest giveaway — not today, not ever!” he roared. “Kitubulu is one of the few remaining natural habitats on Lake Victoria’s shores. We will not allow bulldozers to destroy it.”
Rululinda accused the National Forestry Authority (NFA) of secretly issuing licences to private developers, saying Entebbe leaders were never consulted.
“This forest was planted by our grandparents. Whoever claims to have bought land there has been duped,” he added.
The NFA boss, Emmanuel Mangiraguha, defended the decision, insisting the development follows the “wise use” policy.
“Eco-tourism is part of sustainable conservation,” he said.
But environmentalists warn that clearing Kitubulu could worsen flooding, destroy wetlands, and violate international environmental commitments Uganda has signed.
LUZIRA HOTEL PLAN RETURNS
Zhang’s name is not new to controversy. He’s the same investor who made headlines with plans to demolish Luzira Maximum Prison and replace it with a five-star hotel and conference centre.
A leaked letter from President Museveni to Internal Affairs Minister Kahinda Otafiire supported Zhang’s Luzira project, directing the minister to start talks with Tian Tang Group under a Public-Private Partnership (PPP) arrangement.
The plan includes relocating Luzira Prison to Mukono, where a 10,000-inmate facility would be built to ease congestion. Luzira currently holds over 7,000 inmates, despite being designed for 1,700.
WHO IS PAUL ZHANG?
Paul Zhang, a Chinese billionaire behind Tian Tang Group, has vast interests in Uganda, including the Sino-Mbale Industrial Park and the Mukono Industrial Zone.
Critics say he’s become one of Uganda’s most powerful foreign investors — “the man who gets any land he wants.”
Fellow Chinese accuse him of frustrating them in their businesses especially those in his industrial parks. They claim he sells them the same land in the parks that he got free from government and as well forcefully taking shares from their firms.
Watch this space!
