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Lt. Gen. James Mugira, Managing Director, National Enterprise Corporation (NEC), talks to World Business Journal about NEC’s new initiatives, including a draft masterplan for an industrial park at Kakooge, and the construction of its one-of-a-kind electronic-waste facility in Kampala.

“We are proud to introduce our innovative electronic-waste facility in Kampala, a one-of-a-kind initiative in East Africa.

Lt. Gen. James Mugira

Managing Director, National Enterprise Corporation (NEC)

Could you provide an overview of the National Enterprise Corporation (NEC)?

The NEC is the commercial arm of Uganda Peoples’ Defence Forces (UPDF) and was established by the NEC Act, 1989 (Chapter 312). It operates as a holding company overseeing subsidiaries such as Luwero Industries, NEC Construction, Works and Engineering, NEC Agro SMC, NEC Farm Katonga and NEC Uzima. We have recently expanded our portfolio to include NEC Security Services.

NEC has strategic joint ventures with Kyoga Dynamics, NEC Pro Heli International Services, Bosasy Luwero and NEC-Streit (U), to address both military and civilian needs effectively. NEC also plays a pivotal role in fostering economic growth, innovation and national security within Uganda.

In what projects is NEC involved within various sectors and how are these projects contributing to Uganda’s development?

First, NEC, through Luwero Industries, is deeply committed to contributing to national security by fulfilling its obligation within the realm of the country’s defense industries. Second, NEC is committed to Uganda’s food security agenda, in which we play a central role in enhancing food accessibility, affordability and nutritional quality in Uganda. This includes our exclusive provision of maize meal to UPDF; our efforts in staple food cultivation on 20.7 sq kilometres on NEC farms; and our collaboration with the Egyptian Armed Forces to enhance livestock conditioning.

Additionally, NEC is the largest supplier of fertiliser for Uganda’s Multisectoral Food Security and Nutrition Project (UMFSNP). We are investing in advanced post-harvest handling systems and state-of-the-art grain storage silos that will be available in Bweyale in the midwestern part of the country.

In the construction sector, we are contributing to the government’s strategy to establish a competitive state construction company. We have been entrusted with constructing the Kiira Vehicle Plant, a groundbreaking project. Additionally, we are involved in road and railway projects in partnership with Uganda National Roads Authority (UNRA).

In the oil and gas sector, we have established a strategic joint venture with China Oil HBP Group. Together, we have commenced the construction of a cutting-edge waste management plant for CNOOC in Kikuube District, with an anticipated completion date set for 2025. Additionally, we are proud to introduce our innovative electronic-waste facility in Kampala, a one-of-a-kind initiative in East Africa. The already operational facility targets responsible e-waste collection and management.

Can you provide an update on plans for establishing an industrial and business park in Kakooge?

The industrial park project is an exciting development for us. We have acquired approximately 2.6 sq kilometres in Kakooge, around 100 km along the Kampala-Gulu highway, and will be known as the T6 Industrial Park.

We have already taken important steps in its planning. We have developed a draft masterplan, which divides the park into five sectors: heavy manufacturing, light manufacturing, garments, agriculture processing and medical industries. Over 4000 sq metres of land have been allocated to the Ministry of Science, Technology and Innovation for the establishment of a vaccine production facility.

Currently, we are in the process of engaging with various stakeholders and mobilising resources with the goal of commencing construction in the current FY2023/24. We are actively working with relevant authorities on infrastructure requirements such as roads, water and power. Furthermore, we are exploring potential partnerships with foreign investors to support this project.

What will NEC’s role be in the next 3-5 years?

As a government entity with commercial objectives, our strategic direction is intricately tied to the government’s goals, notably Uganda Vision 2040, which seeks to elevate Uganda to a middle-income country by 2040. Over the ensuing 3-5 years, our primary focus remains aligned with the Third National Development Plan (NDPIII). As a state-owned corporation, our activities and vision are steadfastly guided by these political and economic directives.

Within the defence industries, our commitment extends to championing research and development and technology initiatives that bolster the capabilities of the National Army. We continuously monitor global advances in military technology, striving to adapt and innovate for the benefit of our armed forces.

Furthermore, we are deeply invested in augmenting value across various sectors, with a particular focus on enhancing food security. Within the food sector, we are pursuing initiatives to elevate food processing and value addition, fortifying the food security landscape. This strategic approach entails exploring avenues for value addition to agricultural products.

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