Uganda Encourages Shift from Imports to Local Manufacturing

The Ugandan government is actively encouraging traders to shift their focus from importing goods to engaging in local manufacturing. State Minister for Industry, Hon. David Bahati, highlighted this direction as crucial for boosting job creation and enhancing the nation’s economic outlook. By moving towards production within Uganda, the country aims to improve tax revenues and accelerate progress towards a $500 billion economy within the next decade and a half.

Minister Bahati stated that the government is actively engaging with traders, particularly importers, to leverage funding opportunities available through the Uganda Development Bank (UDB) to support their transition into the manufacturing sector. This push for industrialization is a key component of the President’s broader strategy for import substitution and export promotion.

These remarks came as the minister addressed concerns raised by members of Parliament regarding delays in clearing imported goods at customs. Legislators pointed out that protracted clearance times, often taking six months to a year, lead to significant demurrage costs for traders. The Minister clarified that while routine clearance is typically swift, delays often stem from importers lacking necessary pre-clearances from bodies like the Uganda National Bureau of Standards (UNBS) and the National Drug Authority (NDA), or from pre-existing offenses with customs.

To further bolster this industrial drive, a feasibility study for a major industrial park in the Karamoja sub-region is nearing completion. The park is intended to create substantial employment and investment opportunities, building on existing industries like cement and clinker production, which are already saving the country considerable foreign exchange.

Discussions also touched upon the equitable distribution of resources, with calls for agricultural funding to reach women farmers, who form the majority of the agricultural workforce. The government recommitted to President Museveni’s vision of economic participation through initiatives like the Parish Development Model (PDM) and Emyooga, urging citizens to join the money economy and transition from traditional farming systems to wealth-generating activities.

Source: Parliament of Uganda