Uganda Breweries Limited (UBL) generated an estimated Shs1.127 trillion in economic value for Uganda in 2024, underpinning the significant multiplier effect that a single manufacturing anchor can have on employment, agriculture, and government revenues.
The data, drawn from an independent report by Oxford Economics Africa and released on Tuesday, offers a detailed breakdown of the brewer’s footprint, revealing that its impact extends far beyond its own production lines. According to the report, the company’s total gross value added contribution comprised Shs552 billion from downstream activities, Shs267 billion from indirect supply chain effects, Shs203 billion from direct operations, and Shs105 billion from the re-spending of employee wages.
As the report notes, for every shilling generated within the company’s direct operations, a significant portion is recirculated through the wider economy. UBL’s substantial local procurement policy, which sources crops like barley and sorghum from domestic farmers, was a key driver of the indirect economic activity. This local sourcing strategy acts as a stable demand anchor for Uganda’s agricultural sector.
The impact on employment is similarly broad. UBL’s direct workforce of 280 is a small fraction of the total jobs supported across its economic sphere. The study estimates that the company’s supply chain supports approximately 23,000 formal jobs, while its distribution and retail network sustains more than 64,000 formal positions. Furthermore, the brewer’s partnership with around 35,000 smallholder farmers demonstrates a direct link between industrial demand and rural livelihoods, with Shs36 billion paid to farmers for agricultural produce in 2024.
From a fiscal perspective, UBL remains a major contributor to the national treasury. Beyond the substantial excise and VAT duties embedded in its products, the report notes that the company paid approximately Shs68 billion in other direct taxes. When combined with taxes generated across its supply chain and through its employees, the total tax contribution underscores the industry’s role in financing public services.
UBL Managing Director Felicite Nson acknowledged the findings, framing them as a testament to the company’s integration into the national economy rather than a simple financial metric. “They represent thousands of farmers, transporters, distributors, retailers, hospitality businesses and many other Ugandans whose livelihoods are connected to our business,” she stated.
Nson also used the platform to highlight a growing concern: the proliferation of illicit alcohol. She warned that the unregulated trade not only erodes the tax base and undermines legitimate manufacturing but also poses a risk to consumer safety. She called for “continued collaboration between government, regulators and industry” to foster a more competitive and sustainable manufacturing environment, emphasizing that the report provides independent evidence that can help inform these policy discussions.
