Electricity unreliability remains a critical challenge for manufacturers in Uganda, significantly affecting productivity, increasing operational costs, and limiting industrial growth. Power outages, voltage fluctuations, and unstable supply disrupt manufacturing processes, damage machinery, and force companies to rely on expensive alternative energy sources.

Frequency and Severity of Power Issues

Based on continuous surveys conducted by the Uganda Manufacturers Association (UMA) 2024/2025, power disruptions are a widespread and frequent challenge across the manufacturing sector. Many businesses experience power outages between 4 to 7 times per week, while others report interruptions daily. Some manufacturers experience up to 15 outages a day, making it nearly impossible to maintain continuous production. A few manufacturers face power failures once a week or every now and then, but even these occurrences significantly impact production efficiency.

Voltage fluctuations are also common, causing machines to run inefficiently or fail entirely. Many industrial machines require stable power to function correctly, and sudden drops or surges result in frequent breakdowns and high repair costs.

Impact on Manufacturing Operations

The consequences of power outages and voltage fluctuations are severe, affecting manufacturers in multiple ways:

1. Machine Damage and Increased Maintenance Costs: Power interruptions, surges, and voltage drops cause significant damage to manufacturing equipment. Machinery that operates under specific temperature and voltage conditions, such as in textile and metal industries, becomes highly vulnerable to malfunctions and permanent damage. Repairing and replacing these machines is costly and results in unplanned downtime.

2. High Energy Costs: With unreliable grid electricity, manufacturers are forced to rely on diesel generators to sustain production. Some companies report spending an additional 30 million UGX per month on generator fuel alone. For larger industries, generator costs reach hundreds of millions monthly. The combination of high electricity tariffs and backup energy expenses makes Uganda’s manufacturing sector increasingly expensive to operate.

3. Productivity and Quality Losses: Frequent power outages and fluctuations disrupt production schedules, leading to missed deadlines, material wastage, and reduced product quality. In textile manufacturing, for instance, interruptions result in incomplete chemical reactions, causing fabric discoloration and waste. For many industries, restarting machines after a sudden power cut takes significant time, reducing overall efficiency.

The Need for Urgent Action

The study by UMA 2024/2025 reveals that manufacturers have repeatedly raised concerns about unreliable electricity, yet solutions remain inadequate. Many businesses have reported financial losses and even consider shutting down operations due to repeated power failures.

There is also frustration over the lack of communication regarding scheduled outages, as manufacturers are often unprepared for disruptions. Additionally, many businesses emphasize the high cost of electricity, calling for tariff reductions to make power more affordable for industrial use.

Conclusion

Electricity instability is one of the biggest challenges facing Uganda’s manufacturing sector. Without urgent intervention, industries will continue to suffer from high costs, equipment damage, and declining productivity. The government and power utilities must take decisive action to ensure a stable and reliable power supply, improve infrastructure, and communicate effectively with industries. Addressing these issues will promote industrial growth, enhance competitiveness, and strengthen Uganda’s economy.

Kibekityo Gilbert

Research and Policy Analyst

Uganda Manufacturers Association