Uganda's manufacturing sector has grown more than 10% over the last decade. The country offers attractive incentives that make it a favourite destination for foreign investors. The continent's focus on developing regional markets presents huge markets in trade blocs such as the Common Markets for Eastern and Southern Africa (COMESA) and the East Africa Community (EAC).
Investment opportunities
Beverages: The demand for beverage is growing as shown by the current increase in production, indicating further opportunities especially in the processing of fruit concentrates where Uganda holds comparative advantage.
Textiles and clothing: 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. Investment opportunities exist in the production of lint and fabrics, apparel and garments, cut cloth and contract tailoring.
Packaging: The packing industry is a strategic sub-sector as it provides marketing and distribution support to the manufacturing industry. 50% of the domestic packaging requirements are imported.
Opportunities include the provision of all forms of printed paper and packaging, woods, foil and glass. Others opportunities exist in the production of containers, tin cans and boxes, corrugated cases, cartons and labels, flexible packages, rigid plastics and thin walled plastics.
Leather and footwear: 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. Opportunities in the sub-sector are in construction of modern slaughterhouses, tanning of high-value skins and production of footwear.
Pharmaceuticals: Uganda only produces 5% of the pharmaceuticals it needs. 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. Opportunities exist in the provision of modern family planning services, manufacture of drugs, medical equipment and accessories, and processing of herbal medicine.
For further information on any of opportunities in the manufacturing sector contact the Uganda Investment Authority
(UIA)
Key contact: Issa Mukasa
Investment Promotion Division
Email: imukasa@ugandainvest.com
