The Finance Minister says findings from Ramathan Ggoobi’s doctoral research will help government prioritise investments that raise industrial output, create jobs and boost exports under the Tenfold Growth Strategy.
Finance Minister Henry Musasizi has said government will use evidence-based research to guide industrial policy and public investment decisions as Uganda seeks to accelerate economic growth under its Tenfold Growth Strategy.
Musasizi said limited public resources required government to prioritise investments that deliver the greatest gains in industrial productivity, employment and exports.
He made the remarks during a public policy dialogue at Uganda Management Institute (UMI), where findings from a doctoral study by the Permanent Secretary and Secretary to the Treasury, Dr Ramathan Ggoobi, on the determinants of industrial sector growth in Uganda were discussed.
“Given limited resources, I emphasised the need to identify interventions that deliver the greatest gains in industrial productivity, jobs and exports for every shilling of public money,” Musasizi said.
The study identifies corruption control, access to credit, borrowing costs and market expansion as key factors influencing industrial performance.
It estimates that a one per cent improvement in corruption control is associated with a 9.99 per cent increase in industrial output, while a one per cent increase in commercial lending rates is associated with a 3.11 per cent decline in output.
The research also estimates a positive relationship between population growth and industrial growth, with an estimated effect of 8.48 per cent. The findings point to the potential of an expanding domestic market and labour supply to support industrial production.
Musasizi said the findings would inform the Ministry of Finance’s policy decisions and help government assess the costs and benefits of interventions intended to promote industrialisation and job creation.
He said industrial policy involves deliberate investment choices, including the development of industrial parks, economic infrastructure and industrial land, as well as subsidised electricity tariffs and tax incentives for investors.
The study also highlights the importance of price stability, particularly controlling inflation and stabilising the exchange rate, alongside lowering the cost of capital and improving access to long-term financing.
It recommends expanding affordable industrial credit, strengthening domestic value chains, aligning technical training with industry requirements and improving regulatory efficiency through digitisation.
The research further calls for carefully designed trade and foreign investment policies to strengthen domestic producers and improve Uganda’s export competitiveness.
Musasizi said government was supporting domestic investment and access to affordable credit through initiatives such as the Parish Development Model and the capitalisation of the Uganda Development Bank.
He added that lower electricity tariffs and targeted tax incentives were among the measures government was using to support industrialists.
The minister said the research would help government evaluate the effectiveness of these interventions as it implements the Tenfold Growth Strategy.
Musasizi also congratulated Ggoobi upon being awarded a Doctor of Philosophy degree in Economics by Nelson Mandela University in South Africa, commending him for his research and contribution to Uganda’s economic policy debate.