President Yoweri Museveni has assured manufacturers in Uganda that his government is committed to solving all major cost pushers to ensure that business operators are able to benefit from their business operations.
Museveni was speaking at the on-going 27th Uganda International Trade Fair at Uganda Manufacturers Association (UMA) Show Grounds in Lugogo, Kampala where manufacturers and exhibitors are showcasing their numerous industrial merchandise.
“Business is about profits. When you make profits business grows and in order to make profits you need to minimise costs,” he said.
He enumerated the four major cost pushers as being high cost of transport, electricity, money and labour adding that all the efforts by Government to address these challenges are under way.
“The economy of Uganda has been growing in spite of these bottlenecks. Even now, we have not solved them wholly, but the economy is doing well because of peace and liberalization,” he observed.
This year’s International Trade Fair, whose theme is ‘Promoting Job Creation through Industrialization, has attracted the participation of over 27 countries. The one-week long event started on 2nd and is slated to end on October 10, 2019.
Museveni informed the manufacturers and exhibitors that the Government of Uganda is continuing to build infrastructure, such as roads, among others as it also promotes partnering with the neighbouring countries of Kenya and Tanzania to build modern railway line as well as expanding electricity generation in order to reduce the cost of doing business in the country.
Regarding the issue of the cost of money (high interest rates), President Museveni explained to the manufacturers that the government capitalize government banks namely the Uganda Development Bank and Post Bank so that they give loans to borrowers at no more than 12% per annum.
Trade, Industry and Cooperatives Minister, Amelia Kyambadde, highly commended the Uganda Manufacturers Association for organising successful trade fairs in the country for the last 27 years. She noted that the Fair has enabled domestic and international companies to show case their products on top of helping to increase sales through networking. She revealed that the manufacturing sector alone contributes 35% of the total tax revenue collected in Uganda.
On her part, Uganda Manufacturers’ Association boss, Ms. Barbara Mulwana thanked the President for the ardent support to the manufacturing sector in Uganda. She reported that the association is committed to partnering with government to re-tool Ugandans, especially the youth, in skills’ imparting methods to help the young meet international job demands worldwide.