Chinese to invest $1.5 billion to develop a first class Free Trade Zone City in Rakai, Uganda.
On the 12th of August 2008 Kagera Eco-Cities Limited (Uganda) and Paradise International Investment Limited (China) signed a Memorandum of Understanding at Kampala Serena Hotel, witnessed by several Ambassadors and Government dignitaries. This $1.5 billion investment, the Lake Victoria Free Trade Zone (LVFTZ) covering two hundred (200) square miles will start in December 2008. It is the single largest Chinese private investment in East Africa. LVFTZ is located in the District of Rakai in Southern Uganda, bordering with Northern Tanzanian District of Bukoba.
On 18th January 2006, the Government of the Republic of Uganda signed a comprehensive Memorandum of Understanding (MoU) with Kagera Eco-Cities Limited, authorizing the development and construction of Sseesamirembe Eco-City: Lake Victoria Free Trade Zone. The MoU offers fiscal and administrative incentives. It exempts companies that domicile and operate exclusively in the Free Trade Zone from Income Tax, Customs Duties, Corporate Income Tax and Value Added Tax (VAT). Similar to the world renowned Special economic Zones like Jabel Ali-Dubai, Shenzhen-China, Tinapa-Nigeria, the Free Zone was granted powers of a municipality and a charter based on international best practices of governance that ensure RTCF (Red Tape and Corruption Free) administration. The Eco City has thus the power to enact ordinances that are in harmony with the Constitution of the Republic of Uganda, so as to ensure that development is controlled and occurs in an ecologically friendly and orderly manner.
Sseesamirembe Eco-City: Lake Victoria Free Trade Zone is managed by the "LAKE VICTORIA FREE TRADE ZONE AUTHORITY LTD" (LVFTZA).
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