Manufacturers in Uganda can look forward to reduced costs of electricity and interest rates as the country helps to boost the sector and create jobs, President Yoweri Museveni has said. He said the aim is for manufacturers to pay sh169.39 ($5cents) per unit up from sh372 ($11cents) for electricity per unit.
“To support manufacturing, electricity tariffs will come down from the current $11 cents to $5 cents,” said Museveni at the official opening of the 24th Uganda International Trade Fair.
Speaking at the at the UMA showground, Lugogo Thursday, Museveni added, “I have already negotiated with stakeholders and I can assure you if you are a manufacturer, you are going to pay $5 cents.”
The transition will see costs come down from from $11 cents to $7 cents and eventually $5 cents to enable favourable costs of production for the business community.
To further support the manufacturing sector, Museveni revealed that he had already negotiated with the Finance ministry to put money in Uganda Development Bank (UDB) to give manufacturers at an interest rate of 12%.
“Government is also going to institute Export Credit Guarantee to help exporters who sell products in risky markets,” he told manufacturers.
The president also urged government departments to purchase from local manufacturers instead of importing products from abroad. He showed off his military uniform manufactured in Uganda.
“I am wearing an army uniform made by Nytil. I don’t want to hear of importation of army and nurses’ uniforms anymore,” he said.
Chairman UMA Amos Nzeyi had earlier hailed government for the new electricity sources it has invested in.
He hailed the 1350 business exhibiting at this year’s trade show. Last year were 1000 from the Uganda and East African region.