CIG and UMA to identify opportunities that will increase power demand in the sector

The MoC is meant to support UMA members harness the potential of power as a key enabler of the manufacturing competitiveness.

Under the MoC, CIG will work with UMA to increase the consumption of productive power through evidence based value propositions to the electricity supply. The two parties will also explore ways of ensuring demand for locally manufactured electrical materials are increased, as one approach to increase the competitiveness of the sector.

Speaking on behalf of CIG, the Programme Team Leader, Helena McLeod reaffirmed CIG’s commitment to working in partnership with UMA to resolve the power challenges. “Our role under this MoC is to bring together a team of power expertise to support the manufacturing sector to become competitive, create more jobs and contribute to the growth of the economy,” she said.

The UMA Acting Executive Director, Mr. Mubarak Nkutu thanked CIG Uganda for the partnership and interest to finding solutions to the power paradox that affects the manufacturers’ competitiveness in the country. He said, the technical assistance that will be provided by CIG is important to the UMA members to critically examine the issues of reliable demand and offer solutions that will unbundle the impediments to growth that the sector needs to realise their full potential. Mr. Nkutu said, reliable and affordable power is a key factor in their operation.

Despite the fact that the manufacturing sector consumes 60 percent of the power produced in Uganda, the power quality is poor and very expensive, increasing their cost of doing business.

The manufacturing sector is vital to the Ugandan economy and is one of Vision 2040 growth pillars. Its contribution to the industrial GDP is estimated at 15.4%. Increasing the contribution of the sector is vital for employment creation and overall economic growth.