Government could cause job losses in printing industry

Kampala, Uganda | THE INDEPENDENT | There are concerns that companies engaged in printing in Uganda could cut jobs in case government goes ahead to implement a directive on its printing work.

In a letter dated August 2021, Robinah Nabbanja, the prime minister is reminding ministries, departments and agencies to offer 40% of printing and publishing jobs to the government owned, Uganda Printing and Publishing Corporation (UPPC).

“This directive still stands and it has never been rescinded…this is therefore to request you comply with the directive as a way of revamping the government corporation,” the letter reads in part.

On Feb.13, Uganda Printing and Packaging Association [UPPA] led by the Executive Director for the Federation of Small and Medium Enterprises-Uganda, John Walugembe, told journalists that they have learnt that government now plans to give all its printing work to Vision Group and UPPC, a move that might collapse their enterprises – if at all it is true.

The group said, if implemented, it will kill opportunities that the sector is providing to Ugandans.

They quoted data from Uganda Manufacturers Association/Uganda Printers and Packaging Association 2017 Capacities Baseline Survey Report saying, the printing sector’s economic contribution to Uganda employment is 38,000 permanent Jobs; 90% of which are the youth. At full employment, the sector can create 200,000 jobs across value chain. They said, investments of US$380million had been recorded with potential to attract additional US$120million investment to fully optimize the sub sector’s potential.

“It is very clear that the most significant investment into the printing sector is actually not by Vision Group and UPPC but rather, a collective effort of various players, of different sizes,” reads part of the joint statement issued by the association.

Therefore, the association adds, it is imperative that all players in the printing sector have the same treatment before the current procurement regime that is mainstreaming local content, subject to the law, reservation guidelines or regulations as the case may be.

The group said the new move contravenes the Procurements Laws and Regulations in Uganda that require competitiveness and non-discrimination.

Furthermore, the presidential directive undermines the reservation/preference schemes that are part of the law but were premised on fair and free competition within sectors in line with the Buy Uganda Build Uganda Policy that was issued in 2014.

Walugembe and his team said, the printing association has extensively worked with PPDA to address the historic distortions in the Printing and Packaging Sector and other sectors; using public procurement policy, especially, the Reservation Schemes.

“It is only fair that this imperative is sustained,” they said.