By Mulengera Reporters
Uganda Development Corporation (UDC) is moving to close one of the country’s costly gaps in manufacturing after partnering with Pamoja Packaging manufacturing plant to establish a major factory at Namanve Industrial Park, a project expected to reduce dependence on imported packaging materials while creating more than 1,000 jobs.
Speaking at the site on Thursday, Minister of State for Trade and Cooperatives David Bahati said Uganda spends approximately US$500 million annually importing packaging materials, a bill he said was a major drain on foreign exchange and an opportunity for local manufacturers to capture a bigger share of the local market.
The Pamoja investment, backed by UDC, is intended to change that position by making a wide range of packaging products locally available to Ugandan manufacturers, processors and other businesses.
The factory is expected to produce packaging for food, beverages, agriculture and other industries, including cartons, tea bags, woven sacks, coffee packaging, fruit boxes, bottles and food-grade containers.
Pamoja Board Chair Moses Abindabizemu said about 90% of the machinery required for plastic packaging, paper packaging and printing had already been secured, with the company targeting a fully operational factory within the next 12 months.
Once fully functional, the facility is projected to produce close to 100 million packaging units every month and employ more than 1,000 Ugandans, with the majority expected to come from communities surrounding the industrial park.
Bahati said the investment fits into Government’s wider ambition of building an integrated and self-sustaining economy by strengthening local production instead of relying heavily on imported industrial inputs.
He commended UDC for supporting investments that address practical challenges facing Ugandan businesses, noting that locally manufactured packaging would help reduce production costs, strengthen domestic industries and create additional employment opportunities.
UDC’s intervention is particularly significant because packaging is a critical component of the manufacturing value chain. When local producers cannot access affordable packaging, they are forced to import it, increasing costs and making their finished products less competitive.
UDC Executive Director Patrick Birungi only greeted the attendees before inviting Dr Nyatia Edward, who spoke on behalf of the board chair Godfrey Ruhurira, who said the Pamoja project addresses an important gap in Uganda’s domestic manufacturing ecosystem.
He explained that packaging influences the competitiveness of locally produced goods, including their ability to compete with imported products on supermarket shelves and in regional markets.
Former Trade Minister Amelia Kyambadde also welcomed the investment, describing the emergence of stronger indigenous packaging capacity as an important development for the local industrial sector.
She said the country has made progress in establishing industries but must continue strengthening the supporting infrastructure and value chains that allow manufacturers to grow.
Through the Pamoja partnership, UDC is seeking to demonstrate how strategic public investment can support private-sector enterprise, expand local production and retain more economic value within Uganda.
The project also offers opportunities for local farmers and processors who need reliable, affordable packaging to move from selling raw produce to marketing finished products.
As the factory moves towards full operation, the investment is expected to give Ugandan manufacturers another reason to source locally, while helping position the country as a stronger supplier of packaging products within the East African market. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
