BELFAST-based Lagan Group is to develop a major business park in Uganda.
The company headed by Kevin Lagan, set up a joint venture with Ugandan contractor DOTT Services in late 2018. It came just months after Breedon plc bought the Belfast business for £455 million in April 2018.
The UK Government yesterday confirmed it will loan £185m to the Government of Uganda to help build $246m of infrastructure for the 2,200 acre Kampala Industrial Business Park, located on the outskirts of the east African country’s capital.
The construction work, which commenced two weeks ago, is expected to last around 42 months.
The official announcement was made at the UK-Africa Investment Summit in London on Monday.
Ugandan President Museveni African leaders from 20 other countries attended the summit, hosted by Prime Minister Boris Johnson.
The Department for International Development in London claimed the Kampala project, spearheaded by Lagan, could eventually create up to 200,000 jobs in Uganda. It said the development will also boost the construction sector in Northern Ireland, with staff, materials and equipment to be sourced here.
Lagan chairman Kevin 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.”
International Development Minister Andrew Stephenson said: “This announcement at the UK-Africa Investment Summit 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.
“Development of this park is at the heart of the Government of Uganda’s plans to attract investment, create 200,000 jobs, and support businesses which will benefit the country.”
The infrastructure budget for the project is estimated to be around $250m, with the biggest component involving the development of a road network and bridge.
