Manufacturing Share Of Economy Rises To 16.5 Percent

Kampala, August 11, 2026 - Uganda's manufacturing sector now accounts for 16.5 percent of the economy, as the government intensifies its industrialisation agenda through industrial parks, expanded energy access, financing and efforts to open new markets.

Trade, Industry and Cooperatives Minister Sanjay Tanna told the 3rd Annual Industrialization Conference 2026 that industrial activities account for 27.2 percent of GDP. He said the government's priority is to raise production, promote value addition and build industries able to compete in regional and international markets.

Manufactured exports are generating about $1.1 billion annually, strengthening foreign exchange earnings and reducing reliance on largely unprocessed commodity exports. The government is focusing on agro-based, extractive-based and knowledge-intensive industries as it seeks to create more productive jobs and deepen domestic value addition.

The policy push was reinforced by Industry Minister David Bahati during factory engagements with Mesha Steel Industries Limited, Samona Products Limited and Korica Uganda Limited. Bahati urged manufacturers to increase local sourcing and improve product quality, pointing to Mesha Steel's claim that about 95 percent of its raw materials are sourced locally as a model for import substitution and stronger domestic supply chains.