By ABCafrica reporter
Uganda Development Corporation (UDC) plans to rejuvenate defunct public companies before listing them on the stock market. UDC executive director Emmanuel Mutahunga,says, the move, if actualized, will allow the general public to buy stakes in rejuvenated government-owned firms. Presenting the UDC 2017/18-2032/33 strategic plan at a retreat in Lweza, Wakiso last week, Mr Mutahunga told members of the parliamentary committee on trade, tourism and industry; that the corporation will conduct detailed studies of all the government owned-firms to rejuvenate those that are strategic in the growth of the economy.
He added that;those that are not doing well will be considered for reinvestment. “We shall invest in our companies and once they are back on their feet, we shall then float shares to the general public in an Initial Public Offering,” said Mutahunga.
State minister for Trade Michael Werikhe Kafabusa, in an interview with media, said there is no problem with UDC reviving ailing or defunct government firms. He, however, stressed that priority will be investing in sectors that are perceived to be high-risk or not attractive by the private sector.He said emphasis is on agro-processing, manufacturing and industrialization plus areas whose initial capital requirements are high and risky, but important for the country’s development will be considered first.
Mr Alex Ruhunda, the chairperson of the Parliamentary Committee on Trade, Tourism and Industry said; now that there is a plan, they will push for its recapitalization starting next financial year. With the strategic plan in place now, Mr Mutahunga said he is now ready to make a case for the need to industrialize the economy and solve the unemployment question.
Some of the privatized firms include; Uganda Spinning Mills, Nile Breweries Ltd, East African Distilleries, Uganda American Insurance, Shell (U) Ltd, Lake Victoria Bottling Co. Ltd, Uganda Securiko Ltd, Agricultural Enterprises Ltd, Uganda Tea Corporation Ltd, TUMPECO, White Horse Inn, Blenders (U) Ltd, Hotel Margherita, Mt. Moroto Hotel, Rock Hotel, Uganda Cement Ind. -Hima, Lira Hotel, Soroti Hotel, Hilltop Hotel, Uganda Fisheries Enterprises, Mt. Elgon Hotel, White Rhino Hotel, Uganda Leather and Tanning and Uganda Meat Packers Ltd, among others.