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Lagan Group secures deal to revamp £189m Ugandan site

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Lagan Group officials and government officials cutting the ribbon at Kampala Industrial Park at Namanve in central Uganda

Lagan Group officials and government officials cutting the ribbon at Kampala Industrial Park at Namanve in central Uganda

Lagan Group officials and government officials cutting the ribbon at Kampala Industrial Park at Namanve in central Uganda

Belfast company Lagan has won a contract worth $246m (£189m) to redevelop a business park in Uganda.

The deal was confirmed at a UK-Africa Investment Summit in London yesterday.

It was announced that the Government of Uganda had secured a £185m loan from the UK Government to support the delivery of the project, which will be led by businessman Kevin Lagan's group of companies.

The revamp of Kampala Business Park is expected to help create over 200,000 jobs in the region while tapping into Lagan's Northern Ireland staff, expertise, materials and equipment.

Lagan has partnered with Ugandan company DOTT Services for the upgrade, which includes the construction of improved infrastructure including roads, water, electricity waste treatment facilities, sewerage and drainage networks and optic fibre networks.

Mr Lagan said: "Following the successful sale of our building materials business to Breedon plc in 2018, we have targeted a range of exciting new projects which support economic growth and infrastructural development nationally and internationally.

"We have a strong track record working in Africa and the upgrade of Kampala Industrial Business Park strengthens our footprint in the region and supports the regeneration of a very important area of Uganda.

"The UK-Africa Investment Summit reflects the commitment by the governments to strengthen economic ties between the UK and Africa and the Lagan team is delighted to play its part in this process, which not only supports our business, but is a welcome boost to the economies of both Northern Ireland and Uganda."

The Kampala Industrial Business Park, at Namanve in central Uganda, was developed by the Uganda Investment Authority in the early 2000s as a central location for investors to locate factories, warehouses, and distribution centres. It covers almost 900 hectares and houses some of Uganda's biggest firms including Roofings Steel Mill and Hima Cement.

Support from UK Export Finance (UKEF), the Government's export credit agency, has been used to help UK exporters gain a foothold in Africa. UKEF has provided close to £2bn of financial support for UK exporters in Africa since 2018.

International Development Minister Andrew Stephenson said: "This announcement shows the UK Government's commitment to help ambitious companies in Northern Ireland like Lagan unlock export potential and boost their trading partnerships with African nations."

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