Kampala
In a letter by president Museveni to the prime minister Robina Nabanja, he said the decision comes as a way to support and strengthen the local manufacturing sector. Mr. Metu, who has fabricated his own buses in Uganda, will now be able to both produce the vehicles and provide the transportation services.
In the same letter, Museveni urgued that the move is significant for two main reasons. Firstly, it allows the company to generate more revenue, which can be invested in expanding the manufacturing industry. By combining fabrication and transport operations, he and maximize profits and contribute to the growth of the local economy.
He also revealed that, the decision aims to prevent foreign service providers from externalizing the money they earn in Uganda. By having a local actor who manufactures the buses and provides the transport services, the country can retain more of the revenue within its borders. This optimal combination of production and service provision ensures that the economic benefits stay within the country.
“To further support the local manufacturing industry, Mr. Metu is encouraged to exclusively purchase buses from Kiira Motors, a domestic manufacturer, if his transport service requires additional vehicles. Importing foreign-made buses for this business venture is discouraged” said Museveni.
This initiative highlights the government’s commitment to empowering the manufacturing sector and promoting domestic businesses. By allowing Mr. Metu to both fabricate and operate buses for mass transit services, the government is fostering economic growth and ensuring that the profits generated stay within the country.
