Uganda to roll out new green guidelines for investors

The announcement was made by the State Minister for Industry, David Bahati adding that President Museveni is due to address the nation on the new plans regarding the environment and investment.

According to Bahati, the 22 industrial free zones being established around the country will only accommodate investors who have green technology as their core policy.

The Green Economy concept supported by the UN Environment Program (UNEP) is aimed at mitigating climate change by protecting the environment through measures like reducing carbon emissions.

“In a green economy, growth in employment and income is driven by public and private investment into such economic activities, infrastructure, and assets that allow reduced carbon emissions and pollution, enhanced energy and resource efficiency, and prevention of the loss of biodiversity and ecosystem services,” says UNEP.

Bahati mentioned that the Green Economy Policy will be the code of conduct for industrial parks and any new factories.

The Executive Director for Uganda Free Zones Authority, Hez Alinda Kimoom blamed weak regulation of industrial growth for the out-of-control establishment.

According to him, the green guidelines will mitigate this issue by starting with limiting licenses for free zones until all requirements are met including location.

Trouble in paradise

Weaknesses have been pointed out in the new stance towards a green economy, mainly, sustainability.

According to Damalie Ssali, the chief programs and projects officer at the Private Sector Foundation of Uganda (PSFU), the private sector is limited in capacity to operate under green policies.

She argued that while it is important to protect the environment during production, small and medium enterprises (SMEs) notably, cannot handle some things. Even in industrial zones where it would be cheaper to go green, many SMEs don't know that they can access those facilities.

There's a perception in the private sector that these facilities are meant for large foreign investors.

Ssali urged the government to source international climate funds for low-credit facilities that can be used to support the private sector.

Concerning the establishment of factories in wetlands, she said that Uganda has to address its planning problem concerning investment opportunities. Moreover, she noted, Uganda's environment is key to marketing the country to potential investors even in non-environment-related sectors.