Manufacturing Sector Key to Economic Growth and Employment, Says Minister Mwebesa

The manufacturing sector continues to play a crucial role in Uganda’s economy, contributing 16.5% to the country’s GDP, accounting for 30% of tax revenue, and providing employment to over 3 million Ugandans.

This was highlighted by Hon. Francis Mwebesa, Minister of Trade, Industry, and Cooperatives, during the Second Uganda Manufacturers Association (UMA) Pre-Budget Dialogue at the UMA Multi-Purpose Hall in Lugogo on Thursday.

In his keynote address, Hon. Mwebesa emphasised the importance of the manufacturing sector in driving Uganda’s economic development.

“As we come together, we recognise the vital role of the manufacturing sector in driving our economy,” he said. “This dialogue serves as a platform for stakeholders to present proactive solutions for a thriving Uganda.”

Hon. Mwebesa reiterated the government’s commitment to creating an enabling environment for manufacturers, citing ongoing efforts to improve infrastructure, such as the construction of new airports and water supply systems.

He also highlighted the importance of promoting sustainable industrial growth and the government’s efforts to support manufacturing through strategic policies and programmes.

The event, organised by UMA, brought together key government officials, industry leaders, and experts to discuss transformative policies for sustainable industrial growth.

UMA’s Executive Director, Dr Ezra Muhumuza Rubanda, welcomed participants and stressed the need for a robust partnership between the private sector and government to overcome current challenges and boost industrial productivity.

On his part, UMA Board Chairman Aga Sekalala Jr. said Uganda’s manufacturing sector is operating at only 53% capacity.

“We must address bottlenecks and drive productivity to unlock our full industrial potential.”

Sekalala emphasised the need for data-driven policy-making and highlighted UMA’s partnerships with the Economic Policy Research Centre (EPRC), the Private Sector Foundation Uganda (PSFU), and other industry stakeholders to ensure effective economic strategies.

The dialogue also addressed several critical issues affecting the manufacturing sector, including access to finance, regulatory compliance, market access, and infrastructure development.

“We acknowledge the concerns raised today and recognize the pressing need for policy reforms and incentives that promote local production,” said UMA Board Vice Chairman Eddie Senkumba.

He added: “There is a clear call for improved access to energy, more efficient infrastructure, and a favourable tax environment to ensure that our industry thrives and remains globally competitive.”

Diamond Trust Bank (DTB), a key partner in the event, expressed its dedication to supporting Uganda’s manufacturing sector. Kaziro Kyambadde, DTB Head of Corporate and Business Banking, highlighted the bank’s commitment to empowering manufacturers through innovation and digital transformation.

“DTB is committed to the entire manufacturing fraternity,” Kyambadde said. “We shall never let you walk alone. We support all your initiatives to grow Uganda’s economy tenfold.”

As Uganda prepares for the 2025/2026 national budget, the event provides an opportunity for industry stakeholders to influence policy decisions and ensure that the manufacturing sector continues to be a pillar of economic growth.