NEC Reports Return to Profitability After Years of Losses in Latest Auditor General’s Report
Lt. Gen. James Mugira, Managing Director of the National Enterprise Corporation, announced a return to profitability for the UPDF’s commercial arm after eight years of losses totaling Shs28 billion. The Auditor General’s December 2023 report highlights significant financial gains across several NEC subsidiaries.
In a recent session with the Committee on Commissions, Statutory Authorities, and State Enterprises (COSASE), Lt. Gen. James Mugira, Managing Director of the National Enterprise Corporation (NEC), announced a noteworthy financial recovery for the UPDF’s commercial branch. NEC has emerged from eight years of cumulative losses totaling Shs28 billion and achieved profitability.
The Auditor General’s report from December 2023 underscores this success, detailing substantial financial improvements across several NEC subsidiaries.
NEC Luwero Industries Limited recorded a profit of Shs8 billion for the fiscal year 2022/23, a slight increase from Shs7.88 billion in the previous year.
Likewise, NEC Construction Works & Engineering Limited reported profits of Shs5 billion in 2022/23, up from Shs4.35 billion in 2021/22.
NEC Agro SMC Limited showed a significant profit increase, achieving Shs4 billion in 2022/23, up from Shs1.64 billion the prior year. In contrast, NEC Uzima Limited experienced a minor decline in profits, with Shs160 million in 2022/23, down from Shs190 million in 2021/22.
Despite this slight downturn, NEC Uzima Limited recently secured a lucrative contract to supply water to Parliament, a development anticipated to boost its profitability in the near future.
