The government has reiterated its dedication to supporting the manufacturing sector through legislation and policies aimed at creating a more conducive environment for investment.
Investment in Sino-Uganda Mbale Industrial Park
Deputy Speaker Thomas Tayebwa announced the government’s plan to invest UGX 400 billion to transform the Sino-Uganda Mbale Industrial Park, which currently employs approximately 7,000 Ugandans.
The announcement was made on Friday, October 11, 2024, during the groundbreaking ceremony for the second phase of Unisteel Investment Uganda Limited’s production plant in Mbale City.
“We have signed a contract with China Railway No.3 Engineering Group for the park’s development. While payment delays have occurred, I will ensure that Parliament releases the funds needed to carry out this transformation,” Tayebwa stated.
Recognizing Key Investors and Job Creation
Tayebwa praised Mr. Paul Zhang, Chairman of Tian Tang Group, for his significant investments in the manufacturing sector.
Zhang’s efforts have created numerous job opportunities for people in Mbale and surrounding areas. Tayebwa also committed to improving the investment process by working with the Uganda Investment Authority to establish a one-stop center within the industrial park.
This center will allow investors to easily process permits with agencies such as the Uganda Revenue Authority and National Social Security Fund.
Addressing Power Supply for Manufacturing
Tayebwa underscored the importance of reliable electricity for the manufacturing sector. He pledged to push forward a presidential directive that ensures factories can access power at five US cents per kilowatt hour.
“This industrial park has the potential to consume 200 megawatts of power. To ensure reliable supply, the Electricity Regulatory Authority and Uganda Electricity Transmission Company Limited will install a 50MVA transformer to stabilize power within the park,” Tayebwa explained.
Encouraging Local Product Outlets
State Minister for Karamoja Affairs, Hon. Florence Nambozo, urged investors to establish outlets in Mbale so that local residents can easily access products manufactured at the Mbale Industrial Park.
This initiative would help bring the benefits of local manufacturing closer to the community.
Supporting Value Addition and Local Raw Materials
Tayebwa proposed a government policy aimed at rewarding investors who maximize value addition using Ugandan raw materials.
Following a tour of the Direct Reduced Iron (DRI) facility at Tembo Steel Mills Limited in Iganga Municipality—which reduces carbon dioxide emissions by 70 percent—Tayebwa stressed the importance of supporting local manufacturers.
“Manufacturers who use Ugandan raw materials should receive financial support in comparison to those importing raw materials,” Tayebwa said.
He further called for the government to assist steel manufacturers using iron ore by helping them acquire mining licenses, thereby ensuring the use of local resources in production.
Pro-Business Legislative Agenda
Tayebwa emphasized that Parliament’s leadership is focused on passing policies and securing funding for pro-business interventions.
“We are committed to supporting the President’s message on value addition, which can be achieved by reducing the cost of doing business,” he added.
Call for Road Infrastructure Development
Hon. Milton Muwuma (NRM, Kigulu County South) called on the government to expedite the tarmacking of the Iganga-Walugogo-Luuka-Kamuli road, a key route for the steel industry.
He noted that the road, commissioned for tarmacking in December 2020, has seen little progress.
The poor condition of the road causes frequent breakdowns of trucks transporting raw materials and finished products, leading to significant business losses for local investors.
