Locally manufactured goods become pricier

As the current power load shedding continues to hurt Uganda's economy, manufacturers are demanding that government takes decisive steps to intervene. This as a report released Thursday by the Uganda Bureau of Statistics shows that producer prices have risen to 35.7% which is largely attributed to the high cost of operations occasioned by intermittent power supplies.

The Uganda Manufacturers Association warns that prices of goods manufactured in Uganda will continue to rise as long as load shedding continues to interrupt production. According to the UMA chairman Kaddu Kiberu, government has not responded enough to their pleas to give priority to the sector as far as this problem is concerned and they are disappointed that even the promise that Bujagali dam which was expected to add 50 megawatts to the grid by November has not been fulfilled.

While admitting that the electricity problem is greatly hurting the economy, state minister for planning Matia Kasaija said cabinet is looking into ways of alleviating it. The minister disclosed that government is spending close to 9 million dollars per month on electricity generation and this is causing a big strain on the resources.

Manufacturers point out that as long as locally manufactured goods continue to be expensive to produce due to the high cost of operations, counterfeit products will find their way into the market.

Producer price indices for manufacturing released Thursday by the Uganda Bureau of Statistics clearly reflect the industrialists outcry. Producer prices have increased by 35% in the past 12 months. Among the items whose prices have risen sharply are construction and building materials including cement, iron bars and bricks.

Category:

News & Politics

Tags:

• Power
• Inflation
• mpeg2video