Business 3 May 2026 Daily Monitor (Uganda)
Anite: Uganda's Two Textile Firms Can't Satisfy Demand from 45M Locals and EAC
State Minister Evelyn Anite has revealed that Uganda's mere two textile companies are insufficient to meet clothing needs for over 45 million Ugandans and the 300-million-strong East African Community. She urged more investments to boost production amid government incentives and new taxes on imported second-hand clothes. Source: https://www.monitor.co.ug/uganda/business/markets/our-firms-can-t-meet-growing-textile-demand-anite-says--5445772
Uganda’s textile sector is under strain, with domestic production unable to keep up with rising demand. State Minister for Investment and Privatization, Evelyn Anite, highlighted this during a meeting with industry stakeholders at the Ministry of Finance.
She noted that the country’s two textile factories cannot serve Uganda’s 45 million people plus the broader East African region of nearly 300 million. Despite producing quality cotton, manufacturing investments have been slow, leading to heavy reliance on imports, especially second-hand clothing or ‘mivumba’.
This dependency hampers local industry growth and job opportunities. Urbanization and a growing middle class are driving higher clothing demand, yet local output falls short.
The government is pushing back with investor incentives like tax exemptions on machinery, lower corporate taxes, and 10-year tax holidays. Recent laws impose a 30% environmental levy on imported used clothes to support local manufacturers.
Special economic zones and better infrastructure aim to attract big-scale textile investments. Expanding the sector is vital for jobs, as 700,000 youth join the workforce yearly, while manufacturing currently supports about two million positions.
Experts see potential for a full textile value chain from cotton to garments, turning Uganda into a regional export leader. Anite called for more players to scale up production.
Source: Daily Monitor