Powering Progress, Battling Outages: Unpacking Uganda’s Manufacturing Dilemma

by | May 28, 2025 | Policy & Advocacy

Kampala, Uganda – The vibrant spirit of Uganda’s manufacturing sector was on full display earlier this morning as the Uganda Manufacturers Association (UMA) paid a visit to MMI Steels Uganda. The visit, aimed at exploring collaborations and previewing new products set to debut at the Uganda International Trade Fair in October, revealed truly impressive innovations that speak volumes about local industrial capability.

MMI Steels Uganda exemplifies the very essence of the “Buy Uganda, Build Uganda” mantra. Showcasing high-quality wheelbarrows, robust agricultural equipment, and a range of other essential items, MMI Steels is actively demonstrating that Uganda possesses the capacity to move beyond reliance on foreign imports. By utilizing local iron ore and producing durable, cost-effective solutions, they are making a significant contribution to national self-sufficiency and economic growth. The message is clear: No More Imports! – Uganda can and is producing world-class goods.

The Elephant in the Factory: A Persistent Power Problem

However, amidst this encouraging display of local innovation and import substitution, a “BIG Problem” casts a long shadow over the sector: unreliable power supply. Despite government efforts, including reduced tariffs for industries, manufacturers across Uganda, like MMI Steels, continue to lose millions of shillings due to constant power outages.

For manufacturers, consistent and affordable power is not a luxury, but a fundamental operational requirement. Power fluctuations and prolonged blackouts lead to:

  • Massive Financial Losses: Production lines halt, machinery sits idle, and scheduled output is missed, directly impacting revenue.
  • Damage to Equipment: Frequent power surges and cuts can severely damage sensitive industrial machinery, leading to costly repairs and premature replacements.
  • Increased Operational Costs: Manufacturers are forced to rely on expensive alternative energy sources like diesel generators, significantly inflating their production costs and eroding their competitive edge.
  • Missed Deadlines and Eroded Trust: Inconsistent power supply makes it challenging to meet delivery schedules, potentially damaging client relationships and hindering market expansion.
  • Deterred Investment: The unpredictable power environment makes Uganda less attractive for both local and foreign investors considering setting up or expanding manufacturing operations.

The situation at MMI Steels, a beacon of local production, serves as a stark reminder that even the most innovative and patriotic manufacturers cannot thrive optimally when faced with such a fundamental infrastructural deficit.

UMA’s Ongoing Advocacy:

The Uganda Manufacturers Association continues to tirelessly advocate on behalf of its members, highlighting both the immense potential within the sector and the critical challenges that impede its full realization. The impressive innovations seen at MMI Steels reinforce the belief that with the right enabling environment – particularly consistent, affordable power – Uganda’s manufacturing sector can truly transform the nation’s economic landscape.

To truly unlock the “No More Imports!” potential and foster sustainable industrial growth, the government and relevant stakeholders must urgently address the persistent power crisis. Only then can Ugandan manufacturers reach their full capacity, contribute more robustly to GDP, and fully realize the vision of a self-reliant and prosperous nation.

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