Henry Musasizi, the Minister of Finance, Planning and Economic Development delivering the 2026/27 budget
HABARI DAILY I Kampala, Uganda I Local contractors are among the key beneficiaries of the Government’s renewed push for industrial development and manufacturing under the 2026/27 national budget, as Uganda intensifies efforts to transform its economy through value addition, industrial growth, and strategic investments in local enterprises.
Presenting the 2026/27 Budget at Kololo Ceremonial Grounda in Kampala today, the Minister of Finance, Planning and Economic Development, Henry Musasizi emphasized that industrialisation remains central to Uganda’s long-term prosperity.
“Nations achieve prosperity not by exporting raw materials but by transforming them into high-value products. For this reason, Government places high priority on industrial development, manufacturing, and value addition,” Musasizi said.
The minister highlighted significant achievements registered during the current financial year, noting that Government has continued investing heavily in industrial infrastructure to attract investment and lower operational costs for businesses.
“Government continued investing in the development of industrial parks. The aim is to lower investors’ establishment and operating costs and drive industrial growth,” he said.
As a result of these efforts, the number of formal factories in Uganda has risen to 10,437, with 690 of them operating within industrial parks across the country.
Musasizi also pointed to the growing role of the Uganda Development Corporation (UDC) in catalysing industrial investment and supporting strategic sectors of the economy.
“Government continued capitalising Uganda Development Corporation to derisk private investment in critical sectors. UDC’s capital investments have surpassed Shs 1.5 trillion,” he said.
The investments span key value chains including textiles through Fine Spinners, agro-processing through Biyinzika Enterprises Ltd and Bukona AgroProcessors Ltd, and pharmaceuticals through East African Medical Vitals, Sanga Vetchem Ltd and Alfasan (U) Ltd.
A notable feature of the government’s industrial strategy is support for indigenous companies. Musasizi revealed that UDC has made substantial investments in local construction firms to enhance domestic capacity and ensure Ugandan companies participate in major infrastructure projects.
“Government, through UDC, has invested in the local construction sector,” he said, citing investments in Abubaker Technical Services, which is undertaking major road projects including the Busunju–Kiboga–Hoima road and the Matugga–Semuto–Kapeeka road.
Government has also invested in ETATS Construction Company, which is currently executing projects such as the Bugiri–Namutumba and Buwenge–Kaliro roads.
In another milestone, Musasizi announced the completion of the Special Economic Zone at Entebbe International Airport, which is expected to boost exports and attract new investments.
“Several firms, particularly in fresh produce exports and light manufacturing, are setting up operations,” he noted.
The minister also highlighted the expansion of Presidential Zonal Industrial Hubs as a key intervention in addressing youth unemployment. According to Musasizi, 82,790 young people have so far received practical industrial and vocational skills training, while the number of hubs has increased to 28 nationwide.
Government has also allocated Shs 1.03 trillion to the manufacturing programme in the 2026/27 financial year.
Musasizi said priority areas will include “additional capitalisation of UDC to drive industrial development, industrial infrastructure development, value addition to agricultural raw materials and minerals, supporting market access for Ugandan manufactured products, strengthening the functionality of Special Economic Zones, and industrial research, including the establishment of regional industrial incubation hubs.”
The investments, he said, are aimed at accelerating Uganda’s transition from a raw-material-exporting economy to an industrialised nation capable of creating jobs, expanding exports, and increasing incomes through value-added production..
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