The Effects of Investment Climate on Manufacturing Firms’ Growth in Uganda

"This policy brief highlights findings on the effects of investment climate factors on manufacturing firms’ growth in Uganda. The low and stagnant level of manufacturing sector share in Gross Domestic Product within most African countries has been widely recognized to be an important policy problem. It is important for manufacturing firms in Sub-Sahara African countries to be able to grow over time if they are ever to play an increasing and predominant role in economic growth, facilitating poverty reduction through fiscal transfers and income from employment and firm ownership. However, there is controversy on why the share of manufacturing in Gross Domestic Product is so low and stagnant and what would be the appropriate policies to raise manufacturing firms’ growth in Sub-Saharan African countries."