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UDC frequently asked questions (FAQS)

1.      What is UDC

UDC stands for Uganda Development Corporation; it is a government parastatal under the Ministry of Trade, Industry and Cooperatives. The core mandate of UDC is to foster the industrial and economic development of the country as the investment arm of Government.

2.      Where is it located

UDC is located at Soliz House, Floor 5, plot 23, Lumumba Avenue, in the Northern part of Kampala City and can be easily accessed from Nakasero, Bombo road and Wandegeya

3.      When was UDC established?

UDC was originally established in 1952 by the UDC Act Chapter 326 of the laws of Uganda as a wholly owned government entity with a mandate of facilitating the industrial development of the country. UDC was (and will again be) the engine of industrial growth in Uganda. It established such iconic industries like Uganda Breweries Ltd, Nytil Jinja, Uganda Hotels, Uganda batteries, Sugar Corporation Uganda Ltd (SCOUL) among other major industrial establishments that are still flourishing to date. By the 1970’s UDC was employing in excess of 24,000 Ugandans and expatriates while contributing about 33% of the country’s total revenue.

4.      When was UDC revived?

UDC became operational again after decades of inactivity in the 2008/2009 Financial Year. It has since then embarked on and is executing a number of projects including the KIS (Kalangala Infrastructural Project), Soroti Fruit Factory, Katwe salt works, and Luwero fruit factory among other projects.

5.      Why was UDC revived

The private sector is crucial to the industrial and economic development of the country, thus in the late 80’s to early 1990’s, the World Bank policy was to minimize the government’s involvement in all trades and leave all the business space to the private sector. However, there was a shift in policy in the late 2000’s after the realization that the private sector cannot fully invest in all sectors of the economy either due to the huge capital outlay necessary or the low return on investment in some sectors of the economy. Thus the Ugandan government has found it prudent to revive UDC to once again lead the industrial development of the country by investing in core large business enterprises in sectors where the private sector is slow, unwilling or doesn’t have the necessary capital and also develop and support backbone infrastructure in different areas along Public-Private Partnerships that would in turn activate further private sector growth.

6.      Will UDC ever regain its past glory

UDC intends to recapture its former glory, we have started with a number of relatively big projects like the Soroti fruit processing factory and Kalangala Infrastructure Services. UDC  intend to start implementing other large projects like the Katwe salt factory, Luwero fruit factory, Moroto cement factory, a Silos project among other big projects that are in the pipeline. Thus indeed UDC, intend to capture and surpass its former glory in the medium to long-term.

 7.      What is the legal Status of UDC?

Cabinet has already directed the Ministry of Trade, Industry and Cooperatives in conjunction with the First Parliamentary Council to draft a new Bill to re-establish the new UDC.

The UDC Bill was passed in Cabinet, was published in the Uganda gazette and now awaits debate and passing by the Parliament before assent by H.E. the President.

It is hoped that the law will come into force before lapse of the first quarter 2015.

8.      What is the difference between UDC and UIA?

UDC is the implementing arm of government’s mainly industrial investments and Public private partnerships (PPP).  It implements government projects as wholly owned government enterprises or as private public partnerships with local or foreign investors.  UIA largely is a one stop investment centre where local and foreign investors can access investment opportunities available n the country, offer investment advice, incentives and licenses and offers assistance in dealing with all regulatory and registration issue required by investors. Thus UIA complements UDC by providing clients who may be interested in PPP’s to implement and exploit local investment opportunities.

9.      Does UDC provide funding to private projects?

No, UDC does not provide funding to private projects; however it executes its projects through Public, Private, and Partnerships (PPP’s) for which it helps to arrange long-term finance for its equity in such projects.

10.  What sectors and current projects is UDC executing?

UDC is active in the agro-processing sectors, mining, infrastructure development and transport service industry.

The current projects include:

  • Soroti Fruit Processing Factory: The project involves the construction of a state of the art fruit processing plant to harness and exploit the abundant fruits available in the Teso Region. The infrastructure and utilities for this project are currently being installed and construction of the plant is scheduled to commence in January 2014.
  • Kalangala Infrastructure Services Project (KIS): this project involves the provision of core backbone infrastructure to the island of Kalanagala to enable the growth of trade and tourism sector in these islands. Core deliverables of this project include reliable ferry services from Bukakata, water and electricity provision on the Main Island as well as road construction.
  • Other projects in the pipeline include: Luwero Fruit Factory, Katwe Salt Factory (Lake Katwe Salt Project), Cement Factory in Moroto, Amuru Sugar Complex, Construction of Silos, Warehouses and grain Processing Industry Project, and Tomato Processing Factory in Bulambuli District,among others.
Last modified on Friday, 22 January 2016 11:46

About Us

Uganda Development Corporation (UDC) is the development and investment arm of the Government of Uganda, with the mandate to promote and facilitate the industrial and economic development of Uganda. read more ...

For more Information

Uganda Development Corporation
Floor 5, Soliz House
plot 23, Lumumba Avenue
P.O.Box 7042, Kampala