Policies (measures) to promote the private sector in Uganda
- Economic liberalization. There is need for the government to remove unnecessary restrictions from economic activities to allow people involved in the private sector to carry out business freely with limited interference.
- Adopting favorable government policies. Such policies include providing economic incentives like subsidization of factor inputs and tax holidays to private investors. This is aimed at reducing the production costs hence promoting the private sector.
- Providing credit facilities by the government. There is need for the government to provide credit facilities to the people involved in the private sector at subsidized interest rates. This helps people involved to access capital and expand on their businesses.
- Construction and rehabilitation of basic social and economic infrastructure. This is in form of transport facilities, electricity, water facilities, storage facilities etc. This is aimed at facilitating the production, distribution and marketing of goods and services by the private sector.
- Establishment of organizations to promote private sector investment. Organizations like Private Sector Foundation (PSF), Uganda Investment Authority (UIA) and Uganda Manufactures Association (UMA) have been set up to promote the activities of the private sector in the country.
- Training tile local manpower. This is aimed at equipping the local manpower with the requited entrepreneurial skills necessary for efficient management and allocation of resources.
- Protectionism in form of high import tariffs. There is need for the government to restrict the importation of those products produced by the private sector by imposing high tariffs on them. This helps to protect the local producers in the private sector and reduce competition from high quality imported products.
- Improvement in 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 products.
- 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.
- 10. Privatization of inefficient parastatals. There is need for the government to privatize the inefficient parastatals to allow the private individuals get involved in economic This enables the growth and development of the private sector.
- Political stability. There is need for the government to ensure political stability. This helps to create a favorable environment for the prosperity of the private sector.
- Increasing the exploitation of natural resources. This is aimed at obtaining raw materials required for production of goods and services by the private sector. For example exploitation of oil products in Bunyoro region.
CATEGORIES Economics
TAGS Dr. Bbosa Science
