Uganda has set its sights on becoming a $500 billion economy within the next decade — a bold goal that government officials say will be driven by the manufacturing sector.
According to Moses Kaggwa, the Director of Economic Affairs at the Ministry of Finance, Planning, and Economic Development, manufacturing is at the heart of Uganda’s new growth strategy, which aims to create millions of jobs, boost exports, and reduce the country’s dependence on imports.
“If Uganda is to achieve sustainable and inclusive growth, manufacturing must take center stage,” Kaggwa told the Nile Post in an interview.
“We are working to remove financing bottlenecks, improve infrastructure, and create a business-friendly environment where industries can thrive.”
Kaggwa revealed that the government, together with commercial banks and development partners, is expanding access to affordable credit — especially for small and medium enterprises (SMEs) that often struggle to secure capital.
Through the Uganda Development Bank (UDB) and new financing facilities, manufacturers will be able to access lower-interest loans to invest in production, technology, and value addition.
“Industrial growth cannot happen when businesses lack capital,” Kaggwa noted. “We are scaling up funding support so that more Ugandan firms can process what we produce — not just export raw materials.”
The government is also investing heavily in industrial parks, roads, energy, and transport corridors to reduce the cost of doing business.
Projects such as the Kampala–Jinja Expressway, the expansion of electricity grids, and the establishment of regional industrial hubs are all aimed at improving logistics and energy reliability for investors.
“When energy is reliable, transport is efficient, and policy is predictable, manufacturing becomes globally competitive,” Kaggwa emphasized.
Uganda’s strategy also leverages opportunities from the African Continental Free Trade Area (AfCFTA) — a single market of more than 1.4 billion people.
By producing for both local and regional markets, Uganda hopes to become a major supplier of processed goods across East, Central, and Southern Africa.
“We are not just manufacturing for Uganda but for Africa,” said Kaggwa. “The AfCFTA offers a huge market for our products, and we want to be ready for that opportunity.”
The government’s vision is to grow Uganda’s GDP from $50 billion to $500 billion within the next 15–20 years. Achieving this target will require an average annual growth rate of about 15%, driven by industrialization, technology adoption, and infrastructure modernization.
Economists, however, note that Uganda must also tackle high energy costs, limited access to skilled labor, and bureaucratic delays that discourage investors. Still, Kaggwa remains confident:
“Manufacturing is not just another sector — it is the foundation of our future economy. It will create jobs, drive exports, and make Uganda a truly industrial nation.”
Currently, manufacturing contributes around 15% of Uganda’s GDP but employs nearly 1 million people directly and indirectly. The government aims to double this contribution by 2035 through targeted investments in agro-processing, textiles, pharmaceuticals, construction materials, and metals.
Experts believe that if Uganda fully utilizes its natural resources, improves skills training, and ensures consistent policy implementation, the country could become one of Africa’s leading industrial economies.
