Chinese Textile Enterprises Have Broad Investment Prospects In Uganda

< p > Uganda is rich in cotton. About 5% of cotton is used for domestic production every year, and the remaining 95% are exported.

< /p >

< p > in the center of Africa, there is a country known as "water village in the East African plateau". Few people are familiar with the land area of 190 thousand square kilometers and the population of only about 30000000.

Recently, Zhang Dejiang, chairman of the Standing Committee of the National People's Congress, gave a friendly visit to them. He said that in the future, it would strengthen the overall planning of the two sides, promote the cooperation of light industry, a target= "_blank" href= "//www.sjfzxm.com/" > textile < /a > and other related fields closely related to the people's livelihood, causing the close attention of the textile target= target= _blank _blank href=.

This country is Uganda.

< /p >

More than 50 years ago, the establishment of diplomatic relations between China and Ukraine, the cooperation between the two sides in the political, economic, cultural and other fields has deepened day by day. P

According to the statistics of China's Ministry of Commerce, bilateral trade between China and Ukraine amounted to 538 million US dollars in 2012, an increase of 34.6% over the same period last year.

Among them, China exported $495 million to Uganda, an increase of 37.8% over the same period last year, and imports from Uganda 43 million US dollars, an increase of 6.5% over the same period last year.

The reporter learned from the counsellor's office of the Embassy of the Republic of China in Uganda that the third main products of China's export commodities to Uganda are non knitted or non Crocheted garments and accessories (the average temperature of Uganda is 22.3 degrees Celsius).

In the future, the upcoming cooperation between China and Ukraine in light industry, textile and other fields will provide opportunities for Chinese textile and garment enterprises to enter the Uganda strong market.

< /strong > < /p >.

< p > < strong > make efforts to develop cotton textile industry < /strong > < /p > according to local conditions.

< p > Uganda is an agricultural country, agriculture is its leading industry, and its main agricultural products are cash crops such as cotton, coffee, tea and tobacco.

In 2010, Uganda's cotton exports amounted to US $19 million 200 thousand, second only to the export of coffee and gold.

China's main imports from Uganda include cotton.

< /p >

< p > however, in the first two years, information on the development of Uganda's textile industry has frequently been heard in the world. Due to the large import of cheap and secondhand textiles and garments, and the high production cost, Uganda's textile industry and cotton production have once been seriously threatened.

The chairman of the Uganda Textile Manufacturers Association has said that because of high production costs, uben domestic textiles have been unable to compete with imported textiles and clothing, and most of the domestic textile mills have been forced to be converted into warehouses.

This situation has not hindered Uganda's confidence in developing its textile industry.

Shortly after, Henry Khajura, Second Deputy Prime Minister and Minister of public affairs of Uganda, declared that the government of Uganda would spend 250 million US dollars to revitalize the textile and garment industry in the country, and will focus on improving the business environment of the local textile industry, strengthening textile production and providing technical support and protection.

Khajura said that the government's textile policy is to build a complete and Sustainable Textile and garment industry by increasing the value of the industrial chain.

Kahinda Otafilre, Minister of tourism and trade and industry, said that the government will also focus on textile and clothing fields including infrastructure, human resources development, technology and procurement, as well as the commercial operation in the East African common market. Based on the efficient cooperation between the public and private sectors, the local cotton growers will benefit from the increase in capacity and scale to facilitate the pformation of the country's textile industry from raw cotton supply to textile products.

< /p >

In August, the Uganda Development Bank (UDB) said that it will be one of the partners of the national development plan implemented by the Uganda government to set up a loan project for cotton farmers in the eastern and northern parts of the country, which means that the cotton farmers in the country will receive loan support. "P"

< /p >

< p > in recent years, cotton production in Uganda has been on a downward trend. The plan is designed to help cotton farmers in the country increase cotton production.

The East African Business Week reported that the bank has provided about $170 thousand of loans to 4400 cotton growers in Uganda. The key part of the loan will be used to expand the industrial scale of cotton processing and sales in Uganda. Cotton farmers can benefit from the development of local markets.

< /p >

< p > < strong > actively seeking international investment < /strong > < /p >.

< p > Uganda is a member of the East African community (EAC) and the southeast African Common Market (COMESA). Its products enjoy preferential treatment in other member countries.

At the same time, Uganda is one of the direct beneficiaries of the Rome Convention and the African opportunity and Growth Act (AGOA). Its agricultural products and textile products are exported to European and American countries and enjoy preferential treatment such as tariff free and quota.

As of May 2012, Uganda signed an agreement on avoidance of double taxation with 11 countries and regions, including 5 European countries, 4 African countries, and 2 Asian countries, including China.

< /p >

< p > in addition, it is worth noting that the Uganda government can enjoy 10 years' tax exemption for the exporters who are engaged in exporting more than 80% of the flowers and manufactured goods in order to encourage foreign enterprises to invest.

< /p >

After the ups and downs of cotton and textile industry, Uganda began to use its abundant natural resources and international benefit policy to attract international enterprises to invest in the textile and garment industry of P.

< /p >

"P" recently, President Yoweri Museveni of Uganda extended an invitation to Sri Lanka textile enterprises.

Museveni and Sri Lanka President Mahinda Rajapaksa held a meeting, according to a statement released by Sri Lanka's presidential office, the meeting between the two presidents focused on cotton and textile industry.

Sri Lanka's textile and garment exports account for more than half of all products exported to the country, and there are many successful textile enterprises in China.

Based on the success of Sri Lanka's textile industry, Uganda sought Sri Lanka's investment support for the country's textile industry.

Sri Lanka Prime Minister Rajapaksa said: "we will guide Sri Lanka's textile enterprises to Uganda market to find opportunities for development."

The conference also focused on areas with potential for cooperation and development between the two countries, especially focusing on how to improve product technology, enhance building capacity and enhance cooperation in key areas of cooperation.

< /p >

< p > President Museveni said that Uganda engaged in agricultural labor accounted for 80% of the country's labor force.

Uganda minister also pointed out at a recent meeting that only about 5% of Uganda cotton was used for domestic production, so the future Sri Lanka's textile and garment industry investment in Uganda will have great room for development.

< /p >

< p > Uganda is actively seeking Sri Lanka to invest in the textile and garment market of the country, and also shows its confidence in revitalizing and developing the cotton and textile industry in the country.

< /p >

Besides, P also has a convenient geographical advantage. It is located in the center of Africa, the East is bordered by Kenya, the north is adjacent to Sultan, the west is the Democratic Republic of Uganda, the southwest is Tanzania and Rwanda, and the radiation market is very broad.

There is almost no industry, investment ratio and other restrictions on foreign investment. Capital free access, currency convertibility, large population density and low labor cost (according to the Uganda standard, the average wage per worker per day is 5~7 dollars, light equipment operators are 6~8 dollars per day), and the market potential is huge.

In 1991, the investment law promulgated by Uganda encouraged foreign investment in 24 fields, including textile and a target= "_blank" href= "//www.sjfzxm.com/" > leather < /a > industry, and Uganda's industry was backward. In 2010, the industrial output value was only 24.9% of GDP.

< /p >

< p > at present, Chinese enterprises invest in Uganda including leather processing, < a target= "_blank" href= "//www.sjfzxm.com/" > shoes < /a > category and home textile manufacturing industry. At present, no textile and garment industry has invested in Uganda.

During his meeting with Prime Minister Amama Mbabazi of Uganda, Zhang Dejiang said that economic and trade cooperation is an important aspect of friendly cooperation between China and Ukraine, with good momentum of development, great potential and broad prospects.

< /p >