Along with his junior minister Evelyn Anite, Minister of Finance, Planning, and Economic Development Matia Kasaija has advocated for the extension of full electricity subsidies to important manufacturing industries.
The ministers stressed how important it is to take this action in order to maintain the company’s production capacity and guarantee its ongoing contribution to Uganda’s industrial development.
The ministers made these statements on Friday while on an on-site visit to the ongoing road construction projects in Namanve and during an inspection of Roofings Group, a renowned supplier of raw materials for numerous industries.
Kasaija emphasized the difficulties encountered when managing the distribution of power in the private sector and conveyed assurance regarding the possible advantages of governmental oversight.
He contended that government regulation would allow more advantageous electricity prices, which would improve support for industrial firms.
“The power that we have been discussing will undoubtedly come with a special cost, as the private sector is performing admirably.” But once distribution is under government control, we will be free to set our own rates for electricity,” Kasaija said.
The minister recognized that the government’s ability to enforce modifications to existing agreements has hampered its power to regulate the private sector.
“The private sector has control over these things, and we were unable to subdue them. We couldn’t revoke the agreements they had signed without running the danger of legal repercussions,” he stated.
Kasaija stressed that these regulatory issues would be resolved and consumer electricity rates would improve if government control was transferred.
“The transfer of electricity distribution to a government agency is the cause of the delay. I’m sure you are aware that a private organization currently controls the supply of electricity,” he continued.
Roofings Group has asked for the extension of its current 5-cent-per-kilowatt-hour power subsidy, which covers all operating hours from midnight to six in the morning.
Minister Anite emphasized the significance of giving such support to important industries while acknowledging the company’s worries.
“The extension of the electricity subsidy to all hours is not just a favor, but a necessity for their sustained growth,” Anite said. “Roofings has been a crucial player in Uganda’s industrialization journey.”
She also emphasized the government’s larger dedication to helping the industrial sector, pointing out that the Ministry of Energy is currently carrying out an extensive evaluation to ascertain whether Roofings is qualified for a full-time subsidy.
“We have an obligation to assist sectors of the economy that are making a substantial contribution. Anite stated that the Ministry of Energy’s evaluation will guarantee that Roofings gets the funding it needs to keep growing.
Anite also discussed the ongoing, delayed road construction project near the Roofings factory during the visit. This is an important piece of infrastructure development. She underlined how crucial it is to finish the road in order to enable the organization to run more efficiently.
“It is intolerable that the road project near Roofings is taking so long to be finished. Within the following week, we promise to fix the problems and put the project back on track,” she stated.
Minister Anite gave additional assurances, saying that the money needed for the road project has already been set aside and that any remaining issues will be resolved quickly.
“All of the money required for the road project is here. Now, the most important thing is to make sure that every problem is fixed promptly so that we can fulfill our deadlines and prevent further delays,” she continued.
