KAMPALA, UGANDA – In a hands-on effort to address the pressing issues facing local industries, a team from the Uganda Manufacturers Association (UMA) is currently paying a courtesy visit to UKI Factory, the producers of the popular “Sleeping Baby” brand of petroleum jelly and other cosmetics.

The engagement, happening today, is part of UMA’s ongoing strategy to connect directly with members on their factory floors to gain firsthand understanding of their operational realities. The discussions are centered on the key challenges endemic to Uganda’s manufacturing sector in 2025: rising production costs, persistent supply chain disruptions, and a burdensome regulatory environment.

UKI Factory, a domestic producer in the competitive Fast-Moving Consumer Goods (FMCG) market, represents a vital segment of Uganda’s industrial base. The challenges they face are a microcosm of the hurdles that manufacturers across all sectors are working to overcome.

The Triple Threat to Competitiveness

The dialogue between UMA and the UKI Factory management is touching on the three critical areas impacting manufacturers’ viability and growth:

1. Rising Production Costs: The cost of doing business remains a primary concern. This is driven by several factors, including the high cost of capital, with interest rates often exceeding 20%, a topic that dominated the recent Financial Symposium. Furthermore, unreliable electricity supply forces many factories to depend on expensive diesel generators, directly inflating production costs and eroding their competitive edge against imported goods.

2. Supply Chain Disruptions: Manufacturers continue to grapple with vulnerabilities in the supply chain. This includes challenges in sourcing quality raw materials locally, an issue UMA has been vocal about, particularly concerning the export of unprocessed agricultural goods that local industries need. Logistical hurdles, from transportation costs to delays at customs for imported inputs, further complicate operations and add to lead times.

3. Regulatory and Compliance Constraints: Navigating the regulatory landscape is a significant challenge. Manufacturers consistently cite the complexities of tax administration, including the implementation of the Electronic Fiscal Receipting and Invoicing System (EFRIS), as a major compliance burden. Ongoing dialogues between UMA and the Uganda Revenue Authority (URA) have also sought to address issues like the 30% upfront payment rule on disputed tax assessments and the need for streamlined customs procedures.

Advocacy in Action

Visits like the one to UKI Factory are a cornerstone of UMA’s advocacy work. By gathering direct, on-the-ground evidence and testimonials, the association strengthens its position when engaging with government ministries, departments, and agencies.

This direct feedback loop ensures that UMA’s policy recommendations are not just theoretical but are rooted in the real-world experiences of its members. The insights gained from today’s visit will be used to further champion policies that lower the cost of doing business, create more resilient supply chains, and foster a more predictable and supportive regulatory environment.

For the wider manufacturing community, these engagements are a clear signal that their challenges are being heard and actively addressed at the highest levels of industry advocacy. It reinforces the collective effort to build a more competitive and sustainable manufacturing sector in Uganda.