Manufacturing
Manufacturing Industry in Uganda
The manufacturing industry in Uganda is steadily emerging as a cornerstone of the country’s economic transformation. Accounting for about 15–16% of GDP, the sector has been expanding at an average of 6–7% annually, driven by government policy, private sector investment, and rising domestic demand. With Uganda’s youthful population, abundant raw materials, and strategic location in the East African Community (EAC), the industry holds immense potential for growth and regional competitiveness.
Agro-processing is the largest contributor, reflecting the country’s strong agricultural base. Key activities include processing coffee, tea, sugar, edible oils, dairy, fish, and cereals. By moving from raw exports to value-added products, Uganda is increasing earnings, reducing post-harvest losses, and creating new opportunities for farmers and small enterprises.
Beyond agriculture, Uganda’s industrial diversification is expanding into areas such as cement, steel, textiles, plastics, beverages, and building materials. The government has prioritized industrial parks and free zones, with over 20 sites being developed nationwide, including Namanve, Jinja, Mbale, and Soroti. These parks are designed to host industries in electronics, pharmaceuticals, chemicals, automotive assembly, and mineral processing.
A landmark example of Uganda’s industrial ambition is the rise of pharmaceutical and technology manufacturing
. Local firms, supported by investment incentives, are producing essential drugs, solar products, and electronics. Additionally, the oil and gas sector is expected to stimulate downstream industries such as petrochemicals, plastics, and construction materials once production begins later this decade.
The private sector plays a vital role, with local entrepreneurs and multinational companies investing in both light and heavy industries. Partnerships with international firms have also enabled technology transfer, skills development, and access to export markets. Uganda’s membership in regional blocs like the EAC and COMESA provides manufacturers with access to a wider consumer base of over 400 million people.
Challenges remain, including high electricity and transport costs, limited access to long-term financing, and competition from imports. However, ongoing infrastructure development, energy sector expansion, and government policies promoting import substitution and “Buy Uganda, Build Uganda” (BUBU) are strengthening the operating environment.
Looking ahead, Uganda’s manufacturing sector is poised to play a central role in industrialization, job creation, and export growth. With the right mix of investment, innovation, and policy support, manufacturing will be a key driver in Uganda’s journey toward becoming a middle-income economy.
Turning manufacturing challenges into opportunities
In the world of manufacturing, a variety of factors affecting your operational performance – and growth potential – are outside your control. Our industry experts have the experience and insight to help you transform these challenges into opportunities, building a solid platform for future growth.
Our sector‑informed approach
In the face of fluctuating supply costs, a shortage of skilled labour and enhanced competition from emerging markets, our team will provide you with the experienced insight and advice needed to meet such challenges.
We understand the tax and regulatory issues that can either be barriers or buoys to your success. From technology strategies to supply‑chain management, we can help enhance the efficiency of your current processes and practices —– while simultaneously helping you plan for and achieve your future goals.
Our audit, tax and advisory professionals have decades of combined experience serving the manufacturing industry. With dedicated partners and professional staff, we offer an approach, process and diligence that are second to none.
Our services include:
- Assessing risk in a market increasingly flooded with low-cost international competitors.
- Providing an efficient and meaningful audit, drawing on well-established and rigorous policies, as well as quality control systems that meet professional standards, applicable laws and regulations.
- Evaluating current practices from a financial perspective to offer guidance on where improvements can be made – from supply-chain management to product strategies.
- Assisting with the development and implementation of technology systems that can offer a competitive advantage in an increasingly saturated market.
- Advising on all transaction needs including pre- and post-financial support, financial due diligence, tax planning and structuring, risk assessment and management.
Whether you’re an entrepreneurial start‑up or large, established company, we can help you determine your future in the manufacturing landscape.