TRANSFORMATION OF UGANDAS ECONOMY THROUGH INDUSTRIAL POLICY AND STRATEGY: THE CHALLENGE OF IMPLEMENT

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TRANSFORMATION OF UGANDAS ECONOMY THROUGH
INDUSTRIAL POLICY AND STRATEGY THE CHALLENGE OF
IMPLEMENTING PROSPERITY FOR ALL PROGRAMME

• BY
• PROF. EPHRAIM KAMUNTU (MP)
• MINISTER OF STATE IN-CHARGE OF INDUSTRY AND
  TECHNOLOGY

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VISION TRANSFORMATION OF UGANDAN SOCIETY FROM
PEASANTRY AND SUBSISTENCE TO MONETARY AND
PROSPEROUS COUNTRY

• Implementing the vision requires building on the
  gains achieved over the years by
• Maintaining strong economic growth with economic
  stability and controlled inflation

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• Progressively reducing the proportion of the
  population living below poverty-line from 56 in
  1992/93 to 34 in 2000 and 31 presently
• Successful and orderly transition from movement
  system of government to multi-party democracy
• Maintaining Constitutional order and political
  stability for the last 20 years.

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THE CHALLENGE AND MAGNITUDE OF THE PROBLEM IN
ACHIEVING PROSPERITY FOR ALL PROGRAMME

• More than 68 of Ugandas households remain in
  peasant, subsistence and non-monetary production
  (producing what they eat with nothing left for
  exchange and market
• Predominance of small holder family farm size
  averaging 2-5 acres of land, growing for own food

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• Heavy dependence on rain-fed agriculture, prone
  to vagaries of climate and natural hazards, with
  limited science-based practices such as
  irrigation, improved seeds and other appropriate
  technologies
• Non-mechanized agriculture with pre-dominant
  tools being hand hoes, pangas, axes and sometimes
  mere hands as is the case of hand-milking and
  weeding.

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• Limited access to financial services such as
  savings, credit facilities, farm investments and
  processing facilities.
• Domination and exploitation by middle-men and
  traders.
• Mind-set and culture of maintaining common level
  for everyone and discourage accumulation of
  wealth.

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THE GOAL OF PROSPERITY FOR ALL PROGRAMME

• Transform Ugandas economy and lift 68
  households presently in peasantry and subsistence
  production to monetary economy and create
  employment.
• Spur commercial agriculture and industrial
  production focusing on agro-processing, value
  addition and product diversification for domestic
  and export market.

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• Assist households to earn an annual income of at
  least Shs. 20M to be able to meet basic needs of
  clothing, food, health, education by ensuring
• - Every household to have a daily income.
• - Every household to have periodic income
  (per-month or 3-4 months).
• - Every household to have a long-term income
  (1 year or beyond).

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STRATEGY

• Sub-county model for Rural development strategy
  to reach out to more than 80 of population in
  rural areas.
• Zoning based on agro-climatic and soil conditions
• Enterprise selection and combination based on
  zoning, size of household land. Farmers to be
  guided in selecting a combination of 3 or 4
  complementary enterprises in order to maximize
  incomes (Food is industrial crop combination).

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• Expand Rural financial services through
  micro-finance institutions and Rural co-operative
  savings and credit societies at each sub-county
• Information, extension and Advisory Services.

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Strong link and synergy between production,
processing and marketing.
R D
Agro-processing value addition
Marketing
Production
Co-ordinated implementation machinery
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THE INTERGRATED INDUSTRIAL POLICY IS ANCHORED
ON

• Exploiting and promoting domestic resources based
  industries ( Petroleum, Minerals ,
  Cement,Fertilizer etc)
• Agro-processing and value addition chain(Textile
  and Clothing,Leather Tanning and foot wear,Food
  and Beverage Processing, Dairy Products etc)
• Engineering,Technology and Manufacturing
  (Industrial and Agricultural Equipment,Electrical
  Products,Motor Vehicle Part etc)

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POLICY DEVELOPMENT AND IMPLEMENTATION

• Research,Science and Innovation to support
  production,processing and marketing
• Training and skills development for capacity at
  Sub-County level
• Capacity development for regulations and
  standards