UGANDA has marked a significant milestone in its industrial development by commissioning eight Chinese-invested factories, an initiative projected to create thousands of jobs and propel the nation’s economic growth. The announcement, made on Monday by David Bahati, Minister of State for Trade, Industry, and Cooperatives, highlights the country’s commitment to enhancing its industrial sector and diversifying economic opportunities.
The new factories include Unisteel Investment Uganda Limited, a $100 million steel manufacturing plant employing over 500 people, commissioned by President Yoweri Museveni. ‘This steel factory is a game-changer in our industrial sector, providing substantial employment and contributing to Uganda’s economic progress,’ Bahati stated during a briefing at the Uganda Media Centre.
Micro and small enterprises on the rise
In addition to large-scale industrial projects, Uganda has witnessed the establishment of over 250 micro and small processing plants by private organisations and cooperatives. These smaller-scale enterprises play a vital role in fostering community development and creating sustainable livelihoods.
Bahati emphasised the critical contribution of such initiatives to the nation’s economy. ‘The collective effort of both large-scale factories and small processing plants underscores Uganda’s industrial resilience and potential for growth,’ he remarked.
Industry’s contribution to GDP soars
Uganda’s industrial sector has become a cornerstone of the national economy, contributing 27.4 percent to the Gross Domestic Product (GDP). Manufacturing, the largest sub-sector, accounts for 16.5 percent of GDP and provides direct employment to over one million people. Recent data reveals that manufacturing activities grew by an impressive 11 percent in the last quarter of the 2023/2024 fiscal year, a reflection of the sector’s vitality.
‘This growth is not accidental; it is the result of deliberate policies and investments aimed at making Uganda a competitive industrial hub,’ Bahati said.
Strategic partnerships fuel expansion
The partnership between Uganda and Chinese investors has been instrumental in accelerating industrial development. Chinese-funded projects have introduced advanced technology, expertise, and significant financial backing to Uganda’s industrial landscape, ensuring the sector remains a driver of economic transformation.
President Museveni has consistently championed such collaborations, highlighting their role in improving infrastructure, creating jobs, and fostering technological transfer. Speaking at the commissioning of Unisteel, Museveni reiterated, ‘Our focus remains on industrialisation as the engine for Uganda’s prosperity. With investments like these, we are on the right trajectory.’
A vision for sustainable growth
The Ugandan government aims to sustain this momentum by fostering an enabling environment for local and foreign investors. Incentives such as tax breaks, streamlined processes, and infrastructure support have positioned Uganda as an attractive destination for industrial ventures.
Moreover, Bahati hinted at plans to further expand industrial parks and support innovation-driven manufacturing. ‘We envision a future where Uganda’s industrial sector not only meets domestic needs but also becomes a key player in regional and international markets,’ he added.
Balancing growth with sustainability
While the industrial boom offers promising economic prospects, it also raises questions about environmental sustainability. The government has pledged to enforce regulations ensuring that factories adhere to eco-friendly practices. Investors are being encouraged to adopt green technologies and implement waste management systems.
The road ahead
As Uganda continues its industrialisation journey, the focus remains on leveraging strategic partnerships, enhancing local capacity, and addressing challenges such as infrastructure gaps and energy reliability. The latest factory inaugurations signal progress but also serve as a reminder of the ongoing work required to realise the nation’s industrial ambitions fully.
With manufacturing at the heart of economic growth, Uganda is set to become a powerhouse in Africa’s industrial landscape. By blending foreign investment with local innovation, the country is crafting a future of shared prosperity and sustainable development.
Uganda’s industrial sector is thriving with the launch of eight Chinese-funded factories and over 250 small processing plants. Contributing 27.4 percent to GDP, the sector’s growth reflects the success of strategic partnerships and local efforts. Challenges remain, but Uganda’s vision for industrialisation shines bright, promising job creation, economic resilience, and a stronger global presence.
