China boosts growth of Uganda's manufacturing sector: official

Fourty three Chinese manufacturing enterprises are set to showcase their products in Kampala at first China-Uganda Industrial Capacity Cooperation Exposition from July 23 to 26.

Martin Muhangi, an official from Uganda Investment Authority, a state agency charged with promotion of investment, told reporters on Wednesday that this is another opportunity for Uganda to attract more investors into the east African country.

Chinese industrial parks or factories are a highlight on most of the major highways out of the Ugandan capital Kampala. Multitudes of local people in the mornings and evenings walk to or from the factories after finishing or going for the day's or night's work.

Mubaraka Nkuutu, director membership services at Uganda Manufactures Association told reporters that the increasing number of Chinese factories was driving the country's manufacturing sector out of infancy.

He said Chinese investors have established industrial parks in different parts of the country to fast track industrial development.

Some of the parks include, Mbale Industrial Park and Tororo Industrial Park in the eastern part of the country, Liao Shen Industrial Park, Tian Tang Industrial Park and Kehong Industrial Park all in the central part of the country.

"Uganda has been in the infancy of the manufacturing sector but the coming of the Chinese has fast tracked the manufacturing sector," said Nkuutu.

"China has a lot of technology which we really need in Africa if we have to be competitive," he added.

Figures by the Chinese Chamber of Commerce show that there are over 350 Chinese companies involved in among others manufacturing, real estate and construction.

Zhao Xiufen, economic and commercial counselor at the Chinese embassy here said Uganda in 2018 ranked the third in Africa as a destination of Chinese Foreign Direct Investment (FDI).

She said the FDI from China to Uganda in 2018 was 250 million U.S. dollars.

Zhao said that at the just concluded China-Africa Trade Expo in Changsha in Hunan, 48 million U.S. dollars worth of deals were reached between China and Uganda.

Muhangi said Uganda will continue to use exposition in China and Uganda to showcase why Uganda is the preferred investment destination in Africa.

Muhangi said many investors are choosing Uganda because of the country's favorable regulatory measures, including a tax regime which gives tax holidays to investors.