Uganda Manufacturers Association (UMA) Driven in Commitment to Manufacturing
How has the role of Uganda Manufacturers Association (UMA) evolved since its establishment?
Since its inception, UMA has undergone a transformation in its role within the manufacturing sector. Initially, our primary focus was on advocacy for manufacturers’ interests and fostering a platform for networking and collaboration. Over time, our scope has significantly broadened to embrace a more comprehensive range of activities within the manufacturing sector.
Previously, the country had been a net importer of various products, from sugar and salt to soft drinks and clothing, but without value addition. UMA has played a pivotal role in championing industrialisation in Uganda since its revival in 1988, which marked a significant turning point in the country’s industrial landscape.
By the mid-1990s, exports constituted only 7% of Uganda’s GDP. Fast forward to 2022, and this figure has more than doubled to nearly 15%, with a diverse range of products now competing in regional and global markets. According to the Uganda Export Promotion Board in 2022, manufacturing exports surpassed the $1bn mark, while the tax contribution of the manufacturing sector stood at 23% of Uganda’s total tax revenue. UMA is enthusiastic about leveraging the African Continental Free Trade Area (AfCFTA) to further boost these export figures.
Today, UMA’s role extends beyond advocacy, encompassing capacity building, policy formulation and promoting sustainable practices within the industry. We are committed to driving innovation, competitiveness and responsible growth in Uganda’s manufacturing sector.
What were the key developments in Uganda’s manufacturing sector in 2023?
In 2023 the sector experienced several developments. A notable shift was observed with the increased integration of technology and automation, aimed at enhancing both productivity and product quality. There was also a significant focus on value addition, particularly within the agricultural and agro-processing subsectors. Furthermore, there has been a marked trend towards embracing environmental, social and governance (ESG) initiatives among industrialists in Uganda. Recognising the imperative to remain competitive and ensure the long-term sustainability of our industries, has made for a concerted move towards adopting sustainable business practices and comprehensive reporting mechanisms.
To what extent is Uganda prepared to capitalise on trade opportunities arising from AfCFTA?
Uganda is strategically positioned to seize the opportunities brought about by AfCFTA. The AfCFTA Agreement is set to establish a single continental market for goods and services, thereby opening up vast potential for trade expansion and economic progress. Uganda’s central location in East Africa offers a key advantage for tapping into and accessing regional markets.
Uganda’s export-to-GDP ratio stands at approximately 15%, showcasing a growth trajectory in the country’s trade landscape. Nonetheless, maximising the advantages of AfCFTA demand a robust commitment to addressing the challenges and constraints faced by cross-border trade such as the non-tariff barriers by partner states and infrastructural challenges that hamper connectivity.
How is UMA actively bridging the skills gap within the manufacturing sector?
UMA is deeply committed to addressing the skills gap in Uganda’s manufacturing sector, recognising that a skilled workforce is essential for industry growth and competitiveness. We have embarked upon several strategic initiatives, including forging partnerships with educational institutions to craft industry-relevant curricula and provide practical training programmes.
One of our significant endeavours includes collaborating with government agencies and development partners to amplify vocational and technical training opportunities. We have facilitated apprenticeships and on-the-job training programmes, ensuring that theoretical knowledge is complemented with practical skills. A highlight of our efforts is UMA’s Access to Employment project, which has successfully placed 50,000 students in various industries for internships and on-the-job training, fostering a direct link between educational institutions and the manufacturing sector. We are further encouraged that the sector created 1.61m direct or outsourced jobs that are aligned with manufacturing activities, this according to the Ministry of Gender, Labour and Social Development.
How is the green industrial revolution being advanced in your sector?
The green industrial revolution is gaining momentum within the sector, as there is a growing recognition to adopt sustainable and environmentally friendly practices. UMA is at the forefront of this transformation, actively advocating for and implementing various green initiatives.
In light of this, UMA has initiated the national Green Industrial Agenda, a strategic framework designed to unify efforts towards embracing ESG principles across the sector. The agenda has four central pillars: preserving biodiversity, reducing pollution, effectively managing waste and promoting self-regulation.
What is your outlook for the sector in the next two years?
Looking ahead, we envision a manufacturing sector that is not only thriving but also sustainable and responsible. We anticipate increased investment in renewable energy sources and energy-efficient technologies, alongside a continued focus on waste reduction and circular economy practices.
