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Industrial sector to contribute 30% to GDP by 2030

By Wilson Manishimwe

Added 23rd October 2018 01:35 PM

The yet to be launched industrial policy according to Kyambadde will also spur economic growth.

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Amelia Kyambadde, the minister of trade industry and cooperatives

The yet to be launched industrial policy according to Kyambadde will also spur economic growth.

The new industrial development policy will boost industrial sector’s contribution to the Gross Domestic Product (GDP) of Uganda from the current 18.5% to 30% by 2030, Amelia Kyambadde, the minister of trade industry and cooperative has said.

Kyambadde said the new policy will enhance lowering costs of manufacturing, industrial financing as well as widening the industrial base and improve its(industrial sector) integration with agriculture.

During the policy validation workshop at Imperial Royale, Kyambadde noted that the government also intends to address the issue of the requisite skills for Ugandan industrial workers so that Ugandan made products can further compete in regional and global markets.

The yet to be launched industrial policy according to Kyambadde will also spur economic growth.

“The country has been developing in absence of clear industrial policy, with the economy currently almost reaching 6%. Once the policy is finally unveiled and well implemented the economy will grow further,” Kyambadde said.

Establishment of the new industrial policy follows the expiry of the 2008-2017 policy last year.

With the 10 years implementation of the previous policy, a number of achievements were made.

According to Kyambadde, there was approving of polices such as National Textile Policy (2008), National Sugar Policy (2010), National Standards and Quality Policy (2012), Accreditation Policy 2014, National Leather and Leather Products Policy 2015 among others.

According to the Policy final draft, the industrial sector grew by 6.2% in the financial year 2017/2018 from 3.4% in 2016/17 and 4.5% in 2015/16.The growth was attributed to good performance of the agro-processing as well as recovery in mining and quarrying.

“However, the sector has not sustained a significant growth rate to propel the country to the envisaged national development targets.

The Policy will strengthen dynamism with in manufacturing as a driver of industrialisation through revitalisation of technological adoption, attraction of firms and expertise to add value to the country’s vast natural resources and achieving transformative export diversification,” reads part of the draft.

It adds: “The role of government in accelerating industrial development shall be enhanced to be central to the industrialization process with focus on; ensuring that financial markets work better, labour force is skilled to be employed by the sector, industrial research and innovations are piloted and technology transfer is supported.”

The United Nations Development Programme (UNDP)’s country director, Almaz Gebru called for the government’s focus on areas that give country the niche to enter global economy.

“The government should help the industrial sector to focus on production of value added commodities to explore the ready market across the region. There’s also a need to integrate small and medium enterprises in regional and global value chain,” said Gebru.

Industrialist’s views

Saeed Hernandez, the Business Development Manager at Rene Pharmaceutical industrials welcomed the new industrial policy saying once properly implemented could create jobs for the population and steer the country’s growth.

He said once agriculture is properly inter linked to manufacturing, some of the raw materials needed for the pharmaceutical industry could be produced from Uganda.

“For instance once we produce the maize starch locally, it would be cheaper than importing it. Starch is used to manufacture medicines.  We are at the technical side but we need support in terms of agricultural products to complement us,” Hernandez said.

He added: “Basic items like starch should be made from here, if Kenya is making them, why can’t local people here also produce them?”

 

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