Namanve, Uganda– President Yoweri Kaguta Museveni has officially commissioned the Piston Medical Pharmaceutical factory in Namanve Industrial Park, Mukono District, marking a significant milestone for Uganda’s pharmaceutical sector and its broader economic transformation. The state-of-the-art facility, led by Benjamin Kiiza, is designed to produce small and large volume parenterals, including IV fluids, aiming to reduce Uganda’s dependency on imported medical products and strengthen the country’s healthcare infrastructure. The launch aligns with Uganda’s National Drug Policy, which emphasizes the safety, efficacy, and quality of pharmaceutical products, while supporting local manufacturing and job creation.
During the event, attended by government officials, health sector leaders, and dignitaries, President Museveni praised Kiiza and his team at Piston Medical for their role in advancing the manufacturing and distribution of medicines for both domestic use and export across the African region. “I am always pleased when I see young people who have listened to our message on wealth creation and the four sectors to achieve it,” Museveni stated, referring to his long-standing economic strategy focusing on commercial agriculture, manufacturing, services, and information and communications technology (ICT).
The Piston Medical factory, which employs approximately 100 people, is a testament to Uganda’s push toward industrial self-reliance. Supported by government policies and affordable credit from the Uganda Development Bank, the facility is poised to lower healthcare costs, enhance access to quality medicines, and position Uganda as a regional leader in pharmaceutical production. The initiative also reflects Museveni’s vision of transforming local villagers into industrialists, fostering socio-economic benefits and reducing unemployment.
The commissioning of Piston Medical underscores Uganda’s strategic focus on the manufacturing sector, one of the four pillars of Museveni’s wealth creation agenda. However, the performance of Uganda’s other key industries varies, presenting a mixed picture of economic progress.
- Commercial Agriculture: Agriculture remains a cornerstone of Uganda’s economy, contributing approximately 24% to GDP and accounting for 35% of export earnings, according to the Uganda Bureau of Statistics (UBOS). The sector employs about 68% of the working population, producing crops like coffee, tea, sugar, and bananas, as well as livestock and fish. While Uganda boasts fertile land and two rainy seasons, enabling multiple harvests, challenges such as limited fertilizer use, inadequate irrigation, and vulnerability to climate extremes and pests hinder commercialization and productivity. The government aims to increase coffee production from 402,000 tons to 1.2 million tons annually by 2025, but progress has been slow due to these structural constraints.
- Services: The services sector, including hospitality, tourism, and financial services, has shown robust growth, contributing significantly to GDP. Tourism, in particular, benefits from Uganda’s rich biodiversity, such as its national parks and gorilla trekking opportunities. However, the sector faced setbacks during global disruptions like the COVID-19 pandemic, and its recovery remains uneven. Financial services are growing, supported by a stable banking sector, but access to credit for small businesses and rural populations remains limited.
- Information and Communications Technology (ICT): Uganda’s ICT sector is rapidly expanding, driven by increasing mobile phone penetration, internet connectivity, and digital innovation. Institutions like the Uganda Institute of Information and Communications Technology (UICT) are fostering skills in programming, robotics, and artificial intelligence, preparing a workforce for the digital economy. However, the sector’s contribution to GDP is still modest, and infrastructure gaps, such as reliable electricity and broadband access in rural areas, constrain its full potential.
While manufacturing, as exemplified by Piston Medical, shows promise, the sector’s overall contribution to GDP lags behind agriculture and services, accounting for only about 13% of total exports. Challenges such as high energy costs, limited skilled labor, and bureaucratic hurdles continue to impede growth. Nonetheless, the government’s focus on industrial parks, like Namanve, and investments in infrastructure signal a commitment to scaling up manufacturing.
According to the African Development Bank, Uganda’s economy is projected to grow by 7.0% in 2025, buoyed by stronger regional growth, oil sector investments, and industrial initiatives like Piston Medical. However, external risks, including supply chain disruptions and regional insecurity, could delay progress. Domestically, the government must address fiscal constraints, boost tax revenues, and improve agricultural productivity to sustain economic diversification.
The launch of Piston Medical Pharmaceutical factory not only strengthens Uganda’s health sector but also reinforces Museveni’s vision of a self-reliant, industrialized nation. As Uganda navigates these economic challenges, the success of its four key sectors—agriculture, manufacturing, services, and ICT—will be critical to achieving long-term prosperity and reducing poverty.
