Basic requirements for attracting foreign industrialists

For many years, mobile pastoralism has been the lifeline of communities in many parts of the world. From the Zulu community of South Africa through to Karamoja in Uganda; and to Berbers of North Africa, we have a big livestock-keeping community. We even have livestock communities on continents other than Africa. Across the Australasian part of the globe, there are the Australia’s rangelands. And in Nepal, the Humla, Limi, Dolpo and Mustang regions of Nepal feature prominently among the livestock places. So, we see that a significant population of Africans, Asians; and the Europeans and South Americans are still stuck with the pastoral style of life, of moving from place to place to look for a conducive ecosystem for their livestock. They are majorly dependent on their livestock for livelihood and survival.

It is a Basic requirements for attracting a foreign industrialist to Uganda.

I am tempted to write this article after listening to His Excellency the President of Uganda, Yoweri Kaguta Museveni Tibuhaburwa, addressing our Ambassadors at Kyankwanzi and reading about the announcement by the Minister of Information that the Government will construct Industrial Parks in different regions.

A foreign industrialist decides to establish an industry in a country like Uganda because he believes this will enable him to extend the market for his products on a profitable basis. The industrialist will tend to choose a location with an advantage of supplying profitably the widest market. He will also prefer a location with access to a wide marketing area such as a common market but also with a substantial national local market. In most cases, a visit by this foreign industrialist in Uganda is an outcome of considerable prior contact and discussion by His Excellency the President or his emissary, like Ambassador Kibedi Zaake. The industrialist may then prescribe requirements, which considerably limit the number of possible locations for his industry within the country. Unwarranted pressure in persuading the industrialist to locate his industry in a particular area or location can be dangerous or detrimental as he may choose to locate in another country instead.

The very first basic requirement for the foreign industrialist is the type of work force or labour force available in the country.  The industrialist will require information on local man - power or labour - force. Man - power figures are normally analysed to show available skilled and unskilled labour - force.  The potentialities of Vocational Institutions in the area should normally be made available to the industrialists.

The second basic requirement for the incoming industrialist is the availability of the communal services and facilities. Information about these must be presented clearly and simply to the incoming industrialist. These include a reliable source of power (electricity) or / and energy (oil / fuel), a good and reliable source of water supply and sewerage system, good and adequate housing, educational and health services, sporting and cultural amenities as well as a possibility of a proper solid waste disposal management policy.

The third requirement for a foreign industrialist are good roads and a good transportation system which is critical in a land locked country like Uganda. The transport facility is also critical with the location of the industry such as an urban centre. Transport facilities must be described together with the availability of industrial sites. The issue of industrial sites is crucial because this is problematic in Uganda. As a result many foreign industrialists have resorted to buying land in rural areas including wetlands. A drive along both highways from Kampala to Bombo and Kampala to Jinja will bear witness to this. So the creation of Industrial Parks is most welcome.

Lastly, yet importantly, the foreign industrialists will also examine the effects of grants, tax concessions and other incentives such as power tariffs and any other incentives available etc.

The adequacy of each of the above requirements is examined from first the national and then the regional or local viewpoint. If the maximum requirements for the industrialist can be met, then he will examine the alternative industrial locations that can be available within the different parts of the country.  Indeed clean, bright and well planned towns are in themselves an attraction.

It is, however, important to note that apart from the basic requirements listed above, the development of industries in a country, is a function of a wide range of factors including physical, economic, social, political and psychological ones.

It is important to have close liaison between the various Government bodies concerned with development so that there is mutual benefit from the particular range of experience that each possesses.

Indeed, the Uganda Investment Authority should embark on a major re – appraisal of the whole programme for industrial location and development in this country.             

Paul Frederick Magimbi, Graduate of the University of Manchester and a retired Town and Regional Planner                        

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