Investment: What it means for Uganda to have companies producing premium tiles locally

Investment: What it means for Uganda to have companies producing premium tiles locally

By Our Reporter

Kampala – “We started with one tiles factory in this country and today we are talking about three different tile factories. The most exciting thing about Modern Tiles is that they started manufacturing during the Covid-19 period and within six months the factory was up and running,” those were the opening remarks of the State Minister of Finance for Investment and Privatisation Evelyn Anite while opening Modern Tiles showroom located in Industrial Area in Kampala on Wednesday.

Currently the company has a total market share of about 58%, which implies that many Ugandans are buying tiles produced locally by Modern Tiles.

The other exciting bit of the tile manufacturing company is that it sources 90% of the raw materials locally, meaning that they are doing value addition in terms of stones and clay used in the production process.

Anite further implored Ugandans to promote the Buy Uganda Build Uganda (BUBU) policy by buying tiles locally from the three different companies.

State Minister of Finance for Privatisation and Investment (Middle) together with Chairman Modern Group Ashish Monpara (4th right) and other dignitaries in a group photo. Wallnetnews photo.

The recommended retail price for Modern Tiles on the market is Shs25,000 for two square metres, making it more affordable.

When asked what such an investment means to Ugandans and the economy at large to have a company manufacturing tiles locally, minister Anite had this to say: “ To Ugandans, it’s saving us forex because we have been donating a lot of our money in terms of importation of tiles in the country, and it was costing us a lot of money,” adding that every time Ugandan traders wanted to buy good quality tiles, they had to convert their shillings to dollars to go China, Italy, Spain among others to be able to import these tiles which is not the case now ever since the country starting manufacturing tiles.

The investment according to Anite has created jobs and also increased taxes since the company pays taxes which are used by the government to provide services to the citizens, and also providing affordable premium quality tiles to Ugandans.

The Chairman of Modern Group of Companies Ashish Monpara, whose first time to Uganda and Africa as a continent was in the year 2015, lauded the government for providing a conducive investment climate for both local and foreign investors.

To date the company has invested about$30 million in the factory, directly and indirectly employing about 3,000 Ugandans in the production process.

Ashish also appreciated the government for supporting all investors of all spheres, adding that Uganda is the best investment destination in the whole of East Africa.

When asked about the challenges the company faced when starting up the company, Ashish said that they had no skilled labour in the tile manufacturing industry at the time but they have since trained many staff who now perform their duties seamlessly.

Modern Group of companies owns 10 factories in Uganda including Modern Tiles in Njeru, Buikwe district. The company also manufactures hand sanitizers, Cooking gas, Aluminium, Kidera sugar, Lamborghini drinks and Beverages (Modern Spirits), Modern power. The company also acquired Kaliro Sugar in 2023.

The factory currently produces 49,0000 square metres of tiles per day, with the capacity planned to triple to 150,000 square metres per day at full capacity.

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