Positive Effects
Industrial production especially small-scale is quite easy to establish. It requires small or little capital.
Industries in Uganda provide employment for the available labour force especially when they are labour intensive.
Industries tend to promote inter-sectoral linkages through forward and backward linkages in production.
Import substitution oriented industries often save the country's scarce foreign exchange.
Skilled labour is still inadequate in Uganda and indeed in most LDCs. Industries in Uganda require skilled labour. Industrial Production activities help in training of skills.
Industries in Uganda tend to encourage self-sufficiency and the use of the available domestic resource potential.
Small scale industries tend to be widespread. This enables their establishment in rural areas. Fair income distribution and a reduction in rural urban migration are likely to occur.
Small scale industries are suitable for the prevailing limited market in Uganda.