Manufacturing sector surges to $7bn output

Uganda's manufacturing sector has recorded impressive growth, with its output skyrocketing to $7.4 billion (about Shs27.63 trillion), a dramatic leap from just $16.6 million in 1992.

This growth underscores the sector's crucial role in driving Uganda's economic transformation and highlights its expanding influence on both local and global markets.

During the launch of Uganda’s International Trade Fair, Eddie Senkumba, the manager for communication and events at the Uganda Manufacturers Association (UMA), underscored the sector's remarkable progress.

"Uganda's manufacturing industry has grown exponentially, from $16.6 million in output in 1992 to $7.4 billion today. This is a testament to the hard work and resilience of our local manufacturers who continue to innovate and expand despite challenges," said Senkumba.

This growth is reflected not only in output figures but also in the sector's substantial contribution to Uganda's tax revenue and employment.

The manufacturing sector currently contributes about 23% of the country’s tax revenue, establishing it as a critical source of government income.

"Our sector is a major player in the national economy. Beyond providing goods and services, we directly contribute to the national budget through tax revenue, essential for funding public projects," added Senkumba.

A key aspect of the sector’s growth is its role in job creation. The manufacturing industry directly employs nearly 2 million Ugandans, providing stable employment and empowering individuals with valuable skills and expertise.

The sector's impact extends further, supporting millions more in supply chains, logistics, and retail.

The UMA credits initiatives such as trade fairs and industrial expos for promoting local manufacturers and creating business opportunities.

Since their inception in the early 1990s, these international trade fairs have been instrumental in bringing Ugandan products to the global market and attracting foreign investors.

"Since the first trade fair, we have seen tremendous milestones. These events boost manufacturing output and provide local businesses a platform to showcase their products internationally, crucial for export promotion and attracting foreign investment," explained Senkumba.

Uganda’s vision for industrialization and economic transformation is closely linked to the growth of its manufacturing sector.

The government, in partnership with private sector players, has implemented policies to promote industrialisation, enhance infrastructure, and reduce trade barriers.

These efforts have created an environment where local manufacturers can thrive and expand.

Despite these achievements, challenges remain. Inadequate infrastructure, high production costs, and stiff competition from imported goods continue to pose significant obstacles.

However, with continued support from government policies and private sector innovation, Uganda's manufacturing sector is poised to play an even more prominent role in the country's economic growth.

"The future of Uganda’s manufacturing sector is bright," stated Senkumba.

"With ongoing investment in infrastructure, technology, and skills, we can unlock even greater potential and establish ourselves as one of Africa’s leading industrial hubs."