The government is dedicated to bolstering the manufacturing sector, particularly by enacting legislation and policies aimed at creating a more favorable investment climate.
Uganda’s Deputy Speaker, Thomas Tayebwa announced that the government plans to invest shs400 billion to revamp the Sino-Uganda Mbale Industrial Park, which currently provides jobs for around 7,000 Ugandans across various manufacturing and processing facilities.
“We have already signed the contract with China Railway No.3 Engineering Group. Every quarter, we are supposed to give you about shs135 billion and the payments have not been going well but when I go back [Parliament], I am going to follow this up so that we release money for transforming the park,” Tayebwa said.
The Deputy Speaker pledged his support during the groundbreaking ceremony for the second phase of Unisteel Investment Uganda Limited’s production plant in Mbale City, on October 11, 2024,
Tayebwa praised Paul Zhang, the Chairman of Tian Tang Group, for his significant investment in the manufacturing industry, highlighting how it has generated employment opportunities for the residents of Mbale and its neighboring regions.
“I am going to engage the leadership of the Uganda Investment Authority so that we have a full one-stop centre in this industrial park where an investor can process Uganda Revenue Authority, National Social Security Fund and other necessary permits easily,” he added.
Tayebwa emphasized the importance of electricity for the manufacturing industry and committed to advancing the presidential directive that would allow factories to obtain power at a rate of five US cents per kilowatt hour.
“This industrial park has the capacity to consume 200 megawatts and to ensure there is reliable power here, the Electricity Regulatory Authority and Uganda Electricity Transmission Company Limited will install a 50MVA transformer which will stabilise power in the industrial park,” he noted.
The State Minister for Karamoja Affairs, Florence Nambozo, encouraged investors to establish product outlets in Mbale, making it easier for local residents to access goods produced at the Mbale Industrial Park. In a related matter, the Deputy Speaker suggested implementing a government policy that would reward investors who enhance the value of Ugandan raw materials.
This statement came after his visit to the Direct Reduced Iron (DRI) and Scrap to Electric Furnace system at Tembo Steel Mills Limited in Iganga Municipality, which significantly reduces carbon dioxide emissions by 70 percent.
“Manufacturers who use Ugandan raw materials should be supported to pay a certain percentage compared to those importing raw materials,” Tayebwa said.
Tayebwa emphasized that for Uganda’s raw materials to be effectively utilized in steel production, the government must assist all businesses involved in iron ore manufacturing in obtaining the necessary mining licenses.
“The target of the leadership of Parliament is to pass proposals and funding based on pro-business interventions. We want to support the President in his message on value addition and this can be done by reducing the cost of doing business,” Tayebwa said.
