We have good relationships with indigenous Ugandan firms - CCCC

Construction of the Entebbe Express Highway in progress. PHOTOS BY ISMAIL KEZAALA

What you need to know:

Just like the Chinese government, private and public companies from the Asian nation are increasingly becoming active participants in Uganda’s economy. China, which seems to have particular interest in infrastructure development, provides the necessary money and other logistical support for Uganda’s many ambitious projects.

State corporations too, are bent on doing lots of work in many developing countries, especially in Africa. One particular company is the China Communications Construction Company (CCCC) which is charged with constructing a four-lane toll highway, known as the Entebbe-Kampala Expressway.

Mr Joseph Zheng Biao, the CCCC acting country manager, talked to Daily Monitor’s William Lubuulwa on a number of issues. Below are the excerpts:

Tell us about China Communications Construction Company.
China Communications Construction Company (CCCC) is the first largest state-owned transportation infrastructure group to enter overseas capital markets and is one of the Fortune 500 companies in the world.
CCCC and its subsidiaries are principally engaged in the design and construction of transportation infrastructure, dredging and heavy machinery manufacturing business, and so on.
Around the world, CCCC has 34 wholly- owned or controlled subsidiaries.

For how long have you been in operation in this market? And what have you accomplished so far?
We have been in Uganda for decades of years. During this period, we believe, we have made great strides and achieved a lot with Uganda as a partner.
We are committed to supporting her economic development through our cooperation and construction of key infrastructure projects in the country by handling over several outstanding projects.

What economic contribution, in terms of jobs and investments, has CCCC had on Uganda since you started operations?
If you take into considerations all the projects we have handled in Uganda, we have created more than 2,000 jobs in the country. More than 85 per cent of this workforce has been local (Ugandan) and we maintain the status quo.
It’s a core principle at CCCC that wherever we have a project, the majority of its employees are locals.
At the same time, we value knowledge transfer to locals very much through training our employees.

What’s your view of Uganda’s construction industry as a business opportunity?
It’s very vibrant, attractive and growing with a number of opportunities for both local and international contractors.
Construction of better and modern transport infrastructure is a priority for the government. It’s good for the industry and the economic development of Uganda.
A saying in China goes: “Like a building the road is the first step to become rich.”

The CCCC acting country manager Joseph Zheng Biao (left) meets the Monitor Publications Limited (MPL) MD Tony Glencross at MPL offices recently.

What’s your assessment of the investment climate in Uganda for the Chinese business community?
China and Uganda have a long history. Both countries enjoy cordial bi-lateral relationships which promote investment and trade on either side.
It’s because of this reason that China’s Foreign Direct Investment in Uganda has grown tremendously over the last two decades.
We have also seen trade between the two countries improve which is quite commendable.

Local content is one aspect of your business that the government always emphasises when awarding contracts such as yours. What kind of Ugandan companies supply you with goods and services?
In our line of business, we require a lot of support from the local community because ours is not that business you can do regardless of how financially stable you may be.
You need food suppliers, communication experts, construction material suppliers, lawyers, transporters, fuel suppliers and you also need a good place for your workers to sleep, among other things.
I can gladly say that we are procuring most of these services locally in and outside of Kampala. It’s not just one but many local suppliers who are also employing many Ugandans.
How much have you paid to local companies over the last five years?
I don’t have the exact figure of the cuffs. However, I can confidently state that we have very good and mutually beneficial relationships with indigenous companies of Uganda.

Apart from road construction, are there other opportunities you are venturing into in Uganda?
Yes. Uganda’s real estate industry has a lot of potential for our kind of business. It’s one area that we could explore for future investments in the country.
We will make the appropriate decision to invest in new areas at the right time.

There have been reports that many Chinese companies mistreat Ugandan workers. What is your word on this?
There have been a couple of media reports on that subject. It’s unfortunate and deplorable. It also paints a bad image of the Chinese community.
At CCCC, we treasure our local workers and have put up policies to ensure we do not have employer-employee issues.
We have meetings between our project management and representatives of the employees to discuss and resolve the issues, if any.
We have in place training and reward programmes to ensure that our workers don’t only take home a salary but also learn on the job. For instance, CCCC Uganda recently awarded up to 30 Ugandan employees with cash for their outstanding contribution to the implementation of the Kampala-Entebbe Expressway Project.
The employees were recognised during the Excellent Employee Awards held at the annual meeting of the Kampala-Entebbe Expressway Project at the CCCC Uganda head office.
These good initiatives are what we are championing as part of the Chinese business community in Uganda.

Your final word?
I wish to thank the government of Uganda for giving us the opportunity to construct the country’s signature projects such as the Kampala-Entebbe Expressway.
We are also very thankful to the people of Uganda, particularly, those around the places we have had projects for their support and kindness. They have been very hospitable. I can’t thank them enough.
We are committed to building a connected Uganda and supporting its economic development, for a win-win relationship.