Uganda on path to an industrial hub

Jan 28, 2019

Uganda has reserves of 300 million tonnes of limestone, mainly in Karamoja and Kasese, and 260 million tonnes of iron ore found in Tororo, Kabale, and Kanungu, and used in steel production.

OPINION

By Duncan Abigaba

In the last week of August, 2019, President Yoweri Museveni commissioned four factories.

The National Cement Factory also known as Simba in Mukujju, Tororo District, employs 300 workers directly and more hundreds indirectly.

The factory has installed production capacity of one million metric tonnes annually. The owner of the factory, Guru Narendra Ravel, at the commissioning of the factory pledged a steel factory in Kabale and a clinker factory in Moroto.

Clinker, which is 65% cement will be produced in Moroto and mixed with pozzolana and gypsum from Tororo.

Uganda has reserves of 300 million tonnes of limestone, mainly in Karamoja and Kasese, and 260 million tonnes of iron ore found in Tororo, Kabale, and Kanungu, and used in steel production.

The President also launched Saachi Technologies, a factory in Ntinda Industrial Area, an assembly plant for domestic electric appliances like flat irons, televisions and refrigerators.

The company currently employs 35 young Ugandans and will soon increase employment to over 100.

The President also commissioned two tea factories in Kyamuhunga, Bushenyi District; Global Village Tea Factory and Swazi Highland Tea Factory.

Global Tea Factory employs over 300 workers and produces 50,000 Kgs of tea daily, and targets 160,000 Kgs of tea daily in the near future.

60% of the raw materials are got from the out growers which provides indirect employment while 40% is from the factory's tea estate. Swazi Highland Tea Factory produces 50,000 Kgs of tea daily and employs 350 staff directly.

While opening these factories, the President remarked that one factory currently produces tea equivalent to what the entire country produced in 1986.

Tea production has increased from 3,335 metric tonnes in 1986 to 55,650 metric tonnes in 2012, making Uganda the third largest producer in Africa.

While in Bushenyi, the President also pledged a fertilizer factory to be set up in a month, and attributed the increasing number of industries in the country to the availability of electricity in Uganda.

It is very evident that more investors will set up in Uganda because of the availability of sufficient and affordable electricity.  Uganda currently generates 930MW.

This will be almost doubled when Karuma Dam (600MW) is completed at the end of 2019 while Isimba Dam (183MW) is due for commissioning. The Government also plans to flag off the planned Ayago Dam (600MW) by 2022. 

Besides the sufficient and affordable electricity, there has been investment in infrastructure such as 4,200 kms of tarmac roads, construction of Standard Gauge Railway, revival of Uganda Airlines, with the maiden flight scheduled for April, this year,  and construction of a second airport at Kabaale, Hoima, to ease transportation, ICT to promote innovation and ease cost of doing business, training and skilling of the youth to take over opportunities in the established industries, with over 40,000 graduates coming out of our institutions of higher learning annually, among others.

In September 2017, the Government set up a National ICT Innovations Support Programme (NIISP) to regularly support young innovators, to meet challenges in the growing industrialization arena, and to build home grown solutions for our challenges.

In April this year, the first batch of innovators were recognized and offered support to expand and improve their innovations while a 500 seater innovation hub is under construction at Nakawa to provide space and requisite facilities to every young innovator.

Industrialisation is a key variable of economic development especially in the developing world.

According to history, the west transformed into modern self-reliant societies through industrialisation, by transforming the agricultural and natural resource potential into high value commodities especially for export.  

In a bid to accelerate industrialization, wealth growth, creation of jobs, and inclusive development, Uganda Investment Authority (UIA) was given a mandate to establish 22 Industrial and Business parks throughout the country.

Regional distribution model of the industrial park was adopted basing on the natural resource availability. For example; fruit processing in Teso, dairy processing in Ankole, cotton processing in West Nile.

Today, UIA has established over eight Industrial and Business Parks in; Namanve, Luzira, Bweyogerere, Jinja, Soroti, Mbale, Mbarara and Karamoja Industrial and Business Park in Moroto District.

Kampala industrial park has opened doors for large scale investment in various sectors including ICT, agro processing, mineral processing, logistics and freight and tourism. Covering a total of 2,200 acres of land, at least 260 prospective investors have since been allocated land in the park.

The Government has also ensured a conducive environment for business establishment and investment for example; a one stop centre that handles all investor needs in the shortest time possible, tax holidays, free leasehold for investors among others.

All in all, Uganda remains the most conducive investment hub in Africa, located exactly on the Equator, between Cairo and Cape Town, surrounded by fresh waters of Lake Victoria and the Nile, 40% of East Africa's arable land, and all round weather (average of 1,500mm of rain per year), Uganda's path to an industrial hub is unstoppable.

The writer is a Manager at Government Citizen Interaction Centre, Ministry of ICT and National Guidance

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