The manufacturing sector is experiencing rapid growth at more than 10% over the last eight years. Investors can look to exporting to the Common Markets for Eastern and Southern Africa (COMESA) and the East Africa Community (EAC) markets. In addition to its labour force and abundant resources, Uganda offers attractive fiscal and physical export incentives that make it a favorable location.
Beverages: This sub-sector includes coffee roasting and tea processing, soft drinks and alcoholic beverages. The demand for beverage is growing as shown by the current upward trend in the manufacture of these products, indicating increasing opportunities in the manufacture of beverages for both local and foreign markets, especially the fruit concentrates where Uganda has comparative advantage.
Textiles and clothing: Investment opportunities exist in textile products such as lint and fabrics, apparel and garments, cut cloth and contract tailoring.
Brief description: Uganda’s textile industry predominantly depends on cotton grown by small-scale farmers. The country has no major exports of textiles, except under AGOA. Large imported quantities of fabrics and garments, including used clothing in the East African region reflects a sizable domestic market for low-priced textiles.
Packaging: Investment opportunities exist in production of glass containers, tin cans and boxes, corrugated cases, cartons and labels, flexible packages, rigid plastics and thin walled plastics.
Brief description: The packing industry is a strategic sub-sector as it provides marketing and distribution support to industries like pharmaceuticals and horticulture. It includes all forms of printed paper and packaging, woods, foil and glass. 50% of the domestic packaging requirements are imported.
Leather and footwear: Opportunities in the sub-sector lie in construction of modern slaughterhouses, tanning of high-value skins and production of footwear.
Brief description: Uganda’s tanning industry is relatively young and the footwear business is currently dominated by one large manufacturer. Investors enjoy locally sourced raw materials, of which the surplus is exported.
Pharmaceuticals: Opportunities exist in the provision of modern family planning services, manufacture of drugs, medical equipment and accessories, and processing of herbal medicine.
Brief description: Uganda only produces 5% of the pharmaceuticals it needs; 95% are imports. Global demand for natural ingredients is increasing with herbal medicines and cosmetics recording high returns. The country has a rich bio-diversity with commercially viable plants and trees such as Aloes and Shea butter. There are also natural conditions for domesticating and cultivating a wide range of plant materials outside their natural habitats.
For further information on any of opportunities in the manufacturing sector contact the Uganda Investment Authority (UIA)
Key contact: Issa Mukasa
Investment Promotion Division