President commissions Mbalala industrial complex, expected to create 1000 jobs for Ugandans

Tuesday 15th July 2014

President Yoweri Museveni today commissioned a newly built multi-million dollar industrial complex belonging to Tian Tang Group of Industries from the People's Republic of China.

He appealed to all leaders and citizens of Uganda to give the necessary support and incentives to industrialists who come to invest in Uganda noting, that the country's future lies in industrialization and a vibrant service sector.

The industrial complex, located on a 33 acre land, is located in Mbalala in Mukono district and is involved in the production of steel and steel products, wood, and leather products as well as mattresses.

It employs more than 1,000 people directly and thousands indirectly.

President Museveni, who was accompanied to the inauguration ceremony by his wife and Karamoja Minister, Mrs. Janet Kataaha Museveni, asked all Ugandans to give support to investors who come to Uganda.

He specifically asked government agencies to remove all red tape that negatively affects the investment climate in the country.

"The future of Uganda is in industrialization and a developed service sector. Yes, agriculture is important but not as important as industries because it can't employ as many people as industries do,” the President noted.

He also noted that industries have other advantages as they increase government revenue through paying taxes, solve the scarcity of goods both locally and in the region, pay for utilities such as energy and water and provide market for the local produce like food and other local raw materials.

The President said that industries are stimuli factors of economic growth and development of any nation.

He observed that having a few people employed in industries and many in agriculture is an indicator of backwardness and underdevelopment.

"The United States of America and the United Kingdom have only 2 percent of their population employed in the agricultural sector and the majority of the working people are in industries and service sectors and that's why they are prosperous nations,” he said.

"Tian Tang is employing more than 1,000 people, generating an income of US$55 million dollars and pays US$1.8 million dollars in taxes annually on 33 acres. What would be the output if the land was dedicated to agriculture?” the President challenged the leaders.

He said that countries like China and India have got a very big population in billions but they are prosperous because they are industrialized and can provide for their citizens' needs.

The President used the occasion to commend the Chinese government and people for the strong cooperation and support they have extended to Africa in the last 65 years right from the days of the African independence struggles up to today.

He re-assured them of his government continued cooperation with the Chinese government and people.

The Minister for Trade, Industry and Co-operatives Minister, Hon. Amelia Kyambadde, commended the President for the prevailing investment climate that has seen different manufacturing sectors expand, especially the steel mills that have grown from 3 in 1986 to 15 today.

The Chinese Ambassador to Uganda, Mr. Zhao Yali, thanked the President for personally opening the industrial complex which, he said, was a manifestation of the seriousness the government attaches to her bilateral relations with China as well as the Chinese investors in Uganda.

He reported that both trade and investment between Uganda and China has increased and will continue to grow with Chinese firms’ increased interest in the country because of the prevailing investment climate and incentives.

The Managing Director Tian Tang Group, Mr. Zhang Paul, said that 70 percent of the products made at the factory are consumed in Uganda while 30 percent are exported in the region with South Sudan, the Democratic Republic of Congo, Rwanda and Burundi being their main destinations.

He said that his factory had imported cheap technology from China the reason they have been able to produce quality products at low prices making them competitive on the market.

He expressed happiness that the government was solving the power problem by building more power dams that would make life for manufacturers easier.

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