12 Measures (Strategies) to promote the Industrial sector in developing countries(Uganda)
- Providing credit facilities by the government. There is need for the government to provide credit facilities to the industrialists at subsidized interest rates. This promotes the expansion of the industrial sector in the country.
- Providing a favorable investment climate by the government. This is in form of providing tax holidays, subsidization, offering grants to investors, assisting industrialists to secure licenses and industrial plots etc.
- Economic liberalization. There is need for the government to remove unnecessary restrictions from economic activities to allow industrialists to carry out production and marketing of their products freely with limited interference.
- Constructing and rehabilitating the basic social and economic infrastructure. This is in form of roads, communication facilities, electricity, water facilities, financial facilities etc. This is aimed at facilitating production, distribution and marketing of goods and services by the industrial sector.
- Establishing organizations to promote ill vestment in industries. There is need to promote and strengthen organizations like Uganda Investment Authority (VIA) and Uganda Manufactures Association (UMA) in order to promote the industrial sector in the country.
- Market expansion. There is need for the government to expand market for the sector through economic integration, market research, promoting trade exhibitions and encouraging economic diversification.
- Improving the level of technology. There is need for the government to encourage and promote the use of better techniques of production which are cost effective and are in line with the social and economic requirements of the society. This helps to increase on the quantity and quality of the manufactured products.
- Training local manpower. This is aimed at equipping the local man power with the required entrepreneurial skills necessary for efficient management and allocation of resources for industrial development.
- Protectionism in form of high import tariffs. There is need for the government to restrict the importation of those products produced by the local industrialists by imposing high tariffs on them. This helps to protect the local producers from the competition resulting from high quality and cheap imported products
- Ensuring Macro- economic stability. There is need for the government to control inflation and to ensure stability in the foreign exchange market as a way of encouraging investment in the industrial sector.
- Increasing the exploitation of natural resources. This is aimed at obtaining raw materials required for production of goods and services by the industrial sector. For example the exploitation of oil products in Bunyoro region.
- Ensuring political stability. There is need for the government to promote political stability by ensuring good governance, negotiating with rebel groups and granting them amnesty in case they surrender etc. This helps to create a favorable environment for the prosperity of the industrial sector.
CATEGORIES Economics
TAGS Dr. Bbosa Science
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