Business

Uganda’s Textile Triumph: Paving the Way for Foreign Investment

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  • A delegation representing the Private Sector Foundation Uganda (PSFU), led by Odrek Rwabwogo, Chairman of the Presidential Advisory Committee on Exports and Industrial Development (PACEID), has successfully engaged China’s leading integrated textile firm, Kamhing Textile Company, in discussions pertaining to investment opportunities.
  • Rwabwogo reassured Kamhing Textile Company of Uganda’s conducive business environment, citing advantages such as a youthful and skilled workforce, competitively priced electricity at 5 cents per unit for industrial usage, and a burgeoning cotton production sector.

A delegation representing the Private Sector Foundation Uganda (PSFU), led by Odrek Rwabwogo, Chairman of the Presidential Advisory Committee on Exports and Industrial Development (PACEID), has successfully engaged China’s leading integrated textile firm, Kamhing Textile Company, in discussions pertaining to investment opportunities.

During a comprehensive tour of Kamhing’s facilities, Rwabwogo and his nine-member delegation, including notable figures such as Ambassador Kiema Kilonzo, Brenda Opus, Allan Mugisha, Joshua Akandwanaho, and Enock Isingoma, held meetings with Kamhing’s proprietor, Mr. Tai Chin Wen, and General Manager, Mr. Dai Junwei. The Ugandan representatives presented the nation’s potential for cotton cultivation and textile production, emphasizing the government’s commitment to fostering an attractive investment climate through various incentives.

Kamhing Textile Company, publicly listed on the Hong Kong stock exchange, boasts an annual cotton processing capacity of 100 million kilograms and counts renowned global retailers such as Macy’s, Target, Walmart, Nike, and Adidas among its clientele. Despite its formidable stature, the company expressed reservations regarding investment in Africa, citing concerns over water accessibility, power reliability, and overall safety and security.

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Rwabwogo reassured Kamhing Textile Company of Uganda’s conducive business environment, citing advantages such as a youthful and skilled workforce, competitively priced electricity at 5 cents per unit for industrial usage, and a burgeoning cotton production sector. Additionally, he underscored the forthcoming commencement of oil extraction activities in the country, which is expected to catalyze the development of a robust petrochemical industry, supplying dyes for cotton fabric printing.

Uganda’s per capita fabric consumption stands at 6 meters annually, translating to a total consumption of 276 million square meters, thereby presenting a substantial investment prospect within the sector. With the objective of generating USD 6 billion in foreign exchange earnings over the next five years, PACEID is actively pursuing investment opportunities across strategic value chains.

Kamhing Textile Company has expressed interest in phased investments, contingent upon assurances from the Ugandan government. Rwabwogo and his delegation have provided assurances of President Museveni’s commitment to extending fiscal and market protection to early investors in the textile industry.

Furthermore, during their visit, the delegation engaged with Mr. Yang Qian, Senior Consultant at CN Light Technology Limited, who provided insights into the dyeing processes and operational intricacies of Kamhing’s textile factory. The tour of the expansive production facilities spanning over 300 acres underscored the integrated nature of textile manufacturing at Kamhing, serving markets across Africa, Korea, Singapore, Vietnam, and various parts of Asia.

This engagement marks a pivotal milestone in PACEID’s endeavors to showcase Uganda’s export potential and attract foreign investment, particularly in critical sectors like cotton cultivation and textile production.

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