Power outages, delays threaten Mbale Industrial Park's growth

Factories operating in the Sino-Uganda Mbale Industrial Park are grappling with an unstable power supply, threatening production and damaging equipment. The park, commissioned by President Museveni in 2018, houses about 48 functional factories on a 619-acre site and produces a variety of goods, including textiles, electronics, and household items. 

This publication has learnt that on a monthly basis, the park experiences about 15 times of power outage or outbalanced power supply, which also damages a lot of raw materials.

Mr Laurent Zhang, the administration manager of the park, said the power outages will likely become worse with completion of the steel factory in the coming month of July since it will consume about 20 megawatts of power supply.

“Right now, we are using a temporary power substation of 50 MW from which 25 MW is taken by a cement company next to the park and the industries inside the park can consume another 20 MW and the remaining 5 MW is too little to meet the demand of the ongoing construction projects,” he said, adding that the frequent power outages affect production and increases costs of operation.

Mr Zhang said the government had promised to equip the park with a 240 MW substation but up to date they have not received any feedback.

“Besides that, applying for an electricity meter is also hectic, one factory paid all the fees more than one month ago but until now they have not got the meter and they are still waiting,” he said.

Mr Zhang made the remarks on Tuesday during the inspection of factories in the park by the Minister of State for Labour, Ms Esther Anyakun, as part of the activities to streamline industrial development.Ms Anyakun was accompanied by the State Minister for Privatization and Investment, Ms Evelyn Anite and Mr David Bahati, the State Minister for Trade. 

Mr Zhang said failure by the government to construct a permanent drainage in the park to prevent flooding is scaring the investors.

The park in 2019 experienced flooding which resulted into damage of equipment and also in 2022 faced a fire disaster which razed Grace Foam factory, rendering 700 workers jobless.

“Last year president Museveni promised to construct the drainage. The survey of the land and the property valuations along River Nakibiso was done by the Ministry of Lands but the construction is yet to start. We are scared what will happen if a similar disaster occurs,” Mr Zhanga said.

Mr Bahati said currently the manufacturers are contributing about 16 percent to the national GDP, something he said is a good step towards economic growth.

“As the Ministry of trade, we will ensure standards in the products produced and the technology used is appropriate,” he said.

Ms Anite while responding to the issues raised by the park officials said the government is working to equip the park with a 240 MW substation to power the factories.

“We will also construct the channel to avoid flooding and ensure that there is harmonised tax so the investors have a conducive environment to operate and create jobs,” she said.

Ms Anite said the establishment of factories will reduce dependence on imports, improve labour skills, employment opportunities and also increase revenue. She, however, also asked the investors to report any government officer who solicits bribes from them for a service.

“The government has embarked on a serious fight of corruption and we are ready to deal with any officer,” she said.

Ms Anyakuni said they are touring industries across the country to sensitise them as part of activities to  streamline industrial development with labour administration as a way to bring more workers into the money economy  and as well as join the social protection bracket.

“We want to ensure that workers, as President Museveni guided, are not exploited by the employers.  Every worker should be regularised after a period of four months,” she said.

Mr Dan Akampurira, the head of safety at the park said the factories provide workers with gloves for the hand packers, helmets and other related head gears, ear pads and other available tools such as electrical static rings for all workers.

“The safety of the workers is paramount. We have protective gowns and a first aid kit in case somebody is affected on line of duty,” he said.

Mr Kenedy Mushemeza, the public Relations Manager, Mbale Sino Industrial Park said the park currently employs about 6000 workers. “Out of the 6000 workers, 75 percent are women and even the employees are paid during the training period. As a park, we are also supporting government programmes by skilling the youth,” he said.