Govt to invest sh400b in Mbale Industrial Park

In a bid to revitalize Uganda's manufacturing sector, the government is set to inject additional funds into the Mbale Industrial Park.

Deputy Speaker Thomas Tayebwa made this announcement on Friday, October 11 during a working tour at the Sino-Uganda Mbale Industrial Park in Eastern Uganda.

Tayebwa was the official guest at the first phase of steel rolling trial production and second-phase production groundbreaking ceremony of Unisteel one of the factories in the industrial park.

Mbale Industrial Park is one of the 22 state-level industrial parks promoted by President Yoweri Museveni, to boost value addition and manufacturing.

Spanning 2.51 square kilometres in Mbale City, the park is home to several manufacturing plants, including Unisteel, Uganda's largest steel plant.

Addressing staff and guests at the event, Tayebwa emphasized that this investment is part of a broader package of incentives designed to transform the industrial hub.

The funds will address longstanding challenges faced by manufacturers, including drainage issues.

"Following President Museveni's directives, the government will invest sh400 billion in transforming this industrial park. We've signed a contract with China Railway Number 3, and work is underway," Tayebwa assured.

Tayebwa acknowledged potential challenges raised by stakeholders including Paul Zhang, Chairman of Mbale Industrial Park and Tian Tang Group, but reaffirmed the government's commitment to fulfilling its obligations.

"While we may face delayed payments, the government will honour its debts. We're committed to releasing sh135 billion quarterly to support park operations," Tayebwa added.

Karim Masaba (Mbale Industrial Division, Independent) also raised concern about the drainage channel from the facility that has plagued residents.

"We need resources for that drainage to be built because it has become a hazard to neighbouring communities. Once I don't talk about it, I have seen my chairpersons around. They will say, I have forgotten about them," Masaba echoed.

Furthermore, he also announced plans to establish a one-stop Uganda Investment Authority (UIA) centre at the Mbale Industrial Park.

By having this facility at the park, he explained that investors shall be able to access services conveniently and reduce bureaucratic delays associated with processing vital paperwork.

The move aligns with UIA's goal of promoting Uganda as a competitive investment destination in Africa.

"So that if an investor comes here, you don't need to go to Kampala for Uganda Revenue Authority (URA), National Social Security Fund (NSSF) and work permits. All this should be done here," Tayebwa emphasized.

Power challenges

Concluding, Tayebwa noted the need for a reliable power supply.

Hinting that it is something the government is working around the clock to solve load-shedding challenges.

"This industrial park has a capacity of 200 megawatts. Look at the money we have been paying in dimmed energy costs; energy we pay without consuming," he observed.

On power challenges, Tayebwa said that the Electricity Regulatory Authority (ERA) working with Uganda Electricity Transmission Company Limited (UETCL) will install a 50MV transformer.

Local leaders 

Mary Gorett Kitutu, the former Karamoja Affairs Minister acknowledged the power encumbrances.

"In 2021 after taking over from my sister (Irene Muloni) as a minister for energy, she had prepared to give dedicated power to this outlet," she narrated.

Adding that "After handing the baton to me, I was the one who had to transfer the unit supplying Kenya. We had to bring it here for the President to launch it during campaigns."

On the other hand, John Musila (Bubulo East, NRM) urged Unisteel to consider exploiting iron ore deposits in the Bugisu sub-region, especially Manafwa.

According to him, this will not only economically empower the local community but also reduce the company's costs significantly.

Economic turnaround

Since its inception in 2018, the Sino-Mbale Industrial Park has transformed the economic landscape of Mbale.

According to Mbale City Woman MP, Connie Galiwango, the once desolate area has undergone a remarkable metamorphosis.

Providing over 5000 jobs and quality products ranging from electric appliances to textiles to local shelves.

Founder speaks out

The story of Paul Zhang the chairperson of the industrial park and Tian Tang group is fascinating in so many aspects.

"Looking at the construction process of Mbale industrial park it was challenging. When I first came, the industrial park was nothing other than rice and grass," Zhang disclosed.

Despite a few hiccups which included a fire, he said his decision to stay on was anchored on the trust in President Yoweri Museveni.

"We want to give deep thanks to His Excellency President Yoweri Museveni. He has always planned the development of the country and created a peaceful and safe environment for us," he summed.