A new textile factory, Fine Spinners, located in Kampala, Uganda is seeking to promote the government’s policy of adding value to agricultural produce by contracting more than 30,000 small holder farms to supply cotton to the factory.
The factory, located in Bugolobi is expected to employ more than 3,000 people in the processing plant, and the first phase of development will cost $40 million. Raw cotton from eastern and western Uganda will be processed at Fine Spinners into finished products before being exported, Uganda’s Daily Monitor reported.
Jaswinder Bedi, Fine Spinners director, said while speaking at the commissioning of the first phase of the factory, “We are excited to be part of this journey with our investment to transform Uganda from a raw material supplier to a finished goods supplier and create numerous jobs in the process.”
According to Bedi, the factory will manufacture finished products and 90 percent will be exported. The exports market will be reached through a number of economic partnerships, including EAC, Comesa, and others, which Uganda has with other countries and economic blocs.
Bedi said he chose to invest in Uganda because of the country’s textile policy that offers generous incentives to invest in the cotton textile value chain.
President Museveni commissioned the plant and said that Ugandans should take available opportunities to fight poverty and improve household incomes.
Museveni said the supply of cotton is unlikely to be a problem, considering the government has a plan to work with at least 5,000 farmers who will produce around one million tons of bale annually. He also pledged to grow cotton if farmers fail to seize the opportunity, asking deputy secretary to the Treasury, Keith Muhakanizi, to ensure investments don’t get delayed by unnecessary bureaucracy.