Uganda’s Manufacturing Sector at Half Capacity—DTB Calls for Strategic Investments

The Minister of Trade, Francis Mwebesa, has reaffirmed the government’s commitment to strengthening Uganda’s manufacturing sector, emphasizing the need for greater collaboration between policymakers, investors, and industry players to unlock the sector’s full potential.
Mwebesa underscored the crucial role of industrialization in driving economic growth and achieving the objectives outlined in the National Development Plan (NDP IV). He highlighted the manufacturing sector’s impressive expansion from 80 industries in 1986 to over 9,000 today, contributing significantly to the national economy.

“The sector accounts for at least 16.5% of the country’s GDP, 30% of total tax revenue collection, and employs more than two million people, which is a significant transformation,” he noted during a high-level budget dialogue hosted by the Uganda Manufacturers Association (UMA).
Despite these gains, Mwebesa pointed out that the sector is operating at only 53.4% of its installed capacity, indicating untapped potential. He called for focused efforts to boost production, enhance value addition, and support economic progress.

Diamond Trust Bank’s (DTB) Head of Corporate and Business Banking, Kaziro Kyambadde, urged for increased investment in agro-industrialization as a means to drive economic development. He stressed the importance of strategic budget allocation to sectors critical for sustainable growth.
The dialogue, themed “Full Monetization of Uganda’s Economy through Commercial Agriculture, Expanding and Broadening Services, Digital Transformation, and Market Access,” provided a platform for stakeholders to discuss key budget priorities ahead of the national budget reading in June.
Kyambadde emphasized agriculture’s central role in Uganda’s economy, noting that it employs 70% of the population and is vital for inclusive economic development. He called for stronger agro-industrial linkages to drive industrial growth, create employment, and improve household incomes.

“Modernizing agriculture is crucial for achieving middle-income status by 2030. However, the UGX 375 billion cut in the agro-industrialization budget poses a challenge. We need to reassess our priorities to support long-term economic growth,” Kyambadde said.
He advocated for a shift from primary agricultural production to value-added processing, packaging, and storage to increase exports and boost industrial development. He also highlighted the need for increased access to finance through credit and insurance schemes to empower smallholder farmers and agribusinesses. Additionally, he called for investments in research and development to enhance climate resilience, improve livestock breeds, and modernize farming techniques.

Kyambadde emphasized the importance of improving market access and infrastructure, such as rural roads, storage facilities, and digital platforms, to connect farmers with larger markets. He also urged for greater investment in industrial parks and Special Economic Zones (SEZs) to promote agro-processing, textiles, and manufacturing. Strengthening vocational and technical training to meet the evolving needs of industries was identified as another priority.
Recognizing the role of small and medium-sized enterprises (SMEs) in Uganda’s economy, Kyambadde called for increased financial support, business training, and integration into supply chains. He also stressed the need to enhance the tourism sector by upgrading infrastructure, promoting sustainable tourism, and utilizing digital marketing to position Uganda as a key destination.

Kyambadde also emphasized digital transformation, focusing on expanding ICT infrastructure, mobile banking, and e-commerce to drive innovation in agriculture, manufacturing, and tourism. On budget transparency, he praised the government’s efforts to streamline the budget from UGX 7.2 trillion to UGX 57.4 trillion and called for stronger public-private partnerships to attract investment and ensure efficient use of resources.
“We must ensure that every Ugandan benefits from economic growth. The budget should prioritize sectors that fuel sustainable development—agriculture, manufacturing, tourism, and digital transformation. Collaboration between government, private sector, and development partners is key to unlocking Uganda’s full economic potential,” Kyambadde concluded.
DTB’s Contribution

Kyambadde reaffirmed DTB’s commitment to supporting Uganda’s economic growth by financing key sectors aligned with the government’s development strategy. Through its tailored financial solutions, DTB is contributing to the growth of agro-processing, tourism, and manufacturing.
The bank provides Agriculture Loans to support agricultural production and agro-processing, including financing for machinery, storage facilities, and processing plants. With funding of up to UGX 2.1 billion, competitive interest rates of 10%, and repayment periods of up to seven years, DTB offers essential financial support to farmers and agribusinesses.
Additionally, DTB offers credit financing for tourism infrastructure, including hotels and resorts, and provides funding for manufacturing businesses to meet working capital needs, expand production lines, and invest in modern technologies.