Summary:
- Local investors are increasingly drawn to the manufacturing sector, enticed by a range of incentives provided by the government. State Minister Evelyne Anite highlights tax breaks and other benefits available to both domestic and foreign investors, emphasizing the potential for rapid growth in SMEs.
In a bid to bolster Uganda’s manufacturing sector, State Minister Evelyne Anite unveiled a range of tax and non-tax incentives aimed at attracting both local and foreign investors. This announcement has sparked significant interest among domestic entrepreneurs who are eager to explore opportunities within the manufacturing industry.
During a recent visit to a chlorine manufacturing factory in Bweyogerere, Minister Anite highlighted the benefits available to domestic investors. These incentives include tax breaks with a lower minimum capital requirement, access to non-tax incentives such as land in industrial parks, infrastructure facilitation, and policy advocacy to foster a conducive business environment.
President Museveni echoed the importance of domestic production during a meeting with business leaders, emphasizing the need for local businesses to shift from importing goods to manufacturing products within Uganda. He urged entrepreneurs to take advantage of the incentives provided by the government to establish industries in the country, thereby contributing to economic growth and job creation.
Addressing concerns raised by the business community regarding high taxes, President Museveni acknowledged the challenges faced by traders and pledged continued support for local investors. He stressed the significance of retaining capital within Uganda by promoting the production and consumption of locally manufactured goods.
Furthermore, Minister Anite outlined specific incentives tailored to different sectors within the manufacturing industry. Domestic investors engaged in agro-processing, for instance, qualify for income tax exemptions and import duty waivers on plant and machinery. Additionally, all inputs for manufacturing in agro-processing are duty-free, further incentivizing investment in this vital sector.
The Uganda Investment Authority (UIA) has committed to supporting small-scale and medium enterprises (SMEs) through its Domestic Investment Directorate. This dedicated team facilitates partnerships between SMEs and larger local and foreign investors, provides serviced workspaces in industrial parks, and offers training and capacity-building programs to nurture entrepreneurship.
As Uganda seeks to reduce its reliance on imported goods and stimulate domestic production, initiatives such as these play a crucial role in attracting investment and fostering economic development. With favorable incentives in place, local entrepreneurs are poised to capitalize on opportunities within the manufacturing sector, driving growth and prosperity for the nation.
