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Private Sector Foundation Uganda (PSFU) Reports call for policy overhaul to address underutilised capacity in manufacturing sector nilepost.co.ug/news/197147/re…

This plan aims not only to demonstrate member relevance (Strategic Objective I) but also to influence policy and advocate for manufacturing-related issues (Strategic Objective II). #PSFUCapacityUtilizationWorkshop
#PSFUCostCenterAnalysis

…financial services, ICT, creative arts, construction, oil & gas, tourism & hospitality, professional services, and skills & health. #PSFUCapacityUtilizationWorkshop #PSFUCostCenterAnalysis

Over the period from 2015/16 to 2020/21, the manufacturing sector has experienced an average growth rate of 3.3%. #PSFUCapacityUtilizationWorkshop #PSFUCostCenterAnalysis

'There is thus a need to implement a relevant set of policies to unlock the utilised production capacity. This could be a mix of both demand and supply policies as explained by the analytical framework'
#PSFUCapacityUtilizationWorkshop
⁠ #PSFUCostCenterAnalysis

'All these present opportunities for the country to leverage the manufacturing sector to meet a set of development goals such as employment creation and poverty reduction'
#PSFUCapacityUtilizationWorkshop
#PSFUCostCenterAnalysis

'10/22 sectors operate above 50% while the rest operate below. This suggests that there is a lot of redundant or unutilised capacity among the manufacturing firms in Uganda where a lot of resources have been invested'
#PSFUCapacityUtilizationWorkshop
⁠ #PSFUCostCenterAnalysis

“The overall objective of these studies was to generate evidence to influence policy development in Uganda's manufacturing sector, focusing on industrialization and import replacement policies…” - Sarah Kagingo #PSFUCapacityUtilizationWorkshop
#PSFUCostCenterAnalysis

Private Sector Foundation Uganda The aim of this assessment is to unlock vital insights that will help shape policies in Uganda’s Industrialization. This will be done through advocating measures to reduce business costs and enhance competitiveness in the manufacturing sector.

#PSFUCapacityUtilizationWorkshop

'The Capacity Utilisation Study indicates the manufacturing subsector which performs better than others and establishes the factors that explain the gap between the actual and potential capacity utilisation of manufacturing firms in Uganda'
#PSFUCapacityUtilizationWorkshop

… and influence policy.

“Evidence-based research, like these studies, empowers both the government and the private sector in better planning and execution of business strategies…”

#PSFUCapacityUtilizationWorkshop
#PSFUCostCenterAnalysis

Mastercard Foundation Private Sector Foundation Uganda Our findings reveal that firms are operating at only 54% capacity due to a lack of effective demand and high logistics costs, highlighting the urgent need for collective action to address these challenges and unlock the sector’s full potential.

#PSFUCapacityUtilizationWorkshop

'Other reasons for operation below installed capacity include Limited market/ demand, High cost of production inputs, Low supply of some raw materials/inputs, High taxes, Competition from similar products, Outdated technology among others'
#PSFUCapacityUtilizationWorkshop

'This shows the performance of the manufacturing sector which requires urgent action by all of us in this room to ensure that we create jobs for the youth in Uganda'
#PSFUCapacityUtilizationWorkshop
#PSFUCostCenterAnalysis

Through partnership with key stakeholders and support from organizations like the Mastercard Foundation, Private Sector Foundation Uganda conducted studies to uncover insights crucial for informing policy decisions aimed at boosting the manufacturing sector.

#PSFUCapacityUtilizationWorkshop

'The study on cost drivers showed that the cost of raw materials drives costs high because firms must import them due to poor quality, small quantities, and inconsistencies of the locally available ones'
#PSFUCapacityUtilizationWorkshop
⁠ #PSFUCostCenterAnalysis

The capacity utilization assessment was earlier conducted for information needed to influence policy development around industrialisation& how the drivers of costs affect manufacturing firms’ performance in Uganda.
#PSFUCapacityUtilizationWorkshop
⁠ #PSFUCostCenterAnalysis

.Private Sector Foundation Uganda in partnership with UMA and Uganda Small Scale Industries Association (USSIA) with support from the Mastercard Foundation conducted the two studies with the objective of generating required evidence to inform policy in the sector-Stephen Asiimwe
#PSFUCapacityUtilizationWorkshop
⁠ #PSFUCostCenterAnalysis

- Unreliable and/or insufficient supply domestically

- Unavailability & high prices.

This leads to most firms importing raw materials, which implies increased costs owing to import duties and other related costs #PSFUCapacityUtilizationWorkshop
#PSFUCostCenterAnalysis