25 Nov 2019
Manufacturing in East Africa: Uganda
Manufacturing is generally low value added and low skilled in Uganda. The sector as a whole is in its infancy and is dominated by the processing of agricultural goods such as coffee. The government has established over 20 industrial parks in the country, which enjoy various investment incentives. The majority of these zones focus on agri-processing rather than manufacturing. Opportunities for export-orientated manufacturing are centred on autos, pharmaceuticals, iron and steel. Unlike regional peers, Uganda's textile export industry is small.
Uganda has the fifth-largest working-age population in East Africa and on balance is the second most attractive labour market in the region. Infrastructure shortfalls are more of concern for manufacturers, as the utilities and transport networks are below par for the region.