Kampala: President Yoweri Kaguta Museveni has placed manufacturing at the centre of Uganda’s economic transformation agenda, describing it as the “engine that will drive the country toward self-sustaining prosperity and regional dominance.”
In the latest National Resistance Movement (NRM) manifesto, the President outlines an ambitious plan to turn Uganda into an export-driven industrial hub; one built on value addition, innovation, and resilience.
Since assuming power in 1986, Mr. Museveni has repeatedly emphasized industrialization as the cornerstone of Uganda’s economic revival. Back then, the country imported nearly all its basic commodities. Today, through deliberate government investment and private sector partnerships, Uganda has become a net exporter of goods it once imported, including soap, sugar, milk, salt, cooking oil, beer, cement, and steel.
According to the latest economic figures, manufacturing now contributes 15.6% to Uganda’s GDP, translating to USD 9.6 billion out of a total USD 61.3 billion as of June 2025. Manufactured exports account for 23% of total exports, or USD 2.4 billion out of USD 10.6 billion, reflecting growing regional and global demand for Ugandan-made products such as cement, ceramics, pharmaceuticals, processed foods, dairy, cosmetics, and textiles.
Over the past 15 years, Uganda has added 31 new value-added products to its export basket, a shift Mr. Museveni describes as evidence of “industrial maturity.” The President says this growth marks the beginning of a new phase focused on secondary and tertiary manufacturing, enabling Ugandan products not only to compete but to lead in global markets.
To accelerate this transformation, the government has unveiled a multi-pronged strategy anchored on industrial financing, infrastructure development, innovation, and skills training.
We’ve further learnt that the Uganda Development Corporation (UDC) and National Enterprise Corporation (NEC) are to receive additional capitalization to co-invest with private players in key industrial sectors. Similarly, the Uganda Development Bank (UDB) will expand access to affordable, long-term credit for manufacturers.
“The goal,” Museveni has said in several economic briefings, “is to ensure that both the public and private sectors move in tandem, sharing risks, rewards, and responsibility for national progress.”
Industrial infrastructure is also getting renewed focus. New plug-and-play industrial parks will be established, while existing ones will be modernized with improved utilities and logistics.
Electricity, one of the biggest cost drivers in manufacturing—has seen a steady reduction in tariffs, with rates for extra-large consumers dropping from 8.5 to 5.5 US cents per kilowatt-hour, and a 5-cent target already in sight.
Government also plans to expand industrial research and innovation hubs, with regional incubation centers to nurture emerging technologies. Vocational training institutions will be upgraded and aligned to industry needs, ensuring that Uganda’s growing youth population acquires skills relevant to production, design, and industrial management.
Transport and logistics remain another priority. Investments in railway and water transport are expected to reduce the cost of moving goods, while digitalisation of government services including e-procurement, e-tax, and e-payment systems—will streamline administrative processes and reduce corruption.
The Buy Uganda, Build Uganda (BUBU) policy continues to form the backbone of domestic market development. Under the revised policy, public procurement will prioritize locally manufactured goods, ensuring that government expenditure directly benefits domestic producers.
Analysts note that the policy mix being implemented under Mr. Museveni’s leadership combines long-term planning with practical economic discipline, an approach that has helped Uganda transition from an import-dependent economy in the 1980s to one with a growing manufacturing base and export potential.
Still, challenges remain. High borrowing costs, limited technological capacity, and competition from cheaper imports continue to test the resilience of local industries. However, with strategic financing, policy consistency, and a clear focus on innovation, Uganda’s industrial future appears firmly within reach.
As the President often remarks, “Uganda is not just producing goods; it is producing history.”
Under his stewardship, the phrase “Made in Uganda” is steadily becoming a symbol of quality, confidence, and national pride, marking a new chapter in the country’s long journey toward economic self-reliance.
