FAMReports News Desk | August 2025
President Yoweri Kaguta Museveni has once again emphasized that industrialization remains Uganda’s surest pathway to wealth creation, modernization, and mass employment. The Head of State made the remarks on Friday while commissioning four new factories and laying the foundation stone for nine others at the Sino-Uganda Mbale Industrial Park in Eastern Uganda.
The Mbale-based park, a flagship project under Uganda’s industrialization agenda, now hosts 73 factories, of which 54 are already operational, employing about 11,000 Ugandans. With the new factories underway, government officials expect employment numbers and industrial output to rise significantly in the coming years.
New Factories, New Jobs
The factories commissioned include Unisteel Investment Uganda Ltd, Nice Textiles Uganda Ltd, Xinlon Textile and Garment Technology Co. Ltd, and Timber Paper Industry Uganda Co. Ltd.
In addition, ground has been broken for nine upcoming facilities, among them Elgon Steel Uganda Ltd, Hercules Automobile Manufacturing Uganda Ltd, and Aofan Garments Company Ltd. Collectively, the projects are expected to diversify Uganda’s manufacturing capacity, create thousands of jobs, and boost export revenues.
President Museveni said the government’s long-standing vision under the National Resistance Movement (NRM) has been clear: that no country can transform without a strong industrial base.
“To create wealth, we have four sectors. First is commercial agriculture, where people should make money from crops, livestock, and fisheries. The second is manufacturing, which processes and adds value to what is produced. The third is services like transport and hospitality, and the fourth is ICT. But the sectors which create the most jobs are manufacturing and services,” he said.
Shifting from Subsistence Farming to Modern Sectors
Museveni cautioned Ugandans against overreliance on small-scale farming, particularly in regions like Bugisu, where families are often limited to just an acre of land on mountain slopes.
“In the USA, only 2% of people are in agriculture. Here you still have many Bagisu in the mountains on one acre of land, which is not sustainable. We must shift more people into industries and services. That is part of modernization,” he argued.
The President recalled his early days as a lecturer of economics in the 1970s, noting that one of the “characteristics of backwardness” was having too many people stuck in agriculture. Industrialization, he stressed, offers the surest way of breaking this cycle.
Ripple Effect of Industrial Parks
Highlighting the broader economic impact of the Mbale Industrial Park, Museveni pointed out that industries not only create jobs but also strengthen agriculture and drive energy consumption.
“This park employs 11,000 people and consumes up to 50 megawatts of power, soon 100. These industries need food, so the Bagisu in the hills should grow food to supply this big workforce. That is how we link agriculture to industry,” he explained.
According to Museveni, Uganda is increasingly producing goods that were once imported, including televisions, telephones, paper, and steel, signaling the gradual transformation of “towns of shops into towns of industries.”
Partnership with Chinese Investors
The President expressed gratitude to Chinese investors for their role in expanding Uganda’s industrial landscape. He thanked Mr. Paul Zhang, Chairman of the Sino-Uganda Mbale Industrial Park, and other Chinese partners for what he described as a genuine contribution to Uganda’s transformation.
“I want to thank Mr. Zhang and our Chinese friends for helping us transform our country. The management has also requested an additional 600 acres to expand into a new industrial city, and all challenges raised, including flooding, will be resolved immediately,” Museveni said.
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Mr. Zhang, in his remarks, commended the Ugandan government’s support, saying: “Your Excellency, thank you for supporting Mbale Industrial Park. More than 10,000 Ugandans now have jobs because of this project. Without your support, we would have nothing to do.”
Manufacturing Sector Outpaces Public Service Employment
Museveni underlined the growing weight of Uganda’s manufacturing sector, noting that it now employs 1.2 million Ugandans, a figure significantly higher than the 480,000 employed in public service.
“This is the real transformation we have been talking about. Industry and services are the sectors that create mass employment, not small-scale farming,” he said.
State Minister for Investment and Privatisation, Evelyn Anite, praised Museveni’s consistency in pushing the industrialization agenda. “Your Excellency, you have not only saved young people but also walked the talk of industrialization. That is why we are now talking of 1.2 million people employed in industry,” she said.
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The commissioning ceremony was also attended by David Bahati, State Minister for Industry, and Hajjat Faridah Kibowa, Chairperson of the National Women’s Council, among other leaders.
A Road Toward Modernization
The Sino-Uganda Mbale Industrial Park is among several government-supported hubs designed to drive regional growth and accelerate Uganda’s economic transition. Officials say once the new factories are operational, Mbale will stand out as a model industrial city, linking agriculture, energy, and services in one ecosystem.
With employment numbers rising and goods once imported now produced locally, Uganda appears to be steadily moving toward Museveni’s long-promised vision of a modern, industrial economy.
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