Manufacturers want raw materials aggregated for production
Manufacturers say that aggregation of raw materials used in production for local consumption and export would help reduce on the high cost of production that makes their products unaffordable and less competitive in the local and regional and continental markets
This follows the state of the nation address in which President Museveni highlighted low absorption of Ugandan made products in the local and regional markets .
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In his state of the nation address, the president highlighted low absorption of Ugandan products
According to Museveni , Ugandan exports to EAC were in $2.140b in 2023 while those to the COMESA countries were $2.157b
The production of cement 6.4million Metric tonnes with an internal demand 2.4million tonnes creating a balance of surplus of 4.million tonnes like wise , sugar production in Uganda is a 600,000 metric tonnes with an Internal market 380,000 metric tonnes
For the steel products ,Uganda produces an average of 610,000 metric tonnes but with
Internal demand of only 1.5million metric tonnes .
“ Who will buy these additional products , our milk , cement , sugar ? That is why we need East Africa and Africa” Museveni asked.
However, according to Allan Ssendyowa the director for policy , research and Advocacy at Uganda Manufacturers Association, this is a a result of many factors ranging from redundant capacity
“ A recent study by the Private Sector Foundation and Mastercard realized that we operate from anywhere between 49% - 54% and the cost drivers are high thus making our products non competitive,” Ssendyowa said.
Manufacturers say that government should create a conducive environment for manufacturers so as to enable them introduce at lower costs so their goods can easily be absorbed into the local and continental markets.
“You see, production for export requires alot of steady supply for raw materials mostly agricultural because we are talking about not thousands but million of tonnes of raw materials .How do we achieve that when we get raw materials in smaller amounts from distant sources ?”
Uganda manufacturing output for 2022 was $7.46B, a 12.06% increase from 2021. Uganda manufacturing output for 2021 was $6.66B, a 12.08% increase from 2020.
