By David Mwanje
The government has called on manufacturers to take a leading role in driving Uganda’s ambitious economic transformation plan aimed at growing the economy to 500 billion dollars by 2040.
Speaking at the third Annual Pre Budget Breakfast Dialogue at Silver Springs Hotel, State Minister for Trade David Bahati said the manufacturing sector will be central to the country’s Ten Fold Growth Strategy.
Bahati said Uganda’s economy currently stands at about 55 billion dollars and requires faster industrial growth if it is to achieve the long term development target.
He explained that manufacturing currently contributes between 13 and 15 percent of the country’s gross domestic product, equivalent to roughly 7 to 8 billion dollars. Under the government’s growth strategy the sector is expected to expand to between 25 and 30 percent of the economy in the coming years.
This would mean growing the sector to between 125 and 150 billion dollars by 2040 through stronger value addition, expansion of export industries and deeper participation in regional markets.
Bahati said Uganda must move away from exporting raw materials and instead focus on processing its abundant resources such as cotton, coffee and minerals into finished products that can compete in regional and global markets.
He added that expanding industrial parks and strengthening trade links under the African Continental Free Trade Area will open new opportunities for Ugandan manufacturers.
Economists say a stronger manufacturing sector could have a direct impact on the lives of ordinary Ugandans. Increased factory production could create millions of new jobs in processing, construction and logistics while boosting incomes for farmers supplying raw materials.
However industry players say several challenges still slow down the growth of manufacturing. These include high compliance costs, bureaucratic procedures, smuggling of counterfeit goods and limited infrastructure in some parts of the country.
