Uganda Breweries Limited (UBL) contributed an estimated UGX 1.127 trillion to Uganda’s economy in 2024, supporting nearly 100,000 jobs and generating UGX 811 billion in tax revenues, according to a new independent study by Oxford Economics Africa.
The report, launched on Tuesday at the Sheraton Kampala Hotel by the Private Sector Foundation Uganda (PSFU), Uganda Breweries Limited, and Oxford Economics Africa, assesses UBL’s contribution to the economy, the alcohol market, excise policy, illicit trade and the company’s impact across Uganda’s manufacturing value chain.
The event was officiated by the Minister of Trade, Industry and Cooperatives, Hon. Sanjay Tanna, who described the study as an important resource for evidence-based policymaking.
“I want to commend Uganda Breweries for commissioning this study,” Tanna said. “One of the biggest weaknesses among many Ugandan businesses is that we often make decisions based on speculation rather than evidence. No business—and indeed no family—can grow without research.”
The Minister said the Ministry of Trade would rely on data to guide industrial policy and planning. “We need evidence. We need numbers. Without data, we cannot make sound decisions,” he said, noting that different government institutions often hold conflicting statistics on the country’s manufacturing sector.
UBL Supports 100,000 Jobs
According to the report, Uganda Breweries directly contributed UGX 203 billion to Uganda’s Gross Domestic Product (GDP) in 2024.
The company also generated UGX 267 billion through its supply chain, UGX 105 billion through employee spending and UGX 552 billion through downstream trade activities, bringing its total Gross Value Added (GVA) contribution to UGX 1.127 trillion, equivalent to about 4 percent of Uganda’s manufacturing output.
The study further estimates that UBL supports approximately 100,000 jobs across its value chain and contributes about UGX 811 billion annually in tax revenues.
Speaking at the launch, Uganda Breweries Managing Director Félicité Nson said the figures represent far more than economic statistics.
“The report estimates that in 2024 alone, Uganda Breweries supported approximately UGX 1.127 trillion in economic value, nearly 100,000 jobs across our value chain and generated about UGX 811 billion in tax revenues,” she said.
“These are significant numbers, but what matters even more to us are the people behind them. They represent thousands of farmers, transporters, distributors, retailers, hospitality businesses and many other Ugandan enterprises whose livelihoods are connected to our business.”
She said the company remains committed to sourcing raw materials locally whenever quality and supply requirements are met.
“When local businesses grow, communities grow. When farmers succeed, manufacturers like us succeed too. That is the kind of partnership we want to continue building in Uganda,” Nson added.
Government Backs Agro-Processing Investment
Minister Tanna said Uganda Breweries aligns with the government’s ATMS strategy, which prioritises Agro-industrialisation, Tourism, Minerals, and Science, Technology and Innovation as drivers of the country’s tenfold economic growth agenda.
He encouraged the brewer to invest further in value addition, including the planned establishment of a malting plant.
“I understand Uganda Breweries is considering establishing a malting plant. That investment would create additional value within Uganda by processing raw materials locally instead of importing processed inputs. It would create more jobs, increase demand for locally grown crops and strengthen our agricultural sector,” Tanna said.
He also reaffirmed government’s commitment to import substitution through the Buy Uganda, Build Uganda (BUBU) policy. “The more local inputs we use, the stronger our economy becomes,” he said.
Government Seeks to Formalise Informal Alcohol Trade
Addressing concerns raised in the report about illicit alcohol, Tanna said government intends to focus on formalising rather than criminalising informal producers.
“The report refers to the illicit alcohol market. Personally, I believe a significant portion of what is described as illicit is actually informal,” he said. “Government’s objective should therefore be to formalise these producers rather than simply criminalise them.”
He said government would use engagement as the first approach before introducing regulation and taxation. “Let us organise informal producers into associations. Let us support them to improve standards. Once they become formal businesses, regulation and taxation can follow naturally.”
Call for Stable Tax Policy
UBL Board Chairman Jimmy D. Mugerwa said the study was commissioned to provide independent evidence that can guide national policy discussions on manufacturing and investment.
“The purpose was not simply to celebrate Uganda Breweries. It was to contribute objective evidence that can inform national discussions on manufacturing, investment and economic growth,” Mugerwa said.
He noted that the company supports approximately 35,000 farmers, contributes more than UGX 203 billion directly to GDP and supports nearly 100,000 jobs across its value chain.
“Our position is clear. Uganda needs a predictable excise tax regime that encourages the growth of the formal sector while discouraging illicit trade,” he said.
He added that formalising even part of the informal alcohol market would broaden the tax base, improve consumer safety and increase government revenue. “This should never be viewed as government versus business. It is a partnership. When government creates a stable and predictable policy environment, businesses invest with confidence.”
PSFU Calls for Evidence-Based Policy
Private Sector Foundation Uganda Chief Executive Officer Stephen Asiimwe said the study demonstrates the importance of using research to shape economic policy.
He reaffirmed PSFU’s commitment to working with government and industry to improve Uganda’s business environment and accelerate industrial development.
The Foundation noted that private sector businesses contribute more than 70 percent of Uganda’s tax revenue, making evidence-based dialogue on taxation, investment and economic growth essential to achieving Uganda’s development ambitions.
The Oxford Economics study is expected to inform ongoing discussions among policymakers, manufacturers and other stakeholders on sustainable industrial growth, taxation, local sourcing and the formalisation of Uganda’s alcohol sector.
