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China-Uganda Mbale Industrial Park: We must take root in the local area
Seetao 2022-03-25 09:39
  • China has become the country with the largest investment in Ukraine, investing US$1.074 billion in Ukraine by the end of 2020
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When it comes to the vast African continent, the words "hot and dry" pop up in people's minds. However, the country of Uganda is an "outlier" of this continent, with four seasons like spring and abundant rain, and is known as the "Pearl of Africa". In recent years, driven by the Belt and Road cooperation between China and Africa, China-Uzbekistan economic and trade relations have flourished. Since 2013, China has become the country with the largest direct investment in Uzbekistan. In the process of many Chinese-funded enterprises landing in Uganda, parks such as the China-Uganda Mbale Industrial Park have often become popular options for inspection.

The China-Uganda Mbale Industrial Park, built and operated by Uganda Tiantang Group, started in 2018, covers an area of 2.51 square kilometers, and has a total investment of 600 million US dollars. From the perspective of planning area, the China-Uganda Mbale Industrial Park consists of three phases of planning, and correspondingly, the development concept of the park is also divided into three phases, namely the new phase, the rising phase, and the maintenance phase.

In the first stage of the new period, the park is mainly based on exploration, to understand what kind of domestic enterprises are suitable for development in Africa, and to explore the needs of the host country. The planning of the park mainly focuses on the urgently developing industries in Ukraine, such as agricultural product processing, metallurgical building materials, daily necessities, clothing and textiles, automobile assembly, power electronics, medicine and chemical industry. China-Uganda Mbale Industrial Park hopes to take advantage of the rich local natural resources and export tax-free policy, based on the East African market of 200 million people, while exporting China's mature production technology and management experience to the local and neighboring countries, and radiating products and services to the Europe and the United States, to build an inclusive and continuous improvement of overseas industrial parks. With the approval of the China-Uganda Mbale Industrial Park as a national-level industrial park in Uganda, it will better help Chinese enterprises to settle in Africa and promote the high-quality development of the Belt and Road Initiative.

As Uganda Tiantang Group has developed in the local area for more than 20 years and has also had successful experience in the construction of industrial parks, the China-Uganda Mbale Industrial Park has quickly progressed to the second stage, which is the rising stage. In order to adapt to this stage, Uganda Tiantang Group has set up offices in major cities in China to select relevant enterprises and attract them to settle in. As of December 2021, 25 companies including Senda Group, Chint Group, Grace Sponge, and Uganda Automobile Group have settled in the park.

In the third stage in the future - the maintenance period, the China-Uganda Mbale Industrial Park will safeguard the interests of every enterprise and partner in the park, promote the healthy and rapid development of the park, and open up more tracks on this basis. , to create more possibilities for the park and the settled enterprises.

The reason why China-Uganda Mbale Industrial Park has such development potential and confidence mainly comes from the following two aspects

One is the outstanding advantages of the park. First of all, it has obvious location advantages. Overseas economic and trade cooperation zones are usually located in places with convenient transportation, close to the airport or port, not far from the city center, or even at the junction of two or more countries to ensure a broad market hinterland. China-Uganda Mbale Industrial Park is located in Mbale, the third largest city in eastern Uganda, only 5 kilometers away from the city center, 200 kilometers away from Kampala, the capital of Uganda, and 50 kilometers away from the Kenyan border. National highway, convenient transportation, extending in all directions, the surrounding labor is sufficient. Secondly, the park enjoys a series of preferential policies, such as exemption from corporate income tax, exemption from import and export tariffs, permanent exemption from prepaid income tax, exemption from stamp duty, permanent enjoyment of public bonded warehouses, 99-year land use rights and industrial land can be freely separated sale etc. Third, the infrastructure is complete, including water, electricity, gas, communication, Internet, education and other facilities. The China-Uganda Mbale Industrial Park is also equipped with a Luban workshop that provides skills training for African youth. Finally, most of the cooperative enterprises in the park are large and medium-sized enterprises with strong international management capabilities.

The second is the escort of the park's three adherence concepts.

Adhere to bilateral interaction and strengthen political guarantees. The construction of overseas economic and trade cooperation zones involves political, economic, cultural and other in-depth cooperation and exchanges between the cooperating countries, covering a wide range and coordinating content, and needs to be jointly promoted by both parties. At present, the relationship between China and Uganda is a comprehensive partnership. Tiantang Group has more than 20 years of development experience and rich political and business resources in Uganda. The President of Uganda and government officials and leaders of Tiantang Group often visit the park to inspect the development situation and propose development. It is recommended to formulate relevant policies for the park to help the operation and development of the park.

Adhere to win-win cooperation and implement a localized business strategy. When constructing an overseas economic and trade cooperation zone, an influential enterprise in the host state must be selected for cooperation. These enterprises have a deep social background and strong personal connections in the local area, and can exert their localized advantages in the demolition of the park, marketing, and service platforms.

Adhere to collaboration and cooperation, and focus on attracting investment in the park. On the one hand, the investment promotion of overseas economic and trade cooperation zones should make full use of the resource advantages and policy advantages of the host country to provide "one-stop" services, so as to introduce domestic enterprises and industries with competitive advantages and production capacity advantages into the park. The China-Ukraine Mbale Industrial Park has specially set up a "one-stop service center" with functional departments such as customs, registration, and commodity inspection, providing registration, commodity inspection, visa, customs, taxation, logistics, financing and other supporting services for enterprises entering the park; Among the more than 3,000 employees in the park, there are about 200 Chinese employees, who specially form a service team, responsible for providing barrier-free and efficient work and life services for enterprises entering the park, and providing comprehensive protection for enterprises entering the park; Luban in the park The workshop can provide vocational skills training for employees of enterprises entering the park to meet the production needs of enterprises. Keywords: One Belt One Road, One Belt One Road News, One Belt One Road Project

China-Uganda Mbale Industrial Park believes that after the epidemic, the development of the park will usher in an outbreak period, and the resilience and enterprising spirit of Chinese enterprises will be greatly improved. At a time when the world economic recovery is still facing challenges and China's economy is developing steadily, the world market urgently needs Chinese enterprises to inject new vitality into it. In this context, the China-Uganda Mbale Industrial Park will continue to be down-to-earth, accelerate the construction of the park, improve the operation concept of the park, and make full preparations for the development of the park and the wave of overseas investment by Chinese enterprises.Editor/XuNing

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