The State Minister for Investment, Evelyn Anite has urged Ugandans to buy and consume locally produced goods.
“Why are we shunning our own products to buy imported ones? We are doing a disservice to our own country. We are actually donating jobs and unemployment is on the rise in our country. Public service can only employ up to about 470,000 Ugandans, yet manufacturing and industries employ over one million people,” Anite said.
The minister was on Tuesday speaking during this year’s Regional Industrialization Conference with a focus on sustainable industrialization held at Next Media Park in Naguru.
She said by buying imported products instead of locally produced ones, Ugandans are encouraging giving away of foreign exchange at the expense of the country’s development.
“Remember the importers trade abroad in dollars and therefore, the money you give them when you buy their products, they have to convert it into dollars and the Ugandan shilling therefore loses value. It means you have donated jobs and money.”
He said local manufacturers employ a number of Ugandans and that by buying from them, they are able to sustain their operations and employ more Ugandans.
“No one can do it for us. Not even government can do it for us but for ourselves. Government can only provide an enabling environment and incentives.”
According to David Wozemba, the country director for the Alliance for a Green Revolution in Africa noted that agro-processing is contributing a great percentage of Uganda’s economy.
“The role of agriculture and agro-industries in Uganda's economy cannot be overstated, serving as both a foundation for economic activity and a source of livelihood for the majority of the population. Despite a decline in its contribution to GDP from 50% in 1995 to 24% presently, agriculture remains a crucial sector, employing approximately 70% of the working population, predominantly in rural areas,” Wozemba noted.
“Agro-processing accounts for a significant portion of the country's manufacturing output, with food processing alone contributing 40%, driven by key sectors like sugar, coffee, and tea processing. Moreover, the rapid growth in food demand, propelled by population growth and changing dietary preferences due to urbanization and income growth, emphasizes the vital role of agriculture in meeting both domestic needs and export demands.”
He noted that as Uganda endeavors to advance its Agro-industrialization agenda, the sector's resilience, adaptability, and potential for inclusive growth position it as a cornerstone of the country's economic development strategy.
“Agro-industrialization has created a number of jobs for Uganda and the potential is through rural employment , youth engagement, gender inclusion and multiplier effects. This has ripple effects across the economy. When a factory hires workers, it stimulates demand for auxiliary services such as transportation. It sets off chain reaction bolstering the local economy,” Wozemba noted.
He added that transitioning Uganda's exports to higher value-added products represents a strategic imperative for enhancing the country's economic competitiveness and resilience.
According to Wozemba, while Uganda has historically relied on primary agricultural commodities for export earnings, there is a growing recognition of the need to diversify and move up the value chain to capture greater value from its export activities.
“This transition is driven by several factors, including the limitations of a small domestic market, the potential for learning and economies of scale through exporting, and the long-term imperative of diversification. By focusing on the production and export of higher value-added goods, Uganda can not only mitigate the vulnerabilities associated with commodity price fluctuations but also tap into new markets and opportunities for growth.”
He however warned that this transition requires concerted efforts to address structural constraints, enhance productivity and competitiveness, and create an enabling environment conducive to innovation and value addition across key sectors.
“Through targeted policies, investments, and partnerships, Uganda can position itself as a dynamic player in the global marketplace, driving sustained economic development and prosperity for its people.”
