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Fri 24 Jul 2009 10:14 AM

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Dubai-based investor eyes Uganda's airport - govt

African country mulls proposal by Dodsal Group to modernise international airport.

Uganda said on Thursday that it was considering a proposal by Dubai-based Dodsal Group to expand and modernise Kampala's Entebbe international airport, including establishing a free export-processing zone.

Like other east Africa nations, Uganda is seen as a frontier market for foreign investors and its economy has grown robustly over the past two decades. It is expected to grow six percent in 2009-2010

"The proposal and study is to make integrated infrastructure development where, amongst others, there will be established an Entebbe airport free zone and export processing zone for agricultural commodities and light industry," Aston Kajara, state minister for investment, told reporters.

"We are trying to establish many free zone areas like Dubai," he said, without elaborating on how much the plan would cost. The proposal also included more terminals, increased storage capacity and extra flight capacity.

The airport currently serves 16 airlines flying to 14 destinations, according to the Civil Aviation Authority website.

Foreign direct investment fell by 5.5 percent in 2008/09 to $735.4 million on reduced flows from traditional western sources. (Reuters)

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