The Ministry of Trade, Industry and Cooperatives has ordered local governments to compile comprehensive data on all processing and industrial establishments in their jurisdictions as government moves to establish a national industries register.
The ministry has given district local governments, cities and municipalities 60 days to submit the required information, which will be used to develop the National Industries Register and the National Industrial Manufacturing Information System (NIMIS).
Trade, Industry and Cooperatives Minister Sanjay Tanna said the initiative is intended to address inconsistencies in industrial data held by different government agencies and improve planning and support for manufacturers.
“Government currently lacks a comprehensive geo-referenced and continuously updated database for trade and industry enterprises,” Minister Tanna said in a statement ahead of the 3rd Regional Industrialisation Conference scheduled for September 18 and 19.
He said the absence of reliable information on the location, scale, output, employment and compliance status of industries has limited effective planning, infrastructure provision and coordination among government agencies.
The new system, he said, will provide an authoritative source of structured data on industries and manufacturing establishments and will be maintained by the Ministry of Trade, Industry and Cooperatives.
Minister Tanna said the ministry has also directed its management to fast-track digitisation of all its services to improve service delivery.
The development comes as government seeks to make industrialisation a key driver of Uganda’s economic transformation through increased value addition, expanded markets and access to affordable electricity.
According to the ministry, manufacturing currently contributes 16.5 per cent to Uganda’s gross domestic product, while the broader industrial sector contributes 27.2 per cent.
The industrial sector employs 8.3 per cent of the population, while manufactured exports account for 22.5 per cent of total merchandise exports, generating an estimated $1.1 billion annually.
Manufacturing also contributes more than Shs5 trillion in tax revenue each year, according to the ministry.
Minister Tanna said industrial manufacturing is central to the implementation of the government’s Tenfold Growth Strategy and National Development Plan IV, which targets a $500 billion economy within 14 years.
Government has identified agro-based industries such as coffee, fruits, tea, honey, textiles, grains, sugar, poultry, fish, dairy and leather among its priority areas.
Other priority areas include iron and steel, gold, copper, plastics, petrochemicals, cement, salt and fertilisers, as well as knowledge-intensive industries such as automobiles, pharmaceuticals, electricals and electronics.
The minister said government is also upgrading industrial technology and machinery, supporting industrial research and attracting investment in modern manufacturing.
He said the government is developing regional industrial parks, with eight currently operational, while also promoting industrial clusters and linkages between farmers and processors.
To lower the cost of production, government has reduced electricity tariffs for high-energy industrial users to five US cents per kilowatt-hour and is investing in transmission infrastructure to improve reliability of power supply.
Government is also using institutions such as Uganda Development Bank (UDB) and Uganda Development Corporation (UDC) to improve access to long-term financing for manufacturers.
Minister Tanna said UDB’s cumulative capitalisation is about Shs1.6 trillion, while UDC is targeting capitalisation of Shs5 trillion within five years.
He also highlighted the Buy Uganda, Build Uganda (BUBU) initiative and efforts to expand market access through the East African Community, Common Market for Eastern and Southern Africa and African Continental Free Trade Area.
The AfCFTA provides access to a market of about 1.4 billion consumers and an estimated economic activity of more than $3 trillion, according to the ministry.
The announcement was made ahead of the 3rd Regional Industrialisation Conference, which will be held in Uganda on September 18 and 19.
The conference, convened by the Private Sector Foundation Uganda in partnership with AGRA Uganda and other regional stakeholders, will bring together governments, private sector players, investors and development partners.
A key feature of the conference will be an Industrial Champions Dialogue involving African business leaders and investors who have built large-scale enterprises on the continent.
The dialogue will focus on financing industrial development, overcoming barriers to growth, building regional production systems and using AfCFTA to scale African manufacturing enterprises.
Minister Tanna urged Ugandan business associations, including the Uganda Manufacturers Association, Uganda National Chamber of Commerce and Industry, Kampala City Traders Association and Uganda Small Scale Industries Association, to participate in the conference and exploit investment and market opportunities in the region.
