Lesson five


These are businesses that transform raw – materials into finished goods or products. There-fore manufacturing businesses add values on goods thus making them more useful to customers.  

Manufacturing, refers to the process of changing of raw materials into finished goods or products.


  1. Agro – processing business. These are businesses which use agricultural products to produce other products e.g. juice, cooking oil etc. they add value to agricultural products by processing.  

Examples of Agro – processing businesses. 

  • Coffee processing businesses
  • Tea processing business
  • Sugar processing businesses etc.
    2. Beverage manufacturing businesses: These are businesses which make different types of drinks like soft drinks such as soda, juice and alcoholic drinks such as beer, wine etc.

Examples of beverage manufacturing businesses include; crown beverages, water bottling companies, Nile beverages.

           3. Metal fabricating businesses:

These are businesses which use different types of metals to produce finished products like iron bars, windows, iron sheets etc. 

Examples of metal fabricating businesses include; steel rolling industries, Tian Tiang industries. 

         4. Chemical manufacturing businesses

These are businesses that produce human and animal drugs and industrial chemicals. 

Examples of chemical manufacturing businesses include AGOG – human medicine 

ABACUS – human medicine .

     5. Plastic manufacturing business

These are businesses which make plastic products like plates, cups etc. 

Examples of plastic manufacturing businesses include; Mukwano industries, Nice industries etc. 

       6. Textile manufacturing businesses. These are businesses which manufacture or make clothes e.g. bed sheets.

Examples of textile manufacturing busineses include Nytil, Textile, Phenix, Freedum etc. 

        7. Extractive manufacturing businesses.

These are businesses which deal with the extraction of minerals in nature. 

Examples of extractive manufacturing businesses include, mining industries, brick laying, stone quarrying etc. 


  • They are a source of income to the owners and this leads to improved standards of living.
  • They add value to the agricultural products through processing them into semi and finished products thus improving its value.
  • They provide employment opportunities e.g. agro – processing industries employ people as engineers.
  • They provide market for the local produce e.g. Agro – processing businesses by buying raw materials from agro – businesses.
  • They contribute to community development through participating in community development programmes through constructing schools etc.
  • They provide inputs for example farm implements to support activities of agri – business e.g. hoes, fertilizers, herbicides. 
  • They pay taxes to the government and this increases government revenue which is used to provide social services like medical care.
  • They add value to the local raw materials and products thus improving on their quality.
  • They earn foreign exchange in the country through exporting products.
  • They recycle waste product and raw materials thus conserving the natural environment. 


  • Inadequate capital caused by the general poverty and lack of access to credit facilities offered by different financial institutions.
  • Poor state of infrastructure particularly inadequate and unstable power supply, poor roads most especially in rural areas where there are raw materials for agro based industries.
  • Inadequate skilled man power inquired to operate some activities in the manufacturing business thus making it difficult to operate the businesses e.g. need of engineering etc.
  • Inadequate market to consume the products produced due to low level of income of the customers.
  • Inappropriate technology to produce good quality products that can be marketed easily in both local and foreign markets.
  • Unfavourable government policies which discourage many people from engaging in manufacturing businesses like high taxes charged, long procedures of getting licenses and low subsides.
  • Lack of reliable sources / inadequate raw materials for constant production which forces some businesses to operate seasonally.


  • By conducting market research and survey to find out whether the industries have markets.
  • By employing skilled labour or training workers in order to produce good quality products which can be marketed easily and solve the problem of inadequate skilled labour.
  • By / through ensuring political stability in all parts of the country in order to create a conducive environment for manufacturing to operate.
  • Through improving the state of infrastructure by constructing roads, extending power, encouraging the establishment of banks etc. to facilitate activities of manufacturing business.
  • Through use of advanced technology in order to produce good quality products which can compete favourably.
  • By reducing taxes charged on manufacturing businesses by the government and giving them subsidies to increase their profits.
  • By / through forming business associations in order to access financial assistance and widen the market for products produced by these businesses.
  • By selecting good site where these raw materials, power water etc. in order to reduce on business expenses.
  • By diversifying activities done in the manufacturing businesses. This involves cheating a number of activities in these business to increase profits.
  • By carrying out constant advertisement to make the public informed about the products produced by manufacturing businesses hence expanding the market for products. 

5.6       Revision questions 

  1. Explain the problems facing manufacturing businesses.
  2. Suggest ways of over-coming the challenges facing manufacturing business
  3. Distinguish between agro support service businesses and agro processing manufacturing businesses. 

State the advantages of agro – processing manufacturing business 

  • Employment opportunities
  • Provide market for agricultural produce
  • Improve on food security
  • Add value to food
  • Earn foreign exchange through exporting highly priced agricultural goods
  • Provide revenue to the government through paying taxes
  • Stablise prices of agricultural products.