The minister for Trade Francis Mwebesa, has reiterated the government’s commitment to strengthening Uganda’s manufacturing sector, calling for greater collaboration between policymaker’s investors and industry players to unlock the sector’s full potential.
Mwebesa who was speaking at a 2025/26 budget preparation dialogue organized by Uganda Manufacturers Association (UMA) and others partners last week in Kampala highlighted the critical role of industrialization in driving economic growth and achieving the ambitious goal set out in the National Development Plan (NDPIV).
He said the remarkable expansion of Uganda’s manufacturing sector over the years, from just 80 industries in 1986 to more than 9,000 industries have contributed significantly to the country’s economy.
“The sector contributes at least 16.5% of the country ‘s GDP, tax revenue collection and employs more than two million people which is said, He however, noted the despite these achievements the sector is operating at only 53.4% of its installed capacity, signaling immense untapped potential.
He emphasized the need for concerted efforts to boost production, enhance value addiction and drive economic transformation.
Diamond Trust Bank’s (DTB) Head of corporate and Business Banking Kaziro Kyambadde called for increased investment in agro-industralization as a strategy to drive Uganda’s economic transformation emphasizing the importance of strategic budget allocation to sector crucial for sustainable growth.
The dialogue themed:” full Monetization of Uganda’s Economy through commercial Agriculture, Expanding and Broadening Services, Digital Transformation, and Market Access” precedes the budget reading in June allowing stakeholders to discus, debate and contribute to the budget process.
Kyambadde highlighted agriculture’s central role in Uganda economy, noting that the sector employs over 70% of the population and serves as a key driver of inclusive economic development, He stressed the importance of strengthening agro- industrial linkages to foster industrial expansion create jobs and uplift household incomes.
“The modernization of our agricultural sector is essential for achieving middle- income status by 2030. However, the Shs 375 billion reduction in the agro- industrialization budget presents a significant challenge. We must reassess our investment priorities to ensure sustainable economic growth,” Kyambadde said.
