Nytil Textile Industries, one of Uganda’s oldest manufacturing powerhouses, has suffered a dramatic drop in bedsheet production from up to 70,000 pieces per month to a mere 2,000, driven by an influx of cheaper imports from China and India.
The sharp decline underscores the growing pressures facing domestic textile manufacturers despite ongoing government efforts to promote local industrialization.
Speaking during a high-level government delegation visit to the company’s factory in Jinja, Nytil Chairman Kishor Jobanputra revealed that unfair competition from imported finished and semi-finished products has crippled local output.
‘We were producing 50,000 to 70,000 bedsheets every month. Today, we are down to 2,000,’ Mr. Jobanputra said, attributing the slump to trade loopholes that favor foreign importers over domestic manufacturers who process goods from raw materials to finished products.
Mr. Jobanputra urged the government to review the taxation and customs classification of textile imports, warning that several foreign products declared as raw materials at entry points are effectively finished goods, undercutting local operations.
Responding to the concerns, Ms. Amina Mukalazi, the State Minister for Investment and Privatization, assured management that the government is coordinating with relevant sector agencies to protect domestic industry.
‘This is a matter that we are working on. We want you to be stable, grow, and not go down,’ Ms. Mukalazi said, noting that the issue would be prioritized in an upcoming joint stakeholder meeting involving the trade sector.
BUBU Policy Under Strain
The struggle at Nytil comes against the backdrop of the government’s Buy Uganda Build Uganda (BUBU) policy, launched in 2017 to prioritize local manufacturers, boost domestic market share, and drive job creation.
Despite the policy, trade data indicates that local demand for bed linen continues to be met largely through foreign supply lines. World Bank World Integrated Trade Solution (WITS) data, based on UN Comtrade statistics, reveals that Uganda imported 40,629 kilograms of knitted or crocheted bed linen valued at $99,570 (approx. Shs 368 million) in 2024, with China supplying 14,348 kilograms and the UK supplying 16,009 kilograms.
The data further shows that Uganda imported 10,474 kilograms of printed cotton bed linen worth $96,540 (approx. Shs 356 million) in the same year, with China dominating the trade at 9,607 kilograms.
Historical context
Founded in 1954 in Jinja, Nytil (formerly Nyanza Textile Industries) was once the cornerstone of East Africa’s textile industry. After decades of operational decline, the state-owned enterprise was privatized in 1996, spurring private investment aimed at reviving its integrated cotton-to-garment manufacturing pipeline.
While the company is seeking to expand its cotton processing capacity and supply regional markets, management insists that structural tariff protection remains essential to keeping Uganda’s manufacturing sector afloat.