Uganda has officially opened the Africa Industrialization Week with a firm call for African states to lower the high cost of doing business. Leaders from the African Union (AU), government and private sector urged countries to close infrastructure gaps and expand value-addition industries. These steps, they said, are vital for fully benefiting from the African Continental Free Trade Area (AfCFTA).
Hosting the event for the first time, Uganda aims to grow industrial output through tax incentives and a regulatory framework focused on export-oriented production. The Uganda Free Zones Authority and the Uganda Export Promotion Board have been central to this effort. Today, the country has 47 private Free Zones and one public Free Zone at Entebbe International Airport, all designed to support value-added exports.
AU Highlights the Importance of Industrial Growth
During the opening session, Mrs. Ron Osman Omar, Director for Industry, Minerals, Entrepreneurship and Tourism (IMET) at the African Union Commission, said the week has become a major platform for dialogue on industrial policy. It also supports business-to-business engagement and helps track both progress and challenges across Africa’s manufacturing sector.
She stressed that the AU’s Agenda 2063 depends on structural transformation driven by industrial growth. Since 2022—when African heads of state elevated industrialization as a strategic priority—the event has expanded into a high-impact gathering for policymakers, private sector leaders, SMEs, development partners, women entrepreneurs and youth innovators.
Young Africans Positioned as Key Drivers of Innovation
This year’s programme features three tracks: policy, African Women in Processing (AWIP), and the AU Youth Startup Forum. Omar explained that Africa’s young population provides immense potential. Therefore, it must be nurtured, funded and supported. She added that the AU has developed the Enterprise Africa Network to strengthen MSME competitiveness and improve market access under AfCFTA.
Uganda Aligns the Event With National Industrial Goals
Ugandan officials emphasized that the event aligns closely with the country’s industrial priorities. Denis Ainebyona, Commissioner for Industry and Technology, said industrialization remains central to Uganda’s economic plans. According to him, the discussions focus on practical challenges. “The biggest challenge we need to address as Africa is reducing the cost of doing business,” he said. He added that investment discussions must center on lowering industrial costs.
Private Sector Calls for Faster Tech Adoption
Private sector voices also urged faster technology adoption. Sarah Kagingo, Vice Chairperson of the Private Sector Foundation Uganda (PSFU), encouraged African businesses to embrace modern technologies. Otherwise, they risk falling behind global competitors. She highlighted progress in digital payments interoperability in Uganda. Integrated systems, she said, allow lenders to assess smallholders more easily. “You don’t need many documents to access finance. What determines your loan product is the behaviour of the creditor,” she noted.
High Costs and Corruption Still Block Industrial Progress
Minister of State for Trade David Bahati pointed out several persistent obstacles. These include high energy prices, expensive transport, slow decision-making and corruption. He said these factors continue to limit Africa’s industrial performance. Currently, Africa’s industrial sector contributes only 10.4% to continental GDP, while the continent holds just 2% of the global manufacturing share.
Bahati added that delays caused by bureaucracy and procurement rules discourage investors. Some infrastructure projects, he said, have taken more than seven years from financing to implementation. “If we are to attract investors, we must address corruption,” he emphasized.
Africa Urged to Fully Leverage AfCFTA
Bahati also urged Africa to take full advantage of AfCFTA as its population continues to grow. Uganda’s economy has expanded from USD 4 billion in 1986 to USD 61.3 billion in 2024/25. Manufacturing now contributes 15.6% of GDP, showing steady progress.
Focus of the Week: Reducing Costs and Strengthening Value Chains
Sessions throughout the week will focus on:
- lowering industrial production costs
- improving the ease of doing business
- boosting regional value chains
- strengthening MSME competitiveness
- aligning national policies with Africa’s long-term industrialization goals
Uganda hopes that hosting the event will accelerate industrial investment, support export-oriented manufacturing, and position the country as a key player in AfCFTA’s growing single market.
