Nytil's Bedsheet Production Collapses to 2,000 Units Amidst Surge of Cheap Asian Imports

Nyanza Textile Industries (Nytil), once a dominant force in East Africa’s textile sector, is facing an existential crisis. The Jinja-based company’s monthly production of bedsheets has crashed from an impressive 50,000 to 70,000 units down to a meager 2,000.

Nytil Chairman Kishor Jobanputra attributed this drastic decline to unfair competition from imported textiles, particularly from Asian countries. He highlighted that trade loopholes allow finished and semi-finished goods to enter Uganda disguised as raw materials, thereby undercutting local manufacturers who process goods from start to finish. Mr. Jobanputra urged the government to urgently review the taxation and customs classification of textile imports.

Responding to these concerns during a factory visit, the State Minister for Investment and Privatization, Amina Mukalazi, assured Nytil’s management that the government is committed to protecting domestic industries. She indicated that the issue would be a priority in an upcoming joint stakeholder meeting.

The struggles at Nytil come at a time when the government’s Buy Uganda Build Uganda (BUBU) policy, launched in 2017 to boost local production and job creation, is facing significant challenges. Trade data reveals that Uganda continues to rely heavily on foreign sources for bed linen, with substantial imports from China and the UK.

Founded in 1954, Nytil, formerly Nyanza Textile Industries, was privatized in 1996 with the aim of revitalizing its integrated manufacturing processes. Despite plans to expand cotton processing and serve regional markets, the company stresses the critical need for structural tariff protection to sustain Uganda’s manufacturing sector.

Source: https://www.monitor.co.ug/uganda/news/national/nytil-monthly-bedsheet-production-plummets-to-2-000-as-cheap-asian-imports-flood-market-5580910