According to Dr. Muhumuza The NRM has failed to take into account poor purchasing power at home and heavily protected export markets, he also points to a number of inefficiencies that make local products uncompetitive.
The NRM manifesto for the 2021-2026 term has failed to address
the critical needs for promoting industrialization, according to Economic
analyst, Dr. Fred Muhumuza.
According to the manifesto the NRM government if voted back
into power will aim at enhancing household incomes and improving quality of
life by focusing on import substitution and export oriented production.
The target is to increase the share of Industrialization to
a third of GDP, the share of Ugandans employed in industry to 25% and
manufactured exports a percentage of total exports to 50%.
The NRM government is going to build 31 industrial parks in
total in addition to four regional science and technology industrial parks. The
NRM intends to develop geographical clusters and promote geographical
concentration of interconnected industries.
Dr. Muhumuza believes these plans will fail just like the
current industrial parks that have largely remained assembly plants and
showrooms. He notes that the Ugandan market is too small to support massive
industrialization while the export market is heavily protected.
He argues that the NRM is merely going by the old
model of producing while assuming there is market for manufactured products.
He points out that other countries have adopted conservative
polices of impeding imports.
//Cue in: “Because we had……
Cue out: “……………than us.”//
The NRM through the Uganda Development Corporation is going
to continue investing in strategic sectors either directly of co-investing with
the private sector, like what was done with Atiak sugar factory and Kigezi Tea.
Over Shillings 1,800bn will be provided over the next five years.
Dr. Muhumuza however says the inefficiencies in local
industries will cause local manufacturing to lag behind even when grand plans
to boost industrialization remain. He points to issues like high transport
costs, high electricity costs and corruption.