Uganda: Manufacturers Not Suprised By Decline in Performance

From January this year, when the country’s power supply shortages suddenly plunged for the worst, manufacturers started warning that production would plummet and that the sector, a key pillar of the economy, would be devastated.

Aware of the situation therefore, industrialists were hardly surprised by the announcement by Finance Minister Dr Ezra Suruma on June 15 that the formal manufacturing sector had slumped to -3.5 percent for the financial year 2005/06.

According to Suruma, the grinding power crisis has seen “most manufacturers either forced to reduce production, revert to 24-hour shift work patterns or use diesel generators which has increased their costs of production”.
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