Uganda’s State Minister for Industry, David Bahati, has called on manufacturers to strengthen local manufacturing, use more locally sourced materials and improve the quality of Ugandan-made products as the government pushes for faster industrial growth.
Bahati said a stronger domestic manufacturing sector could help Uganda create jobs, reduce its dependence on imported products and increase exports to regional and international markets. His remarks came during factory monitoring visits conducted as part of the government’s efforts to assess the performance and challenges facing local industries.
The minister visited Mesha Steel Industries Limited, Samona Products Ltd and Korica Uganda Limited, where he examined production capacity, employment, local sourcing and export opportunities.
Bahati Pushes Local Manufacturing and Ugandan Inputs
At the heart of Bahati’s message was a simple goal: Uganda should retain more value from the goods it produces and consumes.
Increasing the amount of raw materials sourced locally could create opportunities for Ugandan suppliers while making domestic supply chains stronger.
At Mesha Steel Industries, Managing Director Lydia Mwesigwa said the company sources about 95% of its raw materials locally. The company directly employs around 200 Ugandans and estimates that more than 2,000 livelihoods benefit from its wider operations and supply chain.
For Bahati, businesses such as Mesha demonstrate the wider economic benefits that can come when factories connect their production processes to local suppliers.
Instead of importing most inputs, manufacturers can help keep more spending within the Ugandan economy while creating demand for locally produced materials.
Quality Ugandan Products Key to Competing Abroad
Local manufacturing alone, however, will not be enough.
Bahati also challenged manufacturers to pay close attention to the quality of their products, particularly as Ugandan businesses seek customers beyond the domestic market.
Ugandan companies increasingly have opportunities to sell products across neighbouring countries and the wider African market. But competing successfully requires products that can meet market expectations on quality, reliability and consistency.
The minister pointed to Korica Uganda Limited as an example of a Ugandan company already accessing regional markets.
Korica, which manufactures and repairs power transformers, told the minister that it exports products and services to markets including the Democratic Republic of Congo, South Sudan, Rwanda and Burundi. The company has operated in the industry for more than two decades.
Bahati said such examples demonstrate that Ugandan-made products can compete within the region.
AfCFTA Creates Bigger Market for Local Manufacturing
The African Continental Free Trade Area could provide another opportunity for Uganda’s manufacturers.
AfCFTA is designed to deepen trade between African countries, creating a much larger potential market for businesses capable of producing competitive goods.
Bahati encouraged Ugandan manufacturers to take advantage of emerging regional and continental market opportunities while improving their production standards and capacity.
For Uganda, this could mean moving beyond simply supplying its domestic market.
Factories that produce competitive finished goods could potentially expand into neighbouring markets and, over time, reach buyers across the continent.
That expansion could also support Uganda’s broader goal of increasing value addition instead of relying heavily on the export of raw materials.
Samona Products Raises Financial Challenges
The factory visits also highlighted some of the difficulties facing Uganda’s manufacturing sector.
At Samona Products Ltd, founder and Managing Director Salongo Kasawuli Michael Mukasa appealed for government intervention, warning that the herbal products manufacturer was facing serious financial difficulties.
Mukasa said complications linked to the company’s initial operational arrangements with the Kampala Capital City Authority had contributed to its financial challenges. He argued that assistance was needed to protect the business and its value-addition activities.
The situation illustrates one of the biggest challenges facing Uganda’s industrialisation ambitions: encouraging factories to grow while also ensuring businesses can access financing, infrastructure and a supportive operating environment.
Government Promises Support for Local Manufacturers
Bahati urged manufacturers experiencing difficulties to engage relevant government institutions so that operational bottlenecks can be identified and addressed.
He highlighted industrial financing, infrastructure development and expanded market access among the measures available to support manufacturers seeking to increase production.
The government is also continuing its import-substitution strategy, which seeks to increase domestic production of goods that Uganda would otherwise purchase from foreign markets.
Bahati said the approach should help local factories expand, modernise and create additional employment opportunities.
The Ministry of Trade, Industry and Cooperatives identifies industrial development and expansion of markets for Ugandan goods as central parts of its mandate. Its stated goal includes increasing the range and scale of manufactured and traded products while expanding markets for Ugandan goods and services.
Electricity Costs Remain Important for Manufacturers
Energy costs remain another major issue for factories.
Bahati said the government was working toward reducing electricity tariffs for manufacturers to about five US cents per unit as Uganda’s electricity-generation capacity increases.
Affordable and reliable electricity can make a significant difference for industries that operate machinery for long periods and compete against imported products.
Lower production costs could make it easier for Ugandan manufacturers to price their goods competitively while investing more money in expansion, technology and employment.
Local Manufacturing Could Create More Ugandan Jobs
Beyond exports and import substitution, Bahati’s push for local manufacturing is also closely linked to employment.
Manufacturing creates jobs directly inside factories, but its economic impact can extend much further.
Local suppliers, transport companies, distributors, retailers and service providers can all benefit when factories increase production.
This multiplier effect is one reason the government is encouraging manufacturers to source more of their inputs domestically.
The more connections factories develop with Ugandan businesses and producers, the greater the potential for industrial growth to spread through the wider economy.
Uganda Looks to Build a More Competitive Industrial Sector
Bahati’s latest factory visits underline the government’s wider effort to make industrialisation a stronger driver of Uganda’s economic transformation.
For manufacturers, the message is increasingly clear: producing locally is only part of the challenge. Businesses must also improve quality, strengthen supply chains, manage production costs and find markets beyond Uganda.
The Ministry of Trade, Industry and Cooperatives confirmed on August 12, 2026, that Bahati’s ongoing monitoring visits are focused on strengthening local content and promoting quality Ugandan-made goods.
If Ugandan manufacturers can combine greater local sourcing with competitive quality and wider market access, local manufacturing could play an increasingly important role in creating jobs, reducing imports and positioning Ugandan products more strongly across African markets.
