KAMPALA, Oct. 23 (Xinhua) -- Ugandan President Yoweri Museveni on Tuesday launched the first phase of a 620 million U.S. dollar Chinese industrial project in the eastern part of the African country.

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.

Museveni said the project will reduce the amount of money spent on importing some of the products that are now going to be produced locally.

Museveni hailed China for encouraging both private and state enterprises to invest in Africa.

Zheng Zhuqiang, Chinese ambassador to Uganda, said the project was the biggest private investment in Uganda and would bring in high tax revenue. He thanked Museveni for the support to the China-Uganda bilateral investments.

According to the Ugandan government, the project will be a key component in the economic and trade cooperation between China and Uganda.

The project located in Tororo district at the border of Uganda and Kenya will also benefit neighboring countries like Rwanda, Kenya and Tanzania.