Bukenya urges tax reform, industrial parks to boost local manufacturing

By Muhamadi Matovu | Monday, June 23, 2025
Bukenya urges tax reform, industrial parks to boost local manufacturing
Why should government offices import photocopier paper or toilet paper when we can make them here? Let the imported ones be taxed heavily

Former Vice President Prof. Gilbert Bukenya has called for deliberate tax reforms and the establishment of industrial parks in every district to boost Uganda’s industrialisation and reduce dependence on imports.

Speaking to media in Kampala, Bukenya decried what he described as ignorance among national leaders and policymakers towards locally-driven industrial transformation.

He urged the government to introduce higher taxes on imported goods such as toilet paper, bed sheets, and photocopy paper while reducing taxes on locally made products to encourage Ugandans to "Buy Uganda, Build Uganda."

“Why should government offices import photocopier paper or toilet paper when we can make them here? Let the imported ones be taxed heavily,” Bukenya said.

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News Bukenya urges tax reform industrial parks to boost local manufacturing

Highlighting the success of the industrial park in Mbale, which he said produces quality products such as diapers, steel, textiles, and paper, Bukenya challenged the government to replicate the model in districts like Wakiso, Mityana, and Ntungamo, arguing that every district deserves its own industrial hub based on local resources.

“I wish to see an industrial park in every district, tailored to what the people produce locally. This is the only way we can transform agriculture into industry and move out of poverty,” Bukenya emphasised.

He also underscored the importance of value addition, especially in key sectors such as cotton, wood, steel, and food processing, saying it would allow Ugandans to compete internationally rather than remain consumers of finished foreign goods.

Bukenya, a former ally and now critic of some government approaches, reaffirmed his support for President Yoweri Museveni’s industrial vision, citing it as “the only clear vision currently being implemented” in the country.

“I want someone to tell me their vision for Uganda in health, education, or industry. If you want to replace Museveni, tell us what alternative you are bringing,” he said.

The former VP also criticised the West and some long-standing foreign investors for failing to transfer meaningful technology to Ugandans, claiming that China had shown more commitment by setting up manufacturing plants and sharing production techniques.

Luke Wang, the Director of Tian Tang Group and CEO of Uhome Holdings Limited, said Uganda possesses immense natural and human resources which, if leveraged through infrastructure development and education, could turn the country into a leading industrial and manufacturing hub in Africa.

“Forty or fifty years ago, China was even poorer than Uganda is now. Many provinces had no food. People were starving. But what changed China was visionary leadership and massive infrastructure investment. Roads were built first, and that laid the foundation for growth,” Wang said.

He stressed that the principle "if you want to be rich, build the road first" should guide Uganda’s development priorities, noting that roads are critical for business operations from the movement of raw materials to distribution of finished products.

Wang also lauded Uganda’s commitment to free primary education, which he credited for improving the employability of local youth in foreign-run factories such as those in the Mbalala-based Mbale Industrial Park, where his company operates.

“Right now, in Mbale Industrial Park, we have over 10,000 direct employees, and 9095% of them speak fluent English because they received primary education. As an investor who doesn’t speak Luganda or Swahili, English bridges the gap. Without this, we couldn’t hire,” Wang noted.

He revealed that only eight Chinese nationals oversee operations in the company’s jeans factory, which employs more than 2,500 Ugandans. These expatriates, he said, are mainly responsible for training locals, maintaining machinery, and ensuring production quality.

“We don’t want substandard products. We want Made in Uganda to become a respected brand not just in East Africa but across the entire continent, and even globally. We want it to become the new Made in China,” he said.

Wang, who has lived in Uganda since 2010 and studied in the country during his secondary school years, expressed confidence in Uganda’s workforce, calling the people “smart and hardworking,” and predicted that with sustained investment, Uganda could become East Africa’s manufacturing capital within five to ten years.

The Tian Tang Group is one of Uganda’s largest Chinese investors, with operations in manufacturing, steel production, furniture, and textiles. The Mbale Industrial Park, where the group is heavily invested, is part of Uganda’s broader strategy to drive industrialisation and attract foreign direct investment.

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