President Yoweri Museveni has pledged to lower the cost of production for investors, provided they commit to formalising employment and improving working conditions for casual labourers.
The president made the remarks during a recent visit to Mbalala Industrial Park in Mukono District, one of the country’s prominent manufacturing zones.
His tour was part of a broader assessment of industrial development initiatives in the Greater Mukono region.
Museveni was responding to an appeal by former State Minister for Water Resources Ronald Kibuule, who urged the government to implement measures that guarantee fair wages and protection for the growing number of casual labourers across the country’s industrial parks.
“We must not only aim at industrialisation and job creation but also ensure that these jobs are decent and sustainable,” said Museveni while addressing investors and workers at Global Paper Uganda Limited.
“Investors must be supported, but they should also support the workers by offering proper contracts and adhering to safety standards.”
Mbalala Industrial Park currently employs more than 23,000 people, with an estimated 70 percent of them serving as casual labourers without formal contracts.
While the park has significantly contributed to economic development, it has also come under scrutiny for poor working conditions, low wages, lack of job security, and inadequate workplace safety.
Reports from labour rights organisations and civil society indicate that some workers operate in hazardous environments without protective gear, medical coverage, or access to compensation in case of injury or death.
The absence of formal contracts has left many of them vulnerable, without any legal recourse.
According to Kibuule, many of these labourers are young people from surrounding districts who seek employment opportunities but end up exploited due to limited regulation.
“The informal nature of employment in these parks leaves workers extremely vulnerable. We need regular inspections, better pay structures, and mechanisms that ensure workplace safety.” he stated.
In response, President Museveni committed to reducing production costs for manufacturers as an incentive to improve labour conditions.
The government plans to consider options such as lowering energy tariffs, providing tax incentives, and improving infrastructure within industrial zones.
By easing the financial burden on investors, the government expects companies to reinvest savings into formalising employment, enhancing workplace safety, and offering fair wages.
This initiative aligns with Uganda’s Vision 2040 development strategy, which seeks to transition the nation from a subsistence-based economy to an industrialised one.
However, labour advocates caution that economic transformation must be matched with social justice and respect for workers’ rights.
Despite the existence of the Employment Act of 2006, enforcement of labour standards in privately owned industrial parks remains weak.
Labour unions have consistently called for reforms that require employers to provide written contracts, observe occupational health and safety protocols, and undergo regular audits by the Ministry of Gender, Labour and Social Development.
Without robust enforcement mechanisms, they argue, the government’s proposed incentives may not translate into tangible improvements for workers.
Some investors have welcomed the president’s announcement, saying it reflects the government’s commitment to creating a fair and competitive business environment.
They also urged clarity on the implementation of the incentives and the criteria for compliance.
As Uganda’s industrial sector continues to grow, the challenge lies in balancing investor confidence with the protection of workers’ rights.
Museveni’s remarks point to a potential policy shift toward an inclusive industrial model that promotes not only economic output but also human dignity and social equity.
If implemented effectively, this initiative could transform Uganda’s industrial parks from exploitative work environments into centres of decent employment, contributing to both national economic growth and a more just society.
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