In a bid to sustainably transform Uganda’s economy there is a need for Ugandans to embrace the spirit of becoming manufacturers instead of relying on the importation of finished products.
According to statistics from bank of Uganda imports in Uganda decreased to 1305.63 USD Million in November from 1536 USD Million in October of 2024.
Imports in Uganda averaged 391.85 USD million from 1993 until 2024, reaching an all-time high of 1536.00 USD million in October of 2024 and a record low of 44.20 USD Million in August of 1993 .
During the 1990s, the ‘Asian Tiger’ countries—Singapore, South Korea, and Taiwan—focused on promoting local manufacturing, particularly through an export-driven strategy. This approach, which emphasized exporting to industries, enabled them to achieve an average annual growth rate of 7.5% over three decades, ultimately earning them developed country status.
It’s not yet too late for Uganda to emulate such strategy since evidently no country has achieved any development in the 21st century as result of solely depending on manufactured goods or services from foreign countries.
President Yoweri Kaguta Museveni has aspired to transform Uganda’s economy into one of the most robust in Africa, the government has implemented various initiatives to support this vision. Agencies such as the Uganda Investment Authority and industrial hubs like Kapeka and Mbale are already in place to drive economic growth.
Through manufacturing, countries can provide employment opportunities for Uganda’s large and youthful population, which, according to the recently concluded population census, is one of the youngest in the world
Recently, the President came out to urge Business men from Uganda’s main trading centre Kikuubo market to concentrate more in manufacturing since sustainable development can only be achieved through focusing in manufacturing, advice many rejected.
Manufacturing ensures sustainable jobs with predictable regular income, an essential for economic growth and wealth accumulation.
When people have a regular predictable income, and not depending on chance, they can be able to invest in long-term projects such as housing.
If banks can offer low-interest long-term, business people would invest in sectors for long-term knowing there are people who will be able to afford their products or services.
When adopted, manufacturing provides an opportunity to strengthen the private sector to drive economic growth through increasing production for export expansion of high value products and import substitution in the long run contributing to job creation, increased incomes and improvement in quality of life Ugandans.
As Uganda gears up to refine oil there are high chances that oil production will boost Uganda’s economy since oil production is a key raw material in manufacturing, a long-term strategy to fully industrialize Uganda.
