The project dubbed, “Uganda-China Free Zone of International Industrial Cooperation”, undertaken by the Dongsong Energy Group, will manufacture glass, steel and organic-fertilizers, creating about 3,000 jobs at peak when completed in 2020.
The Ugandan president said the project would reduce the amount of money spent on importing some of the products that will now start being produced locally.
Museveni hailed China for encouraging both private and state enterprises to invest in Africa.
Zheng Zhuqiang, China’s ambassador to Uganda, said the project was the biggest private investment in the East African country and would bring in high tax revenue.
According to the Ugandan government, the project will be a key component in economic and trade cooperation between China and Uganda.
The project located in Tororo at the border of Uganda and Kenya will also benefit neighbouring countries like Rwanda, Kenya and Tanzania.