President Yoweri Museveni has emphasized the need for Uganda to shift away from exporting raw materials and focus on processing and manufacturing to drive economic growth. In a speech read on his behalf by Trade, Industry and Cooperatives Minister Sanjay Tanna at the opening of the 32nd Uganda International Trade Fair in Kampala, Museveni outlined the country's ambitious target of growing its economy tenfold to $500bn by 2040. He urged manufacturers and investors to explore opportunities in agro-processing, fruit processing, and other sectors.
According to Minister Sanjay Tanna, Uganda's current economy is valued at approximately $50bn, and the government's National Development Plans, including the fourth plan (NDP IV) which began in 2025, are designed to drive industrialization, production, and investment. Tanna expressed confidence that the target can be achieved, citing recent developments in the economy. He emphasized that the government's plans are crucial in driving growth and creating jobs.
The Uganda Manufacturers Association (UMA), which organizes the trade fair, has urged the government to provide support to the manufacturing sector. UMA board chairman Aga Sekalala Jr stated that an economy cannot grow tenfold by simply selling more raw materials, but rather by adding value to products. He made three key requests to the government, including funding the fair as a national trade platform, providing a predictable industrial electricity tariff, and buying from local manufacturers in public procurement.
Abid Alam, chairman of UMA's advisory council, highlighted the challenges faced by manufacturers, including rising costs due to conflict in the Middle East, volatile energy prices, and transport disruptions. He also pointed to the pressure on public finances, citing a widening fiscal deficit, and called for timely government payments and consistent tax treatment to free up working capital for factories. Alam emphasized the need for government support to mitigate these challenges.
The 32nd Uganda International Trade Fair, which runs until October 11, brings together over 1,000 exhibitors and expects around 150,000 visitors. This year's theme is "Formalizing Trade to Secure Uganda's Economic Future". The fair has introduced a discount scheme, "Black Deals at UMA", offering over 4,000 deals from more than 400 Ugandan manufacturers and traders. The event also featured awards, with Movit Africa Limited named overall best exhibitor.
Regina Namuwonge, chair of the UMA committee that organizes the fair, expressed optimism about the event's potential to drive growth and create opportunities for manufacturers. She highlighted the importance of formalizing trade to secure Uganda's economic future. The fair provides a platform for manufacturers to showcase their products and connect with buyers.
The push for value addition and manufacturing comes as Uganda aims to transform its economy and create jobs. With the right support and investment, the country hopes to achieve its ambitious target of a $500bn economy by 2040. Key players in the manufacturing sector are optimistic about the prospects for growth and development.
Key points
- President Museveni has called on Uganda to prioritize value addition and manufacturing to achieve a $500bn economy by 2040.
- The Uganda Manufacturers Association has urged the government to provide support to the manufacturing sector, including funding and a predictable industrial electricity tariff.
- The 32nd Uganda International Trade Fair has brought together over 1,000 exhibitors and expects around 150,000 visitors, with a focus on formalizing trade to secure Uganda's economic future.
