Manufacturers have called for urgent reforms to remove the barriers holding back industrial growth, citing high lending rates, poor infrastructure, and regional trade restrictions as key challenges to boosting productivity and competitiveness.
At the ongoing Uganda Manufacturers Association (UMA) International Trade Fair in Lugogo, business leaders painted a picture of industries ready to expand, innovate, and create jobs, but constrained by structural and policy bottlenecks that limit their full potential.
Finance Minister Matia Kasaija delivered President Museveni’s message, in which the Head of State praised the private sector for its role in industrial growth and national development.
Museveni highlighted that Uganda’s manufacturing sector supports over 6.5 million jobs and contributes Shs11.6 trillion to the national treasury—about 30% of total tax revenue.
He noted that the economy has grown steadily at an average of 6.7%, with inflation below 3.8%, and the shilling appreciating against major currencies.
“The government’s strategic efforts, including the National Tax Policy 2025, are ensuring a secure and sustainable fiscal future,” Museveni said.
“Our goal is to grow Uganda’s GDP tenfold—from $61 billion to $550 billion—in the next ten years. This is not just an ambition but a national mandate.”
Despite these endorsements, UMA leaders stressed that industries face persistent obstacles.
Board Chairman Aga Sekalala Jr highlighted that regional trade restrictions within the East African Community hinder nearly 30% of traded goods, while the absence of an export guarantee insurance mechanism has caused rising losses for exporters.
He also criticized exemptions under the EAC Customs Management Act, calling for an independent Competition Commission similar to Kenya’s to ensure fair play.
Sekalala urged government to leverage long-term funds from the National Social Security Fund (NSSF), valued at over Shs15 trillion, to reduce industrial financing costs, currently burdened by commercial lending rates above 18%.
He further called for investment in primary industries to cut Uganda’s $3 billion annual import bill for steel, plastics, petroleum, cereals, and clinker.
Infrastructure challenges remain a major concern. Sekalala noted that transporting a container from Mombasa costs $3,500, while poor roads in industrial areas such as Jinja lead to annual losses of Shs30 billion.
UMA Executive Director Ezra Muhumuza Rubanda emphasized the need for export hubs at Uganda’s borders with the Democratic Republic of Congo and South Sudan to improve market access, stressing that manufacturers are ready to invest in storage facilities if road access and land allocation are provided.
Dr Muhumuza also urged annual policy reviews to ensure Uganda’s industrial framework adapts to global economic changes.
He described this year’s trade fair as more than a commercial exhibition, but a platform for learning, innovation, and partnerships that will help build an industrial Uganda capable of competing globally.
Museveni, through Kasaija, reaffirmed government’s commitment under the Fourth National Development Plan (NDP IV) to address the sector’s challenges, emphasizing industrialization as a key driver of the country’s transformation.
UMA leaders additionally called for the trade fair to be institutionalized as a permanent international event to showcase Ugandan manufacturing and promote the “Made in Uganda” brand.
The UMA International Trade Fair remains East and Central Africa’s largest industrial exhibition, reflecting both the resilience of Uganda’s manufacturers and their determination to expand amid regional and global economic shifts.