Finance Minister Henry Musasizi has pledged urgent government action to resolve infrastructure, tax and policy bottlenecks affecting manufacturers at Namanve Industrial Park, warning that delays could undermine investment and job creation.
Musasizi made the commitment during a working visit to Steel & Tube Industries Ltd., where he inspected the company’s operations and held discussions with its management on challenges affecting production and planned investments.
The visit brought together Minister of State for Investment Aminah Mukalazi, Uganda Investment Authority Director General Chris Mukiza and a Ministry of Finance, Planning and Economic Development technical team led by Deputy Secretary to the Treasury Patrick Ocilap.
The engagement was aimed at moving beyond policy discussions to identify practical solutions to constraints facing manufacturers.
A major concern observed during the plant tour was persistent flooding at the Steel & Tube facility. The flooding was attributed to incomplete backfilling, outstanding civil works and inadequate drainage infrastructure.
With the September rains approaching, Musasizi said the outstanding infrastructure works must be completed urgently to prevent further disruption to industrial activity.
The minister’s intervention comes as Uganda seeks to expand domestic manufacturing, increase local value addition and attract more private investment into industrial parks.
Shs14.6 billion tax refund delay
Steel & Tube Chairman Joseph Yiga told the delegation that the company was awaiting a Shs14.6 billion income tax refund from the Uganda Revenue Authority, saying the delay was affecting the company’s investment plans.
Yiga linked the delayed refund to the company’s proposed $255 million integrated steel project at Nshaara Ranch, which is intended to expand the company’s manufacturing capacity and deepen local steel production.
The company also raised concerns over restrictions on the export of stainless-steel scrap, which it said were affecting its operations and the broader scrap-metal value chain.
Steel & Tube further called for harmonised tariff treatment for trailer assembly kits, arguing that the current tariff structure could undermine efforts to expand local assembly and manufacturing.
The concerns highlight the broader policy and infrastructure challenges confronting Uganda’s industrial sector, where manufacturers have repeatedly called for predictable taxation, reliable infrastructure and policies that favour domestic value addition.
Government promises practical solutions
Musasizi assured the company that the government would work with the relevant agencies to address the bottlenecks identified during the visit.
He said stronger field-based engagement with investors was necessary if government agencies were to understand operational challenges and deliver timely solutions.
The minister said resolving the problems would help strengthen Uganda’s manufacturing base, promote local value addition, attract additional investment and create employment.
The visit also underscored the government’s growing emphasis on direct engagement with manufacturers as Uganda seeks to shift from exporting raw materials towards processing and industrial production.
For Steel & Tube, resolving the immediate infrastructure and tax issues could determine the pace at which the company proceeds with its planned expansion. For government, the challenge is to ensure that industrial parks provide the infrastructure and policy environment needed for manufacturers to operate competitively.
The Namanve engagement therefore places pressure on government agencies to turn the minister’s commitments into concrete interventions before infrastructure failures and administrative delays further constrain industrial investment.
