Submitted by on Thu, 04/13/2023 - 09:10

The Uganda Free Zones Authority Annual Report FY2021/22 discusses, among others, the performance of the Free Zones scheme in Uganda during the FY2021/22. The report presents the achievements, challenges, recommendation and strategic outlook of the scheme for the FY2022/23 from the FY2021/22 Free Zones Enterprise Survey findings.


According to the report, the FY2021/22 saw an increase in Private Free Zones employment and private capital inflows. Investments were USD645 million in FY2021/22, up 10 per cent from USD586 million in FY2020/21, while total employment in Free Zones grew to 9,861 workers in FY2021/22 above 8,389 workers in FY2020/21 representing 17% increase. FY2021/22 also saw 13 percent growth of Free Zones local purchasing and subcontracting expenses on raw materials, inputs, and equipment among others, growing to USD7.47 million compared with US6.09 million in FY2020/21. This demonstrates an improvement in the Free Zones integration in the domestic economy.


In contrast, exports fell sharply to USD67.83 million compared with the USD1.25 billion registered in FY2021/22. The decline resulted from the reduction in export of processed mineral products and the outbreak of the war between Russia and Ukraine which affected supply chains for sourcing inputs and access to export markets in Europe.


During the year, performance of Free Zones was majorly affected by high transport costs; high cost of finance; erratic and unstable power supply; inflation; high air freight costs; scarcity of raw materials and inputs; and 5% export levy on processed gold. To mitigate the impact of the above, in the FY2022/23, the Uganda Free Zones Authority (UFZA) prioritized the alignment of the Free Zones national legislation to the to the EAC Customs Union Protocol provisions, acquisition of land for the development of public Free Zones, strengthening marketing, research collaborations and coordination with other MDAs & Local Governments to support the implementation of the institutional mandate.


The report can be accessed through the link below: