NEWS– The Minister of State for Privitisation and Investment Hon Evelyn Anite has assured the Sino-Uganda Investors in Mbale that the government of Uganda will support them in the recovery of the huge loss they suffered when their premises were submerged by floods.
The floods which the Minister described as a disaster happened in Mbale recently after River Nabuyonga and River Nakibiso burst their banks following torrential rains that caused the disastrous flooding.
As a result the Sino-Uganda Industrial park sitting over 25 square miles of land which was officially opened by President Yoweri Kaguta Museveni in 2018, were heavily affected by the floods which damaged machinery, raw materials and finished ready products at the premises.
Minister Anite who inspected the premises on a guided tour on August 11th 2022, said that as government, they were concerned for the damage caused to the premises and promised that government of Uganda will help in the rehabilitation and recovery of the destroyed facilities.
Hon Anite who was accompanied by the Chairman of Uganda Investment Authority Morrison Rwakakamba blamed the flash floods on the poor drainage system in Mbale City as well as unfinished drainage system at the Sino-Uganda Industrial Centre.
She however revealed that the President has already directed the Ministry of Works to deploy a technical team to assess the damage and immediately work out modalities on how such future disasters can be avoided.
Minister Anite made it categorically clear that following President Museveni recent directives, no industry will be licenced to be established in wetland area because experts have warned of dire consequences as far negative environmental impact are concerned.
Minister Anite also disclosed that an inter ministerial committee has been formed under her chair together with other stakeholders which include Uganda Investment Authority to map up strategies on how restore the investors confidence by ensuring that their damage is quickly restored by insurers.
She disclosed that the loss suffered at Sino-Uganda Industrial Park in Mbale has been estimated at about US 20 million dollars and this will be recovered from the Insurers.
Its estimated that it could take up to 6 months for the complex to return to full scale operations as it was before the floods hit the place.
Sino-Uganda Mbale Insustrial Complex was designed to host 25 factories and presently 17 of the factories were already operational by the time the floods swept the facility.
The Sino-Uganda Industrial complex in Mbale currently produces electrica appliances like bulbs, a wide range of textiles, mattresses and high quality bed covers, and will soon venture into motor vehicle assembling and other machine manufacturing.
Since 2018 when it was commissioned, Sino-Uganda Mbale Industrial Park has created over 3000 jobs for Ugandans directly who are drawn from different parts of the country with most of them originating from Bugisu Sub Region.