Pamoja, UDC launch packaging plant to replace imports

UGANDA – The Uganda Development Corporation and Pamoja Packaging Industrial Solutions have broken ground on a manufacturing facility at Namanve Industrial Park, aiming to capture a share of the country’s Shs2 trillion (US$543 million) annual packaging import market.

The Degeya-Senyi Village plant will produce recyclable and biodegradable plastic and paper packaging tailored for food and beverage, agro-processing, pharmaceutical, healthcare, and retail sectors. 

By manufacturing these materials domestically, the facility aims to supply local industries that currently rely heavily on foreign suppliers. 

The output will address specific sector needs, such as barrier properties for food preservation, hygiene requirements for medical packaging, and structural durability for retail distribution.

Reducing Foreign Exchange Drain and Supply Chain Risk

The project is designed to lower local manufacturers’ dependence on imported packaging, which exposes them to currency fluctuations and shipping delays. 

By producing locally, the plant will help reduce Uganda’s foreign exchange expenditure and shorten supply chains. 

This shift is expected to lower production costs for consumer goods companies and improve their competitiveness in regional markets.

Aligning with Industrialisation Goals

The investment supports Uganda’s broader import substitution and export promotion agenda. Developing domestic packaging capacity creates backward linkages to local paper, plastics, and agricultural fibre supply chains. 

If production scales beyond domestic demand, Uganda could position itself as a regional supplier to neighbouring East African markets, transforming a cost centre into a potential export revenue stream.

Job Creation and Skills Development

The facility is expected to generate employment across plant operations, logistics, and distribution. Manufacturing of this nature requires skilled operators, technicians, and quality control staff, contributing to workforce development. 

The partnership between a public development institution and a private industrial solutions company signals growing confidence in Uganda’s manufacturing sector, potentially attracting further investment in recycling infrastructure and material recovery systems needed to support the new plant’s production.

Packaging Sector Transformation

For Uganda’s packaging industry, this investment represents a shift from reliance on imported finished goods to domestic production of value-added materials. 

The plant’s focus on recyclable and biodegradable formats aligns with regional environmental regulations and consumer demand for sustainable packaging. 

By offering locally produced alternatives, the facility could encourage brands to adopt more environmentally friendly packaging solutions while reducing the carbon footprint associated with importing packaging materials from overseas.

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