How Uganda leverages multi-dimensional industrial growth

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OPINION

By Ezra Muhumuza Rubanda

Whereas opinion may serve knowledge, transformative wisdom requires caution in how such opinion is applied to address the needs of a broader society. In recent days, an article titled “Money without factories, power without production: Uganda’s Political Elite and the Dangerous Myth of Wealth” circulated on several online platforms. The article presents a generalised narrative of unbalanced regional growth in Uganda, a supposedly broken economic system, and imagery of luxury housing associated with the political class.

While the author is fully entitled to their opinion, constructive national discourse requires grounding such views in logic, objectivity, and verifiable facts rather than conjecture, myths, or selective perception. Referencing credible data and institutional evidence would elevate the discussion and better serve the interests of the Ugandan society the author seeks to address.

Contrary to the assertions made, Uganda’s manufacturing sector is not only real—it is expanding, employing, exporting, and transforming lives. Data from the Bank of Uganda (BoU), the Ministry of Finance, Planning and Economic Development (MoFPED), the Uganda Revenue Authority (URA), and the Uganda Bureau of Statistics (UBOS) 2025 Statistical Abstract confirm that Uganda’s economy is increasingly production-driven, with a strengthening industrial base.

Following the economic revival that began in the late 1990s, Uganda is now home to 9,907 registered manufacturing industries spread across 21 economic subsectors. These include 749 grain mills, 343 bakeries, 550 textile firms, 665 fabricated metal industries, 356 beverage producers, and 191 dairy processors, among others.

The spatial distribution of these industries is deliberate and strategic. Over 300 mega industries, which require extensive land and high-capacity power supply, are located in the Namanve National Industrial Park, covering 894 acres and equipped with purpose-built infrastructure. Additional functional industrial parks host approximately 2,519 industries, including Bweyogerere, MM Industrial Park (Buikwe), Sino Industrial Park (Mbale), Kasese, Mbarara, Jinja, Soroti, Mbale Industrial Park, Kapeeka, Luzira, and Karamoja Industrial Parks.

This regional industrialisation strategy is designed to enhance local resource utilisation, create employment, and stimulate complementary economic activities within surrounding communities. Beyond these parks, Uganda hosts approximately 7,088 community-based and primary processing units, largely enabled by rural electrification. These include maize mills, coffee hullers, milk processors, fruit processing plants, and fish refrigeration facilities distributed nationwide based on local enterprise and resource endowments.

Therefore, Uganda’s production sector, anchored in resource utilisation, processing, and distribution, is not merely reflected in statistical records (UBOS, UIA, MTIC, UMA); it is physically observable across the country.

Manufacturing in Uganda extends far beyond factory sheds; its impact is felt at micro, meso, and macro levels of the economy.

At the household level, industries supply essential goods consumed in daily life. The availability of manufactured consumables in both urban supermarkets and rural retail shops is clear evidence of a functional manufacturing sector.

At the meso level, strong intersectoral linkages exist between manufacturing and agriculture, health, construction, and services. Locally produced agricultural inputs, pharmaceuticals and medical consumables, construction materials, textiles, and household goods support growth across multiple sectors. The increasing availability of affordable cement, steel bars, clay tiles, paint, furniture, electronics, and other products reflects industrial presence, not absence. It is, therefore, misleading to suggest that permanent housing or modern living standards are exclusive to politicians or public servants.

Indeed, when citizens invest in permanent homes and purchase vehicles, this reflects purchasing power, controlled inflation, currency stability, and confidence in the domestic economy—factors that encourage local investment rather than capital flight.

At the macro level, manufacturing plays a decisive role in Uganda’s economic growth. According to UBOS 2025, manufacturing contributed 16.5% of GDP, while the broader industrial sector accounted for 27.4%. These figures represent tangible output, employment, and value addition.

The Ministry of Finance (2025) reported GDP growth of 6.3% in FY 2024/25, driven largely by industry and services. Additionally, UBOS recorded an 8.1% increase in the Manufacturing Output Index, indicating not just operational factories, but expanding ones. This shift from raw commodity exports toward value-added production signals increasing sophistication, resilience, and long-term sustainability in Uganda’s economy (MoFPED Budget Statement, 2025).

Manufacturing is also a major employer and contributor to public revenue. UBOS 2025 estimates that 1.2 million Ugandans are employed in manufacturing, while URA 2025 reports that 28.7% of tax revenue (VAT and excise) originates from the sector. These revenues finance public goods such as schools, hospitals, and infrastructure, making manufacturing a cornerstone of national development.

Uganda’s manufacturing sector now produces not only for domestic consumption but also for international markets. UBOS 2025 shows that manufactured goods account for 21% of total exports, with a 14.6% year-on-year growth. From processed foods to light industrial and emerging high-tech products, Uganda is building a competitive export base within the region and beyond.

Assertions that Uganda has “power without production” also overlook the strong synergy between energy and industry. BoU 2025 reports indicate that manufacturing consumes up to 70% of all electricity generated, while UBOS 2025 confirms a 12.3% year-on-year increase in industrial electricity consumption. Hydropower investments are therefore far from idle—they are actively fueling industrial parks, agro-processing facilities, and manufacturing enterprises nationwide.

In conclusion, it is prudent for any responsible citizen to engage constructively in national discourse. Uganda has established institutions that generate and disseminate public information. However, data only serves its purpose when used professionally, objectively, and with a holistic national perspective rather than through selective interpretation, personal frustration, or deliberate distortion.

While Uganda’s manufacturing sector may not yet have reached its full potential, it is real, diverse, expanding, and impactful. It forms a critical foundation of the economic growth currently enjoyed across the country and remains central to Uganda’s future development trajectory.