• Latest
Manufacturers Say Illicit Trade and Informality Hindering Sector Growth

Manufacturers Say Illicit Trade and Informality Hindering Sector Growth

4 weeks ago
UPDF, Somali Forces Capture Senior Al-Shabaab Commander in Joint Operation

UPDF, Somali Forces Capture Senior Al-Shabaab Commander in Joint Operation

16 hours ago
Uganda Remains Stable, UPDF Assures Parliament

Uganda Remains Stable, UPDF Assures Parliament

2 days ago
Uganda to Host NAM Midterm Ministerial Review Next Week

Uganda Receives Deportees Transferred from U.S. Under Bilateral Pact

2 days ago
Ploughing For Prosperity: How MSC Tractors are Transforming Teso’s Economy

Ploughing For Prosperity: How MSC Tractors are Transforming Teso’s Economy

2 days ago
Carrefour Launches AI-Powered Shopping Inside ChatGPT in Major Retail Shift

Carrefour Launches AI-Powered Shopping Inside ChatGPT in Major Retail Shift

2 days ago
UN Women, Equity Bank Sign Deal to Boost Women’s Economic Empowerment

Permanent Secretaries Urged to Deliver Measurable Gains in Farmer Prosperity Within Three Seasons

2 days ago
SoftPower News
Sunday, April 5, 2026
  • News
  • Tourism & Travel
  • Business
  • Lifestyle
    • Fashion
  • Regional
    • Kenya
    • Rwanda
    • Tanzania
    • Burundi
    • South Sudan
    • DR Congo
  • Defence & Security
  • Sport
  • Entertainment
  • More
    • Agriculture
    • Africa
    • Columnists
    • Education
    • Health
      • COVID-19
    • International News
    • News in Pictures
    • OpEd
    • Pearl Of Africa
    • People
    • Politics
    • Special Reports
    • Women
No Result
View All Result
  • News
  • Tourism & Travel
  • Business
  • Lifestyle
    • Fashion
  • Regional
    • Kenya
    • Rwanda
    • Tanzania
    • Burundi
    • South Sudan
    • DR Congo
  • Defence & Security
  • Sport
  • Entertainment
  • More
    • Agriculture
    • Africa
    • Columnists
    • Education
    • Health
      • COVID-19
    • International News
    • News in Pictures
    • OpEd
    • Pearl Of Africa
    • People
    • Politics
    • Special Reports
    • Women
No Result
View All Result
SoftPower News
No Result
View All Result
Home Business

Manufacturers Say Illicit Trade and Informality Hindering Sector Growth

by Muhamadi Byemboijana
March 11, 2026
Manufacturers Say Illicit Trade and Informality Hindering Sector Growth
117
VIEWS

Manufacturers in Uganda are sounding the alarm on the crippling effects of illicit trade and informality, which are undermining the sector’s growth and costing the economy an estimated Shs 2.5 trillion annually.

Speaking at the 3rd Annual Pre-Budget Breakfast Dialogue 2026, Aga Sekalala Jr, Chairperson of the Uganda Manufacturers Association, highlighted the devastating impact of these practices on local industries.

Related Stories

UPDF, Somali Forces Capture Senior Al-Shabaab Commander in Joint Operation

Uganda Remains Stable, UPDF Assures Parliament

Uganda Receives Deportees Transferred from U.S. Under Bilateral Pact

“Sectors including alcohol, beverages, iron and steel, toilet paper, confectionery, and oils are facing existential threats from informality and illicit trade,” Sekalala said.

He emphasised that formal manufacturers are struggling to compete with informal operators who evade taxes, standards, and compliance, creating an uneven playing field.

The regulatory environment is also a major concern, with uncoordinated processes inflating compliance costs for SMEs, averaging 12% of turnover, according to the World Bank 2025 report.

“This imposes administrative burdens. Manufacturers endure delays and expenses in certifications, rules-of-origin documentation, and sanitary clearances, often stalling production and regional/international market entry,” he said.

Uganda’s formal manufacturing sector contributes about 16% of the country’s GDP and nearly 30% of national tax revenue. However, illicit trade and informality are hindering its growth.

Sekalala called for targeted interventions to enhance trade facilitation, standards compliance, border efficiency, and export competitiveness in the FY 2026/27 National Budget.

State Minister for Trade, David Bahati, emphasised the sector’s importance to Uganda’s economic transformation agenda, aiming to expand the economy from $50 billion to $500 billion by 2040. He highlighted government interventions, including industrial infrastructure development, trade facilitation, and standards enforcement.

Ezra Muhumuza, UMA CEO, noted that the forum is examining key issues, including taxation concerns, certification delays, and procurement reforms to support local manufacturers. The need for a consistent power supply and streamlined regulatory environment was also highlighted.

Tags: David BahatiSoftPower NewsSoftPowerNewsTop News Ugandauma

Recent Stories

UPDF, Somali Forces Capture Senior Al-Shabaab Commander in Joint Operation

Uganda Remains Stable, UPDF Assures Parliament

Uganda Receives Deportees Transferred from U.S. Under Bilateral Pact

Ploughing For Prosperity: How MSC Tractors are Transforming Teso’s Economy

Carrefour Launches AI-Powered Shopping Inside ChatGPT in Major Retail Shift

Permanent Secretaries Urged to Deliver Measurable Gains in Farmer Prosperity Within Three Seasons

SoftPower News Logo

SoftPower News is a subsidiary of SoftPower Communications LLC, a Ugandan digital media group. Keep posted of the latest from Uganda and East Africa.
Plot 4B Malcolm X, Kololo
P.O Box 1497, Kampala - Uganda
Tel: +256-392-001-701
Email: info@softpower.ug

This news site is licenced by Uganda Communications Commission (UCC)

ADVERTISEMENT
  • News
  • Tourism & Travel
  • Business
  • Lifestyle
  • Regional
  • Defence & Security
  • Sport
  • Entertainment
  • More

© SoftPower News

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

error: Content is protected
No Result
View All Result
  • News
  • Tourism & Travel
  • Business
  • Lifestyle
    • Fashion
  • Regional
    • Kenya
    • Rwanda
    • Tanzania
    • Burundi
    • South Sudan
    • DR Congo
  • Defence & Security
  • Sport
  • Entertainment
  • More
    • Agriculture
    • Africa
    • Columnists
    • Education
    • Health
      • COVID-19
    • International News
    • News in Pictures
    • OpEd
    • Pearl Of Africa
    • People
    • Politics
    • Special Reports
    • Women

© SoftPower News

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?