Ugandan Finance Ministers Push for Full Electricity Subsidies to Boost Manufacturing Sector

Uganda's Minister of Finance, Planning, and Economic Development, Matia Kasaija, along with Junior Minister Evelyn Anite, has called for the extension of full electricity subsidies to essential manufacturing industries. The ministers emphasized that this move is crucial to sustaining industrial growth and maintaining production capacity in the country.

During a visit to the ongoing road construction projects in Namanve Industrial Park and an inspection of Roofings Group, a leading raw materials supplier, Kasaija outlined the benefits of government intervention in power distribution.

Kasaija argued that government control over electricity distribution would enable more favorable pricing for manufacturers, which could enhance the country's industrial output. "The power we have been discussing will undoubtedly come with a special cost, as the private sector is performing admirably," Kasaija stated. "But once distribution is under government control, we will be free to set our own rates for electricity."

He acknowledged the challenges of regulating the private sector due to existing agreements, but he expressed confidence that government oversight would ultimately lead to improved electricity rates for consumers.

Minister Anite echoed these sentiments, stressing the importance of supporting key industries like Roofings Group. "The extension of the electricity subsidy to all hours is not just a favor, but a necessity for their sustained growth," Anite stated. She added that the Ministry of Energy is currently evaluating whether Roofings qualifies for a full-time subsidy.

Anite also addressed delays in the road construction project near the Roofings factory, promising that the necessary funds have been allocated and that the project will soon be back on track.

"We promise to fix the problems and put the project back on track within the following week," Anite assured.