Growth of industry and engineering related business in general, hinges greatly on the existence of an efficient, well-developed engineering industry in the country. Toward this end, government with the professional fraternity have been working closely for its realization. In this regard, a new policy is expected to be in place by close of calendar year 2005.

In our April 2004 issue, we discussed the impact of interest rates on credit, sounding a fear that high rates deter long-term lending. We now bring you a study confirming this trend in the practice by larger banks in the country, resorting to short-term trading and buying government securities.

Clearly, the conditions in the market need review, to create avenues to stimulate more viable lending to industry so badly needed if we are to enhance manufacturing growth. The case has also already been made for a better saving culture, introducing reforms in practices and raising standards in related industries and businesses to list on the Kampala Stock Exchange and attract public investment participation to spur growth as practiced in successful economies.

It may be justifiable to say the small and micro enterprises represent a category with vast potential to grow and increase share of manufacturing value added (MVA) substantially. While their number is in the order of 10,000, Uganda Small Scale Industries Association (USSIA) has a minute fraction of these as members at under 1,400. Given the nature of their activities and modalities of operation, it is likely that 10,000 is a big under-estimate.

The landscape of the past has meant that several larger establishments have greatly declined to rock-bottom levels of value addition. Pre-independence established import substitution industries beside modest agro-processing, bringing in with it largely used technologies. Early post-independence years carried this flag high under the Uganda Development Corporation, under which times there was a liberal global trading environment, bringing prosperity and pride to Uganda. The seventies were to bring much of this to naught, and subsequent recovery slow and in some instances retrogressive, with many declining in performance even after divestiture, to the present times with many literally in-operational. Such conditions were fertile ground for the strong emergence of the micro and small enterprise sector. Unfortunately, several of the obstacles impeding growth of the larger industries have a greater impact on the micro enterprise sector, with efforts at facilitation yielding little fruit.

This publication focuses on a review of areas of activity, USSIA membership, its geographic distribution and a preliminary examination nature, structure and type of operations undertaken by this important sub-sector in our quest for a better tomorrow.

Having cited the significance of the small and micro enterprise sub-sector in manufacturing today, the vast majority of fabricators constitute the upper technological band of this category. Several fabricators are found to have a small selection of machine tools and equipment, often in only sufficient numbers and scope to undertake the task at hand, with a substantial share of hand operations. One example is the typical fabricator of doors, windows and/or gates, with a simple welding facilities, often using scrap wire for electrodes, largely using mild section and sheet steel, using hacksaws for cutting, plus extensive use of the hammer and anvil. These are to be found in makeshift facilities, more often located outside a designated industrial area

As for several small manufacturers of basic fabricated products, the hammer and anvil constitute the lowest common equipment factor. These and others have limited knowledge and use of jigs and fixtures, let alone manufacturing to design drawings, a recipe for wide lack of standardization and interchangeability.

Need for support to this sub-sector spans all levels, from the enterprise level, up through associations to national planning, guidance and facilitation.

The energy sector has seen many recent developments and changes. These have stretched from design of new policy emanating from an overall performance review, stop-gap measures to redress shortfalls, awareness programs to effect more efficient consumption pattern changes, to search of investments both from small schemes as for solar power to large ones as for hydropower, spanning a range of energy sources.

The subject topic for this issue relates to a more comprehensive strategy to manage the scarce hydropower resource known as demand side management (DSM), citing schemes that have been devised and effectively exploited in the developed world. This is cast against a background of a past littered with shortcomings arising out of an inefficient utility parastatal sub-sector cushioned by subsidies that has not been able to match output with fast growing demand, and, the desire for more regional exports that has further compounded the deficit gap.

Our thinking is that, in spite of the task being of big magnitude, we need to start, however small measures may be, adopting the noble objectives that will contribute to the global performance improvement picture. This should not be misunderstood to mean that no efforts are in place, but that the possibilities are many and varying in demand and complexity. Amongst the challenges are the social and political perceptions and consequent pressures on the way forward against possible progressive achievements, given the underlying technical issues and the limited development financial envelope implications.

To read the rest of this, and all our other articles please click here to download the complete September 2004 issue in PDF version.