Manufacturers have decried the high cost of doing business in Uganda. According to Robert Kitenda, Head of Communications & Corporate Affairs at Movit Uganda, the cost of operation is becoming increasingly high due to policies that are implemented without consulting the manufacturers in the country.
“Most recently UNBS instituted a Digital Conformity Mark as a new mode of certification, this new model has increased the certification costs by over 20,000% in a period of only 4 months Movit has spent over 1 Billion Uganda Shillings almost triple the cost the cost the company spent on certification for the year 2023-2024,” he said.
Recently the Uganda National Bureau of Standards launched the Digital Conformity Marking (DCM) program, providing a track-and-trace mechanism for consumers, supermarkets, and other retail outlets to distinguish between genuinely certified and substandard commodities.
The DCM program involves issuing Digital Conformity Marks/Stamps to certified commodities, providing consumers with proof that the products meet applicable standards and are of high quality.
However, Kitenda revealed that the costs of acquiring the DCMs cannot be passed on to the consumers, thus eroding the already thin business margins.
Kitenda requested government to reduce on the cost “to support our operations.”
He highlighted the potential for further growth, stating, “With a little more support from the government, Movit could achieve even greater heights. “
He continued, “As we look to expand, we are limited by a lack of space, yet government has established initiatives to support local investors. We need a new home for the business to support its expansion plans. Additionally, we request to be consulted on policies that directly impact our operations, as a business.”
He made the remarks during a visit by the State Minister of Finance for Investment & Privatization, Evelyn Anite, at Movit Products Limited.
The minister appreciated Movit for its substantial investment, the employment opportunities it provides to citizens, and its exemplary leadership.
She emphasized the importance of local investors, saying, “Local investors like Movit are not just contributors to the economy, they are examples for other budding entrepreneurs. They produce quality products that meet export standards, create jobs, and harness local expertise. The ministry is committed to ensuring that local investors not only survive but thrive in this country.”
Anite also used the visit to inform Movit tjag givernment will provide them with land for their expansion. She also invited them to a stakeholder meeting set for September 4, where Manufacturers will meet the relevant government bodies and policy makers to forge a good working relationship. “I invite Movit to this symposium, we shall discuss certification and taxation, among other issues.”
In his remarks, the Simpson Birungi the Founder & CEO of Movit Products Limited expressed his gratitude for the visit, noting that it is a clear indication of the government’s care and support for local investors.
“Movit has been in existence for 27 years as a first-generation family-owned and operated business. We take immense pride in the milestones we have achieved, growing from a small shop in Kikuubo to owning manufacturing Plants with presence in over 10 African countries,” he said.
He added that the visit is also a significant moment for Movit Products Limited, reaffirming the government’s support and highlighting the crucial role that local businesses play in Uganda’s economy.