Govt looks to new meter factory to reduce imports
Some of the energy meters manufactured by the newly opened factory at Mbale Sino Industrial Park in Mbale City. PHOTO | FRED WAMBEDE
What you need to know:
- Chint Meters and Electrical (U) Ltd, a joint venture between Chint, Tiantang and Kampala Electric Mart, produces single phase meters with an annual output of 300,000 units.
The government has said the opening of a factory that manufactures meters at Mbale Sino Industrial Park will help ease access to power, create jobs and promote import substitution.
Chint Meters and Electrical (U) Ltd, a joint venture between Chint, Tiantang and Kampala Electric Mart, produces single-phase meters with an annual output of 300,000 units.
During the inauguration ceremony on Saturday, the executive director of Uganda National Bureau of Standards (Unbs), Mr David Livingstone Ebiru, who represented State Minister for Industry David Bahati, said manufacturing of meters locally will support the government to expedite its programme of rural electrification.
“The time taken to connect electricity to industries and to consumers will be reduced because now we have this product locally manufactured here other than importing it. This had affected the rate of connectivity by Umeme,” Mr Ebiru said.
He explained that the government is pushing for industrialisation in order to discourage importation of similar products.
Import substitution is a trade and economic policy, which advocates replacing foreign imports with domestic production.
“We are putting emphasis on making sure our products produced locally are superior to the imported ones so that we discourage traders who would want to import similar products,” he said.
He said if necessary, the government will consider selectively levying taxes to discourage or minimise importation of products that can be locally manufactured.
“The private sector has been growing since the NRM government took over power in 1986. We had only 80 factories, now they are about 8,000 and of those, 70 percent are owned by Chinese,” Mr Ebiru, said.
Mr Geoffrey Koboi, an official working with the Electricity Regulatory Authority (ERA), said imported meters take about six months to arrive in the country when ordered.
“The most expensive item in accessing electricity is a meter so the issue of local content is crucial in solving such challenges,” he said, adding that the company should make quality, accurate and affordable meters to the Ugandans.
The chairperson of the board of directors at Umeme, Mr Patrick Bitature, said since the meters being produced meet the standards, the government should impose taxes on imported ones to support the investor to grow and create more jobs.
The Mbale Resident City Commissioner, Mr John Roberts Rex Achila, said the local leadership should ensure the investors are provided with security.
Mr Johny Zhu Xiao Wei, the general manager of Chint Meters and Electrical (U) Ltd, said the single phase smart meter has high security, magnet field detection and it is configurable for post-paid and prepaid purposes.
“We hope to introduce other meter products and also embark on exporting to other markets in East Africa,” he said.
Ms Sherry Shii, the company distributor, said they are thrilled by the impact of the government’s policy of Buy Uganda, Build Uganda in as far as addressing unemployment is concerned.
Background
Mbale Sino Industrial Park, which was commissioned by President Museveni in 2018 with a total investment portfolio of $600m, so far houses about 30 functional factories, among them Pearlight Technology, which manufactures bulbs and Ubon Technology, which produces powder, among others.
