Chinese tip Ugandans on how to start, own factories

The Chinese business community in Uganda has urged Ugandans to take advantage of Chinese factories in industrial parks across the country to acquire skills on how to start and manage their own.

Speaking at the Overseas Chinese Spring Festival Carnival in Kampala on Sunday, Mr Paul Zhang, the chairperson of the Chinese Business Association, said Uganda has a conducive investment climate to set up factories.

“We would like to train Ugandans how to make goods instead of how to sell goods. You start importing factories from China. 40 years ago, China was a poor country but Europeans came and trained Chinese how to run factories because Chinese are hardworking people; they are humble and that is how we started cottage industries,” Mr Zhang, who is also the proprietor of Tiang Tang Industries, said.

He gave the example of Jeep, an American automobile, which, he said, started as small factory but today is a conglomerate.

Mr Zhang said the Chinese have a culture of no free lunch and no holiday with the duty to create wealth for future generations.

He explained that in China, friends or relatives pool money as capital to start the factories and Ugandans can do the same and approach any of the Chinese investors in the country to advise them on import good equipment from China to establish factories here.

Mr Morrison Rwakakamba, the board chairperson Uganda Investment Authority, said 54 percent of the factories that are operational in Namanve Industrial Park are owned by Ugandans.

This, he argued, is because several foreign companies have embraced the government Investment Code Act, which gives them incentives when they employ Ugandans.

“Many foreign investors are increasingly getting interested in training Ugandans because when 70 percent of your employees are Ugandans and you are keeping good record of the payroll and you are filing your taxes, you get a tax incentive from your payroll and many investors are taking on this to access tax holidays,” he said.

Currently, Uganda boasts of industrial parks in Namanve, Mbalala, Bweyogerere, Luzira, Jinja, Mbale,  Soroti, Kapeeka and Buikwe. Eighteen others are set to be established in the districts of Kasese, Mbarara, Moroto, Gayaza, Masindi, Kisoro, Kabale, Rukungiri, Nakasongola, Nebbi, Yumbe, Oyam, Dokolo and Kamuli where government is currently acquiring land.

On January 28, the Chinese Embassy in Kampala hosted the Chinese nationals living in Uganda to the spring festival, which, according to Ambassador Zhang Lizhong, is an important traditional holiday in their country featuring family reunions ahead of the new year. 

He said the festival also carries values of a harmonious family, social inclusion and sound relations between man and nature. 

In his address, Ambassador Lizhong encouraged the Chinese community to help Uganda realise President Xi Jinping’s dream of supporting Africa’s industrialisation, agricultural modernisation and talent development.

“Stand in solidarity and cooperate with each other, work hard to expose robust vitality of the Chinese people to the local society with practical actions, do benefits to the local economic and social development, actively  fulfil corporate social responsibilities and effectively promote the people to people friendship between China and Africa,” he said.

Uganda’s State Minister for Foreign Affairs Henry Okello Oryem said China’s relations with Africa date back to the 1970s under Mao Tse Tung when the country helped Southern African countries achieve independence. He said despite being a poor country then, China helped built the Dar es Salaam - Zambia railway, which transformed trade.

“Your presence in Uganda is very important for us because many of you have set up factories in Uganda, you are paying taxes and employing youth,” Mr Okello said. 

“Today we do not have load shedding because of the Karuma and Isimba dams, which are producing electricity. Chinese companies built thousands of roads in Uganda, Namboole stadium, among others,”  he added.
 
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