Uganda has 24 Free Zones – 19 in Central, 3 Eastern, 1 Northern, and 1 Western part of the country. Both local and foreign business enterprises are eligible to be licensed to develop and operate a Free Zone provided they fulfill the required standards
Mr. Isaac Musinguzi a Research Officer at Uganda Free Zones Authority
Free Zones are designated areas where duty free goods are stored, manufactured and or processed for export. All domestic and foreign investors who export 80% and more of their enterprise output are eligible to invest in Free Zones.
On October 19, 2023, the MUBS Entrepreneurship, Innovation and Incubation Centre(EIIC) during the
weekly online become a Better Entrepreneur Series, hosted Mr. Isaac Musinguzi a Research Officer at the Uganda Free Zones Authority to explain to the business community the opportunities therein for small businesses in the Free Zones.
Mr. Musinguzi explained that the Uganda Free Zones Authority was established according to the East African Customs Management Act 2014, to enable the establishment, development, management, marketing, maintenance, supervision and control of Free Zones.
The authority offers consultation to government, enables small businesses in Uganda to compete with global players in the market, developing customized industrial infrastructure and production facilities, attracting businesses that export through marketing and agro- processing and enabling businesses export competitive goods and services.
Mr. Musigunzi encouraged small business owners to take advantage of the free zones to enjoy the benefits that include; exemption from taxes on all goods and services, simplified customs and immigration procedures making it easier for businesses to import and export, high speed internet and transportation networks reduction in operating costs, access to a skilled workforce among others.
Both local and foreign business enterprises are eligible to be licensed to develop and operate in a Free Zone provided they are; registered or incorporated for the sole purpose of developing and operating a Free Zone in Uganda.
The company must have an adequate equity base and access to capital to enable it develop a Free Zone or operate in a Free
Zone.
The activities of the projects for which the Developer or Operator seeks the Free Zone’s License must be commercially viable and must be based on a suitable and credible Business Plan.