The Ugandan Prime Minister Robinah Nabbanja has said the government will deepen collaboration with local manufacturers in order to strengthen production, enhance distribution, and expand market access, in line with the vision of achieving a 10-fold economic growth to 500 billion dollars by 2040.
Speaking at the farewell dinner of the Board Chair of the Uganda Manufacturers Association (UMA), Deo Kayemba, in Kampala, the Premier, represented by the Third Deputy Prime Minister, Rukia Isanga Nakadama, said UMA’s strategic agenda, coupled with government support, would be pivotal in achieving the annual 12% growth target for national economic aspirations.
Premier Nabbanja said the future of Uganda’s manufacturing sector depends on the collective ability to harness opportunities, drive innovation, and foster strategic partnerships.
She said: “The government remains steadfast in its commitment to supporting the private sector and ensuring that Uganda’s industrial growth remains sustainable and globally competitive”.
The Prime Minister hailed UMA for implementing the Green Industrial Agenda and progress in energy cost reductions, adding that the government will continue to support these and other initiatives to ensure that manufacturers have access to affordable energy, fair market competition, and policies that encourage industrial expansion.
Premier Nabbanja urged the manufacturers to harness the regional and continental market, saying full implementation of the African Continental Free Trade Area (AfCFTA) will result in a tax-free regime for all products produced on the continent.
State minister for Industry, David Bahati, said the government’s collective efforts have ensured that Uganda’s manufacturing sector, which currently contributes 18.6% to GDP and six trillion shillings in taxes, should be supported to play a central role in Uganda’s economy.
The outgone Chair of UMA, Deo Kayemba, commended the government for recapitalizing the Uganda Development Bank (UDB), the country’s investment arm, and securing partnerships with financial institutions like Kenya Commercial Bank.
In the next financial year, 2025/26, the government has earmarked 415.7 billion shillings as extra funding for UDB to provide credit for investments at very low interest rates, ranging from 10 to 12 percent, the lowest in the market.
The government is also in advanced stages of acquiring a loan of 175 million dollars (UGX647bn) to capitalize UDB to give it enough credit to finance various private sector investments.
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