Uganda promises to help lower production cost to benefit Chinese investors

Ugandan president Yoweri Museveni delivers a speech during a tour to Chinese factories in central district of Mukono, Uganda, March 9, 2019.(Xinhua/Zhang Gaiping)

Ugandan president Yoweri Museveni on Saturday toured four Chinese factories in the central Ugandan district of Mukono, promising to lower the cost of production in a bid to benefit those doing business in this east African country.

Speaking at Tian Tang Industrial Park, Museveni said that his government is working to reduce the cost of electricity, transport and financing.

Once this is done, the factories will be able to increase the wages of their laborers, among other measures that will help improve their production and turnout, said the president.

In addition, he assured the Chinese investors that the country has a strong security system that can deal with any form of criminality.

Museveni thanked the Chinese investors for choosing Uganda as their destination.

"I would like to thank the investors for coming to Uganda. They are in the right place at the right time," he said.

Meanwhile, Chinese Ambassador to Uganda Zheng Zhuqiang quoted figures from the Chinese Ministry of Commerce as saying that Uganda stands as the third largest destination of China's investment in Africa.

"More and more companies are investing in Uganda. More and more factories are being established in the industrial parks," said Zheng.

According to a file released by the Chinese Embassy, China became the largest direct investor in Uganda in 2013; in 2016, the direct investment by China in Uganda reached 122 million U.S. dollars and bilateral trade volumes stood at 861 million U.S. dollars.