UPDF turns losses to profits: NEC's financial turnaround.
In a recent appearance before the Committee on Commissions, statutory authorities, and state enterprises (COSASE), the Managing Director of the National Enterprise Corporation (NEC), Lt Gen James Mugira, announced a significant financial turnaround for the UPDF's commercial arm. After grappling with Shs28 bn in losses over the past eight years, NEC has successfully transitioned to profitability.
The december 2023 auditor general's report highlights this achievement, revealing notable financial gains across various NEC subsidiaries.
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NEC Luwero Industries Limited posted a profit of Shs8 bn for the fiscal year 2022/23, marking a slight increase from Shs7.88 billion in the previous year.
Similarly, NEC construction Works & Engineering Limited saw its profits rise to Shs5 bn in 2022/23, up from Shs4.35 bn in 2021/22.
NEC AGRO SMC limited experienced a substantial profit surge, recording Shs4 bn in 2022/23 compared to Shs1.64 bn in the prior year. On the other hand, NEC Uzima limited reported a slight decrease in profits, with Shs 160M in 2022/23 down from Shs190m in 2021/22.
Despite this dip, NEC Uzima Limited recently secured a lucrative contract to supply water to Parliament, a move expected to enhance its profitability in the near future.
