Mbarara Central Market is just one of the many projects executed by Roko Construction Limited.
Roko Construction Limited (ROKO) and the Ministry of Finance, Planning and Economic Development (on behalf of the Government) are set to enter into a Share Subscription Agreement.
The agreement will see the 53-year-old construction giant prepare and offer for sale – 150, 000 shares to the government.
The move was recently tabled before Parliament. However, it attracted mixed reactions from a section of the public but according to Roko, the decision is premised on the absence of a Government owned construction company which has subjected the Government to contract foreign companies that have flooded the market and repatriate the funds back to their home countries; Roko’s continued ability to handle government projects that require quality and technical ability; the need to build capacity of local firms in strategic sectors and industries, and the need for Government to set Quality standards in the construction industry.
With the Government liquidity injection in Roko, a five-year cash flow projection of the company reveals free cash flow increases 12-fold over five years, from Shs 1.02 billion in 2022 to Shs 122.9 billion in 2027.
According to Roko, this analysis demonstrates that the Government support for the Financing Plan will therefore positively impact the Company’s viability and financial position.
To date, the company continues to exhibit consistency in the execution of their construction works in line with the International certification standards. In the last 9 month, ROKO has successfully concluded projects such as the Electricity Regulatory Authority (ERA) Headquarters, the Insurance Regulatory Authority (IRA) Headquarters, the Busoga Institute of Technology, Mbarara Central Market, Uganda Hotel Tourism and Training Institute (Phase1), Makerere University School of Public Health (Phase1), National Social Security Fund Fit out among others.
Therefore, Roko officials argue that “having stood the test of time in the construction industry, Roko Construction Limited is a worthwhile investment for the Government of Uganda.”
Currently, the company is a contractor for Government projects such as the Parliament of Uganda, the Inspectorate of government, the Uganda Cancer Institute and the Ministry of Finance, Planning and Economic Development.
Roko Construction Limited boast of standards for construction works in Uganda with the highest quality thresholds in the execution of all their construction projects and as such, Roko was the first construction firm to get International certification standard (ISO standards) in the construction industry in Uganda and has to date maintained the standards.
Over the years Roko has executed most of the major building jobs in Uganda. These include: Workers House, Crested Towers, the Namugongo Shrine, Bank of Uganda, Mapeera House, Acacia Mall, Rwenzori Towers, DFCU Towers, Imperial mall and apartments Entebbe, the Latitude Hotel and Mestil among others.
With a current portfolio value of government and private sector works amounting to Shs 1,064.7 billion, an employer of over 2,000 employees and one of the largest tax payers in construction, Roko Construction Limited officials told Parliament recently that the Company “is a key player in the construction industry as well as the economy as a whole.”
Further justification for Government’s intervention, according to Roko, is the fact that the Company has a pipeline of contracts worth Shs 1,204 billion equivalent of works that it is negotiating with prospective clients in the Oil and Gas, Tourism and Government Infrastructure sectors.
“This pipeline will enable the company to expand further and create many new employment opportunities for Ugandans,” Roko officials say.
