Firm to take Ugandan textiles to global markets

Kampala.

Uganda’s dream to export locally made cotton clothes is now on course following government’s handover of former Phenix Logistics textiles premises to a new investor - Fine Spinners Limited.

Speaking at the handover on Monday in Kampala, Mr Stephen Kaboyo, the Fine Spinners chairman, said this was a milestone in Uganda’s textile and garment sub sector.

“This sub sector provides investors an outstanding opportunity to capitalise on the unexploited potential with latent comparative advantage of the best quality cotton in Africa,” he said. This, he added, is an opportunity through which Uganda will have far reaching benefits in terms of job creation, tax revenues and most importantly the enhancement of the entire supply and demand value chain.

The handover was delayed by about six months pending the settlement of Phenix Logistics liabilities after the company folded due to insufficient financing.

Mr Jas Bedi, the director Fine Spinners Limited, said they expect to start full production by June after the shipment of equipment into the country.

Fine Spinners Limited also took over the premises of Tri-Star Textiles last year and has received positive response.
Last year, the company exported 500,000 T-shirts valued at $1.5m (Shs4b) and hopes to double the export at least to one million T-shirts this year.

However, the market continues to be threatened by the unlimited entry of low cost garments and second hand clothes.

Why T-shirts
Fine Spinners specialises in production of low-cost T-shirts selling as low as Shs5,000 a piece.

“Our biggest problem is that right now there is no fabric for making suits, shirts and trousers. We want to start small with T-shirts and later diversify,” Mr Bedi said.

State minister for Micro-Finance Haruna Kyeyune Kasolo, who represented Finance minister, said government has a deliberate plan to promote and support the manufacture of local products.
“If we attract investors and give them good incentives and policies. It will help us create jobs for our people as well as promoting our exports in order to attain the much desired middle income status,” he said.

The Shs14.4b investment currently employs 420 Uganda but the numbers is expected to rise to 8,000 when the company moves towards full capacity within three years.