Government Pledges Shs400 Billion for Mbale Industrial Park Upgrade

The Ugandan government has reaffirmed its commitment to boosting the manufacturing sector by improving investment conditions through legislation and strategic funding. Deputy Speaker of Parliament, Thomas Tayebwa, announced a Shs400 billion government investment to upgrade the Sino-Uganda Mbale Industrial Park, which currently employs around 7,000 Ugandans across various factories.

Speaking during the groundbreaking ceremony for the second phase of Unisteel Investment Uganda Limited’s production plant on October 11, 2024, Tayebwa emphasized the government’s dedication to ensuring timely financial support for the project. “We have already signed the contract with China Railway No.3 Engineering Group. Every quarter, we are supposed to release about Shs135 billion, and although the payments have been delayed, I will ensure we follow up and release the funds for transforming the park,” he stated.

Tayebwa praised Paul Zhang, Chairman of Tian Tang Group, for his significant investments in manufacturing, which have created jobs for the local population. He also outlined plans to establish a one-stop service center at the park to simplify processes for investors. This would streamline access to Uganda Revenue Authority, National Social Security Fund, and other essential permits.

Recognizing the importance of affordable electricity for industrial growth, Tayebwa reiterated his commitment to enforcing a presidential directive that guarantees factories access to power at five US cents per kilowatt hour. He further announced that the Electricity Regulatory Authority and Uganda Electricity Transmission Company Limited would install a 50MVA transformer to ensure reliable power supply at the industrial park, which has the capacity to consume 200 megawatts.

State Minister for Karamoja Affairs, Florence Nambozo, urged investors to establish product outlets within Mbale, making it easier for local residents to purchase goods produced at the park.

In a related event at Tembo Steel Mills Limited in Iganga, Tayebwa called for a policy rewarding investors who add value to Ugandan raw materials. Touring the company’s Direct Reduced Iron (DRI) plant, which reduces carbon emissions by 70%, Tayebwa suggested manufacturers using local materials should be given favorable terms compared to those importing raw materials.

To further support local production, he emphasized the need for government assistance in acquiring mining licenses for iron ore dealers. “The leadership of Parliament is committed to passing pro-business policies to support the President's message on value addition and reduce the cost of doing business,” Tayebwa said.

Hon. Milton Muwuma, MP for Kigulu County South, urged the government to expedite tarmacking the Iganga-Walugogo-Luuka-Kamuli road, which he described as a crucial business route. Muwuma noted that delays in road works were causing frequent breakdowns of trucks transporting materials, resulting in significant losses for investors.