30,000 cotton farmers to benefit from new factory
Speaker of Parliament, Rebecca Kadaga (L) takes President Museveni (C) around the factory during the commissioning of the plant in Kampala recently. Looking on is Mr Jaswinder Bedi (R), the director Fine Spinners Uganda. PHOTO BY BRUNO BIRAKWATE.
What you need to know:
The Shs110b plant is, according to Mr Jaswinder Bedi, expected to export 90 per cent of its products.
Kampala- At least more than 30,000 small holder farmers will be contracted to supply cotton to a new textile factory in Kampala.
The new factory called the Fine Spinners located in Bugolobi, Kampala, seeks to promote government’s policy of adding value to agricultural produce.
The factory is expected to directly employ more than 3,000 in the processing plant.
The new development means raw cotton from eastern and western Uganda will be processed here into finished products before being exported.
Speaking at the commissioning of the first phase of the $40m (about Shs110b) factory, Mr Jaswinder Bedi, the director of Fine Spinners, said: “The investment when fully operational will contract 30,000 small holder farmers in Kasese and Mbale and employ 3,000 people.”
“We are excited to be part of this journey with our investment to transform Uganda from a raw material supplier to a finished goods supplier and create numerous jobs in the process,” he added.
According to Mr Bedi, Fine Spinners will manufacture finished products and 90 per cent is expected to be exported.
The exports market will be achieved through a number of economic partnerships including EAC and Comesa, among others, that Uganda has with other countries and economic blocs.
President Museveni commissioned the plant, saying Ugandans should take available opportunities to fight poverty as well as improve household incomes.
Mr Bedi said they chose to invest in Uganda because of the country’s textile policy which offers generous incentives to investment in the cotton textile value chain.
The investors also cited the assistance of Ms Susan Muhwezi, the senior presidential adviser on African Growth and Opportunity Act as a key ingredient in their choice to invest in Uganda.
Mr Bedi said a number of government officials specifically Ms Muhwezi and Mr Keith Muhakanizi, the deputy secretary to the Treasury, ensured that this investment is realised.
President Museveni said supply of cotton is unlikely to be a problem since government has a plan to work with at least 5,000 farmers who will produce about a million tonnes of bale annually.
Mr Museveni also pledged to grow cotton if farmers don’t seize the opportunity, asking Mr Muhakanizi to ensure investments don’t get delayed by unnecessary bureaucracy.
