Formal sector manufacturing in Uganda, which includes agro-processing, accounted for only 6.1 percent of GDP in 2012/13, a share which has only slightly risen since the start of the millennium when it stood at 4.9 percent of GDP.
The formal manufacturing sector’s failure to generate much faster growth over the last decade is a major cause for concern, because in developing economies this sector plays a crucial role in driving productivity growth and the structural transformation of the economy.