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238. That's the number of Arcades in this city. Usually, 7 to12 level buildings, Arcades have revolutionized the retail experience for Ugandans. But, Joel seems to have an issue with the fact that they seem to be retail outposts for Chinese & Indian & Turkish manufacturers. 1/n
That's strange. The native, if I may use the term, is not dense and is possessed of sufficient memory of contemporary examples of why S/HE MUST NOT put their hard earned capital in anything manufacturing.
You can start with the SEMBULE GROUP...
You can start with the SEMBULE GROUP...
The SEMBULE guys come from BUIKWE. They made radios, Televisions (before most African countries had more than 1,000 color TV sets), had an investment bank, a steel rolling mill (forget these new contraptions being opened), etc.
They were left to ROT. It was NEVER a management...
They were left to ROT. It was NEVER a management...
issue as the pop media claims.
@AndrewMwenda never tires to tell of the 10s of times the Japanese govt came to the rescue of Kichiro Toyoda's Toyota Motors. They are still doing it, to date. The govt of Japan, is still bailing out their PRIVATE firms.
@AndrewMwenda never tires to tell of the 10s of times the Japanese govt came to the rescue of Kichiro Toyoda's Toyota Motors. They are still doing it, to date. The govt of Japan, is still bailing out their PRIVATE firms.
In fact, just 3 days back, it was reported that they are paying companies to leave China! https://www.businesstoday.in/current/world/japan-to-pay-companies-to-move-out-of-china-to-cost-at-least-usd-536-million/story/410340.html
Now, you may or not, have heard of Electrical Controls & Switchgear Ltd, a Kawempe based manufacturer of electricity transformers.
The company, likely listened to President M7's narrative to switch from importation to manufacturing, locally. As well it should have.
The company, likely listened to President M7's narrative to switch from importation to manufacturing, locally. As well it should have.
The owner, an aristocratic engineer by the name James Kalibbala, must love this country. He heeded that advice and in May 2017 opened a new $2.5m manufacturing facility in Kawempe. To much fanfare and talk of Buy Uganda Build Uganda. https://www.newvision.co.ug/news/1453169/ecs-transformer-manufacturing-facility
He had been MOSTLY importing electric equipment for sale for about 30 years and making a few, here.
In 2018, @AmeliaAKyamb met with transformer manufacturers in Uganda. The @GovUganda had resolved to prioritize buying transformers from Ugandan firms.
In 2018, @AmeliaAKyamb met with transformer manufacturers in Uganda. The @GovUganda had resolved to prioritize buying transformers from Ugandan firms.
It was reported, then, that we import transformers worth $22.65 million per year. The company honchos took a photo op. All smiles. This is not easy money to get, legitimately, in this economy. https://www.independent.co.ug/local-transformer-manufacturers-to-benefit-from-bubu-local-content/
In 2020, the local transformer manufacturers (ORION, ECS & KORICA) complained, publicly. Unprecedented, but that shows you why you shouldn't sink $2.5m into manufacturing & instead set up an arcade, or a school.
They would have made $52m, they argued. https://www.monitor.co.ug/Business/Markets/Energy-Ministry-prefers-imported-transformers/688606-5571002-bk4a8c/index.html
They would have made $52m, they argued. https://www.monitor.co.ug/Business/Markets/Energy-Ministry-prefers-imported-transformers/688606-5571002-bk4a8c/index.html
If only the Ministry of Energy had prioritised them in their projects.
This is NOT unique to the electric transformers manufacturers. We have a bureaucracy that regularly defaults in payments to local suppliers. For years. Trillions. https://www.monitor.co.ug/Business/Prosper/Domestic-arrears-Trouble-of-local-suppliers-owed-by-government-/688616-5187816-amd6p6z/index.html
This is NOT unique to the electric transformers manufacturers. We have a bureaucracy that regularly defaults in payments to local suppliers. For years. Trillions. https://www.monitor.co.ug/Business/Prosper/Domestic-arrears-Trouble-of-local-suppliers-owed-by-government-/688616-5187816-amd6p6z/index.html
Not to belabour the point, whom did @GovUganda turn to when AGOA was approved by the US Congress in May 2000? It was a Ugandan manufacturer, wasn't it?
So, pray tell, why wouldn't one build a 20,000 square meter Arcade assured of instant (even before end of construction)...
So, pray tell, why wouldn't one build a 20,000 square meter Arcade assured of instant (even before end of construction)...
returns by way of rent? Yeah. It is slow and whatnot, but it is safer than investing money into a factory that will NEVER make money, because the govt of the day preaches one thing and practices the other.
I would only advise that the Arcade owners get a wee bit innovative.
Now that @KCCAUG is improving the built environment in downtown Kampala with their NMT & whatnot, go mixed use.
And, not just residential. Get into the AirBnB space. Modern coffee cafés, etc.
Now that @KCCAUG is improving the built environment in downtown Kampala with their NMT & whatnot, go mixed use.
And, not just residential. Get into the AirBnB space. Modern coffee cafés, etc.
Just like govt signalled to you NOT to put your money in manufacturing (a preserve of their washed up foreign investors, basically as long as you have fair or white skin), current signals indicate that tourism will be the thing. It is true.
The whole Politburo is basically going haywire into the thing. They have no option, but to make it work.
Just don't get distracted by patriotic speeches about local manufacturing. It only ends in tears. Wait till we have a sensible bureaucracy. Capital is shy. Long may it be so
Just don't get distracted by patriotic speeches about local manufacturing. It only ends in tears. Wait till we have a sensible bureaucracy. Capital is shy. Long may it be so
