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SPECIAL REPORT
East African Business Week I February 23 - March 1, 2015
MINISTRY OF TRADE, INDUSTRY AND COOPERATIVES
Doing Business in Uganda, East Africa & beyond
Trading beyond
borders
Contents
Uganda positions itself as a vital player in the regional
markets for quality goods and services.
 Overview by Hon.
Amelia Kyambadde,
the Minister of
Trade, Industry and
Cooperatives
PAGE ii
 TradeMark East
Africa plays central role in opening
up bottlenecks to
regional trade
PAGE iV
 Efforts to erase
trade barriers in the
region; interview
with Hon. Shem
Bageine, the State
Minister for East
African Community
Affairs
PAGE Vi
Intra-East African Community trade
grew to $5.5 billion in 2012, up from $4.5
billion recorded in 2011 and overall the
region is recording some of the fastest
economic growth in sub-Saharan Africa.
 Standards help harmonize the market
place
Uganda’s major export destinations
8.5%
6.5%
8.7%
8.8%
52.5%
Others
UAE
Kenya
 Ugandan exports dropped to $209.86
million in December of 2014 from $222.13
million in November of 2014. According to
latest Bank of Uganda figuree, exports averaged $106.46 million from 1993 until 2014,
reaching an all-time high of $271.08 million
in May of 2013 and a record low of $12.40 million in July of 1993.
DRC
15%
Rwanda
Sudan
Imports have gone up to $540.30 million
in December of 2014 from $470.20 million
in November of 2014. Imports in Uganda averaged $238.59 million from 1993 until 2014,
reaching an peak of $626 million in March
of 2011 and a record low of $44.20 million in
August of 1993.
Uganda mostly imports oil (24% of total
imports) followed by pharmaceutical products and capital goods. Uganda’s main
import partners are: Kenya, UAE, China and
India.
The World Bank says Uganda can earn an
additional $2.5 billion from non-traditional
trading partners in the region, and close
the trade deficit in the next five years, if it
removes trade barriers with neighbours. To
maximize its trade potential, Uganda must
look beyond the East African Community
(EAC) to all of sub-Saharan Africa. Uganda
is also a member of the Common Market for
Eastern and Southern Africa (COMESA).
PAGE Xii
14%
$540 million
December imports
6%
$209 million
December exports
ii
SPECIAL REPORT
Strategic interventions have promoted growth
Trade ministry provides
enabling environment
 Closer to home, Uganda’s traded goods are
steadily getting more integrated in the East African
Community, South Sudan and eastern Democratic
Republic of Congo.
Further afield and by way of regional trade
agreements, the country’s export markets have
expanded in the European Union (EU), the Common
Market for Eastern and Southern Africa (COMESA)
and Asia.
The growth in Uganda’s trade is attributed to
a number of interventions by the government
through the Ministry of Trade, Industry and Cooperatives. Others involved have included relevant line
ministries together with Uganda’s Development
partners and the private sector.
The Ministry has the top responsibility of developing a regulatory framework to create an enabling environment for doing business and enhance trade.
Among the policies being implemented include;
 Buy Uganda Build Uganda (BUBU) Policy, to promote locally made products.
 The Competition and Consumer Protection Policy
 the National Accreditation Policy
 Principles for the enactment of the New Sugar
Control Act
 Principles for drafting the Accreditation Bill
 Principles for drafting Legal/Trade Metrology
 Principles for Industrial and Scientific Metrology
Other bills and policies that the Ministry is working
on to streamline trade and industry include;
 Trade Licensing Bill
 Uganda Development Corporation Bill
 Cooperatives Act Amendment
 Anti-Counterfeits Bill
 Competition and Consumer Protection Policy and
Bill
 Iron and Steel Policy
 Packaged Water Policy
 Grains and Cereals Policy
 Micro Small and Medium Enterprises (MSMEs)
Policy
 Trade in Services Policy
 World Trade Organization (WTO) Implementation
Policy
 COMESA Treat Implementation Bill
 Sanitary and Phyto-Sanitary Policy
 Metrology Policy
 Accreditation for Conformity Assessment Policy
 New Sugar Bill
 Leather and Leather products Policy
The Ministry is also busy in undertaking a number of strategic initiatives and interventions to promote domestic trade.
