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Trade minister, Francis Mwebesa, has called for robust efforts to accelerate Uganda’s industrial growth to achieve sustainable economic transformation.

In order to accomplish sustained economic transformation, Francis Mwebesa, Uganda’s trade minister, has called for strong measures to boost Uganda’s industrial growth.

Latest data, according to the Uganda Investment Authority, suggest that Uganda has over 5,000 operational industries in various sectors.

Speaking on November 28, during the commemoration of Africa Industrialisation Day 2024, Mwebesa emphasized the pivotal role of industrialisation in reducing unemployment, boosting exports, and addressing poverty through inclusive economic opportunities.

Africa Industrialisation Day, observed annually, serves as a platform to raise awareness about the critical importance of industrial development in fostering economic resilience and integration on the continent.

This year’s theme: Industrialisation as a Driver of Economic Development, resonated with Uganda’s goals to establish an export-oriented economy by harnessing industrial potential.

Mwebesa highlighted notable strides Uganda has made in the industrial sector. Over the last five years, the country’s industrial contribution to GDP has grown significantly, now accounting for 27% of the national output.

anda’s industrial landscape features over 5,300 licensed firms producing over 960 products ranging from consumables to construction materials.

“Key milestones in Uganda’s industrialisation journey include the establishment of industrial parks across the country, such as the commissioning of the 600MW Karuma Hydropower dam, which has boosted electricity supply for industrial use,” he said.

Mwebesa also cited the development of agro-industrial projects to support value addition and increase exports, particularly in coffee, tea and dairy products.

Despite these successes, Mwebesa acknowledged challenges, including inadequate access to affordable financing, power instability, and limited skilled labor.

He urged both public and private sector stakeholders to invest in addressing these gaps.

Mwebesa noted that the government has prioritized export-oriented industrialization, particularly in the agro-industrial sector.

Efforts have been directed toward increasing the value of exports, with agricultural and mineral products receiving significant investment to improve processing capabilities.

For example, Uganda has diversified its coffee exports by promoting value-added processing, leading to higher foreign exchange earnings.

Similarly, the country has increased its production of construction materials like cement and steel, reducing reliance on imports and strengthening local industries.

To further accelerate progress, Mwebesa revealed plans to operationalize additional industrial parks in Mbale, Soroti, and Lira, which will offer opportunities for businesses and create thousands of jobs.

He also emphasized Uganda’s partnership with development agencies such as UNIDO in enhancing technical training and fostering innovation in the industrial sector.

Supporting SMEs and co-operatives

Small and medium-sized enterprises (SMEs) remain a critical component of Uganda’s industrial strategy.

The Government, through the Uganda Development Corporation (UDC) and Uganda Development Bank (UDB), has been extending financial support and technical assistance to SMEs to promote entrepreneurship and innovation.

Mwebesa noted that co-operatives have played an integral role in empowering communities economically.

“We have supported the establishment of cooperative societies in various regions to enhance collective production, processing, and marketing of goods,” he said.

The minister also underscored the importance of regional integration, particularly through the East African Community (EAC), in promoting cross-border trade and harmonizing industrial policies. He expressed optimism about the African Continental Free Trade Area (AfCFTA), which offers vast opportunities for Ugandan industries to tap into wider markets.

“Industrialisation is not merely an economic endeavor; it is a lifeline for millions of Ugandans striving for better livelihoods. Together, we can harness our resources, skills, and innovation to build a resilient economy,” he said.

Africa Industrialization Day 2024 served as a reminder of Uganda’s commitment to achieving industrial self-reliance and economic prosperity.