Africa Plastics Outlook

31 Jan-01 Feb, 2018 - Johannesburg

Hilton Sandton

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Kenyan Plastic Manufacturers Finding New Business in Uganda

Posted on : 01 Dec, 2017

 

The ban on plastic bags in Kenya has led to many packaging firms in the country to stop operations to avoid steep fines stipulated under the law. Many are considering relocating business outside of Kenya. To leverage on the current situation, Uganda Investment Authority (UIA) is inviting Kenyan plastic bags manufacturers to relocate to its capital Kampala.

Recently, UIA sent a letter to Kenyan plastic bags manufacturers ensuring them of “big growth opportunity in the country for manufacturers of quality packaging material” as well as ”laws to protect and allow investors to repatriate their profits as they deem fit”.

Uganda lacks high quality plastic packaging materials to package its honey, fruit juices, mineral water, herbal medicines and chemicals. As a result they are unable to position them in global markets. To meet its packaging demand, Uganda imports plastic packaging material from Kenya where the PVoC (Pre-Export Verification of Conformity to Standards Programme) packaging technology is used. PVoC is more easily accepted worldwide and most of the companies that need good quality packaging, import their customised packaging material from Kenya, South Africa and China.

Already a few Kenyan firms are establishing subsidiaries in Uganda and the invite from UIA may convince them to relocate their machinery as well.

UIA has also guaranteed a One Stop Centre (OSC), where investors will be assisted to register their businesses, acquire work permits for foreign workers and acquire land as well as get the necessary regulatory approvals.

Although All East Africa Community (EAC) member countries were supposed to ban usage of plastic bags, but so far only Kenya and Rwanda have implemented the bans.

As part of the East African Community (EAC), Uganda has adopted the waste management proposal. It is setting up recycling facilities to handle waste plastics. However, the country will promote the use of plastic packaging for its industries.

More opportunities in Africa’s plastics industry will be discussed at CMT’s Africa Plastics Outlook on 31 Jan-1 Feb 2018, in Johannesburg.

For more information, Contact Ms. Grace Oh at grace@cmtsp.com.sg or call +65 6346 9147.

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