Bahati urges manufacturers to deepen local sourcing, boost competitiveness

What the report says

Industry Minister David Bahati has called on Ugandan manufacturers to rely more on locally sourced raw materials, improve product quality and position themselves for stronger competition in regional and international markets. According to Nile Post, he made the remarks during a factory monitoring and engagement tour at Mesha Steel Industries Limited, Samona Products Limited and Korica Uganda Limited as part of government’s broader industrialisation agenda.

At Mesha Steel, managing director Lydia Mwesigwa said about 95% of the company’s raw materials are sourced locally. The company also employs about 200 people directly and supports more than 2,000 livelihoods through its supply chain and workers’ families. Bahati praised that model, saying greater local sourcing can benefit farmers, suppliers and other businesses while reducing dependence on imports.

The minister also heard different challenges at the other plants. At Samona Products, founder Michael Kasawuli Mukasa said the herbal products maker is under serious financial strain and fears bankruptcy because of complications linked to its original operating plan with Kampala Capital City Authority. At Korica Uganda, Bahati noted the firm’s exports to the Democratic Republic of Congo, South Sudan, Rwanda and Burundi as evidence that Ugandan products can compete beyond the domestic market.

Bahati urged manufacturers to work with government agencies on regulatory, infrastructure, financing and market-access barriers, and encouraged them to use opportunities under the African Continental Free Trade Area. He also said government wants lower industrial electricity costs as part of efforts to support value addition, import substitution, job creation and export growth.