By Our Reporter
Entebbe, Uganda – President Yoweri Kaguta Museveni today officially launched Lake Victoria Logistics, a company aiming to significantly reduce the cost of transporting fuel in Uganda. Founded in May 2015 as Mahathi Infra Uganda, the company aspires to transform petroleum logistics for Uganda and other landlocked countries, including Rwanda, Burundi, and the Democratic Republic of Congo.
The launch event at Bugiri-Bukasa, Kawuku-Entebbe Road, marked a significant milestone since President Museveni laid the foundation stone for the facility in 2018. During his address, President Museveni expressed gratitude to Lake Victoria Logistics/Mahathi Infra Uganda for their investment in Uganda.
“I’m very happy about this move. Mahathi, you have helped us. I don’t know how much cheaper it is because you didn’t give us the figures, but I imagine that it is much cheaper than it was. The most important thing is for you to come to the market of Uganda and once you enter our market, you are talking about the market of DR Congo, South Sudan, Rwanda, Burundi, and so on. So, this is really a goldmine for investors,” he said.
President Museveni highlighted the progressive growth of Uganda’s economy due to the strategic approach of the National Resistance Movement (NRM) government. He remarked, “By 1986, the money economy of Uganda had collapsed. When you hear people talking of traffic jams and so on, that means the economy has been revived; you cannot have traffic jams if people don’t have money to buy cars and fuel.”
He explained that while the economy has been revived under the NRM government, the focus should now shift to rationalizing it. “During that phase, we could not handle the other elements of rationalization. Our transport system at the moment is irrational. We have so much traffic on the roads which is not economic. This is the time now to go into rationalization, and this project is part of it. By having fuel off the roads, you are targeting that rationalization of the economy,” he elaborated.
President Museveni also emphasized the importance of preventing pollution in Lake Victoria and encouraged further investment in diverse cargo capacities. “I advise you to look for durable areas of investment because right now the recovery phase of Uganda’s economy is finished. You should also bring us other investors who can invest in other sectors,” he added.
The Minister of Works and Transport, Gen. Katumba Wamala, noted the project’s significance in reducing transportation and fuel costs in Uganda and the region. “This effort will greatly reduce the high maintenance costs, traffic congestion on our roads, and the frequent associated road accidents. I just want to reassure you that these vessels are very safe,” he stated.
Hon. Ruth Nankabirwa, the Minister of Energy and Mineral Development, praised Mahathi Infra for training Ugandans and contributing to the country’s energy sector. “This project is a significant milestone in Uganda’s energy sector and a testament to our commitment to diversifying fuel import routes and promoting economic growth,” she said.
Dr. Steve Mainda, Board Chairman of Mahathi Infra Uganda, explained that the new logistics company would address inefficiencies in road-based fuel transportation. “With Lake Victoria Logistics, such inefficiencies will be no more. We have invested USD 100 million in this project,” he said, adding that the company currently operates two state-of-the-art tank ships, each with a capacity of 4.5 million liters, with plans to construct two more ships.
The facility also boasts 14 storage tanks with a collective storage capacity of 70 million liters, the largest in Uganda and East Africa. A 256-meter-long jetty in Bugiri-Bukasa facilitates efficient cargo handling.
Former board Chairman Capt. Mike Mukula thanked President Museveni for his support, stating, “This investment will be a major catalyst in reducing the cost of doing business in the country. Lake Victoria Logistics will tremendously reduce the cost of transport between Kisumu and Uganda.”