HABARI DAILY I Kampala, Uganda I The Uganda Development Corporation (UDC) has officially broken ground for the construction of a Shs29 billion packaging factory at Namanve Industrial Park, in a strategic investment expected to reduce Uganda’s dependence on imported packaging materials, create more than 1,000 jobs and strengthen local manufacturing.
The groundbreaking ceremony took place on Thursday, November 5, at Degeya-Senyi Village in Mukono District. It was presided over by Minister of State for Industry David Bahati, alongside Special Presidential Adviser on Trade and Industry Amelia Kyambadde.
UDC acquired a 49% stake in Pamoja Packaging and Industrial Solutions Limited (PPISL) after investing Shs29 billion in 2024 through ordinary and preference shares.
The facility will manufacture recyclable and biodegradable plastic and paper packaging products for the food and beverage, agro-processing, pharmaceutical, healthcare, cosmetics and retail industries.
$500 million import bill
The investment comes at a time when Uganda spends an estimated $500 million (about Shs2 trillion) annually importing polymers and packaging materials, money that government officials say could instead support domestic industries, create employment and retain wealth within the country.
Speaking at the ceremony, Bahati said the country was effectively exporting employment opportunities by relying on imported packaging materials that could be manufactured locally.
“When you import goods worth US$500 million, it means you are exporting jobs, you are exporting wealth. And this is the importance of Pamoja Industries,” he said.
He added that local production would help save foreign exchange while improving the quality and presentation of Ugandan products for regional and international markets.
“Every material that we make here means a dollar saved from importation of these materials. It means export promotion because one of the challenges we have been having is that our goods are questioned about their quality but also about the presentation,” Bahati said.
He said the government expects the factory to create more than 1,000 jobs and contribute to tax revenue and the expansion of Uganda’s industrial base. He also urged investors to look beyond the domestic market and exploit opportunities across Africa.
Bahati said government was considering expanding the Buy Uganda Build Uganda (BUBU) initiative into a continental campaign, Buy Africa Build Africa, to encourage manufacturers to serve the wider African market.
Local manufacturers to benefit
Pamoja Packaging Board Chairman Moses Abindabizemu said the project was established to address the high cost and unreliable supply of packaging materials faced by Ugandan manufacturers who depend on imports.
He identified banana processors in western Uganda, dairy farmers, tea producers in the Rwenzori region, grain traders in eastern Uganda and sesame and sorghum processors in northern Uganda among the businesses expected to benefit.
According to Abindabizemu, packaging materials account for between 30% and 60% of the production costs of some finished products, making local availability critical to reducing expenses and improving competitiveness.
He said approximately 90% of the machinery required for plastic packaging, paper packaging and printing had already arrived at the site. Construction is expected to be completed within 12 months, with the factory scheduled to become operational within the same period.
Once fully operational, the plant is expected to produce close to 100 million packaging units monthly. Its planned products include bottle preforms, flexible printed packaging, cartons, paper shopping bags and industrial bags. <Cite refs={[“turn948680view0″,”turn948680view1”]}/>
Abindabizemu described the factory as a platform for Ugandan businesses to access customised and affordable packaging solutions, reducing delays and logistical costs associated with importing supplies.
UDC Board Chairperson Edward Nyatia said the investment was intended to address a significant gap in Uganda’s manufacturing value chain. He noted that the country imported about US$6.3 million worth of corrugated cartons and another US$2.34 million in folding cartons in 2024.
He said such imports drain foreign exchange while creating jobs in countries where the materials are manufactured.
Nyatia added that the investment aligned with government’s industrialisation, value addition and Buy Uganda Build Uganda agenda, as well as the Fourth National Development Plan.
Kyambadde calls for cold storage investment
Kyambadde welcomed the project, describing the emergence of indigenous packaging manufacturers as an important milestone for Uganda’s industrial sector.
She said the packaging industry had previously been regarded as an area dominated by foreign companies, making the investment a demonstration of the capacity of local entrepreneurs to venture into manufacturing.
However, she challenged UDC to complement investments in manufacturing by expanding into cold-storage infrastructure to address agricultural post-harvest losses.
She observed that farmers lose substantial quantities of perishable produce, including mangoes and tomatoes, because of inadequate storage and transportation facilities.
“The narrative of industrialisation is empty if you don’t have storage. We need to start looking at that,” Kyambadde said, urging UDC to consider establishing cold-storage facilities that would connect agriculture more effectively to manufacturing.
The local leadership also welcomed the project, with Degeya-Senyi LC1 chairperson Kange Immaculate Angela urging the investors to prioritise residents of surrounding communities during recruitment.
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