Focus on Africa free market, UNDP tells govt

The United Nations Development Programme (UNDP) has advised government to use the national industrial policy launched yesterday, to tap into the 1.2billion African Continental Free market.

Speaking at the launch, Ms Elsie Attafuah, the UNDP country representative, said Covid-19 has exposed certain realities in more developed countries which started looking internally for market, adding that it is crucial for Uganda to look at the Intra-Africa trade to help the country regain growth after Covid-19.

“Industrialisation is the key to economic transformation through export revenue, poverty eradication, sustained prosperity, which will contribute to inclusive growth, resilience, transformation of the economy and society. It will bring foreign- direct investment and  international competitiveness,” she said.

Ms Attafuah said the Asian industrialisation shows long-term benefits through increasing productivity in the manufacturing sector, which attracts high foreign-direct investment inflows.

“Agro-industrial processing remains strategic to Uganda. Industrialisation is an important foundation for entrepreneurship, business development, export revenues, poverty eradication, rapid and sustained prosperity and attracting foreign direct investment,” she said. 

Prime Minister Ruhakana Rugunda said the policy is an important guiding framework to moving manufacturing from the current 8.3 per cent in the Financial Year 2018/2019 to 16 per cent in FY 2029/2030.

“Industrialisation in the next 10 years, is important for Uganda’s structural and socio-economic transformation, which is underscored by the African Union agenda 63 and the Sustainable Development Goal 9, which focuses on building the resilience,” he said.

Mr Rugunda said Vision 2040 and the third national development plan prioritises sustainable industrialisation, which has seen the paved road network increase from 1000kms in 1986, to 20,000kms and the construction of Karuma and Isimba power dams to reduce the cost of manufacturing.

Industrialisation
Trade Minister Amelia Kyambadde castigated Ugandans over their laziness. 

“Much as Ugandans are educated, they are too lazy to think of setting up their own factories, thinking it is expensive to do so and yet simple factories like milling machines for maize and cassava, require adherence to hygiene standards for products to access markets.. . Everyone here has the potential to become an industrialist, even the farmer in the village,” she said.

According to the policy, some of the outcomes expected in the next 10 years include increased industry sector contribution to the GDP from 27.1 per cent in 2018/2019 to 31.7 per cent in 2029/2030. Manufacturing is expected to increase its contribution to GDP from 15.4 per cent in FY 2018/2019 to 26 per cent in 2029/2030.

The ratio of manufactured products exported to total exports is anticipated to increase from 22.5 per cent in 2018/2019 to 46.8 per cent in 2029/2030.

The policy also aims at reducing the ratio of manufactured products from 63.2 per cent in 2018/1209 to 45 percent in 2029/2030. It also anticipates to increase the share of jobs in the manufacturing sector from 9.8 per cent in 2018/2019, to 15 per cent in 2029/2030.

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