The Uganda Development Cooperation (UDC) which is an investment arm of government has tremendously improved the life style of Busoga Population by injecting a total of Shs 7.5bn in Mutima Cotton Factory which has created employment for hundreds of youth, farmers in both skilled and unskilled employment, Spyreports can exclusively reveal.
During an interview with Senior accountant Hussein Dikusoka at the factory, he says UDC has injected a total of Shs 7.5bn in the Ginnery factory for the last five years. UDC started injecting billions of money in this factory since 2020 and we have made some improvements in the area,” he said.
He further says eversince UDC took some shares in the factory, production has increased. “With the existence of this factory, many youth around Luka,Iganga and other so rounding districts have gained employment compared to the time when it was not functional,” he states. He added that the factory only employees more than 400 workers both skilled and unskilled.
He further explained to us that the existence of the factory has helped other people to start businesses like hotels, saloons, bars among others because they have market. “Our workers are permanent and they help to support other business by buying their goods and services which has helped to improve the development of the region,” he sounds. He added that factory has given farmers direct market for their cotton and other related crops.
“On daily basis, Mutima factory uses over 40 tonnes of cotton and all is got from Busoga region,” he says adding that each Kg of Cotton bought at Shs 1700. “This factory alone buys cotton worth Shs 68m daily and all this money remains in the region which has helped it to grow, Says Dikusoka. He added have now built good houses, taken their children to school and even have started other earning side businesses because they have capital.
He added the insecurity in the area has also reduced because youth are no longer idle to engage in criminality. He adds that the factory has added value to the economic development of the Country because they sell finished products to government.
“Mutima is the main supplier of finished cotton to National Medical Stores,Joint Medical Stores, Naksero hospital among others,he reveals adding that the factory pays taxes to Uganda revenue Authority. He however says they still face some challenges which has hindered their production. ” We have the challenge of Marchinery. We still use machines of 1963 of which it is difficult to get spare parts,” he says.
He added that another challenge is power because electricity in the area is always on and off. “We can not depend on generator because fuel is very expensive for us to maintain,” he says. He added if government to sort those two main challenges their Target is to produce over 100 tonnes daily. “We have the plan that in the next 5 years Mutima will producing mama kits, toilet papers among others because they have the resources,”he sounds.
In telephone interview with UDC Executive Director Dr Patrick Birungi he says Mutima has not been making profits but only sustaining it’s self. “It is true we have injected money in this venture but it has not yet started making profits but it has helped to improve the livelihood of the population by providing employment, to youth, buying cotton from the farmers among others.
“The factory has started making little profits in the last four months, but we are going to value it and see how much it earns and see how much they can start paying back to clear it’s loan,” he says.
