Govt seeks to raise industrial labour force to 10 percent

Prof Pamela K Mbabazi, the NPA chairperson

What you need to know:

According to former Trade Minister Amelia Kyambadde, it is time Ugandans shift to new level technology through which to create sustainable industrialisation and employment.  “Industrialists, must take advantage of cutting edge models such as internet, open source and new commerce and , research, among others, to effect echange,” she said. 

Government will in the next five years seek to increase industrial labour force from the current 7.1 percent to 10 percent, according to National Planning Authority (NPA). 
Speaking during the fourth edition of the Economic Mkutano in Kampala, Prof Pamela K Mbabazi, the NPA chairperson, said that government, under National Development Plan III (NDP) will focus on private sector development and industrialization as key drivers of the economy. 

However, she said, to achieve increased labour force in the industrial sector, government together with the private sector and development partners will in the next five years work towards increasing the share of manufactured exports from 12.3 per cent to 19.8 per cent as well as increasing industrial sector contribution to gross domestic product from 27.1 per cent to 28.6 per cent.
 
Government, she added, will also seek to increase manufacturing value added as a percentage of gross domestic product from 8.3 percent to 10 percent supported by both increased spending by both government and the private sector on research and innovation.
Government has over the years sought to transform Uganda from an agro-based economy to manufacturing to among others, create sustainable and quality employment, increase productivity of factors of production and strengthen forward and backward linkages. 
However, this has so far not been achieved with agriculture still employing more Ugandans than any other sector. 
Currently, agriculture employs about 70 per cent of Ugandans compared to 25 per cent for services and 5 percent for manufacturing. 

The Economic Mkutano, which seeks to find solutions for challenges faced by Africa and particularly Uganda, seeks to build a sustainable and competitive industrial sector that will not only improve the quality of jobs but provide a foundation for long term growth. 
NDP III largely focuses on manufacturing, innovation, technology transfer and development and private sector development as the key drivers that will transfer Uganda’s economy.