How NEC Uses Public Land to Attract Foreign Investment

What the report says

The National Enterprise Corporation (NEC), the commercial arm of Uganda’s defence ministry and the UPDF, is using public land to draw private and foreign investors into defence, agriculture and other industrial projects, according to Nile Post. The arrangement was outlined by Defence Minister Kiryowa Kiwanuka when NEC appeared before Parliament’s Defence and Internal Affairs Committee to explain its joint ventures and business operations.

Nile Post reported that NEC has set aside land at the Nakasongola Military Industrial Complex and in Gomba District for several projects. These include 640 acres at Kisozi for meat and bean processing and as much as 500 hectares at Katonga for an agricultural model farm with an Egyptian partner. At Nakasongola, land has also been allocated to companies involved in defence-related industrial activity.

Kiwanuka said the partnership model allows NEC to contribute land, infrastructure and market access, while investors bring most of the capital, machinery, technology and technical expertise. He also said NEC receives about Shs2 billion a year from government, mainly for salaries and operating costs, which limits its ability to fund large projects on its own.

The report said NEC’s joint ventures cover both military and civilian work, including helicopter maintenance, armoured vehicle manufacturing, pharmaceuticals, automobile assembly and farming. While the partnerships are described as supporting jobs, skills transfer and local production, Nile Post noted that officials did not provide overall profit or revenue figures, leaving open questions about the returns to the state from the use of public assets.