1. BUSINESS OPPORTUNITIES OFFERED UNDER FREE ZONES IN THE LOGISTICS SECTORBy
Richard Jabo
EXECUTIVE DIRECTOR
18th September, 2018

2. Presentation Outline Uganda Free Zones Authority
Definition of Free Zones
Rationale for Free Zones
Benefits to the Private Sector
Types of Licences
Physical setup of a typical Free Zone
Free Zones and Logistics Hub
Opportunities in Logistics
Procedures for setting up a Free Zone
Conclusion

3. Uganda Free Zones Authority
Is a body corporate created under an Act of Parliament in 2014; Free Zones Act, 2014.
Mandate:
To oversee the establishment, management, marketing, maintenance, supervision and control of Free Zones and other related matters.
VISION: To be Africa’s leading facilitator
of export-oriented Investment and Trade.
MISSION: To create a competitive
client-centric business environment that
facilitates the establishment, management
and regulation of Free Zones to enhance
export-oriented Trade and Industrialisation
in Uganda.
CORE VALUES
Integrity
Innovation
Teamwork
Client Satisfaction
Efficiency

4. Definition of Free Zones
Free Zones are Customs-controlled areas where raw materials and goods may be landed, handled, manufactured or reconfigured for export without being subject to import and export duties.
They include: Export Processing Zones, Free Port Zones, Special Economic Zones, among others.

5. Rationale for Free Zones
Governments have adopted Free Zones as a complementary economic development tools to:
Static Benefits
Accelerate export-oriented manufacturing
Boost Investment (Both Direct Domestic Investment (DDI) and attract Foreign Direct Investment (FDI))
Create employment
Increase forex earnings
Dynamic Benefits
5. Enhance technology and skills transfer
6. Create backward and forward linkages
7. Economic growth

6. Benefits to the Private Sector
Fiscal and non-fiscal incentives;
Economies of scale, resulting from well-planned Zoning and clustering of the business activities. Shared facilities and services reduce operational costs;
Enhanced uptake of new technologies;
Onsite services in form of Customs clearance and Inspection, which ease movement of goods;
Business facilitation and dedicated aftercare services in the acquisition of secondary licences, permits and approvals from other Government Ministries, Departments & Agencies;
Greater access to market information and opportunities;
Serviced physical infrastructure facilities within the Zones (where the Public Sector establishes one).

7. Types of Licences issued by the Authority
Developer’s Licence
Operator’s Licence
Manager’s Licence

8. Physical setup of a Typical Free Zone
Pre-built Factory Units;
Warehouses and Storage Facilities;
Office space;
Road & Rail Infrastructure;
Parking Yard;
Administration block;
Police Post Area;
Perimeter Wall or Fence; and
Commercial Centre with social facilities and amenities.

9. Free Zones and Logistics Hub
UFZA has the following parcels of land;
109 acres in Entebbe
5 acres at Entebbe International Airport
20 acres in Jinja, Kaseses and Soroti Industrial Parks.
(TMEA in partnership with UFZA, is planning to establish a Logistics Hub in Jinja Industrial Park). Facilities to be provided in a Logistics Hub include;
Modern warehouses
Production areas
Administrative buildings
Cold Storage
Customs facilities

10. Opportunities for the Logistics Sector
Business Opportunities in Free Zones include:
Warehousing and storage
Labelling, Packaging and repackaging
Sorting, grading, cleaning and mixing
Breaking bulk
Simple assembly
Grouping of packages

11. Setting up in a Free Zone in Uganda
Locate a Strategic Site
Register your company in accordance with S.25(3) of the Free Zones Act
Apply to UFZA (Attach Business Plan, EIA and Master Plan)
Obtain the requisite Licence
Commence Operations within 12 months
Declaration of the Site as a Free Zone
UFZA works with the Developer/Operator throughout this process

12. Conclusion
Free Zones across the world have been used as complementary economic development tools to accelerate economic growth, promote export-oriented investments, create employment and enhance the attraction of Foreign Direct Investment. The Ugandan Free Zones programme is unique with attractive incentives which private sector in Logistics Sector need to seize. The Uganda Free Zones Authority is committed to supporting the Private sector to ensure gainful impact for Government and the Private Sector.

13. Contact Us
Uganda Free Zones Authority 6th Floor Communications House, Plot 1 Colville Street, P. O. Box 37578, Kampala Tel: