An ABC of industrialisation in Uganda: achievements, bottlenecks and challenges

Abstract

The development of the Ugandan economy is at a crossroads. While the country’s growth record over the last 30 years has been impressive, there is a pervasive feeling that the current paradigm is running out of steam. In 2016, Uganda registered the lowest rate of economic growth in the last 30 years. Income inequality has risen, and job create on has been lackluster. As a consequence, growth has not been sufficiently inclusive. This study argues that one of the main reasons for this situate on is that the economy has been driven by the services sector, but at the expense of the industrial and manufacturing sectors. One of the consequences of the weak growth of the manufacturing sector is that it has made the economy more vulnerable and less resilient. The study also recommends vigilance with regard to entering into new trade agreements with other regional blocks that could compromise efforts to industrialize the region.