The National Enterprise Corporation (NEC) has appeared before Parliament’s Defence and Internal Affairs Committee to explain its joint ventures and how they contribute to defence, industrial development and Uganda’s economy.
The appearance, led by Defence Minister Kiryowa Kiwanuka and the NEC Board of Directors, was the first time NEC has appeared before the committee since its establishment 37 years ago.
Minister Kiryowa described NEC as the commercial arm of the Ministry of Defence and Uganda Peoples’ Defence Forces, mandated to undertake commercial and industrial activities while supporting national security, technology transfer, skills development and employment creation.
He said NEC currently has nine joint ventures and one partnership, covering defence manufacturing, automobile assembly, agriculture, pharmaceuticals, oil-waste management and other industrial activities.
Kiryowa explained that NEC uses joint ventures to access technology, expertise and capital that would otherwise be difficult to obtain. He said NEC has received about Shs2 billion annually from government over the past 15 years, largely for salaries and operational costs, making private-sector partnerships important for financing major investments.
Under the arrangements, NEC generally contributes land and existing infrastructure, while partners provide technology, equipment, financing, construction, operational support and specialised training.
The Minister said the partnerships have also enabled NEC to generate funds and reinvest in projects, including oil-waste management, pharmaceutical production, research infrastructure, solar power and industrial facilities.
He said the ventures have contributed to technology and skills transfer, employment creation, local procurement, tax revenues, export promotion and import substitution.
Kiryowa assured the committee that the Ministry of Defence will continue overseeing NEC to ensure its commercial activities remain aligned with its statutory mandate and contribute to national development while supporting the Defence Forces and veterans.
