The Deputy Speaker of Parliament, Thomas Tayebwa, has put forward a new government policy aimed at rewarding investors who enhance the value of Ugandan raw materials.
During a recent visit to Tembo Steel Mills Limited in Iganga District, Tayebwa highlighted the importance of supporting businesses that prioritize using local raw materials. He called for incentives for manufacturers who utilize Ugandan resources, suggesting that they should receive financial support while importers of such materials could face import duties.
“Manufacturers who use Ugandan raw materials should be supported to pay a certain percentage. Those importing them need to be charged an import duty,” he said.
Tayebwa emphasized the need for more government backing for companies involved in processing iron ore, including facilitating mining licenses and monitoring environmental impact. He praised the innovative technology at Tembo Steel Mills Limited, which significantly reduces carbon emissions and transforms raw materials into high-quality steel products.
The Deputy Speaker encouraged other steel manufacturers to follow the lead of Tembo Steel Mills in promoting local value addition instead of relying on imports. He also commended the company for its environmental efforts, including the suggestion to plant more trees in the area.
Tayebwa acknowledged the positive impact of businesses like Tembo Steel Mills on local communities, citing examples of providing essential services and employment opportunities.
“I hope other steel manufacturers follow the example set by Tembo Steel instead of continuing importation of raw materials which can be outsourced from here,” Tayebwa said.
He echoed President Museveni’s call for prioritizing value addition to raw materials as a crucial step towards economic growth and reducing reliance on exports of unprocessed goods.
President Museveni has consistently championed the need for Uganda to enhance the value of its natural resources, emphasizing the economic benefits of processing raw materials locally. He has urged stakeholders to embrace value addition as a means to foster socio-economic development and reduce the country’s dependence on imported products.
