The Government target is to bring down power tariffs to at least 5 US cents (sh180) as a strategy to lower the cost of production, the state minister for industry, David Bahati, has said.
While touring Graphic Systems and Fusion Africa Textile facilities in Luzira, Kampala yesterday, he said the National Resistance Movement (NRM) Government will continue driving its policy of supporting local enterprises that are helping to improve livelihoods through the creation of decent skilled jobs, creating wealth and expanding the tax base
“We aim to bring down electricity tariff to 5 US cents because creating a stable, reliable and affordable electricity is particularly key for industry development,” Bahati said
“The NRM Government is still pursuing its priority policy of providing an environment for the creation of jobs, especially for the youth through investing in improving critical infrastructure such as roads, railways and power generation,” he added.
Uganda’s power tariff is among the highest in the region with domestic rates averaging sh670 ($0.190), while that for businesses stand at sh560 ($0.157) per kilowatt hour.
Last week, Government announced a reduction in electricity rates across the country and introduced a special domestic tariff for cooking at sh412 per unit
The tariff restructuring is in line with the NRM manifesto, and the first of the 23 directives issued by the President at the beginning of his current term of leadership.
Bahati commended Graphic Systems and Fusion Africa Textile for contributing up to sh24b to the national economy in tax revenue annually.