UDC Injects shs 4.5bn In Mutuma Factory To Boost Cotton Production In Busoga Region

The Uganda Development Cooperation (UDC) which is the Investment arm of the government has injected a total of shs 4.5 bn in the Mutuma cotton factory located in the Luuka district in the Busoga region to boost cotton production which led to employment economic growth and industrialization in the Busoga region.

The good news which was widely welcomed by Busoga people and surrounding areas was revealed by the Executive Director of UDC Dr Patrick Birungi while visiting the project on Tuesday.

He says that UDC acquired 36% shares and the facility started working again. He says part of the shs 4.5bn was used to pay some debts while others were used to reactivate machinery that was not functioning. "As UDC, we shall ensure there are good quality products which will have high market demand," he says adding local products will be turned into finished goods.

He added that the government injected money because Mutuma produces good quality cotton which has attracted high market demand both locally and internationally." We must ensure that the existence of this factory improves the livelihood of the people of Busoga and Uganda at large.

Dr. Birungi says at the moment good quality cotton produced by Mutuma is supplied to National Medical Stores (NMS), Government Medical stores, and Nakasero Hospital among others. "Our quality is good compared to what is imported and that is why we have the market," says Dr Birungi.

He adds that apart from cotton production, the factory also produces oil and animal feeds. Jackson Muhoozi the General Manager Mutuma factory says the partnership they have got with UDC they expect an increase in production which will lead to market expansion hence economic growth and development. "With the involvement of UDC, we have expanded our employment rates.

We have over 300 people who are directly employed and more than 600 are indirectly employed," Says Muhoozi adding that the majority of the employed people are youth who are below 30 years.He says that their market has also expanded and they can now export finished products across East African Countries.

 "We are working hard to ensure we produce finished oil from crude to increase the market price. " a liter of crude oil which we make is at shs 4000 yet the finished one is at shs 7000 so we are working hard to have processed oil," he says. He says that they intend to buy a boiler machine to avoid using firewood which is expensive and scarce in the area.

He says with the involvement of UDC, they still face some challenges that include the high loan of shs over 5bn from the Uganda Development Bank(UDB), lack of perimeter wall for security reasons, and land encroachment among others. "We are still using old machines whose spare parts are expensive thus hindering our production," he says

Some of the farmers that the Spyreports interviewed say they are happy with the involvement of UDC in the Mutuma factory because they will gain from their crops. "Before UDC came in, we had a problem with cash flow.

We would invest a lot and get lost from the sales but now we are happy that our products have a high market," Says one of the farmers adding that their livelihood has increased.