Gulu, Uganda: Businesses and private investors in Northern Uganda have been challenged to invest in free trade zones as a pathway to boosting exports and improving household incomes for socio-economic transformation of the East African nation.
The appeal comes as Uganda rolls out its ambitious Ten-Fold Growth Strategy, which aims to expand the economy to USD 500 billion by 2040 by increasing export value by at least 15 percent each year.
According to the Uganda Free Zones and Export Promotion Authority (UFZEPA), Northern Uganda has significant potential in agriculture but remains underrepresented in the country’s network of free trade zones. Out of Uganda’s 46 private free trade zones, about 77 percent are located in Central Uganda, 17 percent in the East, while Northern and Western Uganda each account for only 3 percent.
“Free zones come with full tax exemptions and zero-rated VAT on all exports,” said Rebecca Nalumu, Senior Manager for Special Economic Zone Operations and Compliance at UFZEPA. “All an investor needs is registered land, a company, and a licence.”
Northern Uganda already produces high-demand agricultural products, such as sesame, sunflower, millet, mangoes, avocados, hides and skins, but most of this is sold raw rather than processed locally.
“There’s big demand in places like the UAE, Italy, Kenya, Germany, the UK and China,. Free zones don’t just help big firms; even small investors can benefit.”” noted John Bosco Lwere, UFZEPA’s Manager of Export and Development.
To support businesses aiming to export, UFZEPA is working closely with the Uganda Revenue Authority (URA) to help traders understand tax exemptions and customs procedures, the Uganda National Bureau of Standards (UNBS) to ensure goods meet export quality, and Operation Wealth Creation (OWC) to boost farm production and encourage value addition.
UFZEPA’s Executive Director, Hez Kimoomi Alinda, urged the media to highlight positive stories about Uganda’s exports, warning that negative publicity could damage the country’s trade reputation.
The region’s trade potential is also expected to grow when the ongoing rehabilitation of the 375-kilometre Tororo–Gulu railway line is completed by February 2026.
“Once the railway is ready, it will open new opportunities for traders and farmers in Northern Uganda,” said Victoria Nakate, Senior Marketing Officer at Uganda Railway Corporation.
Local officials have called for the railway to be extended further to support farming communities.
“Extending it from Gulu to Pakwach would help farmers in Nwoya reach wider East African markets,” said Godfrey Odoki Ocitti, Nwoya District Commercial Officer.
Experts, however, caution that adding value to products is just as important as accessing foreign markets.
“Many farmers still lack processing and packaging facilities,” explained Prof. Dr Ogenga Otunnu from Operation Wealth Creation. “Some centres have been built, but many don’t have stable electricity or equipment.”
Local businesses see potential but also face challenges.
“Free zones are a good chance for firms like Bukona to expand,” said Patricia Akelo of Bukona Agro Processors. “But the rule to export at least 80 percent is tough for newer businesses that still need local sales.”
Dr. Kojo from Operation Wealth Creation said their partnership with UFZEPA helps to coordinate trade processes and improve product standards.
“It helps us respond faster to farmers’ and exporters’ needs,” he said.
For companies like Equator Seeds, the benefits extend beyond exports.
“Tax exemptions will help us cut costs, lower seed prices for farmers and create more jobs,” said Dominic Kimara of Equator Seeds. “It will also open markets for us in other countries.”
At present, Northern Uganda has only one privately owned free trade zone operating in Arua City. The government has secured 150 acres in Moyo District to set up another under a Public Private Partnership.
According to UFZEPA, if private investors, government agencies and farmers collaborate effectively, Northern Uganda could become a major export hub supporting Uganda’s economic goals and improving livelihoods across the region.
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