KAMPALA – Diamond Trust Bank’s CEO, Godfrey Ssebaana, has called for a paradigm shift in financing Uganda’s manufacturing sector. Speaking at the Second Annual Uganda Manufacturers’ Association (UMA) Financial Symposium and Exhibition, Ssebaana emphasized that manufacturing is the “backbone of national transformation,” driving job creation, value addition, and export competitiveness.

“Uganda’s industrial sector holds the promise to transition us from a raw-materials-based economy to one grounded in productivity, innovation, and resilience,” Ssebaana said. “But this transformation will not happen unless we address the deep-rooted financing challenge.”

Ssebaana identified limited access to affordable credit, a shortage of long-term capital, and a lack of customized financial products as major barriers to the sector’s growth. “These systemic issues continue to stifle the ambitions of many manufacturers, especially small and medium enterprises that are the lifeblood of Uganda’s economy,” he noted.

He urged both public and private sectors to implement strategic financial reforms and build robust public-private partnerships to bridge the manufacturing financing gap. “Only through coordinated efforts can Uganda cultivate a financial ecosystem that rewards innovation, supports sustainability, and drives the industrial growth necessary for long-term national prosperity,” Ssebaana argued.

Ssebaana highlighted the need for bold financial innovation, advocating for blended finance and patient capital, green finance, and fintech solutions. “Blended finance models that combine concessional funding with private sector investment are essential to de-risk high-impact projects in green manufacturing, agro-processing, and light engineering,” he said.

He also emphasized the importance of green finance, stressing that Uganda must align with global market shifts toward carbon neutrality. “Manufacturers can adopt forward-looking tools like green bonds, climate insurance, and sustainability-linked loans to finance investments in clean energy, water conservation, and environmentally friendly technologies,” Ssebaana suggested.

Furthermore, Ssebaana spotlighted the game-changing potential of fintech solutions, particularly in bridging the financing gap for small and medium-sized enterprises (SMEs). “Digital finance platforms can revolutionize supply chain financing and mobile lending, but only if supported by progressive, enabling regulation,” he noted.

Minister of State for Industry, David Bahati, acknowledged the need for reform and pledged government support. “Manufacturers walk into your banking halls and wait weeks for a loan decision,” Bahati said. “This is unacceptable. I challenge banks to reduce bureaucracy and adopt business vision-based lending, not just asset-backed lending.”

Bahati drew inspiration from global best practices, encouraging financial institutions to look beyond collateral and consider the vision and innovation behind businesses. “There are examples of tech giants who started without assets but with great ideas,” he cited.

The Minister noted that Uganda’s economy is projected to hit $60.4 billion in GDP by the end of June, growing at 6.3% annually, positioning it as the 7th fastest-growing economy in the world. He credited the private sector, especially manufacturers, for contributing 35% to national revenue and 17% to GDP.