By Mulengera Reporters
A Ugandan construction company that once struggled to fully utilize its quarry and compete for major road contracts is now handling projects worth hundreds of billions of shillings following a strategic partnership with the Uganda Development Corporation (UDC).
Abubaker Technical Services and General Supplies Ltd (ATSGSL) says UDC’s investment has transformed its operational capacity, strengthened its credibility with banks and opened doors to major infrastructure contracts that would previously have been difficult to secure.
The transformation is visible at the company’s 30-acre quarry and asphalt plant in Mayirikiti Village, Nakaseke District, where expanded machinery, increased production and a growing portfolio of construction projects demonstrate the impact of the partnership.
During a media visit to the facility, ATSGSL General Manager Frank Kizito explained that although the company established the plant in 2018 with financing from Uganda Development Bank, it could not initially operate at the level required to support its ambitions.
The company approached UDC for a strategic partnership, which began in 2023, seeking not only financing but also the capacity to compete for larger infrastructure projects.
Kizito said UDC’s initial investment of UGX26 billion helped the company expand its equipment base and improve its ability to undertake demanding construction assignments.
Before the intervention, the company had only one crusher. It now operates three crushers with capacities of approximately 50, 60 and 65 tons, alongside an asphalt plant capable of producing about 130 tons per hour.
The facility also has excavators, loaders, trucks and other heavy equipment used in quarry operations and road construction.
These investments have enabled the company to increase stone extraction and processing, produce more construction materials and reduce its dependence on external suppliers.
According to Kizito, the expanded capacity has changed the scale of projects the company can pursue, allowing it to manage as many as five major construction projects simultaneously, depending on their size and technical demands.
He said the partnership has also helped ATSGSL overcome a challenge that frequently disadvantages local contractors: the difficulty of accessing affordable financing and the financial guarantees required to secure large government contracts.
” The partnership is not only about how much cash they bring,” Kizito explained, stressing that UDC’s contribution extends to strengthening the company’s capacity and credibility in the construction industry.
He said having a government investment institution as a shareholder has improved the company’s standing when dealing with financial institutions, particularly when seeking performance guarantees and other facilities required to execute major contracts.
UDC’s official investment figures show that its total financing to ATSGSL had reached UGX96.15 billion through equity and shareholder loans. The corporation holds a 26.82% stake in the company and is represented on its board.
The funding has helped settle expensive debt accumulated before UDC’s intervention, strengthen the company’s balance sheet and provide working capital for larger projects.
The results are reflected in ATSGSL’s current road construction portfolio.
The company is executing the 145-kilometre Busunju-Kiboga-Hoima Road project valued at UGX 309.07 billion, as well as the 41-kilometre Matugga-Semuto-Kapeeka Road project, including five kilometers of town roads, valued at UGX 216.12 billion.
Together, the contracts are worth UGX 525.19 billion.
The Busunju-Kiboga-Hoima corridor is particularly strategic because it connects Kampala to Hoima City and the Albertine oil and gas region. It also serves an important transport corridor ahead of Uganda’s planned hosting of AFCON 2027.
As of October 2026, progress on the road project stood at approximately 40%, with completion targeted for February 2027.
Kizito also cited the company’s involvement in road works in Kampala, completed works in Mbarara and a newly signed project involving Kidepo National Airport as examples of the expanding opportunities available to the company.
He argued that the growth of local contractors is essential if Uganda is to retain a greater share of the money spent on infrastructure development instead of allowing foreign firms to dominate major projects.
He explained that international companies often enjoy access to cheaper financing, giving them a competitive advantage over Ugandan firms that must borrow from local commercial banks at higher interest rates.
This, he said, has historically left many domestic contractors competing for smaller subcontracting assignments rather than securing major projects in their own right.
With increased investment in equipment, production and financial capacity, ATSGSL believes it can compete more effectively for substantial infrastructure contracts.
Kizito said the company’s ambition is to build a sustainable Ugandan construction firm capable of maintaining its position in the industry while creating opportunities for other local businesses.
UDC’s intervention is part of its statutory mandate to invest in strategic enterprises, strengthen local entrepreneurship, create employment and promote the use of domestic resources in productive activities.
The corporation uses equity financing, shareholder loans, finance leases and business development support to address constraints that prevent promising Ugandan businesses from growing.
The Nakaseke facility demonstrates how such investments can connect industrial capacity to infrastructure development, enabling a Ugandan company to produce construction materials while undertaking major road projects.
The site visit forms part of activities leading to the inaugural Uganda Industrialization Conference 2026, organized by UDC in partnership with the Ministry of Trade, Industry and Cooperatives.
Scheduled for November 18-20 at Speke Resort Convention Centre in Munyonyo, the conference will be held under the theme “Celebrating Uganda’s Industrial Growth” and will also mark UDC’s 10th anniversary.
Through investments such as the ATSGSL partnership, UDC is seeking to demonstrate how strategic public investment can help Ugandan enterprises overcome financing constraints, expand productive capacity and compete for opportunities previously beyond their reach. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
