By Mulengera Reporters
Residents of Mayirikiti Village in Nakaseke District are benefiting from jobs, improved infrastructure and growing business opportunities following the expansion of Abubaker Technical Services and General Supplies Ltd (ATSGSL), supported by the Uganda Development Corporation (UDC).
The company’s 30-acre quarry and asphalt plant has expanded its operations, creating demand for local labour and businesses while supplying materials for major road construction projects.
During a media visit to the facility on Wednesday, ATSGSL General Manager Frank Kizito said the company prioritizes recruiting workers from the communities where it operates to ensure residents directly benefit from its projects.
“We do not take people from our head office in Mukono to work in Hoima, Arua or in Nakaseke here. We use the people who are there to execute these jobs. We bring our engineers and technical expertise, but most of the employees are locals,” Kizito said.
He added that the company wants its expansion to improve the livelihoods of people in the areas where it operates.
“We want to grow with our people. It should not be that Abubaker has grown and become successful, but the people around us have gained nothing. We employ people from the same areas where we work so that they can benefit from the projects we execute,” he said.
In Mayirikiti, the company’s operations have been accompanied by improved access to piped water, electricity and roads. Increased activity has also created business opportunities for local traders and service providers.
The company’s growth has been supported by UDC, which invested in ATSGSL in 2023 after the construction firm struggled to utilize its Nakaseke plant to its full potential.
Established in 2018 with financing from Uganda Development Bank (UDB), the facility initially had limited production capacity. The company had only one crusher before UDC’s intervention but now operates three crushers, an asphalt plant capable of producing approximately 130 tonnes per hour, and a range of heavy equipment.
Kizito said UDC’s initial investment of UGX26 billion enabled the company to expand its machinery and pursue bigger construction contracts.
“The partnership is not only about how much cash they bring. The money is part of it, but the bigger issue is how they help us grow our capacity, guide us and strengthen the business so that we can continue executing these projects,” he said.
According to UDC, its cumulative financing to ATSGSL has 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 investment has helped the company settle expensive debt, strengthen its balance sheet and obtain working capital for major construction projects.
Kizito said the partnership has also strengthened the company’s credibility with financial institutions, making it easier to seek performance guarantees required for large contracts.
“When you want a performance guarantee from a bank, having a partner like UDC makes a difference when the bank is assessing you as a contractor. The partnership has helped us build the capacity and credibility needed to compete for bigger projects,” he said.
ATSGSL is currently executing two major road contracts worth a combined UGX525.19 billion.
These include the 145-kilometre Busunju-Kiboga-Hoima Road project, valued at UGX309.07 billion, and the 41-kilometre Matugga-Semuto-Kapeeka Road project, together with five kilometres of town roads, valued at UGX216.12 billion.
The Busunju-Kiboga-Hoima road connects Kampala to Hoima City and the Albertine oil and gas region. By October 2026, progress on the project stood at approximately 40%, with completion targeted for February 2027.
Kizito said supporting local contractors was necessary to help Ugandan companies compete against foreign firms that often have access to cheaper financing.
“Most foreign companies come with funding that is cheaper than what we can access here. If I have to borrow from a commercial bank in Uganda to execute a project, my costs can be higher than those of a company borrowing from the UK or China. That makes competition very difficult for local contractors,” he said.
He said stronger local contractors would enable local companies to participate directly in major infrastructure projects while creating jobs and opportunities for domestic suppliers.
UDC invests in strategic enterprises to promote local entrepreneurship, create employment, utilize domestic resources and strengthen Uganda’s productive capacity.
The media visit to the Mayirikiti facility 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.
The conference is scheduled for November 18 to 20 at Speke Resort Convention Centre in Munyonyo under the theme “Celebrating Uganda’s Industrial Growth” and will also mark UDC’s 10th anniversary. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
