GULU, August 5, 2025 –– Cooperatives in Northern Uganda and across the country are being encouraged to take advantage of the opportunities presented by Free Trade Zones [FTZs], as a means to boost exports, add value to agricultural products, and improve incomes.
What are FTZs?
Free Trade Zones, also known as Special Economic Zones [SEZs], are designated areas within a country where businesses enjoy preferential policies such as tax exemptions, reduced tariffs, and simplified customs procedures. These zones are designed to attract investment, promote exports, and stimulate industrial growth by reducing barriers to trade.
According to the Uganda Free Zones and Export Promotion Authority [UFZEPA], FTZs provide access to larger international markets, reduce trade costs, and encourage value addition, creating opportunities for both smallholder and commercial producers to thrive in export-led ventures.
Between the financial years 2019/2020, Uganda’s FTZs saw a substantial increase in export earnings, rising from US$ 154 million to US$ 1.247 billion.
As of August 2022, Uganda had 24 gazetted Free Trade Zones: 19 in the Central region, 3 in the East, including one in the North, and 1 in the Western region. These are managed by UFZEPA, which was established under the Free Zones Act, 2014.
Focus on Northern Uganda
UFZEPA Executive Director, Hez Kimoomi Alinda, urges agricultural cooperatives in the Acholi and Lango sub-regions to seize the opportunities within FTZs to accelerate growth.
He noted that many agricultural products from these regions, such as sesame, sunflower, finger millet, mangoes, avocados, hides and skins, are in high demand internationally.
“There’s strong demand in countries like the UAE, Italy, Kenya, Germany, the UK and China,” said Kimoomi. “Free Zones are not only for large-scale businesses. Even small cooperatives and farmer groups can benefit.”
Despite Northern Uganda’s rich agricultural potential, it remains underrepresented in the national network of Free Trade Zones. Currently, only one privately-owned FTZ exists in Arua City.
Addressing value addition and infrastructure gaps
Many cooperatives in Acholi, Lango, and West Nile still sell raw agricultural produce, which limits their income. Kimoomi stressed the importance of processing and value addition, which could be better supported under the FTZ framework.
To help bridge existing gaps, UFZEPA is working closely with key institutions such as the Uganda Revenue Authority [URA], which is raising awareness about tax exemptions and customs procedures; the Uganda National Bureau of Standards [UNBS], which ensures products meet export requirements; and Operation Wealth Creation [OWC], which supports production at the farm level.
Northern Uganda’s trade potential is also expected to receive a significant boost once the 375-kilometre Tororo–Gulu railway line rehabilitation is completed, slated for February 2026.
“Once the railway is operational, it will unlock new trade routes and reduce transport costs for farmers in Northern Uganda,” said Victoria Nakate, Senior Marketing Officer at the Uganda Railway Corporation.
In support of this, Godfrey Odoki Ocitti, Commercial Officer of Nwoya district, urged the extension of the railway line from Gulu to Pakwach, which would further ease the transport of produce to regional markets.
“Many cooperatives are trying to add value to their products, but without access to foreign markets and proper packaging facilities, they are still limited,” Ocitti explained.
A step in the right direction
Agro-processors and cooperative representatives who attended a sensitisation session in Gulu welcomed the government’s initiative.
“Free Zones are a good opportunity for companies like Bukona to grow,” said Patricia Akello of Bukona Agro-Processors.
Dominic Kimara, of Equator Seeds, echoed this optimism: “Tax exemptions will help reduce costs, lower seed prices for farmers, and create jobs. We’ll also be able to access new international markets.”
The government has already secured 150 acres in Moyo district to establish another Free Trade Zone under a public-private partnership model.
According to UFZEPA, with effective collaboration among government agencies, private investors, and farmers, Northern Uganda could evolve into a major export hub—contributing significantly to national development.
This effort aligns with Uganda’s 10-fold Growth Strategy, an ambitious plan to grow the economy to US$500 billion by 2040, primarily by increasing export value by at least 15 percent annually.
https://thecooperator.news/mps-ask-govt-to-establish-more-industrial-parks/
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