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Gov’t to Cut Power Tariffs for Industrialists

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Gov’t to Cut Power Tariffs for Industrialists

“The sector grew by 5.8 percent in the 2018/19 Financial Year where the Manufacturing sub sector registered two 2.8 growth in the 2018/19 Financial Year compared to 1.7 percent in the Financial Year 2017/18”

Karuma hydro Power Dam project

The government is planning to slash electricity tariffs for industrialists as soon as the 600MegaWatt Karuma hydro power dam is commissioned, which is expected next month.

This was revealed by the Minister of Trade and Industry Amelia Kyambadde, during a media conference at the government media centre.

According to Kyambadde, government wants to cut the unit of power for industrialists by about 30 percent, from about Shs 406 per unit (kWh) to about Shs 121.8.

By 2020, the Government targets to exploit the abundant renewable energy sources to increase power generation from the current total installed capacity of 1200 Megawatts to 2,500 Megawatts.

The industrial sector has the largest demand for electricity with a rate of 64.6 percent followed by domestic consumers with 24.2 percent and commercial at 11.16 percent.

While addressing journalists at the Uganda Media Centre this week, Kyambadde said that as part of the efforts to promote industrial growth, the government has prioritized investing in the energy sector.

Kyambadde revealed that if Karuma is commissioned, it will add 600 megawatts to the already existing 1200 Megawatts to make 1800 Megawatts.

Kyambadde was speaking about the commemoration of Africa Industrialization day that is celebrated on November 20, annually.

Minister for Trade, Industry and Cooperatives, Amelia Kyambadde

Minister for Trade, Industry and Cooperatives, Amelia Kyambadde

“The Iron and Steel industry now has 28 steel industries and its installed capacity has doubled to 1.7 million tons per year from 866,000 tons five years ago,” she said

She added that, the Cement Industry has also expanded to five cement factories which have doubled its annual production from 2 million tons five years ago to 4.43 million tons.

According to the Kyambadde, Agro-processing facilities have been commissioned in; Teso and Luweero for Citrus fruits, Ankole for Dairy, Kalangala for Vegetable Oil, and Ankole, Toro and Kigezi sub-regions for Tea.

“The sector grew by 5.8 percent in the 2018/19 Financial Year where the Manufacturing sub sector registered two 2.8 growth in the 2018/19 Financial Year compared to 1.7 percent in the Financial Year 2017/18” she said

Daniel Birungi the Executive Secretary of the Uganda Manufacturers’Association (UMA) said that the government move to reduce on the electricity prices will help in the reduction of the cost of production.

“We believe that if the prices are reduced, with the good raw materials in the country, we shall be the best performers in the region,” he said.

Kyambadde noted that Uganda has experienced progressive growth in both Industrial Parks and Free Zones.

“The Government embarked on acquisition and development of land to make available 22 Industrial and Business Parks (IBP) across Uganda. Works have so far been commissioned in a total of 10 industrial parks including four privately owned parks,” she said.

According to the Minister, the public parks are Kampala Namanve, Bweyogerere IBP, Luzira IBP, Jinja IBP, Soroti IBP, Mbarara Small scale Medium Enterprise Park and Kasese IBP. The four privately owned parks are: Liao Shen IBP in Kapeeka, Tangshen IBP in Mbale, MMP IBP in Buikwe and in Jinja.

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