Kitone Barnabas

GOV’T TO LEVERAGE RESEARCH TO ACCELERATE INDUSTRIAL GROWTH Government will leverage evidence-based research to strengthen industrial policy, improve public investment decisions and accelerate economic transformation under the Tenfold Growth Strategy. Finance Minister @henrymusasizi1 made the commitment at a public policy dialogue at Uganda Management Institute (UMI), where findings from a PhD study by the Permanent Secretary/Secretary to the Treasury, Dr @rggoobi on the determinants of industrial sector growth in Uganda were discussed. Musasizi said industrial policy requires deliberate choices on investments in industrial parks, economic infrastructure, industrial land, subsidised electricity tariffs for investors and fiscal incentives. Given limited resources, he emphasised the need to identify interventions that deliver the greatest gains in industrial productivity, jobs and exports for every shilling of public money. Dr Ggoobi’s research identifies corruption control, market expansion, access to credit and the cost of borrowing as important determinants of industrial performance. The study estimates that a 1% improvement in corruption control is associated with a 9.99% increase in industrial output, while a 1% increase in commercial lending rates is associated with a 3.11% decline in output. Population growth has a positive estimated relationship with industrial growth of 8.48%, reflecting the potential of expanding markets and labour supply. The findings also highlight the importance of price stability, particularly controlling inflation and stabilising the exchange rate, alongside reducing the cost of capital and improving access to long-term financing through pension reforms and deeper capital markets. The study recommends expanding affordable industrial credit, strengthening domestic value chains, aligning technical training with industry needs and improving regulatory efficiency through digitisation. It also advocates carefully calibrated trade and foreign investment policies that strengthen domestic producers and support export competitiveness. Government is supporting domestic investment and access to affordable credit through initiatives such as the Parish Development Model and capitalisation of the Uganda Development Bank, alongside measures to support industrialists, including lower electricity rates and targeted tax incentives. Musasizi said Dr Ggoobi’s findings will inform the Ministry’s policy decisions and implementation of the Tenfold Growth Strategy, helping Government assess the benefits and costs of its interventions and strengthen industrialisation, job creation and economic transformation. The Minister congratulated Dr Ramathan Ggoobi upon the conferment of his Doctor of Philosophy (PhD) degree in Economics from Nelson Mandela University in South Africa, commending him for his rigorous research, prolific writing and continued contribution to Uganda’s economic policy discourse. Musasizi noted that Dr Ggoobi’s ability to connect economic analysis with public debate and practical policymaking is invaluable to the country’s development agenda. UMI Director General, Prof. James Luyonga Nkata, described the dialogue as an avenue for translating research into practical policy, saying it enables stakeholders to review existing frameworks and design interventions for socio-economic transformation. “The dialogues are conducted under the Uganda Policy Development Management Forum, a think-tank established to support evidence-based policy formulation,” Prof. Nkata said. He commended Dr Ggoobi for choosing UMI for the maiden presentation of his PhD thesis in Uganda and reaffirmed the institute’s readiness to support Government through research, capacity development and technical expertise.