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BUSINESS OPPORTUNITIES OFFERED UNDER FREE ZONES IN THE LOGISTICS SECTOR

BUSINESS OPPORTUNITIES OFFERED UNDER FREE ZONES IN THE LOGISTICS SECTOR. By Richard Jabo EXECUTIVE DIRECTOR. 18 th September, 2018. Presentation Outline. Uganda Free Zones Authority Definition of Free Zones Rationale for Free Zones Benefits to the Private Sector Types of Licences

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BUSINESS OPPORTUNITIES OFFERED UNDER FREE ZONES IN THE LOGISTICS SECTOR

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  1. BUSINESS OPPORTUNITIES OFFERED UNDER FREE ZONES IN THE LOGISTICS SECTOR By 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 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: +256 417 722 600 Email: info@freezones.go.ug www.freezones.go.ug Ugandafreezones @freezonesug

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