By Caroline Nakire
MUKONO — The State Minister for Industry, Hon. David Bahati, has pledged Government intervention to address operational bottlenecks affecting manufacturers in Seeta and Namanve.
Bahati made the commitment on September 3 during a monitoring visit to three factories aimed at assessing challenges facing local manufacturers and promoting agro-industrialisation.
At Avado Industries Ltd in Seeta, an avocado oil processor with an investment of $3.5 million and more than 300 employees, management said the export of raw avocados was affecting the factory’s production capacity.
The company currently processes about 120 tonnes of avocados per day against an installed capacity of 300 tonnes.
Management said processing Grade B fruits, which it described as having “zero value” on the open market, creates 2.5 casual jobs per tonne and helps retain value within Uganda.
The company also cited unstable power supply as another challenge, saying it spends up to Shs20 million monthly on electricity and an additional $5,000 on diesel to operate generators due to low voltage.
In response, Bahati pledged to engage the Uganda National Bureau of Standards (UNBS) on developing standards for avocado oil. He also asked the company to submit a formal brief outlining measures to restrict the export of raw avocados.
At RHP Packaging Ltd in Namanve, which has invested $22 million and employs 120 people, management highlighted the company’s contribution to local industrialisation.
The company said its expansion is being hampered by inadequate power connection. It also reported having paid Shs6 billion in taxes during the last financial year.
Bahati described the packaging industry as a critical pillar of an independent economy and directed the company to submit its power requirements for engagement with the Uganda Electricity Distribution Company Limited (UEDCL).
At Regal Paints (U) Ltd, which employs 300 workers, management identified poor road infrastructure and limited land as major constraints to expansion.
Bahati said Uganda’s growing population and construction activity would continue to drive demand for paint products. He pledged to engage the Uganda Investment Authority (UIA) on the possibility of securing land for the company’s expansion.
He also warned that Government would review idle public land allocated to non-performing investors.
Bahati said the Government is committed to supporting local manufacturing and that the Ministry of Trade, Industry and Cooperatives would follow up on the challenges raised by the manufacturers to ensure appropriate interventions are made.
The minister’s visit highlighted the need for continued collaboration between Government and manufacturers to address infrastructure, energy, raw-material and land constraints affecting industrial growth.
