Minister Hajati Mukalazi cautions local leaders against sabotaging investments

The Minister of State for Finance, Planning and Economic Development in charge of privatisation and investment, Hajati Aminah Mukalazi, has cautioned leaders in local governments against sabotaging and undermining investment efforts in their respective districts.

She instead urged them to recognize the contribution initiated by investors that would lead to community development, create jobs and bring about industrial growth.

The minister also urged residents living in areas where foreign and local investors have established investments to embrace them and always maintain a peaceful and supportive environment for smooth operations.

Minister Mukalazi said that to increase the national collection, the country must welcome as many investors as possible to set up industries that will eventually contribute to Uganda’s national development. (All Photos by Eddie Ssejjoba)

She said that to increase the national collection, the country must welcome as many investors as possible to set up industries that will eventually contribute to Uganda’s national development.

They also directly and indirectly contribute to local revenue collection and offer employment opportunities to the youth. She asked leaders to always seek peaceful solutions where they disagree with the operations of investors in their localities.  

“Where disagreements arise, leaders and investors should engage constructively and seek practical solutions rather than frustrating and undermining investment efforts in your areas,” Mukalazi said.

She was last week (Friday) speaking at the commissioning and handing over of community development projects to the Kabale district leadership in Western Uganda.

The function was attended by Brian Munanura, the company deputy General Manager, the Resident District Commissioner Maj. (Rtd) Godfrey Katamba, the Chief Administrative Officer, Robert Mugabe, among other leaders.

The projects, funded and constructed by Sino Minerals Investments (SMI), which was licensed to mine and process iron ore in Kabale district, included a Sh1.2 b administrative complex for Buhara Sub-County in Ndorwa East.

The administrative complex included a new Sub-County headquarters, eight staff quarters, four motorcycles to facilitate staff movements, computers to support service delivery, a printer and a projection screen for administrative work and presentations.

The company also offered to increase its monthly support to community elders from sh10,000 to sh15,000.

Beyond infrastructure and equipment, the company pledged to provide four motorcycles and a double-cabin vehicle to support the Sub-County’s operations, among other planned interventions.

The minister also closed a free medical camp at Buhara Health Centre III, where community members received treatment for various ailments.

She said SIM began its exploration activities in 2012, but following President Yoweri Museveni directive in 2014 banning the export of raw minerals, it opted to pursue local value addition. 

With approximately 32m tonnes of iron ore at the site, the company is also working with Terra Industries Ltd located in Ntungamo district to process 1.8m tonnes of iron ore tailings into pig iron, which is credited with strengthening Uganda’s mineral beneficiation efforts.

Mukalazi commended the company for investing in community development like education, healthcare, employment and other critical sectors.

She noted that SIM’s corporate social responsibility initiatives demonstrated how private investors complement government in improving livelihoods and public services.

She assured the community of continued Government support and encouraged residents to increase food production and sell it to the company and its workers, and engage in other businesses where locally produced products were in demand.

She cited the example of Irish potatoes, tomatoes, beans and groundnuts which are grown in the area, plus other agricultural products that are in high demand. The minister also encouraged the company to give priority to locally produced products.

“This will help to create a ready market for the local farmers to improve their livelihoods while ensuring the investment benefits the community,” she noted.

Mining exploration in the area followed a Memorandum of Understanding (MoU) between Sino Minerals Investments Company Limited and Kabale District Local Government, signed in October 2025, under which the district allocated 15.5 acres of land in Kijoojo Village for the establishment of an iron ore plant.

In return, the company, through its corporate social responsibility, offered to put up various infrastructure and to donate other equipment to support service delivery.

The minister told the communities that the government was committed to creating a conducive business environment for investors and to continue to offer incentives like a 10-year tax holiday to attract more investment for the country’s long-term industrial development.  

Munanura thanked the district leadership for offering free land, saying the company would use the additional land for further expansion, where in future they plan to double their monthly production capacity and pledged to absorb more local workers from the surrounding communities.

He said priority was given to construction of the sub-county headquarters to address the shortage of office space and accommodation for staff.

The sub-county leadership welcomed the new headquarters to replace the dilapidated structures that were constructed in the 1940s.