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Unlocking Investment Potential Through Climate-Resilient Industrial Freezones in Uganda

May 20, 2025

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Kampala, Uganda, April 16-17, 2025 The Ministry of Trade, Industry and Cooperatives, in partnership with the Global Green Growth Institute (GGGI) and TradeMark Africa, convened a two-day site selection and sector prioritization workshop aimed at advancing Uganda’s green industrialization agenda. 

Organized under the DANIDA-funded project “Developing the Capacity of Uganda Freezones Authority to Set Up Export Freezones that Meet Global Green Trade Standards,” the workshop introduced the project’s overarching objectives and presented a framework for identifying strategic sites and priority sectors for green freezone development. It also served as a platform for stakeholder engagement and feedback on the proposed site selection methodology. 

The workshop brought together key stakeholders from government, the private sector, financial institutions, academia, development partners, and civil society to evaluate viable sites across Uganda and build consensus on priority value chains for the selected sites. “As stakeholders, your role today is critical. We count on your expertise, experience, and thoughtful insights to help ensure that the site selection process is robust, inclusive, and aligned with both national priorities and international standards,” Mr. Denis Ainebyona, Commissioner of Industry and Technology at the Ministry of Trade, Industry, and Cooperatives, remarked.   

Key discussions and outcomes included: 

  1. The importance of strong policy enforcement, market competitiveness, and inclusive development in establishing green industrial freezones. 
  2. Recommendations for greater private sector involvement in industrialization decision-making. 
  3. Emphasis on transparency and data availability to enable replicability and efficiency in future projects. 
  4. Advocacy for extending industrial park access to small and medium-sized enterprises (SMEs), not just large investors.

The DANIDA-supported project aims to strengthen the capacity of government and private sector stakeholders to develop green special economic zones and mobilize the financing necessary for sustainable operations. This builds on work previously undertaken by GGGI between 2021 and 2024, funded by the European Union, which led to the development of the Guidelines for Developing Uganda’s Industrial Parks and Freezones, and masterplans for Entebbe, Soroti, and Pakwach. The current phase will implement those proposals by developing green master plans for two new locations, infrastructure plans, and bankable project concept notes. The project also includes capacity building and green finance mobilization to ensure long-term sustainability.

“Despite global and local challenges such as unemployment, lack of market, etc., this project will show that sustainability creates opportunities, better natural resource governance, and a possibility to develop a resilient export sector without forgetting the domestic market.” Ms. Regina Mwenyango, Project Manager, GGGI Uganda, noted.  

Moving forward, shortlisted sites will undergo detailed analysis on the economic, social, and environmental relevance, which will inform the development of comprehensive green industrial master plans. These plans will further guide future infrastructure investment and development and attract green investors to Uganda. This collaborative effort marks a critical step towards building a strong, inclusive, and sustainable Uganda. GGGI remains committed to supporting the transformation of Uganda’s economy to a green growth model.