The Minister for Energy and Mineral Development, Ruth Nankabirwa, has commissioned a Shs37 billion biomass plant at Uganda Breweries Limited in Luzira.

The unveiling of the plant marks a significant milestone in the organisation’s commitment to sustainability while demonstrating dedication to reducing its carbon footprint.

The facility represents a substantial investment by UBL and excellent progress in their decarbonising journey as envisaged in their Society 2030: Spirit of Progress sustainability action plan. Powered by locally sourced biomass materials, the plant also exemplifies UBL’s dedication to harnessing sustainable manufacturing while offering livelihood opportunities to local communities.

Nankabirwa said that by investing in biomass plants, UBL is not only reducing its carbon footprint but also contributing to the country’s energy security and economic growth.

She said the biomass project aligns with Uganda’s National Development Plan and Vision 2040, which prioritise sustainable development and environmental conservation.

“This project will not only create jobs and stimulate economic activity but also promote the use of clean energy, which is essential for mitigating the impacts of climate change. Uganda has increased its ambition to reduce greenhouse gas (GHG) emissions from 22% to 24.7% in the new climate change plan that presents the country’s intention to reduce greenhouse gas emissions, deal with the effects of climate change, and fulfil the aspirations of the Paris Agreement,” said Nankabirwa.

Speaking during the biomass commissioning, UBL Managing Director Andrew Kilonzo said, “Today, with the launch of this biomass plant, we have come closer to realising this goal, with the plant reducing our carbon emissions by 92%—8,000 metric tonnes of CO2 per year.”

He said that, as a responsible corporate citizen, UBL remains steadfast in pursuing sustainable practices and initiatives that benefit society and the environment.

Diageo Africa’s President Dayalan Nayager said the biomass plant is within the organisation’s promise to accelerate to a low-carbon world, in which it is committed to only using renewable energy by 2030 through becoming net zero carbon in its operations.

He said the organisation is also committed to reducing its value chain carbon emissions by 50% and using renewable energy across all our direct operations.

“The biomass plant, we are happy to report, has already reduced our carbon emissions by nearly 92%. We have not only done this in Uganda but have collectively invested over Shs180 million into green energy and water recovery solutions across Africa,” said Nayager.

The UBL Board Chairman, Jimmy Mugerwa, said, “Uganda Breweries Limited is the one of the few companies in Uganda that has an investment of such a scale designed to significantly reduce carbon emissions in the production processes. We urge all organisations across Uganda to emulate what Uganda Breweries is doing here today in their various operations and call upon the government to continue supporting these sustainability initiatives.”

“As a brewery, we already work closely with different ministries like the Ministry of Water and Environment, Finance Ministry, Trade, and Agriculture Ministries, and these collaborations have fostered the work that we do not only in replenishing the environment.”

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Post Bank has registered Shs27.5 billion in profits after tax, the just-released 2023 financial year results indicate. Julius Kakeeto, the managing director and CEO of Post Bank, alluded to the fact that profits are linked to an increase in interest on deposits and placements, loans and advances, investment securities, and foreign exchange income.

“This reinforces the bank’s capital position as it prepares itself for the new minimum capital requirements that will take effect on June 30, 2024, and demonstrates the bank’s consistent improvement in its operations,” he said.

The bank reported an increase in its earnings from Shs159 billion recorded in the previous year to Shs206 billion in 2023. This is alluded to by an increase in customer loans and deposits and the drive to diversify our business lines.

He said our growth over the past five years is undeniable! We have increased our profit after tax from Shs8.4 billion in 2019 to an impressive Shs27.5 billion in 2023.

Whereas its total expenditure stood at Shs171 billion, the bank paid 6.8 billion in tax in the last financial year. The customer’s deposits stood at Shs789.8 billion, while the total liabilities and shareholders’ equity were Shs1 billion.

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Uganda’s export earnings have grown to Shs27.1 trillion, the State of the Economy Report rereleased by the Central Bank indicates. The growth is largely attributed to gold exports.

The country’s overall balance of payments (BoP), which records transactions with the rest of the world, has remained resilient. The BoP recorded a surplus of $278 million (Shs1 trillion) in the year to January 2024 relative to the previous year, largely due to improvements in the current account.

The current account deficit narrowed to $3.7 billion, largely due to higher export revenue and a stronger secondary income surplus.

“Excluding gold, exports increased by $433 million (Shs1.6 trillion) due to favourable weather conditions, improved trade relations, and relative improvements in the terms of trade as global commodity prices continue to recede,” the report indicates.

Though outpaced by export receipts, imports grew by 28.0 percent to US$10 billion (Shs39. trillion), owing to increased private sector imports for investment such as oil, gold, and machinery. Excluding gold, imports increased by 0.9 percent to $7.8 billion (Shs30 trillion).

With export growth outpacing import growth, the trade balance improved by 13.3 percent to US$3.1 billion (11.9 trillion) in the year to January 2024. The secondary income surplus also improved by $48.2 million (Shs183 billion) to $19 billion (Shs7.5 trillion), supported by increased receipts of personal transfers. However, other components of the current account deteriorated.

“Foreign direct investments remain robust at $2,888.6 million in the 12 months to January 2024. Other investment net inflows stood at $1,008.0 million in the year to January 2024, a slight decline from the previous year due to increased debt service payments and limited loan disbursements to the government,” the report shows.

The report states that the BoP outlook is highly dependent on the evolution of geopolitical tensions, their impact on the supply chain and commodity prices, and the extent to which global financial markets will remain tight. It is likely to accumulate a surplus of $300 million (Shs1.1 trillion) by June 2024, as exports are expected to increase relative to imports.

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