Investors up output capacity to tap into high government infrastrucutre investments

The  investors world in Uganda  waits to hear  whether the  budget to be read   next week   included  the  UDB financing as government  has been promising to put up policies that will help to boost  local industries.

Executive Director Steel and Tube industries Nilux Bhatt says they have already put in place an investment of 55 million dollar factory in Namanve to produce  steel that will supply  the  Standard Gauge railway construction project.

Bhatt says with the government campaign of Build Uganda Buy Uganda, they hope to benefit fully in the project, however, lamenting challenges  due to the absence of  local policies that help to empower  investors among which is  the electricity, Transport and financing .

He explains that their expansion is currently limited by the high interests at which they borrow  from banks hence asking government to consider availing them with favorable lending rates.

Bhatt adds that with the increasing unemployment gap in the country it is worth for government to support local investors more.

He indicates that Steel and Tube industries with its production capacity of 182000 tons of steel products annually, if supported as a local industry, has the capacity to supply the Standard gauge railway project singularly on top of supplying both the usual local and regional market .

Meanwhile, the CEO lamented the 2015/16 financial which he said to have impacted  the company negatively as the local currency had depreciated,reduced funding  however,emphasizing that this was managed due to quality assurance with the industry that helped them through the situation.

He insists that government needs to always encourage and give priority to local industries to supply the huge projects over the foreign companies,noting that the issue of sidelining them on grounds of standards is now a myth that should not be used to deny them the opportunity.

He commends  the East African Integration as a step to achieve several goals especially when it comes to trade policy harmonization across.

Steel and Tube Industries that has been in existence  since 2005 producing wire mesh,steel tubes,hole sections,plates with its major markets in Congo,South Sudan,Rwanda ,Kenya on top of the local market in Uganda.

 

Story by Eve Namugabi