Uganda’s Industrial Sector Slumped by 2 Percent
The industrial sector grew at only 2% experienced in the 2019/20 financial year, down from 10.1% in 2018/19, becoming one of the biggest victims of the coronavirus pandemic.
While reading the 2020/21 financial year budget today (Thursday), Finance Minister Matia Kasaija said the sector was affected by the closures and inability of industries to continue working.
The industry sector is comprised of such sub-sectors as manufacturing, mining and quarrying, and construction.
The dismal performance means less production, less employment, fewer taxes for the economy.
Manufacturing activities, for instance, grew at only 1.4 percent in 2019/2020 compared to 7.8 percent in 2018/19, reports Uganda Bureau of Statistics (UBOS).
Mining and quarrying declined by 2.8 percent in 2019/2020 financial year compared to 33.4 percent growth in the previous year.
On the other hand, construction activities registered a slowdown growth of 5.4 percent in 2019/2020 compared to the 14.2 percent growth in the 2018/19.
The size of the economy is now Shs 138 trillion (USD 37bn) in 2019/20, up from Shs 109 trillion (USD 29.5bn) in the 2018/19.
The 2020/21 budget under the theme, stimulating the economy to safeguard livelihoods, jobs, businesses and industrial recovery, will be defined by what business survives or fails in the next few months.