INDUSTRIAL REVOLUTION! Deputy Speaker unveils Sh360bn steel firm in Mbale Industrial Park sparking economic optimism

Friday, October 11, 2024 marked another milestone in Uganda’s industrialization agenda with Deputy Speaker of Parliament, Thomas Tayebwa presiding over the launch of the mega iron and steel firm—Unisteel Investment Uganda Limited in Sino-Mbale Industrial Park.

According to Mbale Industrial park vision bearer, Paul Zhang, the chairman of Tian Tang Group, Unisteel joins over 50 other Chinese companies so far established in the park.

Chairman Zhang’s dream is to turn Uganda into an industrial hub and this can be achieved in the next ten years.

“Today, I proudly state that there are over 50 factories in the park, creating more than 7000 jobs, with plans to generate an additional 20,000 jobs in the next two years, which will aid Uganda’s industrialization and improve the lives of its people,” he said.

The Managing Director of Unisteel Investment Uganda Limited, Xu Shicun said the factory covering 140,000 square meters in Mbale Industrial Park has an investment capital of Shs367.7billion ($100million), marking a significant milestone for Uganda’s industrial sector.

The factory, he said, once fully operational, is expected to produce high-quality steel products, reduce the country’s reliance on imports, and create hundreds of jobs for local residents.

He said the first phase of the plant covers 50,000 square meters and employs nearly 500 local workers.

“Unisteel exemplifies the fusion of modern technology and steel production, boasting state- of-the-art facilities that incorporate advanced automation, sustainable practices, and eco-friendly production processes.

“Our production capacity is a testament to our commitment to excellence, with an annual production capacity of 700,000 metric tons of high quality and standard steel products, including steel bars, wire rods, hot rolled steel coils, prepainted steel coils and  galvanized steel coil among others  which are for both the local market and also export,” he said.

Xu Shicun expressed his gratitude to President Museveni and the Ugandan Parliament for their unwavering support and commitment to industrialization. Xu highlighted the ten-year tax exemption policy as a pivotal factor in promoting economic growth.

He revealed that his project is the first large-scale investment project to be implemented in East Africa after the Beijing Summit of the Forum on China-Africa Cooperation 2024.

During the launch, Tayebwa revealed that Uganda’s government, under President Museveni’s directive, would inject shs400 billion into the park’s development.

“We shall give you all the support and protection you need to invest in our country. On the directive of President Museveni, the government is going to invest shs400 billion to transform this industrial park, and I am going to follow it up to ensure it is fulfilled,” Tayebwa said.

He also committed to working with the Uganda Investment Authority (UIA) to establish a one-stop centre within the industrial park, streamlining services for investors. This move would eliminate the need for businesspeople to travel to Kampala for critical services such as work permits, thereby reducing delays and enhancing convenience.

“Investors should focus on expanding their businesses, not dealing with bureaucratic hurdles. Money doesn’t want excuses. These people secure loans from banks for their investments, and we shouldn’t add to their challenges. I commend Mr. Paul Zhang, the Chairman of Tian Tang group and Sino-Mbale Industrial Park, for investing heavily in the manufacturing sector, which has created jobs for the people in Mbale and surrounding areas. I am going to engage the leadership of the Uganda Investment Authority so that we can establish a full one-stop center in this industrial park where an investor can process URA, NSSF, Work and other necessary permits.”

The Deputy Speaker further emphasized that stable electricity will be a top priority for the park, promising to address any issues affecting operations in the industrial park. This is expected to make operations smoother for investors and bolster productivity.

“Electricity is an important ingredient for our manufacturing sector, and we are going to work hard to fulfill the Presidential directive of having power at 5 US cents per kilowatt-hour. This industrial park has the capacity to take over 200 megawatts, and to ensure there is reliable power here, UETCL will build a 50 MVA substation, which will stabilize power in the industrial park,” he promised.

 

About Post Author