Ugandan textile firm calls for national textile policy

26 Nov '14

2 min read

An Ugandan textile manufacturer is pushing for the implementation of a national textile policy in order to compel government institutions to buy textiles from local companies, NewVision reported.

Vinay Kumar, the general manager for Nyanza Textile Industries Limited (Nytil), said that once implemented, the policy would enable textile companies’ access to concessional financing for investment.

Although the Government of Uganda has announced the five year national textile policy, it has not yet been implemented, he told the Parliamentary committee on education and sports who were touring the company’s factory.

No new investment is coming on board despite Uganda’s comparative advantage premised on availability of medium staple cotton, he said. According to him, several textile companies in Uganda are idle despite abundant cotton grown in Eastern Uganda, Lira and Acholi sub-regions.

Williams Okello, the logistics manager at Nytil said the company has asked the Government of Uganda to establish a comprehensive Universal Primary Education and Universal Secondary Education uniform supply chain to enhance the consumption of locally-grown cotton lint so that cotton farmers get better gate prices.

Some companies collapsed owing to policy gaps arising as a result of failed policy implementation, and because of unfair competition due to imports that are hugely subsidized, Okello said.

The Nytil management noted that they used to produce various products including locally made uniforms, for different government institutions, but the government institutions have now resorted to importing them.

Nytil, owned by the Picfare Group of companies, is seeking a 25 percent VAT waiver, equivalent to more than Shs5 billion in order to sustain its operations. (GK)

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