Museveni orders officials to buy locally made products

Inspection. President Museveni (3rd left) accompanied by State Minister for Investment Evelyn Anite (4th left) and Chinese Ambassador to Uganda Zheng Zhugiang tour Orion Transformers and Electronics plant in Namanve yesterday. PHOTO BY MICHAEL KAKUMIRIZI

What you need to know:

  • Issue. Investors say they have failed to secure market for their products as companies continue to import the same.

Kampala. President Museveni yesterday announced a ban on importation of locally generated products and in no uncertain terms threatened to sack government official that will be caught importing locally manufactured products.
The President, who was speaking after commissioning six factories in Namanve Industrial Park, explained that Uganda is now producing enough to feed the local market and promised taxes on importation of locally manufactured products in order to protect local industries from unnecessary competition.
“We cannot look on as government departments are not buying what is produced here. Very soon those people who are doing that are going to rear their goats. There is nothing to discuss, no repeating anything. Therefore, anybody who does not do it (buying local products) will lose his job,” Mr Museveni said.
The President, who flagged off five trucks exporting locally made steel, iron bar and tanks to Kenya, Rwanda and South Sudan, said most of the products that are used by government ministries, agencies and departments are locally produced and therefore, there is need for the concerned officials to adhere to Buy Uganda, Build Uganda (BUBU) policy.
The factories commissioned include; Orion Transformers and Electronics, the manufacturers of transformers; Interior Technologies Limited, the makers of steel and furniture; Luuka Industries who produce plastics for packaging; Steel and Tube Industries that make iron bars and tanks; Alfasan Uganda Limited which is for veterinary medicines; and a Show Room for Toyota Uganda who import cars from Japan.
The President made the remarks in response to concerns raised by the chairman of the Orion Transformers and Electronics, Mr Jian Xiong Hou, who said he has failed to secure market for transformers from Rural Electrification Agency and Uganda Electricity Distribution Company Limited.
Mr Hou pleaded with the President to impose high import levies on transformers that are imported into Uganda so that priority is given to those manufactured locally.
“Now that you are making transformers here in Uganda, we now put 25 per cent tax on those imported,” the President announced.
However, to effect the presidential directive on taxes, the government will be required to lobby MPs to emend the existing tax laws.