The primary conflict centres around the joint venture between Lagan Group Ltd and Dott Services Ltd, who were tasked with overseeing the project.
A major scandal has emerged surrounding the $100 million infrastructure development project at Uganda's Namanve Industrial Park. The project, which was intended to be a cornerstone of Uganda’s industrialisation efforts, has stalled due to internal conflicts between stakeholders and a lack of progress. Initially slated for completion within 42 months, it has only reached 50% of its intended goals, prompting an extension to September 2025.
The Namanve Industrial Park infrastructure project has stalled
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Disagreements between these two key players have led to delays and disruptions across the entire project.
According to a document prepared for the President, "the continued clashing of these parties has eventually spread down to other project parties and projects that they intend to implement together."
Further complicating matters, the Ugandan government has become embroiled in the conflict. The Minister of State for Finance, Planning and Economic Development, Evelyn Anite, and Uganda Investment Authority (UIA) Director General, Robert Mukiza, have clashed over payments of honoraria to UIA staff and a variation in price amounting to €8 million.
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Mukiza’s decision-making has come under fire, including his attempt to terminate Project Manager Alex Nuwagira’s contract and his choice to secure a piece of land that was not agreed upon by all stakeholders.
The project’s progress has been further hindered by a breakdown in communication between key parties. The document highlights that, "to resolve the conflicts, the EPC contract needs to be revised to reflect the original scope sharing between Lagan Group Ltd and Dott Services Ltd."
The industrial Park at Namanve
Pulse Live Uganda
The Namanve Industrial Park is a crucial part of Uganda’s industrialisation strategy, with 190 operational factories currently providing employment to thousands. The delay and infighting are causing widespread concern about the project's future and the potential for the country to realise its full industrial potential.
"If all the above conflicts are not immediately and quickly dealt with comprehensively, the actual project issues may never get resolved," warns the document.
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Among the recommendations to resolve the situation are enforcing reconciliation between stakeholders and appointing a dedicated liaison to monitor the project's progress.
In a bold recommendation, the document suggests that the President should intervene directly, ensuring that "70% of the project scope is fully implemented by Lagan Group Ltd."
For now, the future of the Namanve Industrial Park project remains uncertain, raising questions about whether Uganda will ever see the full benefits of this $100 million investment.
