The Minister of Trade, Francis Mwebesa, has reiterated the government’s commitment to strengthening Uganda’s manufacturing sector, calling for greater collaboration between policymakers, investors, and industry players to unlock the sector’s full potential.
Mwebesa highlighted the pivotal role of industrialization in driving economic growth and achieving the ambitious goals set out in the National Development Plan (NDP IV).
He highlighted the remarkable expansion of Uganda’s manufacturing sector over the years, from just 80 industries in 1986, to more than 9,000 industries, contributing significantly to the country’s economy.
“The sector contributes at least 16.5% of the country’s GDP, 305 f total tax revenue collection and employs more than 2 million people, which is a remarkable transformation,” he said, during a high-level budget dialogue organized by the Uganda Manufacturers Association (UMA).
He however noted that 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 addition, and drive economic transformation.
Diamond Trust Bank’s (DTB) Head of Corporate and Business Banking, Kaziro Kyambadde, called for increased investment in agro-industrialization as a pivotal strategy to drive Uganda’s economic transformation, emphasizing the importance of strategic budget allocation to sectors 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 discuss, debate and contribute to the budget process.
Kyambadde highlighted agriculture’s central role in Uganda’s economy, noting that the sector employs 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 UGX 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.
He emphasized the need for a shift from primary agricultural production to value-added processing, packaging, and storage, which are crucial for boosting exports and industrial growth. Kyambadde also advocated for increased access to finance through credit and insurance schemes to empower smallholder farmers and agribusinesses, alongside investments in research and development for climate-resilient crops, enhanced livestock, and modern farming technologies.
In addition, Kyambadde stressed the importance of improving market access and infrastructure, including rural road networks, storage facilities, and digital platforms, to connect farmers with broader markets. He urged increased investment in industrial parks and Special Economic Zones (SEZs) to promote agro-processing, textiles, and light manufacturing. Strengthening vocational and technical training to meet the evolving needs of industries was also highlighted as a key strategy for economic advancement. He also emphasized the need to support the growth of small and medium-sized enterprises (SMEs) by providing more financial assistance, business training, and integration into supply chains, recognizing these enterprises as key drivers of Uganda’s economic journey.
Turning to the tourism sector, Kyambadde highlighted the need to upgrade infrastructure, promote sustainable tourism, and leverage digital marketing to position Uganda as a premier tourist destination. Kyambadde also called for prioritizing digital transformation, focusing on expanding ICT infrastructure, mobile banking, and e-commerce to drive innovation in agriculture, manufacturing, and tourism.
On the issue of budget transparency and accountability, Kyambadde emphasized the importance of fiscal discipline, applauding the government’s efforts to streamline the budget from UGX 7.2 trillion to UGX 57.4 trillion. He urged stronger public-private partnerships to mobilize investment and ensure the efficient implementation of strategic initiatives.
“We must ensure that every Ugandan benefits from our economic progress. This budget should prioritize sectors that drive sustained growth—agriculture, manufacturing, tourism, and digital transformation. By working together, the government, private sector, and development partners can unlock Uganda’s full economic potential,” Kyambadde concluded.
DTBs contribution
Kyambadde reaffirmed DTB’s commitment to supporting Uganda’s economic growth by financing key sectors under the government’s 10-fold Development Strategy. Through its tailored financial products and services, he said DTB is playing a critical role in boosting Agro-processing, Tourism, and Manufacturing (ATMs)—three priority areas driving national development.
The bank offers Agriculture Loans to fund projects in agricultural production and agro-processing, including the purchase of machinery, post-harvest handling equipment, storage facilities, and processing plants. With financing of up to UGX 2.1 billion, low interest rates of 10%, and repayment periods of up to seven years, farmers and agribusinesses have access to crucial funding.
DTB also provides credit financing for tourism infrastructure, including hotels and resorts, in addition to funding manufacturing, especially in line with working capital, expanding production lines, and investing in modern technologies.
