Haile, the managing director of Vambeco Enterprises Ltd, has been in the construction industry since 1999.
With his other partner contributing 50% to the initial capital of about
$100,000, Haile's company has built a reputation locally and in the East African region particularly in water engineering and general construction.
The Kampala-based entity also has offices in Kenya and has completed a number of projects such as the Kwale water supply project and Kibera sewerage works in Nairobi and the Tororo Gravity-Fed water supply scheme in Uganda.
Some of its ongoing projects include the bulk water rehabilitation works in Mombasa and construction of the Jinja Central market because the company ventured into building construction such as construction of schools, gas stations and market s three years ago.
"We go for big building jobs, there are so many Chinese and small players who tender cheaper rates or under cut," Haile says, adding that there is stiff competition in such projects yet there the returns are not so favourable.
Haile adds that the company decided to concentrate on building its asset base, which is about Shs 10 billion currently. It is also planning to construct bridges but not roads for now.
The company employs about 70 permanent staff and several others on contract basis.
Tips to success: Financial discipline and specialization
"It takes discipline to ensure that every project must finance itself and yet we have never borrowed from a bank. Where possible, business people should avoid those loans because they are not only expensive but will also kill you."
Secondly, Haile says many companies fail because they are greedy for every deal, big or small and this can stretch your finances. It's better to be informed, specialize and strategize before you tender for a job.
the independent (uganda)
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