Kampala, Uganda | ENTEBBENEWS.NET | President Yoweri Museveni has called on Uganda to stop exporting raw materials and invest in processing and manufacturing, as the country pursues a target of growing its economy tenfold to $500bn by 2040.
In a speech read on his behalf by Trade, Industry and Cooperatives Minister Sanjay Tanna at the opening of the 32nd Uganda International Trade Fair in Kampala on Tuesday, Museveni said Uganda and Africa had lost economic opportunities for decades by exporting unprocessed resources and importing finished goods.
“We must decisively shift away from reliance on raw materials export. Let this 32nd International Trade Fair serve as a clear statement of intent,” Museveni said.
He urged manufacturers and investors to expand into agro-processing, fruit processing, animal feeds, cassava and banana flour and starch, ethanol, paper, and steel and copper processing. He also named fertilisers, vaccines, pharmaceuticals, diagnostics, vehicles and electronics as priority areas, and called for an economy driven by innovation and technology.
Museveni said Uganda must move from being mainly a market for imported goods to a production hub that creates jobs and earns more from its exports.
Tanna said Uganda’s economy is currently worth about $50bn, and that the government’s National Development Plans are designed to grow it tenfold by 2040. He said the fourth plan, known as NDP IV, which began in 2025, would drive industrialisation, production and investment.
He acknowledged that the target could appear daunting at first, but said recent developments in the economy had strengthened the government’s confidence that it can be met.
The Uganda Manufacturers Association (UMA), which organises the fair, used the opening to press the government for support.
UMA board chairman Aga Sekalala Jr said an economy does not grow tenfold by selling more of what it already exports raw. “It grows by finishing things,” he said.
Sekalala said the association had grown from 26 companies when it was revived in 1988 to 1,737 members, and that manufacturers contribute 16.5 percent of gross domestic product (GDP) and 30.3 percent of national tax revenue.
He made three requests of the government: to fund the fair as a national trade platform, as neighbouring countries do; to provide a predictable industrial electricity tariff, reliable power supply and affordable long-term credit; and to buy from local manufacturers in public procurement.
“Government is the largest buyer in this economy,” Sekalala said, adding that cement, steel, cables, pipes, paint and furniture for public projects could all come from Ugandan factories.
Abid Alam, chairman of UMA’s advisory council, warned that conflict in the Middle East, volatile energy prices and transport disruptions were raising costs for manufacturers that depend on imported fuel, raw materials and machinery.
“A delayed shipment can interrupt production; a higher landed cost can eliminate a margin,” Alam said.
He also pointed to rising pressure on public finances, noting that the fiscal deficit widened from 4.7 percent of GDP in 2023/24 to 6 percent in 2024/25. He said this was squeezing public investment and credit for businesses. Alam called for timely government payments, prompt refunds of value-added tax and consistent tax treatment to free up working capital for factories.
UMA executive director Dr Ezra Muhumuza appealed to the government for more land for industrial exhibitions. He said the association’s grounds at Lugogo could no longer accommodate the growing number of manufacturers, and that some locally made products remain in warehouses because their makers lack space to show them to buyers.
“Give us land for these people to exhibit,” Dr Muhumuza said.
Regina Namuwonge, who chairs the UMA committee that organises the fair, said the 10-day event brings together more than 1,000 exhibitors and expects about 150,000 visitors. This year’s theme is “Formalizing Trade to Secure Uganda’s Economic Future”.
Namuwonge said the fair had introduced “Black Deals at UMA”, a discount scheme of more than 4,000 offers from over 400 Ugandan manufacturers and traders. She said every offer was checked against what the company charged before the fair.
UMA also presented awards to exhibitors. Movit Africa Limited was named overall best exhibitor. National Water and Sewerage Corporation, Mandera Group of Companies and Crown Beverages were among the other winners.
Mary Kobusingye, Movit Africa’s corporate affairs manager, said the award showed that customers appreciated the company’s work. “Being named the overall best exhibitor means that we stood out because of the quality of the stall, but also the experience we are giving the customer,” she said.
The fair runs until October 11 at the UMA Show Grounds in Lugogo, Kampala.
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