Uganda has placed industrialization and private-sector development at the center of its economic transformation agenda. From your perspective, what are the most important priorities for building a more diversified, productive and competitive industrial economy over the coming years?

We have been making some good progress as a nation, and we are based on three strategic objectives.

In 1986 we set ourselves on building an independent, integrated and self-sustaining economy. We also set ourselves on ensuring that we have import substitution and export promotion, and then building regional blocks to secure markets like the South African community and now the African Continental Free Trade Area. These are the guiding principles that we are basing on to build our industry.

We are focusing on where we have comparative advantage by adding value to the raw materials we have. We are endowed with a number of raw materials that we can add value to, and then develop our industry.

So, the focus really is on agro-industrialization. The coffee that we produce, we must add value and earn more money. The cocoa that we produce, the minerals and all these things that we are producing.

Our strategy is to build industries that add value on the raw materials that we have so that we can substitute what we are importing, be able to export to the markets that we have in Africa, in Europe, in China and the rest of Asia.

Uganda has significant agricultural and natural resources, but much of the value can still be captured further along the production chain. How is the Government encouraging manufacturing and value addition so that Uganda can move beyond exporting raw materials and develop more sophisticated domestic industries?

A number of policies were put in place. We developed the industrialization policy. We are in the process of building 22 industrial parks to give space and a good environment for manufacturing. So far, we have done 8 fully functional, and another 5 in the final stages.

We are also putting in place initiatives that help the industries to manufacture. For example, we are putting money in Uganda Development Bank (UDB) to reduce the cost of capital, so that people can have access to patient and long-term capital.

We are also trying to reduce the cost of power. Now, we stand at 2000 megawatts and we are reducing the cost of power for manufacturers. We have managed to move from 12 cents to 5.5 cents and our target is to reach 5 cents. We want to reduce the cost of transport by building the Standard Gauge Railway (SGR), and we have facilitated the industries for movement by building strong networks across the country.

We continue to stand firm on certain issues. For example, if somebody produces something that we have been importing, then we protect that product by imposing favorable tax regimes.

Industrialisation requires reliable infrastructure, serviced industrial land, energy and efficient logistics. What is the Government doing to create the industrial infrastructure investors need, and how can Uganda make its industrial parks and manufacturing zones more attractive to both domestic and international companies?

Plug and play is one strategy that we want to pursue. With plug and play we have all the well-facilitated industrial parks, we put water, we put roads, internet and power; so if somebody comes, they can plug and then start running the machines.

Industrial transformation cannot be achieved by government alone. How is the Ministry working with Ugandan businesses, international investors and development partners to create stronger public-private partnerships and attract investment into manufacturing and other productive sectors?

Our role is to create an environment that favors industrialization, trade and export. We have created a peaceful and stable environment for anybody to invest. Peace is an important element in investment. We have created markets for people in business. We have easy access to the East African Community, with a population of 330 million, the African Continental Free Trade Area with a population of 1.5 million, the European market that we have preferential agreements with, even the Chinese market.

Our role as government is to create an environment that is peaceful and stable. In fact, we are also trying as much as possible to extend this peace to other neighbors, like DRC Congo, South Sudan, because that has implications for us. We have even gone into building roads in DRC Congo, so we can facilitate our exports.

We are working long and hard to ensure that we industrialize this country. And we know that it’s not good enough to industrialize ourselves, but also our neighbors, especially the East African Community and the African continent.

With access to the East African Community, the African Continental Free Trade Area and neighbouring markets, Uganda has the potential to become a regional manufacturing base. What advantages does Uganda offer investors seeking to manufacture for regional and continental markets, and what needs to be done to make Ugandan industry more competitive?

To be competitive, you must reduce the cost of doing business, and that’s the thing that I’ve talked about. Reduce the cost of power, of transport; reduce the cost of decision making. Eliminate corruption and bribes so people feel comfortable when they come.

That’s why we built a one-stop center for investment. We have built strong connectivity of roads. We have now started flying to UK and we are working on two cargo planes to take our exports there. We are also improving on standards and making sure that our National Bureau of Standards is associated with other bodies that regulate standards across the world. When you have products with very high-quality standards, you have connectivity. And we have a competitive tax regime, which makes the country more attractive.

Looking ahead, what would you like Uganda’s industrial sector to look like over the next five to ten years, and what message of confidence would you send to international investors and global business leaders considering Uganda as a location for manufacturing and long-term investment?

In 1986, we had only 81 factories, and these factories -though the GDP was small- were contributing 9.6% to it. As we speak, we have close to 10,000 factories contributing 24.4% to our national GDP, and contributing 35% to our national coffers in terms of revenue. On the 500 billion GDP that we are targeting by 2040, we would want to see that we contribute 45%.

The best days are still ahead of us. The future is bright, and I believe Uganda is going to be a manufacturing base on the continent.

The opportunities are mainly in agro-industrialization, because we are strong in agro-processing. We have our coffee, our tea, cocoa, fresh foods, we have things that cover cattle; all those are potentials for investment.

We have another area of mineral beneficiation, 1.2 trillion US dollars’ worth of gold under the ground. And to resolve this, industrialization is at the center, by making sure that we get this gold out of the ground and apply our policy of not exporting what is not added value. Right now, for you to export gold, you need to refine it up to 99.9%. Even turn this refined gold into other products, like jewelry.

We have in the south of the country 312 to 500 million tons of iron ore, and we are importing steel over 1 billion. And out of that 1 billion, 480 are materials to make steel in-house, which can be gotten from processing iron ore in the south of the country. So, iron ore and steel are another area for production.

We have the material that can make you come and process from here. And we are happy that now the world has moved from the mindset of policing the world to the mindset of business. It’s a business conversation taking place across the world, and it’s a good environment.

To the international business community, I want to let you know that Uganda is a stable country. We have made good progress. The indicators are written on the wall. Uganda is a place to invest in, and this is the best time to do it.