‘Tap into China friendship to boost local business’

Dr Yaohan Kang (centre), also vice chairman of the standing committee of the Hainan Provincial People’s Congress receives a gift from Dr Robert Rukaari (right) of NRM Entrepreneurs League in Kampala on Tuesday. Looking on is Mr Solomon Rutega. PHOTO BY PAUL ADUDE

What you need to know:

Call. Let more people know how open your country is - Dr Yaohan Kang.

Kampala. Ugandans are set to gain from future trade relations between China and Uganda, as the two countries embark on more trade ties to strengthen their cooperation.
Mr Solomon Rutega, the consulate general of Uganda in Guangzhou, China made the remarks during a meeting on Tuesday between the National Resistance Movement (NRM) Entrepreneurs’ League and Chinese governor, Dr Yaohan Kang, the vice chairman of the standing committee of the Hainan Provincial People’s Congress at Protea Hotel in Kampala.
“We are looking at creating jobs for youth and income generation through small scale and medium scale production. We want youth to start looking at small machines that they can use to produce goods and earn a living,” he said.
Mr Rutega further stated the strong friendship between the Chinese and Ugandan governments would not only build a strong foundation for cooperation between the two countries but also boost business.

Promote openness
While addressing the same meeting, Mr Kang called on government to promote an open attitude towards entrepreneurial opportunities so as to lure in more investors into the country.
“Let more people know how open your country is, your good social awareness, the rich mineral resources you have and your government’s open minded attitude for investors. If Chinese businessmen have a better understanding of Uganda, they will come and invest here like they are doing in Hainan,” he said.

The case for innovation
Mr Kang further stated that innovation and capacity building are an important strategy that entrepreneurs in Uganda should undertake to promote growth of the economy as it is in China. He also called on the inclusion of the younger people in the nation’s development processes.
Governor impressed
“I am much impressed by the Ugandan government ambition to develop the country into a middle class economy but one of the main steps is to raise the capability of the younger generation,” he said.
The national chairman of NRM Entrepreneurs League, Dr Robert Rukaari, said: “As a way of promoting investment, we got the idea of capacity building through skilling entrepreneurs, promoting small and medium scale manufacturing through accessing affordable equipment for people,” he said.

Ugandan based Chinese businesses
Uganda Investment Authority reports indicate that there are more than 150 registered Ugandan based Chinese businesses increasing import demand.
Trade (import/export) volumes between Uganda and China have been consistently growing from Shs602b in 2007; an annual growth rate of 42 per cent which would place these volumes at slightly over Shs3650b for the year ended 2012.
This is equivalent to 6 per cent of Uganda’s Gross Domestic Product, making China an important business partner with Uganda.

Import Volumes
Uganda’s import volumes from China stood at $340m (Shs1.2 trillion) in the first quarter of 2015.
This was a marked improvement from $263m (Shs966b) traded in the same period in 2014.
While this is so, Uganda’s business deals are being affected because the yuan is not robust, and fears are it could slide another 6 per cent over the next year as China grapples with handling a weaker economy.