Govt promises fixes as Mbale Industrial Park investors decry power outages

_________________

A power crisis at the Sino-Uganda Mbale Industrial Park reportedly caused losses of $108,000 (about sh404 million) to one investor in a single day, as manufacturers warn that repeated outages and voltage fluctuations are damaging machinery and disrupting production.

The warning was made on August 26, 2026, when privatisation and investment state minister Aminah Mukalazi visited the industrial park to assess operations and address bottlenecks affecting manufacturers.

The minister was accompanied by Uganda Investment Authority (UIA) director general Robert Mukiza and was received at the park by Tian Tang Group managing director Luke Wang and the deputy managing director of Tian Tang Group, Owen Jin.

The State Minister for Privatisation and Investment, Hajjati Aminah Mukalazi (right) and UIA's Director General Robert Mukiza (3rd left) being led by the Tian Tang Group Managing Director Luke Wang (3rd left) in touring one of the factories in Sino -Uganda Mbale Industrial Park. (Photo by Donald Kiirya)

During the visit, investors highlighted power instability, environmental certification, security, firefighting equipment, industrial waste management and access roads among the challenges affecting operations.

Taking over the presentation, Jin outlined severe power instability that is crippling production lines.

"In July alone, we recorded 15 times of unplanned power outages... When the power fluctuates, our machines and material get stuck," Jin revealed, highlighting a letter from UniSteel demanding compensation from power distributor UEDCL.

"In only one day, their loss reached $108,000 because their machines were getting damaged. We thank the government for allowing us to procure a 50MW mobile substation. The power currently is enough from two mobile power stations, but we are still expecting the 240MW permanent substation.

That contract was awarded to a Chinese firm in 2019, but up to now, no work has been done."

Jin also requested policy support under the Build Uganda, Buy Uganda (BUBU) initiative to protect local textile manufacturers against heavily discounted imported fabrics.

The State Minister for Privatisation and Investment, Hajjati Aminah Mukalazi (2nd left), listening to the deputy Managing Director of Tian Tang Group. (Photo by Donald Kiirya)

The park currently has 90 companies, 72 of which are in operation, employing 14,000 people. Its paper mill and Lida Jeans Factory have state-of-the-art wastewater treatment equipment.

Owen's concerns were among several grievances presented to the minister and other government officials during a structured presentation by the park's leadership.

Investors raise environmental, security concerns

Tian Tang Group managing director Luke Wang highlighted an ongoing conflict with environmental regulators over factory certification on designated wetlands.

"The land of Mbale is a wetland. As our government gave the policy to protect wetlands, we fully support it. But as we were constructing the park, no one knew there would be this policy," Wang stated, appealing for ministerial intervention.

"When we tried to finish the certificate for the factories, NEMA tried to stop us because they said the factory is built in a wetland... As we already built the factory and the park, how can you take off everything? For things that already exist, we have to get support from your ministry," Wang stated.

Wang further urged the government to expedite the delivery of firefighting equipment and set aside dedicated land for non-recyclable industrial waste, noting that the park currently houses approximately 200 Chinese expatriates alongside a large local workforce. He also raised concerns over nighttime security.

"We are facing some security issues at nighttime. There are some thieves... One night, when thieves were trying to steal vehicles, a Chinese engineer found the person and was hit in the back. Now he has recovered, but he almost died at the time. We are asking for more support on night shift security," Wang urged.

The State Minister for Privatisation and Investment, Hajjati Aminah Mukalazi (left), admiring a sofa set made at Tian’ao Furniture Manufacturing Co. Ltd during her tour at Sino-Uganda Mbale Industrial Park on August 26th. (Photo by Donald Kiirya)

Wang said that Sino-Uganda Mbale Industrial Park places great emphasis on environmental protection, social responsibility and corporate governance, striving to become a benchmark enterprise for ESG.

Adding to the environmental complaints, Wang demonstrated how untreated effluent from neighbouring local alcohol distillers in Musoto village in Industrial Division flows downhill into the industrial park, worsening sanitation and causing malaria outbreaks among workers.

Govt pledges interventions

Responding to the grievances, minister Mukalazi assured investors that the Ministry of Finance is shifting towards a direct problem-solving approach to guarantee seamless investments.

"This time around, as the Ministry of Finance, we want to move to you, the investors, to hear what bottlenecks you have and how we can solve them," Mukalazi affirmed.

On the road signs and humps to be constructed in front of the entrance along the Mbale-Jinja highway to reduce accidents, the minister said she would meet relevant officials in the Ministry of Works and present the issue before solutions are made.

“On the issue of wetlands, President Yoweri Museveni guided that investors already in wetlands should not be disturbed, but they should not expand further into the wetlands. We shall have this discussion with NEMA so that they allow you to finish whatever you are doing," Mukalazi assured investors.

The State Minister for Privatisation and Investment, Hajjati Aminah Mukalazi (2nd right), addressing workers while in one of the textile factories at Sino-Uganda Mbale Industrial Park on August 26th. Looking on is Lydia Wanyoto (right), the State Minister of Public Service and also the Mbale City Woman MP. (Photo by Donald Kiirya)

On fire safety and power issues, Mukalazi confirmed that a firefighting truck would be dispatched to the park, and that funds had been released in the current financial year to fast-track the installation of a STATCOM device to eliminate voltage dips.

She further instructed management to submit a formal manifest of non-recyclable waste to enable proper land allocation.

Corroborating the ministry's position, UIA director general Robert Mukiza confirmed that funds for power stabilisation are secured and revealed a major engineering intervention to mitigate seasonal flooding at the industrial park.

"A new procurement has been approved for the widening of River Nashibiso. We are issuing the bids to the contractor probably next week, and hopefully they can get on board by mid-October so that we avert issues related to floods in this park," Mukiza announced.

Calls for better facilities for workers

Joining the delegation, public service state minister and Mbale City Woman Member of Parliament Lydia Wanyoto commended the park's corporate social responsibility, specifically the establishment of a local community market, while urging a broader approach to urban planning around the industrial hub.

"This industrial park is in the city—the community in Mbale appreciates the management. However, safety on the highway becomes an emergency because of the market. We are planning that every industrial park should have a low-cost housing estate. You cannot speak of 15,000 employees working in shifts without a planned settlement. We need low-cost housing, health facilities, and sports amenities to prevent slums and build discipline among young workers,” Wanyoto noted.

Addressing the Musoto village pollution conflict, Wanyoto urged constructive engagement rather than outright suppression.

"The Musoto community brews local waragi, which is very popular. The best we can do is work with them to improve sanitation and upgrade their brewing waste management rather than just stopping them, because they are also our community," she said.

The Mbale Industrial Division Town Clerk Geoffrey Mugisha (2nd left), the Deputy Managing Director of Tian Tang Group Owen Jin (4th left), the Managing Director of Tian Tang Group Luke Wang (5th left), the State Minister for Privatisation and Investment, Hajjati Aminah Mukalazi (5th right) and Uganda Investment Authority's Director General Robert Mukiza (4th right) in a group photograph in front of the entrance of Sino-Uganda Mbale Industrial park on AugUst 26th. (Photo by Donald Kiirya)

The minister's visit included a tour of key facilities at the park, including United Steel, Nice Textile, Grace Textiles, Tian’ao Furniture Manufacturing Co. Ltd, Papar Mill, Lida Elgon Steel Construction site, U-Home, Uganda Lida Perfect Establishments Ltd and Xinlong Textile.

The government officials said they would work with the park's management to address the challenges raised by investors.