Ugandan President Yoweri Museveni has approved plans to establish a second industrial park in the country, signalling a renewed push to expand manufacturing and attract foreign investment as part of Kampala’s long-running industrialisation agenda.
Museveni gave the green light after receiving a briefing from developers of the China-Uganda Mbale Industrial Park, one of the country’s flagship manufacturing hubs, during a meeting at his country home in Rwakitura, western Uganda.
The delegation was led by Lucy Zhang, chief executive officer of the park’s developer, who updated the president on progress at the eastern Uganda facility and formally presented plans to expand operations by setting up another industrial park at a new location.
“The team from the Mbale Industrial Park led by Ms Lucy Zhang called on Mama Janet and me at Rwakitura,” Museveni said in a post on X, formerly Twitter. “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.”
The meeting was also attended by First Lady Janet Museveni, underscoring the political backing behind the expansion at a time when the government is prioritising job creation and value addition through manufacturing.
The China-Uganda Mbale Industrial Park, located on 619 acres in Mbale City, eastern Uganda, has been a centrepiece of Museveni’s industrial policy since it became operational in 2018. Developed with significant Chinese investment, the park is intended to reduce Uganda’s dependence on imports while creating employment and boosting exports to regional markets.
By the end of 2025, the facility is expected to host about 75 factories employing more than 12,000 Ugandans, according to figures shared with the president. The factories manufacture a wide range of goods including glass, detergents, mobile phones, LED bulbs and baby diapers, using raw materials sourced from both Uganda and China.
Total investment at the park is estimated at around $2.5 billion, making it one of the largest industrial projects in the country. Its products are sold domestically and exported to neighbouring Kenya, Tanzania, South Sudan, the Democratic Republic of Congo and Rwanda.
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Recent developments at the Mbale site include plans to commission four new factories in August 2025, specialising in steel, textiles, electronics and paper production. Key among them are Uganda United Steel Investment Co. Ltd. and Xinlong Textile & Garment Technology Co. Ltd.
The park has also seen major infrastructure upgrades, including a $2.5 million wastewater treatment system, alongside government investments to improve electricity reliability and road networks to mitigate flooding risks that had previously disrupted operations.
Museveni has repeatedly said that industrial parks are central to his vision of transforming Uganda from a largely trading economy into an industrialised one. Speaking at an inauguration ceremony at the Mbale park in late August, he stressed that attracting investors capable of creating jobs was critical to national development.
“As a nation, we must focus on sectors that generate wealth and employment for our people,” Museveni said at the time. “This will also address the need for import substitution, especially for consumer and commercial goods.”
He also revealed that Chinese investors were seeking an additional 500 acres of land to expand the existing Mbale park, and urged local communities to cooperate with authorities to facilitate land acquisition for industrial development.
The proposed second industrial park would further entrench Chinese investment in Uganda’s manufacturing sector, where Beijing-backed projects play a growing role. China is already one of Uganda’s largest sources of foreign direct investment, particularly in infrastructure, energy and industry.
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Museveni has pledged to replicate the industrial park model in other regions, including Masaka, Kyotera and Kalungu, as part of efforts to promote value addition, regional balance and youth employment.
Analysts say the expansion reflects both Uganda’s ambition to industrialise and the challenges it faces, including infrastructure gaps, land acquisition disputes and the need to ensure skills development keeps pace with factory growth.
For now, government officials say Museveni’s endorsement sends a strong signal to investors that Uganda remains open to manufacturing-led growth, with industrial parks at the heart of its economic transformation strategy.
