Abstract

The informal sector contributes handsomely to manufacturing value added (MVA), particularly in developing countries like Uganda. Numbers of existing small and micro enterprises are estimated in the thousands. Unfortunately, a minute proportion is associated with USSIA. It is probable that this is due to a host of reasons, including but not limited to poor perception of potential benefits of belonging, high cost of getting and maintaining membership, lack of awareness of existence, poor communication and lack of access to mention but a few.

Manufacturing has contributed about 9.7% to GDP on average between 1998 and 2002 with 6.7% originating from formal and 2.9% from informal manufacturing.

Given that, it may be instructive to draw some explanations from those limited members as to distribution structures, nature of activities, patterns and seek to better understand the picture cast by this important sub-sector. Establishments in textiles and related products, furniture as well as foods and beverages command the order of three quarters. In regional distribution, central region commands more than half of all industries for both informal and formal categories, with Kampala alone with about 15% members over a scope of 35 or so zones. The foods and beverages sector has 27% of all member firms.

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