Tayebwa: Reliable Power, Patient Capital Key to Boosting Ugandan Industry

Deputy Speaker of Parliament Thomas Tayebwa has highlighted several key areas that require urgent attention to unlock Uganda’s industrial potential. Speaking at the 7th Biannual Private Sector CEOs Retreat in Entebbe, Tayebwa emphasized the need for consistent and affordable electricity, accessible long-term financing, and equitable enforcement of standards.

Tayebwa identified unreliable power as a significant impediment, citing instances where frequent load shedding drastically increases operational costs for manufacturers. He illustrated this with the case of a cement manufacturer struggling with up to 36 hours of power outages weekly, noting that such industries cannot rely on generators.

He urged the government to accelerate the implementation of President Museveni’s directive to provide manufacturers with reliable and affordable electricity, stressing the need to work in “overdrive mode” to achieve this.

Furthermore, Tayebwa addressed concerns about the cost and structure of financing. He criticized financial institutions for offering “patient capital” at interest rates as high as 30 percent, arguing that true patient capital should include reasonable grace periods and repayment terms of 10 to 20 years to allow investments to mature.

The Deputy Speaker also called for a review of standards and certification processes. He argued that local companies are sometimes unfairly disadvantaged by rigid standards that imported products do not adhere to, leading to situations where local production is hindered while similar foreign goods flood the market. Tayebwa stressed that standards should accommodate the realities of local industries, not the other way around, and called for fair enforcement by the Uganda National Bureau of Standards (UNBS).

While encouraging businesses to adopt digitization and automation, Tayebwa also reminded them of their tax obligations. He concluded by emphasizing the importance of such dialogues between the private sector and government to find effective solutions to business challenges.

This retreat took place as the government actively seeks to increase private sector investment in manufacturing and other productive sectors to drive industrialization and job creation. Source: Nile Post