Stakeholders have highlighted the urgent need for improved market access, stricter enforcement of product standards, and better tax compliance strategies.
This was during the Second Uganda Manufacturers Association (UMA) Pre-Budget Dialogue 2025, held at the UMA grounds in Kampala on Thursday. The dialogue brought together key stakeholders from the manufacturing sector to discuss critical issues ahead of the national budget formulation.
Strengthening Product Standards and Market Access
Deputy Executive Director of the Uganda National Bureau of Standards (UNBS), Mrs Patricia Bageine Ejalu, emphasised the need to increase the number of Ugandan products meeting the required standards.
She outlined key measures, including the development of standards for existing products, the provision of conformity assessment services, and ensuring timely, cost-efficient testing.
Additionally, she stressed the importance of calibration and certification services to support manufacturers.
Julius Mukunda of the Civil Society Budget Advocacy Group (CSBAG) called on the government to actively secure markets for Ugandan manufacturers.
“The government needs to get serious about securing markets for our manufacturers, especially through all our embassies,” he stated, urging more aggressive trade promotion strategies.
Addressing the Counterfeit Crisis
A major concern raised during the dialogue was the proliferation of counterfeit goods, which continue to harm businesses and consumers.
Mukunda shared a personal experience of encountering fake agricultural pesticides, illustrating the economic damage caused by substandard products.
“Over Christmas, when I went home, I found cows covered in ticks. I sprayed and sprayed, but instead of dying, the ticks were thriving. Counterfeit products are destroying businesses, especially in manufacturing. If I were the government, I would fully support UNBS in fighting this issue nationwide and impose heavy penalties on counterfeiters,” he said.
Tax Compliance as a Collective Responsibility
John Jet Tusabe, Director of Tax at BDO Uganda, called for a shift in corporate tax compliance culture.
“In many organisations, tax is left to the finance function, but this must change at all levels. Everybody in the organisation, including the board, needs to have an understanding of the company’s tax obligations to ensure that compliance becomes a collective effort,” he remarked.
Environmental Compliance as a Profit Enhancer
Dr Akankwasah Barirega, Executive Director of the National Environment Management Authority (NEMA), also addressed the gathering, emphasising that environmental compliance should not be seen as a financial burden but as a factor that enhances profitability.
“Manufacturers must integrate environmental sustainability into their business strategies to remain competitive in both local and international markets,” he stated.
Uganda’s Position in the Global Economic Outlook
Senior Tax Auditor at Ernst & Young, Robert Mbaziira, provided insights into Uganda’s standing in the global economy.
He noted that Uganda contributes less than 1% to the global economy and highlighted external factors, including global inflationary pressures, that could impact local manufacturing.
He warned that currency depreciation and increased borrowing costs could further strain production costs for manufacturers.
The dialogue underscored the need for urgent government intervention to enhance market access, strengthen enforcement of standards, and curb counterfeiting. Manufacturers and policymakers were urged to collaborate on improving tax compliance and embracing environmental sustainability to drive long-term economic growth.
