Uganda's push for inclusive and sustainable industrialization has received a major boost with the signing of a €1.7 million (approximately Shs 6.8 billion) cooperation agreement between the Government of Uganda and the Government of Italy.
The agreement, signed by Uganda's Minister of Trade, Industry and Cooperatives, Francis Mwebesa, and representatives from the Italian Government through the United Nations Industrial Development Organization (UNIDO), aims to strengthen Uganda’s private sector. The focus is on enhancing institutional capacity, supporting key value chains, and promoting international partnerships. The funding will support the launch of a new initiative titled “Strengthening of the Private Sector through the Development of Institutional Capacities and the Building of International Partnerships in Uganda.”
The project seeks to provide local businesses with the tools, skills, and connections needed to boost competitiveness, create jobs, and contribute more effectively to Uganda's national development. During the signing ceremony, Mwebesa expressed gratitude for the support from the Italian Government and UNIDO, calling it a timely contribution that aligns with Uganda's Vision 2040 and the Third National Development Plan (NDP III), both of which prioritize industrialization and private sector-led growth.
“This partnership will be instrumental in transforming our private sector into a more competitive, innovative, and sustainable driver of economic growth. It will also foster stronger collaboration between government agencies, industry associations, and international partners,” Mwebesa stated. A key element of the project is the creation of the Confederation of Uganda Chambers of Commerce and Industry (CUCCI), a new umbrella body that will unify all industry associations and chambers of commerce into a single, cohesive voice. CUCCI will act as a bridge between the government, the private sector, and international stakeholders, facilitating policy discussions and promoting trade and investment opportunities.
A UNIDO representative in Uganda highlighted that the project is particularly focused on empowering small and medium-sized enterprises (SMEs) to engage effectively in both regional and global value chains.
“Through this partnership, we aim to enhance Uganda’s institutional frameworks and build the capacity necessary to sustain industrial growth and foster inclusive economic transformation,” the UNIDO representative said.
The Italian Government reiterated its commitment to supporting Uganda’s industrial agenda and to nurturing long-term partnerships that bring mutual economic benefits.
The initiative is expected to improve Uganda’s capacity to attract foreign investment, enhance access to international markets, and accelerate progress toward sustainable development.
The United Nations Industrial Development Organization (UNIDO) is a specialized agency of the UN that promotes industrial development for poverty reduction, inclusive globalization, and environmental sustainability.