 Okay, thank you. I'm looking at the evolution of industry in Uganda. This work was done by several of us. You can see the names over there. I'll just look at... I'll not go into number one. That's the outline of my presentation. Into the studies. I think this has been done in the previous sessions. I'll look at the colonial post-colonial history of industry in Uganda and then the current government. Then I'll outline the industrial policy framework and move to the structure of industry. Then I'll conclude. I'll look at the history of industrial sector in Uganda. I'll look at the history. It stems back from 1945 to 1960s. That's the first phase. This is after Britain, after World War II, had challenges with foreign exchange. Therefore, they thought if they designed a strategy to increase exports of primary commodities and at the same time look for commodities that increase the inflow of the dollar, that would really serve their challenges of having. Two categories of industries emerged at this time. These are specifically the processing industries and the manufacturing industries. The processing industries were largely rural-based, dispersed all over the whole place, cotton and coffee were major in this. And then the manufacturing industries were concentrated in the urban areas trying to manufacture commodities that would do import substitutes largely. Then what followed in 1950s was major projects were carried out like hydroelectricity power station, promotion of mineral exploration and then extending the rail line to areas where the raw materials are. These were major infrastructure investments into the industrial sector to push it to achieve the agenda. At the same time to deal with the credit, Uganda Development Corporation was founded as a prestato largely to get money to the industries and also to guarantee initial risk capital for investors. And this model of industrial promotion had the private public partnership sort of and it propelled industrial development during the colonial era. Now after the colonial era, much of what went on within the industrial sector was state-guided. The state really did much of the investment and the planning, etc. And we had so many private startups, I can't admit them here, that did a lot of industrial development in textiles and etc. But a time came when we had a president called Ida. Many of you have heard about him, where things almost came to a grinding halt. During this time, I think we had sanctions, mismanagement. All these mismanagement and sanctions led to a total breakdown of the industrial sector, totally. And of course at this time they were all state-owned and the state was stabbed especially for an exchange. So in the 1970s and 1980s, there was a virtual absence of heavy industrial of the fields that were existing. So this decline kind of killed the potential growth poles for industrialization in the country. And just to give you a glimpse, if you look at these manufactured outputs in Uganda and these are the manufacturers themselves and vegetable oil, blankets, fabric, etc. When you look in the 1960s, you'll see that in terms of tonnage, there is an increment after 1970, then there's a decline. You can see this line is a little bit thin. Just to demonstrate that there was a decline during that period. Now the last phase is the industrial development from 1986 to date. Now this is marked by priorities for industrial development that follow the path of economic liberalization. Where the government did a lot of reforms, structural adjustment and all those liberalization privatization, all this liberal approach to industrialization and the state saying look here, we are not going to get involved, do it yourself in the private sector. Now during this time, one very important sort of legislation was the establishment of an investment code that led to the establishment of the Uganda Investment Authority responsible for attracting investors into the country and of course the job center as part of the liberalization and to assist the private sector. Uganda is a member to these well known national investment guarantee agents and at the same time international center for settlement of investment. All these to lure or to attract investors to come into the country but there was lack of conscious proactive distinct national industrial policy for the government itself to get involved. This is what's missing. After liberalizing we see a lot of pushing everything in the private sector. Just to give us a glimpse of the share of the manufacturing sector over time from 1988 to 2008 as you can see we start from very far down there move a little bit below 10 around 1999 to 2000 and then we stabilize below 8 so the contribution to GDP has not really hit the charts has more or less been increasing but low but this one shows us the trends in sector composition which we have this industry it has a little bit increased agriculture of course has gone down but the service sector has really bulged it has taken in other words the service sector has grown at a higher rate than the rest of the other sector but of course manufacturing and industry has also grown during the same time following these policies and I want also now to look at the industrial policy very quickly largely there are three things that we look at the first one is the macroeconomic stability policies stabilize the price look at inflation to make sure that everything is stable within the economy and I will not elaborate much about that because you all know that then the trade policies were mainly trying to produce tariffs to the MNF rate I mean they reduced from 9 19% to 11 although they went up a little bit to 15 following the introduction of the common external tariff because it had to be the same for all the East African countries nevertheless there is effort to reduce the MNF rate and tackling non tariff barriers in compliance with the WTO guidelines and then Uganda gives exemptions on importation of capital if you import capital you don't pay the taxes zero so these are the trade policies and then sector specific and I will not elaborate much but the sector specific policies are meant to revamp productive capacity to create clusters and that provide an ideal environment for the businesses to operate within this time of course we also have the industrial policy as one of the sector specific policies but all this is meant to help manufacturing industrial manufacturing to pick up now I will go to this one very quickly looking at the composition of the industrial sector in Uganda the industrial sector in Uganda comprises this construction water formal manufacturing this is the categorization in formal manufacturing electricity mining but as you can see construction is the booming thing this is the sunrise industry within the industrial sector and the manufacturing takes about 20% in terms of composition now in terms of the detailed description of the sub sector these are the undertakings agro processing chemical metrological industry engineering and then paper so that is roughly the composition but this table gives us the distribution of farms in the manufacturing sub sector by employment ban we want to know do we have large scale small scale or medium but as you can see small scale seems to be the in thing those that employ 5 to 9 people 58% this is quite big number then medium is about I think 9% and then large scale you can see 3% so this suggests Uganda has a very small proportion of large scale manufacturing farms these are small scale basically that's what this table would like to yes I think I'm on time sir then the regional distribution I want to say that it's Kampala or the central region Kampala is the capital city that takes the biggest chunk central region equally Kampala capital city is 600% although in the 1970s and 60s was Jinja town in eastern Uganda so much of these activities are taking place within the central capital city area in terms of ownership of these farms we have sole proprietors we have the private private industry companies and then others this is where you get the what I would call public and trade companies that would get money on the capital stock markets so as you can see most of the farms are not listed so they cannot raise capital through capital markets and very importantly overall more than half of the farms in the manufacturing sector are foreign owned you can see from here this is joint venture this is foreign within these three years 41 then when you come to joint still you can see it's the bigger portion of the ownership area then the constraints the constraints the number one infrastructure the skills we don't have the indigenous capacity to adopt and develop technologies there's heavy reliance on imported inputs erratic and I will go a bit on this erratic supply of power we have problems in transport and logistics getting credit is a problem trade is very high and then we operate in excess capacity you can imagine 50% now a little bit about electricity and I will ignore much of that and simply bring you to to this that Uganda biomass usage of biomass in terms of energy is 92% then 70% is fossil fuel and 1% is electricity so you can imagine if you are talking about industrialization when utilization of energy 1% is electricity and of that 70% is used by households of this 1% 70% is households commercial activities 13% index is only 10% so utilization of electricity is extremely low there's two graphs kind of give us that picture we have two power stations now we have three but I just want to draw your attention to from 2005 we had challenges of production of electricity this is established megawatt capacity of this thing alright and this what was being produced and you can see fossil oil was almost catching up with hydropower and oil is 10 times in terms of production costs to generate energy now we have sunset the textile industry just to make a mention is what we call a sunset industry in Uganda because it's really going down from 1973 when we were processing 400,000 bills of cotton outs in 2015 but the construction industry is really coming up and these are the problems associated with why the textile industry is going down and I think finally the conclusion I will only make a mention of these two that Uganda's industrial policy over the last three decades has been a free market type of approach which the private sector has taken where the private sector has taken the lead in shaping the structure and I think this came a little bit premature in an economy which is predominant agriculture without proper infrastructure and I will stop at that thank you chair