December 2, 2022

Business Detect

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High cost of land scaring investors from Rubanda, authorities

2 min read

The high cost of land in Rubanda district is scaring away investors. According to authorities, the cost of land in Rubanda shot up when it became an independent district in July 2016 after being curved from Kabale.

Some of the areas where the cost of the land is said to be high include Rubanda town council and areas around Kabale-Kisoro road, Ecuya Forest reserve and Bwindi Impenetrable National Park.

Kenneth Jogo Biryabarema, the Rubanda District LC 5 Chairperson, says the high cost of land has impacted heavily on investors especially hoteliers, saying some of them have decided to stay away from the district.

He says their efforts to market the district to investors due to its beautiful scenery, presence of Lake Bunyonyi, Bwindi Impenetrable Forest National Park and Echuya Central Forest Reserve are being frustrated by exorbitant land prices.

According to Biryabarema, an acre of land costs between Shillings 50-100 million near the Lake and forests from less than Shillings 20 million before the district was created.

He says that hiked land price has forced many investors to withdraw their interest.

He cites the example of Aponye Uganda Limited, which dropped plans to establish various hotels in the district citing high cost of land. He also says the challenge is compromising their development plan. 

Justus Owoyesiga Kakwenza, the LC V Councilor Nyamweru Sub County, says that when Rubanda became an independent in 2016, residents started appreciating the value of their land as the most important asset they have.

He says that they are trying to sensitize residents to reduce the price of land prices so as to attract investor to increase employment opportunities.

Chris Ngabirano, an investor and Director of AA Safaris and Tours Limited attributes the problem to the high population density in the district compared to the available land.

Ngabirano says he and others investors have resorted to invest in other districts when land prices are fair.

URN

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