Government, investors push for stronger public-private collaboration to drive industrial growth

Government officials, manufacturers, investors and technology leaders have renewed calls for stronger collaboration between the public and private sectors as Uganda seeks to accelerate industrialisation, attract investment and harness digital technologies for economic transformation.

The commitment was made during a high-level engagement hosted by the State House Investors Protection Unit (SHIPU) on Wednesday at its offices in Kampala, bringing together key stakeholders from the manufacturing and digital technology sectors, including representatives from Huawei Uganda.

The meeting served as a platform to strengthen cooperation between government institutions and private sector players, while addressing policy, regulatory and operational challenges affecting businesses.

Speaking at the engagement, Col. Edith Nakalema, Head of SHIPU, said Uganda’s economic transformation depends on creating stronger links between policy formulation and productive sectors of the economy.

“The purpose of this meeting is very significant because it brings together key stakeholders in the manufacturing sector and digital technology. It is about bridging policy and production to ensure that investors are supported and able to contribute to Uganda’s development,” Nakalema said.

The engagement comes at a time when Uganda is positioning itself as a regional investment hub, leveraging industrialisation, technology adoption and infrastructure development to drive economic growth.

Nakalema welcomed the recently appointed Minister of Trade, Industry and Cooperatives, Sanjay Tanna, describing him as a leader with extensive experience in business mobilisation and trade promotion.

“I am glad that we have someone who understands business, mobilisation and economic development,” she said.

Building Investor Confidence

A central theme during the discussions was the need to maintain a predictable and supportive business environment that encourages both local and foreign investment.

Nakalema emphasized that SHIPU’s role is to coordinate government agencies in resolving investor concerns and facilitating smooth business operations.

“Feel at home because in this unit you have a dependable partner in catalysing transformation. Our work here is to ensure that everyone adding value to Ugandans, whether it is a factory, farm, market or any other investment, is well coordinated with the government agencies,” she noted.

She credited Uganda’s growing reputation as an investment destination to deliberate government interventions, including the establishment of the Investors Protection Portal in July 2023 under the guidance of President Yoweri Museveni.

According to Nakalema, investor confidence largely depends on the speed and efficiency with which government institutions respond to concerns raised by businesses.

“We have embraced the President’s call of not delaying investors. When investors come, we attend to them immediately and in a timely manner,” she said.

The emphasis on investor protection reflects broader government efforts to improve Uganda’s competitiveness in attracting both domestic and foreign capital amid increasing regional competition for investment.

Digital Transformation as a Growth Driver

The engagement also highlighted the growing importance of digital technology in Uganda’s development agenda.

Nakalema commended Huawei Uganda for its continued contribution to expanding connectivity, supporting digital transformation initiatives and enhancing access to technology-driven opportunities.

The company’s investments in digital infrastructure, skills development and connectivity have positioned it as one of the key private sector partners supporting Uganda’s transition toward a digital economy.

Minister of State for Finance, Planning and Economic Development (Privatisation and Investment), Aminah Mukalazi, praised Huawei’s role in advancing digital inclusion, particularly in underserved communities.

She pointed to initiatives such as the Digital Village programme, which has helped improve access to education, technology and economic opportunities in rural areas.

Mukalazi said partnerships between government and technology firms remain essential in unlocking new opportunities for economic growth and social development.

Government Promises Responsive Policy Environment

Trade Minister Sanjay Tanna used the meeting to reaffirm government’s commitment to maintaining a business-friendly environment through continuous engagement with investors and manufacturers.

He said government remains open to addressing concerns related to taxation, production costs and regulatory requirements while balancing economic growth with environmental sustainability and national interests.

Tanna described platforms such as those created by SHIPU as critical for strengthening trust between government and investors.

“Collaboration between the public and private sectors remains key to industrialisation,” he said.

The minister also encouraged investors to explore opportunities in information and communication technology, digital services and business process outsourcing, including call centres.

These sectors, he noted, have significant potential to create employment opportunities for Uganda’s rapidly growing youth population while expanding the country’s exportable services.

Manufacturers Raise Policy Concerns

Despite the positive outlook, private sector representatives used the forum to raise concerns about policy implementation and taxation issues that they say continue to affect business competitiveness.

Kiyimba Joseph, a farmer and manufacturer operating in Uganda’s timber industry, highlighted challenges arising from the implementation of restrictions on the export of unprocessed timber.

While supporting government’s value-addition agenda, he said some investors who have made substantial investments in forestry, utility poles, timber processing and veneer production have encountered operational difficulties.

“Policy must enable business growth, not constrain it,” Kiyimba said.

He called for continued consultations between investors, SHIPU, the Ministry of Trade and other government agencies to ensure that environmental objectives are achieved without undermining existing investments.

Meanwhile, Uganda Manufacturers Association board member Stephen Kalibaala Mpagi raised concerns over proposed tax measures affecting manufacturers ahead of the new financial year.

He warned that plans to increase excise duty on plastic raw materials could raise production costs and negatively affect manufacturers, consumers and overall economic competitiveness.

Kalibaala urged government to strengthen stakeholder engagement during policy formulation, arguing that early consultations often result in more practical and sustainable policies.

He also called for accelerated formalisation of Uganda’s large informal sector as a strategy for broadening the tax base and reducing the burden on compliant businesses.

Balancing Growth and Regulation

The discussions underscored a recurring challenge facing Uganda’s economy: balancing the need for revenue mobilisation and regulatory oversight with the imperative to maintain a competitive investment climate.

As Uganda seeks to expand manufacturing output, increase exports and deepen digital transformation, stakeholders argued that policy consistency, responsive institutions and regular dialogue between government and investors will be critical.

The engagement concluded with a shared commitment to strengthening cooperation, improving coordination among government agencies and ensuring that investment-led growth translates into jobs, innovation and sustainable economic development.

For Uganda, the message from both government and industry was clear: stronger partnerships between policymakers, manufacturers and technology innovators will be essential in driving the country’s next phase of industrial and digital transformation.