Uganda’s government has urged manufacturers to take a leading role in the country’s ambitious Ten-Fold Growth Strategy, which seeks to expand the economy from $50 billion to $500 billion by 2040.
Speaking at the 3rd Annual Pre-Budget Breakfast Dialogue at Silver Springs Hotel, David Bahati said the manufacturing sector must become a key engine of economic transformation if Uganda is to meet its long-term growth ambitions.
“Manufacturing currently contributes 13–15 percent of GDP, valued at about $6–7 billion,” Bahati said. “To achieve ten-fold growth, the sector must expand to 25–30 percent of GDP, generating $125–150 billion by 2040.”
According to the minister, reaching that target will require consistent annual growth of 12–15 percent, driven by value addition to natural resources, expansion of export-oriented industries, development of industrial parks, and deeper integration into regional and global markets.
Bahati acknowledged that manufacturers continue to face several challenges, including high compliance costs, bureaucratic procedures, logistical bottlenecks and unfair competition from informal and illicit trade.
To address these issues, the government has rolled out several initiatives, including the development of industrial parks, improved trade facilitation systems, and greater participation in the African Continental Free Trade Area, which aims to expand market access for African producers.
The minister also highlighted efforts to strengthen standards enforcement, combat counterfeit goods and promote import substitution through increased domestic value addition.
On regulatory reforms, Bahati said government agencies are working together to simplify procedures and reduce duplication.
“We are working with the Ministry of Finance, Planning and Economic Development, the Uganda Revenue Authority, the Uganda National Bureau of Standards, and other institutions to streamline processes and expand digital systems that improve efficiency,” he said.
He warned that informality and illicit trade remain significant barriers to industrial growth, noting that government plans to strengthen enforcement at borders while supporting informal enterprises to transition into the formal economy.
Bahati also stressed the importance of strong public-private partnerships, saying government alone cannot deliver the transformation needed to grow the economy.
“The private sector drives investment, innovation and job creation, while government provides the policy direction, infrastructure and regulatory environment needed for businesses to thrive,” he said.
He urged manufacturers to focus on innovation, technology adoption, quality improvement and regional market expansion to build a competitive and resilient industrial sector capable of supporting Uganda’s long-term economic ambitions.
The dialogue was organised by the Uganda Manufacturers Association, bringing together government officials, industry leaders and development partners to discuss key issues affecting the sector ahead of the national budget.
