The Ministry of Energy has announced that the newly established FARAD Electrical Solutions Assembling Company will significantly reduce the cost of importing electricity meters while creating substantial job opportunities for the local workforce.
This landmark investment is poised to be a game-changer for Uganda's economy and energy infrastructure.
During a visit to FARAD Electrical Solutions in Namanve, Permanent Secretary of the Ministry of Energy, Iren Batebe, highlighted the benefits of this new venture.
"The establishment of FARAD Electrical Solutions here in Uganda means a major reduction in logistics and importation costs," Batebe stated.
"By producing meters, transformers, and cable wires locally, we can ensure fair pricing and support our national energy objectives."
FARAD Electrical Solutions Assembling Company, a subsidiary of a Chinese conglomerate, began full-scale assembly operations this month.
With an ambitious target of producing 2,000 meters per month, the company aims to meet both residential and commercial demand.
Local production is expected to alleviate the high costs associated with importing these critical components, thereby strengthening Uganda's electricity infrastructure.
Christopher Kibuuka, Production Manager at FARAD Electrical Solutions, outlined the company's strategic vision.
"We are assembling single-phase and three-phase meters for both household and commercial applications. Our expansion plans include opening several new departments, which will create numerous job opportunities for Uganda's youth. This initiative aligns perfectly with the government's goal of enhancing employment and economic growth."
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FARAD has already begun supplying meters to major industry players, including UMEME and the Uganda Electricity Distribution Company Limited (UEDCL), as well as the Ministry of Energy.
This early engagement underscores the company's commitment to bolstering Uganda's energy infrastructure.
However, Kibuuka expressed concerns about the impact of high taxes on the company's operations.
"The current tax burden is quite substantial and poses challenges to our production efficiency," he noted.
"We hope the government will consider revising these taxes to foster a more supportive environment for local manufacturing."
The entry of FARAD Electrical Solutions into Uganda's market is more than just an investment; it represents a strategic move toward reducing reliance on imported energy components and enhancing local manufacturing capabilities.
This shift is expected to lead to more stable pricing, job creation, and accelerated progress toward achieving universal electricity access.
As FARAD ramps up its production efforts, the company stands as a symbol of progress and innovation within Uganda's energy sector.
Its impact extends beyond cost reduction, fostering economic growth, and contributing to the country's energy security, setting a positive precedent for future local manufacturing initiatives.
