Private Sector CEO Retreat and Uganda's Economic Path Ahead

Ridelink Series

Written by Henry Senkungu on Aug. 22, 2023

At the recent Private Sector CEO Retreat, the President of Uganda underscored a disconcerting truth: Africa, with its abundant natural resources, lags behind in terms of GDP compared to industrialized economies like India, Germany, Japan, China, and the USA. This sobering realization led to discussions on the role of industrialization in Uganda's economic development, as the nation strives to attain middle-income status by 2040.

Government's Fourfold Economic Growth Strategy

The Ugandan government has articulated a multifaceted approach to achieving positive economic growth:

Parish Development Model (PDM): Aiming to integrate households into the money economy.   

Value Addition: Focusing on transforming exports, like sugar into ethanol and raw wood into furniture.

Service Sector Expansion: Emphasizing professional services and enhancing the tourism sector. 

Knowledge Economy: Leveraging skilled labor to produce high-value products and services.

 

Presidential CEO Forum (PCF) as a Catalyst

President, the Prime Minister, Ministers of State and Officials from NEC

The Presidential CEO Forum, established in 2020, serves as a platform for CEOs to collaborate directly with the government to develop effective strategies for industrialization, leadership, and governance. This indigenous body, organizing biannual retreats, seeks to enhance competitiveness and industrial growth. The most recent retreat, themed "Uganda’s Industrialisation Agenda: Positioning Uganda as a net source of E-Mobility Solutions in Africa," took place from August 2nd to 3rd, 2023, at the Kira Vehicle Plant in Jinja.

E-Mobility's Vital Role

Key themes discussed at the retreat included the concept of E-Mobility, which involves using electric powertrain technologies and connected infrastructures to facilitate electric vehicle propulsion. E-Mobility holds promise for sustainable transport, more livable cities, and combating climate change. The electrification of transport can significantly reduce global greenhouse gas emissions, making it pivotal for climate goals.

Electric Vehicle Charge at Electric Charging Station

Uganda's E-Mobility Ambitions

Uganda aims to tap into the lucrative transport sector, which is valued at approximately 17 trillion USD in the global market. To achieve this, the government envisions an integrated, independent, and sustainable economy with a focus on the transportation sector. By industrializing the economy, particularly through initiatives like the Kira Motors EV Park, Uganda aims to manufacture about 65% of the 70,000 parts that make up an average car. An investment of up to 60 billion USD is projected for the E-mobility sector.

Government's Supportive Measures

The President highlighted three directives to bolster the E-Mobility sector:

1. Funding: The government offers financial support through entities like the Bank of Uganda and the Uganda Development Bank, providing loans at favorable rates and extended return periods.

2. Policies: Incentives include the exemption of tax on raw materials needed for Electric Vehicle fabrication and manufacturing, fostering accelerated production and research.

3. Partnerships: The government welcomes collaboration with stakeholders and is partnering with entities like Kira Motors to manufacture a significant portion of government vehicles.

Concluding Thoughts

The President expressed gratitude to the PCF for organizing the event and affirmed his commitment to attend future retreats. He recognized the valuable consultancy services they offer for Uganda's economic development. For Ridelink, an e-logistics company operating in the E-Mobility sector, these opportunities present a chance to contribute transportation solutions to businesses locally and internationally, capitalizing on the government's support for private sector growth.

In summation, the Private Sector CEO Retreat marked a pivotal moment as Uganda's journey towards an industrialized economy gained momentum, positioning the nation for a future of sustainable growth and innovation.

 

Comments



Regan- Aug. 22, 2023, 9:59 a.m.
There is no way Uganda as a country will save it self from poverty and develop as a country with out embracing industrialization, we are thrilled to see for what lies ahead for Uganda as a country