Prioritise manufacturing - UMA
Kampala. Uganda Manufacturers’ Association (UMA) has said government should in the third phase of the National Development Plan focus on manufacturing to spur economic development.
Speaking during a luncheon organised by UMA in Kampala last week, Mr Deo Kayemba, the UMA vice chairperson, told Speaker of Parliament Rebecca Kadaga that government should review the National Development Plan (NDP) with the view of focusing on manufacturing.
Mr Kayemba also noted that NDP should focus on reforming tax administration because the current tax regime is antagonistic and does not help businesses growth.
UMA, which has a membership of more than 1,221 manufacturers, also said during the meeting that government needs to capitalise Uganda Development Bank (UDB) as well as funding Uganda Development Corporation, some of the valuable institution critical in enterprise growth and providing cheap credit.
Ugandan businesses are currently struggling to find cheap business loans amid rising commercial bank interest rates, which average at about or over 18 per cent.
Mr Kayemba, who was speaking on behalf of other manufacturers, also noted that government must expand its revenue mobilisation net to match the increasing budget expenditure, which will reduce competition between government and the private sector for commercial bank credit.
Government has in the last five years heavily borrowed from commercial banks, which has in essence locked out or made it difficult for the private sector to access credit.
UMA also demanded that government must make legally binding guidelines for local content that must be adhered to by government agencies and contractors.
Mr Daniel Birungi, the UMA executive director, said that if government implements some of the above demands among others, “the future of manufacturing in Uganda will certainly be bright”.
In response, Ms Kadaga, said Parliament will take up the issues, noting that the House would also compel National Planning Authority to review the country’s development blueprint.
“I have taken note of what you have raised. The privileges that are given to other investors should also be accorded to you. You must be paid in time and Parliament will support you,” she said.
Ensuring tax payment
Uganda’s economic development is premised on micro, small and medium enterprises. The sector spreads across sharing 52 per cent of the service sector, 33 per cent in commerce and trade, 10 per cent in manufacturing and 8 per cent in other sectors.
