Uganda: Private sector explains why manufacturing should be government’s priority

Private Sector Foundation Uganda Executive Director Stephen Asiimwe believes the manufacturing sector should be the government’s top priority in the 2024/25 financial year.

Mr. Asiimwe says the sector continues to show promising growth and ranks high among its regional competitors as one of the best investment portfolios.

This comes at a time when the government in the latest state budget identified numerous priorities aimed at stimulating the country’s economic growth.

Statistics show that while Uganda’s economy was growing at an average rate of 6.5 percent per year in the 1990s and 2000s, it was heavily dependent on agriculture and low-value-added manufacturing, with most manufactured goods, such as soap, sugar, steel and cement, being imported mainly from Kenya, as well as Asian and European countries.

Even as the government has identified a number of sectors that are expected to drive the economy over the next one year, the private sector believes that the government should normalise the addition of resources to the manufacturing sector, which will encourage investments and enable production of goods within the country’s borders, and also help reduce imports and create jobs.

Mr Asiimwe says once the money is released, it should be directed to more productive areas such as tourism to support meetings, initiatives, conferences and exhibitions that will foster networking, promote new ideas and increase economic growth.

“We had the NAM and G77 summits, they opened up new opportunities. When delegates left the conferences, they didn’t give up the discussions in the halls, they just moved around and explored. This is bringing good fruit to our tourism sector, generating revenue that we benefit from,” he said.

Despite government efforts to strengthen the private sector through policies and programs aimed at promoting entrepreneurship, attracting foreign investment and facilitating business development,

The sector still struggles with issues such as inadequate infrastructure, access to finance, and regulatory hurdles. However, the sector continues to make a significant contribution to the country’s economy.