While giving his deliberating on ways through which Uganda can mobilize resources domestically, the Executive director of Uganda manufacturers Association noted the 5% growth of Uganda’s GDP can partly be attributed to the stimulated growth as a result of the local content drive. The manufacturing sector operating at only 54% of installed capacity means that the country is losing jobs, revenue and injuring the net national product and GDP. Once rolled out, the local content drive has potential to generate more revenues locally. He also said that there was need to shift the country’s tax policy to focusing on a competitive private sector so as to achieve its Vision 2040 targets.
Having a more predictable policy region he said, would be ideal as it gives businesses the ability to forecast their operations. The situation of Uganda’s policies for example if we impose taxes on stationery and educational materials without prior information, it greatly impacts on the general operations of the manufacturers.
Mr. Daniel Birungi also pointed out the need for access to affordable credit and finances as one avenue through which mobilization of domestic resources can be realized. Currently finances are quite problematic to access due to the high interest rates of up to 25%; being the highest in the region yet with a short life span makes it hard for investors and industrialists to finance their projects hence making it hard to generate revenues.