In a bid to promote the concept of Buy Uganda Build Uganda (BUBU), the Electricity Regulatory Authority (ERA) on Thursday launched a forum for local suppliers, with an aim of spurring an increase in the consumption of local products and services within the electricity sector, so as to achieve social, economic transformation.
The Local Suppliers’ Forum was organized in partnership with the Public Procurement and Disposal of Public Assets Authority (PPDA), and the Uganda National Bureau of Standards (UNBS) as stakeholders and key players in the Sector.
Speaking at the launch of the Local Suppliers’ Forum during a function that was held at Mestil Hotel in Kampala, Eng. Ziria Tibalwa Waako, the Authority’s Executive Director, said that this move is geared towards encouraging indigenous Ugandans to invest in the electricity sector, which is currently mainly dominated by foreign investors.
Addressing the Forum, Waako said that; “We are looking at three outputs; one we want to quantify, by way of documenting the different products that are on the local market, their quantity, the production capacity, the level of standards, and how we can match it with the standards that we need within the Electricity Supply Industry, so that we are able to locally source the materials that we need for construction, for operation and maintenance within the electricity supply industry.”
Waako added that this move is in line with implementing the Buy Uganda Build Uganda (BUBU) policy which was enacted by President Yoweri Museveni to promote the consumption of locally manufactured goods and use of local skills/personnel.
“The move to promote local content within the Electricity Supply Industry is also aimed at freeing the sector from being fully dominated by the use of dollar, which in most cases inflates the cost of electricity every time it appreciates against the Uganda shilling,” Waako added.
She also noted that another negative impact that leads to the hiking of tariffs is the dollar appreciating against the shilling, especially because most of the inputs, the equipment and materials that are used in the sector for manufacturing are imported from abroad.
“Today has been a very successful day for both manufacturers and the Electricity Supply Industry because they have enlisted the capability to almost produce most of the inputs that we need for the transmission, the distribution and for last mile connection within the electricity supply industry,” Waako explained, adding that; “And to some extent also in the generation, when it comes to the civil reinforcement, materials like bars and cement. We have been impressed by the level at which our local content has developed.”
Waako explained that as ERA moves to promote local content in the electricity sector, many questions arise as to whether the local suppliers have the capacity to meet the industry demands, and to supply good quality products
“Local suppliers are willing to partner with the regulator to continuously improve the quality of their products, as well as invest in research and development to ensure that the players in the sector progressively become innovative in order for them to be able to compete with the levels of technological advancement,’ Waako told the Forum, adding that;
“We are not lagging behind as the sector. We are also looking at self-healing networks and leveraging Information Communication Technology (ICT) to improve the reliability of supply.”
On his part, Hon. Opolot Okaasai, the State Minister for Energy, highlighted the need to test products on the market meant for use in the energy sector, emphasizing that if they are not subjected to testing, then substandard products may compromise the government’s efforts to support accessibility, reliability and affordability of electricity.”
“Products may appear on the market that need to be tested for quality and safety. The Ministry of Energy and Mineral Development will continue working with that of Trade and Industry plus all relevant government agencies to develop and enforce standards, in a bid to ensure that the right products are deployed in the broader energy sector,” Minister Okaasai told the Forum.
He added that the goal of the manufacturing program therefore, is to broaden the product range and scale for import replacement and improved terms of trade.
“As the energy sector, we are pleased to partner with indigenous stakeholders to build local capacity and increase skilled manpower to innovate, manufacture, operate, repair and maintain energy systems so as to enhance adoption of clean energy,” Okaasai emphasized.
In her concluding remarks, Dr. Sarah Wasagali Kanabi, the ERA Board of Directors Chairperson, said that the Authority believe in maximization of the level of participation of the nation’s people, enterprises, and capital through the development and increased use of locally owned businesses, local financing, & human capabilities.
“Because of this support from H.E the President, we now have a conducive and enabling environment that has attracted local and foreign direct investment into the electricity subsector. The investment portfolio is expected to increase further with the onset of Private Participation in the transmission segment; and the commissioning of over 30 Generation projects currently in the pipeline,” she said.
Dr. Kanabi added that; “We want to see more of our people, our enterprises, the local capital increase the production of services within the sector. We want to see increase of locally owned businesses, local financing in the conduct of all the activities connected to the Electricity Supply Industry’s entire chain.”
Kanabi also noted that during this post COVID-19 pandemic era, the Authority roots at ensuring that in there is increased innovation, so as to able to address the impacts of future disruptions and shocks in the electricity sector.
She made it clear that the Authority intends to focus on three priority areas which include; affordability, reliability of power supply, plus increased electricity access and demand growth.
Ronald Tumuhairwe the Manager Local Content at Public Procurement and Disposal of Public Assets Authority said, supplies such as electrical cables, bundle cables, conductors, wood and wood products (in the offing), transformers (in the offing) have been reserved for local providers.
He further explained that a National provider, is one registered in Uganda, wholly owned & controlled by Ugandan. Whereas, A Resident provider is one incorporated in Uganda for at least 2 years at the time of submission of the bid & is not a national provider.
