Business

UIA’s Kaguhangire: Labour Productivity Key in Attracting Investors

Kaguhangire (R) meeting San Belt Textiles Limited in Jinja on May 1

The Executive Director Uganda Investment Authority, no rx Jolly Kaguhangire has appealed to Ugandan workers to focus on improving efficiency at their work places as labor productivity is one of the key attractions for credible investment.

Kaguhangire made the remarks while interacting with Management and staff of San Belt Textiles Limited in Jinja.

The textile factory was officially opened by President Museveni on May 1.

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She stressed that incentives such as tax holidays or waivers are merely “sweeteners” but the real attraction to investors is “market access, labor productivity and average return on investment” among others.

Sun Lian Zhong, Chairman of San Belt Textile industries informed the Executive Director that the company has invested USD 18 Million since 2012, employing 1,200 locals and has plans to scale up total investment to USD 50 Million in the next five years.

A 2016 labor market profile report on Uganda from the Danish Trade Union Council for International development Cooperation indicated that Uganda’s labor productivity was growing steadily during the 2000s but stalled at the start of the 2010s.

Uganda remained with a lower productivity in comparison with Sub Sharan Africa and below the world average.

Labor productivity measures output per worker.

The Executive Director reiterated her belief that investment without a productive labor force is not sustainable.

14 percent of the company’s products are sold locally while the rest is exported to Uganda’s neighbors and the region such as Kenya, Rwanda, Burundi, the Democratic Republic of Congo, South Sudan and Ethiopia.

Mr Zhong said that the company would invest another US$ 32 million for expansion and hoped to create an additional 300 jobs in the near future.

He also revealed that they have partnered with Wairaka Technical College to equip the company’s employees with the technical skills needed to produce materials for the international market.

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