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Gov’t approves new National Industrial Policy, cites increased employment opportunities
Minister for Trade, Industry and Cooperatives Amelia Kyambadde has revealed that cabinet approved a new National Industrial Policy on 7th December 2020.
“The Policy consolidates the achievements of the National Industrial Policy 2008; and gives new direction to the industrial sector for the next 10 years, taking into account the emerging issues in the economy. Its implementation takes effect this Financial Year,” she said
The New Policy focuses on areas like; Increased value addition to our abundant local raw materials, Increased exports of manufactured products; 2020, Increased employment in the industrial sector and Increased adoption of environmentally sustainable technologies by manufacturing sub sectors.
Speaking to the press at Uganda Media Centre on December, 15, 2020, Kyambadde added that the Policy Strategy guides the relevant stakeholders towards its effective implementation.
“We envision that with effective implementation of the Policy, the Country will benefit from increased jobs, increased foreign exchange earnings and increased contribution to Uganda’s GDP. Government will review it in 2030 after 10 years of implementation,” she said
Meanwhile, she revealed that the industrial sector in Uganda has undergone extensive transformation over the years.
“These include; Growth in the number of manufacturing industries from 81 in 1986 to over 5,200, Increased contribution of the industrial sector to Gross Domestic Product (GDP) from 9.6% in 1986 to 27.1% in 2019 and Increased employment to about 1.3 million people,” Kyambadde noted
Kyambadde added that there have also been improvements in the requisite infrastructure that support industrial growth.
“There is increase in electricity generation from 162MW in 1986 to 1252.4MW in 2019, developed Road network from 1900km in 1986 to 5511 Km in 2019, development of Industrial Parks; with 10 currently operational and development of Border Export Zones intended to facilitate cross border trade between Uganda and the neighbouring countries. Some of the gazetted areas include; Katuna, Busia, Lwakhakwa, Oraba, Mpondwe, Bunagana and Elegu, where construction works are ongoing,” she said
“Yes also not forgetting the establishment of one stop border posts (OSBPs) aimed at facilitating movement of goods and natural persons. Some of the established OSBPs include Malaba, Elegu, Busia, Mutukula, Mirama Hills and Katuna,” Kyambadde added
She also noted that the expected outcomes of the policy will be realized over the ten-year period of implementation.
“These expectations are; Increased industry sector contribution to GDP from 27.1% in 2018/19 to 31.7% in 2029/30, Increased exports from 22.5% in 2018/19 to 46.8% by 2029/30, Reduced import bill from 63.2% in 2018/19 to 45% in 2029/30 and Increased number of jobs from 1.3 million to over 2 million jobs in 2030,” Kyambadde added
Kyambadde further urged all stakeholders to support the implementation of this Policy to propel Uganda’s economy to a modern and prosperous one as envisaged in the Vision 2040.
“Government is also committed to industrialization as a key driver of socio-economic transformation of Uganda,” she said
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