Accelerating Evolution of Exports-Oriented Industries in Africa: The Case of Tile Industry in Employment Provision in Uganda

Abstract

Uganda is seeking a growth strategy that will break the bottleneck of prevailing economic structural that has perpetrated high unemployment and poverty levels, and unmet economic targets. Despite prioritization of the development of construction materials due to the country's history of the sector's performance, new discovery of more non-metallic deposits and products expanding demand in Africa, queries on the strategy to adopt and viability of the intervention remain. This study sought to evaluate Uganda's ceramics industrial capabilities and export market potential. Specific objectives were to i) to evaluate the Uganda's capabilities of developing an export oriented ceramics tiles industry; and ii) to identify viable opportunities for expanding and diversification employment in Uganda. Both primary and secondary sources of data were adopted. Secondary sources of data including the use of UNDESA's global trade data (UN COMTRADE) Consultative and Key Informant Interviews gathered information from bricks and other construction industry's stakeholders in Kampala, Uganda. Descriptive statistics showed the ceramics tiles demand among the East Africa countries has been on rise from 2004 to 2021 with imports value estimated to have expanded from US$50 million to above 200 million annually. Uganda has been a critical actor with re-exports estimated at over US$300,000 annually over the duration. Potential of upgrading the brick industry that contributes about 1.9% of the country's GDP, employs over 93000 individuals among other returns, exists. Through government financial and infrastructural support and following Morbi Cluster (India) example the country can grow a competitive ceramic tiles industry. Necessary interventions include policy support, incubation of the industry, synergic approach in developing the oil and ceramic industries, networking with equipment manufacturers; and continuous integration of the country among regional trade blocks.