Industry index declines
Nov 04, 2002
Uganda’s industrial sector growth rate has declined from double digits in the last six years, to a single figure last year.
By Raymond Mikah
Uganda’s industrial sector growth rate has declined from double digits in the last six years, to a single figure last year.
This was due to the adverse effects caused by the terrorism backlash on global economic growth and a general price decline of agricultural products in the world market.
Hillary Obonyo, the Uganda Manufacturers Association (UMA) Executive Director, said that industrial growth that at one stage grew 18% slumped last year and is now less than 10%.
“Our industrial sector used to grow at double digits of 18%, 16% and 14% before September 11th, but its now at a single digit. But I am sure it will pick up,†Obonyo said last Friday.
In the last financial year, sugar production provided the highest output.
Obonyo attributed the downward trend to the aftermath of the September 11th attack of the US, which intensified a slowdown in the global economy. He also pointed out the negative effects caused by price declines of Uganda’s agricultural products such as coffee and tea.
Obonyo was briefing Britain’s trade partner to East and Central Africa, Jeff Sinclair about UMA activities. Obonyo however, remained optimistic about future growth, saying the region’s economic integration is likely to boost growth, due to larger markets being created and easier movement of goods and services.
“My trip here is to find out what investment opportunities are available for British investors,†Sinclair said.
Obonyo said the country’s liberal economic policies are conducive for investment and future prospects are bright as an investment destination.
Sinclair, who will be visiting 11 other African countries from Djibouti to South Africa, was in Uganda to to get first hand information on how Uganda’s economy is performing and to find out which areas of investment are available for interested British companies.
He said their main interest lies in agro-processing, and particularly organic agricultural products, which have a ready market in the UK. He listed the services sectors, notably telecommunications and health care provision, as also areas of interest UK investors.
Uganda’s industrial sector growth rate has declined from double digits in the last six years, to a single figure last year.
This was due to the adverse effects caused by the terrorism backlash on global economic growth and a general price decline of agricultural products in the world market.
Hillary Obonyo, the Uganda Manufacturers Association (UMA) Executive Director, said that industrial growth that at one stage grew 18% slumped last year and is now less than 10%.
“Our industrial sector used to grow at double digits of 18%, 16% and 14% before September 11th, but its now at a single digit. But I am sure it will pick up,†Obonyo said last Friday.
In the last financial year, sugar production provided the highest output.
Obonyo attributed the downward trend to the aftermath of the September 11th attack of the US, which intensified a slowdown in the global economy. He also pointed out the negative effects caused by price declines of Uganda’s agricultural products such as coffee and tea.
Obonyo was briefing Britain’s trade partner to East and Central Africa, Jeff Sinclair about UMA activities. Obonyo however, remained optimistic about future growth, saying the region’s economic integration is likely to boost growth, due to larger markets being created and easier movement of goods and services.
“My trip here is to find out what investment opportunities are available for British investors,†Sinclair said.
Obonyo said the country’s liberal economic policies are conducive for investment and future prospects are bright as an investment destination.
Sinclair, who will be visiting 11 other African countries from Djibouti to South Africa, was in Uganda to to get first hand information on how Uganda’s economy is performing and to find out which areas of investment are available for interested British companies.
He said their main interest lies in agro-processing, and particularly organic agricultural products, which have a ready market in the UK. He listed the services sectors, notably telecommunications and health care provision, as also areas of interest UK investors.