The issues dominated discussions at Stanbic Bank Uganda’s inaugural Business Forum in Kampala, where manufacturers, agribusiness operators, policymakers and logistics players examined the structural constraints limiting industrial growth.

While manufacturing remains one of Uganda’s largest economic sectors, industry leaders said many firms continue to struggle with expensive financing, reliance on imported raw materials and fragmented supply chains that undermine competitiveness.

Speaking at the forum, Stanbic Bank’s Executive Head of Business and Commercial Banking, Tunde Thorpe, said manufacturing currently contributes between 15 and 16.5 percent of Uganda’s Gross Domestic Product, while the wider industrial sector accounts for roughly a quarter of economic output.

The sector also supports more than one million direct jobs and contributes nearly 30 percent of national tax revenues.

“These figures remind us that manufacturing is not just another sector. It is central to Uganda’s growth, resilience and competitiveness,” he said.

However, participants argued that these figures mask underlying challenges that continue to limit the sector’s ability to scale production and capture greater value from domestic resources.

A recurring concern was the mismatch between traditional lending products and the realities of manufacturing businesses, which often require long-term capital to finance equipment, technology upgrades and expansion projects.

Agnes Mbabazi, Managing Director of Agrifarm Uganda Ltd, said access to affordable and appropriately structured financing remains critical for firms seeking to increase production capacity and invest in value addition.

Manufacturers also pointed to weak connections between producers, processors, distributors and retailers, saying inefficiencies across supply chains continue to increase costs and reduce competitiveness.

Patrick Joram Mugisha, Commissioner for Business Development and Quality Assurance at the Ministry of Trade, Industry and Cooperatives, said increasing local processing capacity would be essential if Uganda is to strengthen its position in regional and international markets.

He argued that industrialisation efforts must focus on converting more of Uganda’s agricultural output into finished and semi-processed products rather than exporting raw materials.

The Uganda Manufacturers Association (UMA) echoed the call for reforms, with Director of Policy and Advocacy Allan Ssenyondwa advocating for innovative financing mechanisms, stronger public-private partnerships and policies designed to reduce operational bottlenecks.

The discussion also highlighted the growing role of technology and logistics in improving market access for manufacturers and agribusinesses.

Stanbic Bank’s Head of Agribusiness, Emmanuel Negombye, said digital platforms are helping to connect farmers, processors and exporters while reducing inefficiencies within supply chains.

He cited the bank’s OneFarm platform as an example of efforts to improve coordination between producers and markets.

“The OneFarm platform is helping strengthen linkages between producers and markets by bringing farmers, manufacturers and exporters into one ecosystem,” he said.

L-R Paul Muganwa Stanbic Bank ED, with Melissa Nyakwera, Allan Ssenyondwa, Eva Mpalampa, Tunde Thorpe, Agnes Mbabazi, Patrick Joram Mugisha, Ruth Sebatindira and Emmanuel Negombye after panel discussions.JPG

The forum comes as Uganda seeks to expand industrial output under its broader industrialisation agenda, with policymakers increasingly viewing value addition as a pathway to job creation, export growth and higher incomes.

While delivering closing remarks, Paul Muganwa, Stanbic Bank Uganda’s Executive Director, saluted all sector players noting that the forum was intended to move discussions beyond identifying challenges and towards practical interventions that can strengthen local production and position Ugandan businesses for sustainable growth.

“We have seen what is possible when manufacturers scale with ambition and the right support. Roofings Group, for example, has grown from strong local foundations into a major industrial player serving Uganda and the wider region. Its journey demonstrates the importance of access to the right financing partner, strategic investment and market opportunities,” Muganwa said.

For manufacturers, however, the message from the discussions was clear: unlocking the sector’s next phase of growth will depend as much on access to patient capital and stronger value chains as it does on market demand.