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President Museveni's push for value addition faces hurdles

Saturday April 13 2024
Museveni value addition

President Museveni inspects a stall as he interracts with businessmen and investors durirng Lohana International Business Forum (LIBF) at Munyonyo in Kampala. PHOTO/PPU

By Joyce Nakato

President Museveni has recently voiced his frustrations with bureaucratic delays hindering the implementation of value-addition initiatives in Uganda. His latest stance involves blocking the export of raw materials to emphasize the importance of adding value within the country. However, challenges persist in translating this vision into action.

During a visit to Mbarara for the launch of a tin extraction factory, the President reiterated his concerns about the slow progress in value-addition efforts across various sectors such as cotton, milk, bananas, tea, and coffee.

Economists and researchers have been consulted to understand the underlying issues behind these challenges. Economist Francis Muhiire emphasizes the need for a broader approach to private sector-led growth, cautioning against favoring specific companies over others in value addition initiatives. He also points out the crucial role of access to affordable and long-term capital for investors in value addition ventures.

Researcher Dr. Brian Sserunjogi raises questions about the suitability of chosen products for value addition and the quality of inputs from farmers supplying raw materials. He highlights the importance of considering production costs and product quality in these industries.

Muhiire suggests creating a conducive entrepreneurial environment by addressing bureaucracy, governance issues, and corruption, which are often barriers to effective value-addition strategies.

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The success of President Museveni's value addition agenda hinges on addressing these fundamental challenges and implementing practical measures to support investors, ensure product suitability, and improve the business environment. It remains to be seen how these recommendations will be integrated into policy frameworks to drive meaningful change in Uganda's value addition landscape.

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