The Uganda Manufacturers Association (UMA) Executive Board hosted the newly appointed Minister of Trade, Industry and Cooperatives, Hon. Sanjay Tanna, for a high-level engagement focused on strengthening Uganda’s industrial sector and advancing the country’s manufacturing competitiveness.

Held at the Home of Manufacturers in Lugogo, the meeting brought together the Minister, officials from the Ministry, the UMA Executive Board, and members of the UMA Advisory Council to discuss practical policy reforms and stronger public-private collaboration needed to unlock the sector’s full potential.

Welcoming the Minister, UMA Board Chairman Mr. Aga Sekalala congratulated Hon. Tanna on his appointment and commended the Government of Uganda for maintaining macroeconomic stability despite challenging global and regional economic conditions.

He emphasized that Uganda’s manufacturing sector is well-positioned to become the engine of national transformation, provided that government and the private sector work together to address long-standing policy and operational bottlenecks.

Mr. Sekalala highlighted the sector’s significant contribution to the economy, noting that manufacturing currently contributes:

• 16% of Uganda’s GDP
• 30.3% of national tax revenue
• 24% of total export earnings
• Supports approximately 4.5 million direct and indirect livelihoods

Despite this contribution, he observed that the sector is operating at an average capacity utilization of just 54.4%, leaving substantial idle productive capacity that could be activated through targeted policy interventions.

He called for stronger coordination in fiscal policy, trade policy, standards enforcement, export facilitation, and industrial competitiveness to accelerate growth.

The UMA Chairman urged government to shift from a predominantly defensive approach to protecting local industry towards a proactive export-led industrialization strategy.

He proposed measures aimed at:

• Formalizing informal production
• Strengthening enforcement of fairtrade rules
• Reducing the cost of production
• Eliminating non-tariff barriers
• Improving access to liquidity for manufacturers
• Positioning Ugandan industries to fully exploit opportunities within the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA).

On behalf of UMA, Richard Mubiru, Board Member and Chairman of the Economic Business Policy Committee, presented several priority issues affecting manufacturers.

Among the proposals raised were:

• Reviewing the Employment Act, particularly provisions relating to severance pay
• Rationalizing excise duties and other taxes impacting manufacturing
• Revisiting the Uganda Revenue Authority requirement for a 30% upfront deposit before taxpayers can appeal to the Tax Appeals Tribunal
• Developing structured industrial licensing reforms
• Supporting the transition of informal enterprises into the formal economy
• Promoting decent employment and strengthening enforcement of business association membership

The discussions focused on creating a more predictable and competitive business environment that encourages investment and industrial expansion.

Minister of State for Industry Hon. David Bahati reaffirmed government’s commitment to Uganda’s industrialization agenda.

He highlighted several ongoing initiatives, including:

• Uganda’s achievement in eliminating imports of industrial sugar
• Continued industrial mapping across the country
• Finalization of industrial licensing legislation

Hon. Bahati noted that the industrial sector now contributes 27.4% of GDP and reiterated government’s commitment to reducing electricity tariffs for manufacturers to 5 US cents per unit, a key intervention expected to improve industrial competitiveness.

He encouraged manufacturers to continue working closely with the Ministry, describing it as their “mother ministry.”

In his remarks, Hon. Sanjay Tanna thanked UMA for its continued contribution to Uganda’s industrial development and pledged to strengthen engagement between government and manufacturers.

He committed to holding quarterly meetings at manufacturers’ factories, allowing the Ministry to better understand industry challenges and identify practical solutions on the ground.

The Minister announced that the Ministry’s immediate priority is improving data collection and digitizing industry databases to support evidence-based policy formulation and implementation.

Recognizing the importance of reducing production costs, he encouraged manufacturers to adopt net metering as a means of stabilizing electricity expenses and called for increased investment in agro-processing, describing it as both an economic opportunity and a national responsibility.

Hon. Tanna further challenged manufacturers to play a central role in delivering Uganda’s Ten-Fold Growth Strategy under the National Development Plan IV, which seeks to grow the economy to USD 500 billion.

He encouraged industry players to align future investments with government’s four strategic priorities: Agro-industrialization, Tourism Development, Mineral Development and Science, Technology and Innovation

Closing the engagement, the UMA Advisory Council, led by H.E. Abid Alam, together with the UMA Executive Board, welcomed the Minister’s commitment to closer collaboration with the private sector.

The Association pledged its full support to the Ministry’s industrial development agenda, expressing confidence that stronger government-industry partnerships will accelerate manufacturing growth, expand exports, create jobs, and enhance Uganda’s competitiveness across regional and continental markets