President Yoweri Kaguta Museveni has approved plans to establish a second industrial park in Uganda, strengthening the country’s industrialisation drive following positive progress at the China-Uganda Mbale Industrial Park.
The approval followed a high-level meeting held on Friday evening at the President’s country home in Rwakitura, where President Museveni and First Lady Janet Museveni hosted a delegation led by Ms. Lucy Zhang, the Chief Executive Officer of the Mbale Industrial Park’s developer.
During the meeting, Ms. Zhang briefed the President on the current performance of the Mbale facility and formally presented her company’s intention to expand operations by developing another industrial park at a new location within the country. President Museveni welcomed the proposal and pledged full government support to ensure the success of the expansion.
“Tonight, a team from the Mbale Industrial Park led by Ms. Lucy Zhang called on Mama Janet and me at Rwakitura. They updated us on progress at the park and informed us of their intention to set up another industrial park. I welcome their plan and assure them of our support,” Museveni wrote on his official X account.
The 619-acre China-Uganda Mbale Industrial Park, located in Mbale City in eastern Uganda, has been a flagship project under the government’s industrialisation agenda since it became operational in 2018. By the end of 2025, the park hosted about 75 factories and provided employment to more than 12,000 Ugandans.
The facility has attracted an estimated $2.5 billion in investment, with factories producing a wide range of goods including glass, detergents, mobile phones, LED bulbs, baby diapers, and steel products. Raw materials are sourced from both Uganda and China, supporting technology transfer and skills development.
Recent developments at the park include plans to commission four new factories in August 2025 focusing on steel, textiles, electronics, and paper manufacturing. Significant infrastructure investments have also been made, including a $2.5 million wastewater treatment system, alongside government-backed upgrades to power supply and road networks aimed at improving reliability and mitigating flooding.
The park is a key driver of the government’s Buy Uganda, Build Uganda (BUBU) policy, which prioritizes the use of locally sourced raw materials. Products manufactured at the facility are sold domestically and exported to regional markets including Kenya, Tanzania, South Sudan, the Democratic Republic of Congo, and Rwanda.
President Museveni revealed that Chinese investors are seeking an additional 500 acres of land to further expand the Mbale Industrial Park and appealed to local communities to cooperate with authorities to facilitate land acquisition.
The move to establish a second industrial park aligns with Museveni’s broader vision of transforming Uganda from a predominantly trading economy into an industrialized nation. He reiterated government plans to develop similar industrial hubs in regions such as Masaka, Kyotera, and Kalungu, aimed at boosting value addition, creating jobs for the youth, and accelerating national economic growth.
