MANUFACTURING

Sector Growth

Manufacturing sector grew by 9.0 percent in 2005 compared to 8.6 percent in 2004. The increase in  growth was mainly attributed to increased production, such as cement, beverages, corrugated iron sheet, steel products, plastic products and textile.
In the course of implementing Export Processing Zone & special Economic Zone (EPZ and SEZ) strategy, two manufacturing firm were established and have started production.
In 2005, the Government continued to implement the Small and Medium Enterprises (SME's) Policy by strenghening Small Industries Development Organization (SIDO).

Production Costs

The cost of production in the manufacturing sector increased from shs. 113,643 million in 2004 to Shs. 120,462 million, an increase of 6.0 percent. The increase in production costs during the year was mainly caused by the increase in the cost of electricity, petrol and petroleum products, and transportation. Likewise, poor infrastructure especially railway and roads continued to exert up ward pressure in the cost of production.

 Ministry of Industry and Trade

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