Minister of Finance, Planning and Economic Development Matia Kasaija, alongside his junior minister Evelyn Anite, have called for the extension of full electricity subsidies to for key manufacturing Industries.
The ministers emphasized that this move is crucial for sustaining the company’s production capacity and ensuring its continued contribution to Uganda’s industrial growth.
The ministers made these remarks on Friday during an inspection of Roofings Group, a leading supplier of raw materials for various industries and an on-site visit to the ongoing road construction works in Namanve.
Kasaija underscored the challenges faced under private sector management of electricity distribution and expressed confidence in the potential benefits of government control.
He argued that government control would enable better support for manufacturing industries by allowing more favorable electricity pricing.
“The power we’ve discussed will definitely come at a special price because the private sector is doing a good job. However, once distribution is in the hands of the government, we will have the flexibility to determine electricity prices,” Kasaija stated.
The minister acknowledged the constraints the government has faced in regulating the private sector due to existing agreements, which limited their ability to enforce changes.
“These things have been in the hands of the private sector, and we couldn’t whip them. They had signed agreements that we couldn’t overturn without risking legal consequences,” he said.
Kasaija emphasized that transitioning to government control would address these regulatory challenges and lead to more favorable electricity prices for consumers.
“The delay is due to the transition of electricity distribution to a government entity. I know you are aware that electricity is currently in the hands of a private group,” he added.
Roofings Group, which currently benefits from a 5-cent-per-kilowatt-hour electricity subsidy during off-peak hours (midnight to 6 a.m.), has requested that the subsidy be extended to cover all operational hours.
Minister Anite acknowledged the company’s concerns and stressed the importance of providing such support to key industries.
“Roofings has been a crucial player in Uganda’s industrialization journey, and extending the electricity subsidy to all hours is not just a favor but a necessity for their sustained growth,” Anite stated.
She also highlighted the government’s broader commitment to supporting the industrial sector, noting that the Ministry of Energy is conducting a detailed assessment to determine Roofings’ eligibility for a full-time subsidy.
“We have a duty to support industries that are contributing significantly to our economy. The Ministry of Energy’s assessment will ensure that Roofings receives the necessary support to continue its expansion,” Anite said .
During the visit, Anite also addressed the ongoing road construction project near the Roofings factory, a critical infrastructure development that has experienced delays. She emphasized the urgency of completing the road to facilitate smoother operations for the company.
“The delay in completing the road project near Roofings is unacceptable. We are committed to resolving the issues and ensuring that the project is back on track within the next week,” she said.
Minister Anite further reassured that the funds required for the road project have already been allocated, and any remaining obstacles will be swiftly addressed.
“We have all the funds needed for the road project. It’s now about ensuring that every issue is resolved quickly so that we can meet our deadlines and avoid further delays,” she added
