Africa-Press – Uganda. Government, through the Presidential CEO Forum, PCF, has pledged more support and partnership with Mutuma Commercial Agencies in Luuka District and Tembo Steels, which has a plant in Iganga and Buikwe Districts.
The PCF is a platform that was initiated by President Museveni to bring together the private sector to work with the government in strategic interventions, including value addition.
Ms Irene Birungi, the PCF Chief Executive Officer, while on a tour of Mutuma Commercial Agencies and Tembo Steels, described business and potential investors as the “movers and shakers of this country”.
“If we are looking at import substitution and export promotion, then the only story is to come to Uganda. Let us promote each other and find out who we are, what we are doing and how best the government can come in to be in position to bring out the right priorities,” Ms Birungi said.
She added: “I was amazed by Mutuma Commercial Agencies when we got to the plant. It is in the process of value addition. They bring out the knit and cotton wool that we know they supply to National Medical Stores (NMS). Most people didn’t know that we have a ginnery factory in Uganda.”
She says Uganda is among countries that produce the best cotton. Mutuma Commercial Agencies adds value from zero to 100 percent Ugandan products for both local consumption.
The government, trading as Uganda Development Corporation (UDC), has a 36 percent stake in Mutuma Commercial Agencies, while majority shareholding is under the family of Mr Evans Musiime Mugisha, Mr Edwin Mwesigye and Ms Margret Tumuhairwe.
Mr Mwesigye, the chief executive officer (CEO) Mutuma Commercial Agencies, said: “We need to expand to be able to satisfy Uganda’s market and tap into the East African and regional markets. However, such expansion requires adequate capital to procure more machinery.”
Mr Mwesigye cited the importation of substandard and poor quality cotton wool which floods the market as a setback to their growth. This makes it difficult for them to compete yet he says they have invested heavily in producing quality cotton wool.
According to Mwesigye, they have conquered Uganda’s market through NMS which procures medicines and medical supplies on behalf of the government, and Joint Medical Stores which procures and distributes to mainly Christian-founded hospitals, private hospitals and big pharmacies.
At Tembo Steels, the company is setting up their second Direct Reduced Iron, DRI plant in Iganga.
Mr Manish Kalla, the General Manager, said major developed countries, including the United States and European Union, are opting for newer technology, DRI or Scrap-based steelmaking, because it has minimal Carbon dioxide emission in comparison to the blast furnace.
“After completion of the second DRI plant, which is likely to commence in November or December this year, it will be able to minimise the importation value by 70 percent. The current value of importation is approximately $400m per annum,” Mr Kalla added.
Tembo Steels manufactures steel, a core sector for industrialization.
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