TORORO, Uganda–The Uganda Free Zones Authority (UFZA) has issued a Developers’ License to China- Africa International Industrial Co-operation Company Limited within Sukulu Industrial Park, Tororo District.
China- Africa International Industrial Co-operation Company Limited is a subsidiary of Guangzhou Dongsong Energy Group (U) Co. Limited and is a limited liability company.
The Developer will establish three plants in the Free Zone, namely; a mine dressing plant, phosphate fertilizer plant and one steel plant. Additionally, the Free Zone will house Operators who plan to establish one glass plant, one brick plant and a cement superfine slag powder plant.
The various companies are indicated to increase the Country’s GDP which is currently at 21% by investing up to a tune of over one billion dollars (US$ 1.2b) by 2024.
The Minister of Finance, Planning and Economic Development Matia Kasaija noted that the establishing of fertilizers plant in Tororo will support the development of Agriculture sector in the country.
“The Phosphate Fertilizer Plant products are vital in improving agricultural productivity for poor rural households and commercialised farms in Uganda to meet the food security needs and to promote sustained increases in income” he explained.
He added that Uganda has one of the highest soil nutrient depletion rates in the world and it has one of the lowest rates of annual inorganic fertilizer application – only 1.8 kg per hectare.
The World Bank calculated that the value of replacing depleted soil nutrients could be 20 percent of average rural Ugandan household income. Promoting fertilizer use is therefore crucial to sustainably increase agricultural productivity in Uganda and beyond.
According to Jane Guo, the CEO of China-Africa International Industrial Cooperation Co. Ltd, the establishment of the various industries in the free zones will create over Seven thousand (7,000) direct and indirect jobs by the year 2024.
“These will certainly spur economic development and improve the standards of living of the employees and their families. This is a welcome contribution towards addressing the unemployment gap in the Country.” She said.
Commenting on the production capacity of the plants to be established at the International free zone (sukuru in tororo) Gue said the plant has the capacity of producing enough for the Ugandan market.
“We shall establish a dressing plant with annual processing capacity of 1million tons, a phosphate fertilizer plant with annual production of 100,000 tons, a steel mill with annual production of 300,000 tons, a glass factory with annual production of 55,000 tons, a brick factory producing 100 million brick per year” She explained.
The Executive Director, UFZA, Mr. Richard Jabo the Tororo Free zones establishment is the nineth (9) Free Zone licenced in Uganda after Arua SEZ Ltd in Arua, Nilus Ltd in Jinja, Wood Impex Ltd in Kalungu and 5 Flower farms in Mpigi and Wakiso districts