The Minister of State for General Duties, Henry Musasizi, on Tuesday commissioned a new production line at Uganda Breweries Ltd at the Luzira plant.
The Shs39.9 billion production line will increase the brewer’s production capacity to 30,000 330ml Bottles Per Hour and 25,000 500ml Bottlers per hour averaging Best – in Class efficiency of 94%.
The new line which is manned by atleast 65% women will supplement a UGX 44.4 billion state-of-the-art bottling line that was launched in 2010 that doubled the production capacity of the beer bottling plant.
In his speech, Musasizi noted that this development is testimony of the prudent macro-economic policies of the National Resistance Movement (NRM).
He noted that the investment will create more jobs for Ugandans and increase in production means UBL will require more raw materials which they have to get from farmers.
“I thank UBL for championing private sector cooperation with Government,” said Musasizi.
The Minister pledged government’s support in promoting private sector initiatives in addition to addressing the challenges affecting the growth of manufacturing and beverages sector in the country.
He hailed UBL for believing in Uganda’s economic potential by increasing its investments in the country.
“New investments like these give us more hope in the full recovery of the manufacturing sector and are evidence that the Ugandan economy is sound as evidenced by the trust and appetite of investors like these,” he said.
In his remarks, Andrew Kilonzo – UBL’s Managing Director – said, “As a 76-year business, this milestone stands as a testament to the fact that our quality Ugandan products – made from quality Ugandan inputs – are well-received in the country and the region, which translates into our growing impact on the lives of the over 38,000 farmers and over 200,000 farmer households that supply the raw materials that feed our production processes.”
He added that the line averages a Best-in-Class Efficiency of 94% and that despite the increased demand for UBL’s products, the brewer continues to promote a culture of responsible consumption of adult beverages through campaigns targeted at promoting moderation, dissuading drink driving in the strictest terms and also ensuring the communication of zero tolerance to underage drinking.
The new line brings UBL’s total capital expenditure in Uganda to over UGX 7.8 trillion since the brewer commenced operations in 1946, and it has since grown to become one of the country’s top 5 taxpayers contributing atleast UGX 430 billion in taxes annually.
Uganda’s manufacturing sector has the potential to drive the country’s post-COVID recovery through the government’s encouraging the uptake of local raw materials to promote local manufacturing towards import substitution and export promotion.
Output from Uganda’s manufacturing sector was $6.66B in 2021 – a 12.15% increase from 2020, and the sector employs more than 1.3 million people, contributing 18.6% of the nation’s GDP, 19% of the total exports and 14% of the tax revenue collections.
Japheth Katto – UBL’s Board Chair, thanked the Minister and the Ministry in general – for maintaining an open-door policy with the private sector that encourages dialogue and collaboration towards contributing to the country’s economic growth.