For example, through the Uganda Industrial Research Institute (UIRI), a wide range of competitive
Ugandan products have been developed from various raw materials including bananas, grains, cereals, fruits, meat, poultry, fish, ginger, vegetables,
mushrooms, tubers, hibiscus, moringa, irish potatoes, honey and bamboo shoots.
These have found export markets abroad and
helped to diversify Uganda’s export items.
Through the Uganda National Bureau of Stan-
dards (UNBS), the Ministry is also encouraging
manufacturers to strive for higher levels of safety
and quality.
In the meantime implementation of the Preshipment Verification of Conformity (PVoC) programme is success fully going ahead to minimize
the risk of unsafe and substandard goods entering
Uganda. The measure not only protects consumers against dangerous and substandard imported
products, but through PVoC, the government has
reduced the entry of substandard products by
about 25%.
In tandem with this policy, the government has
continued to gradually eliminate Non-Tariff Barriers (NTBS) to facilitate the smooth flow of trade
within and across common borders.
At one time, Ugandan milk exports to Kenya were
impeded by a complicated certification system.
Such was the situation that one Kenyan processor
risked losing a $1 million market. However once
the Kenyan and Ugandan authorities got together,
the certification procedures was made simpler.
Another frustrating NTB for business people
HON. Amelia Kyambadde minister of trade,
industries and cooperatives.
Intra- EAC trade
5.5
Dollars billion
Fiscal year 2012
involved the lack of a harmonized procedures
manual. This caused constant delays in clearing
of imports. Prompted by the East African Community Heads of State, the members countries
soon agreed to introduce harmonized procedures
manuals and this was adopted during the meeting
of SCTIFI on May 30, 2012.
Removing NTBs is a constant process. With the
support TradeMark East Africa (TMEA), the Ministry
has set up a National Committee on the elimination of Non-Tariff Barriers, and a Unit at the Ministry
to focus on the elimination of NTBs.
Through this initiative, an NTB Reporting system
through which the business community can report
NTBs and have them hoepfully quickly resolved,
was launched in July 2014.
Complaints can be made by mobile phone or
email. The user dials USSD Code *201 hash and follows instructions to select the appropriate NTB to
report and then submits a complaint.
To date, over 40 complaints have been reported
and resolved. The most common reported NTBs include the unstable URA Asycuda world system for
clearance, delays at the weighbridges, delays
and charges at the Mombasa port in Kenya and
the auctioning of vehicles destined for Uganda at
Mombasa port.
Through the same initiative to eliminate NTBs,
other achievements have been realized;
*Cash bonds on Uganda-destined, goods mainly
on high value products like cars, electrical product
and sugar by the Republic of Kenya, were removed.
*Uganda and Kenya harmonized Axle Load control measures on weighbridges by implementing a Gross Vehicle Mass (GVM) of up to 52 tonnes
depending on vehicle configuration, and also removed the unnecessary check-points and weighbridges along the Northern Corridor.
*The Kenyan Government removed requirements
for physical inspection, transit permits, payment of
transit fees, and possession of import permits from
countries of destination by Ugandan exporters of
Hides and Skins.
*The 16% VAT on services (Port Charges) for all
goods cleared for transit into Uganda has been removed since there was no mechanism for claiming the VAT by Ugandan-registered clearing firms.
*Uganda Revenue Authority established an Electronic Cargo Tracking System. It aims at eliminating
delays and costs of escorting transit cargo to the
4.5
Dollars billion
Fiscal year 2011
borders and avoiding short landing of cargo.
*Uganda and Rwanda signed a bilateral Agreement on the Removal of NTBs and constituted a
Monitoring Committee on the elimination of NTBs
between the two countries.
The five member states of the EAC are now more
committed to eliminating NTBs. According to the
latest EAC Time Bound Programme report on the
elimination of identified NTBs, dated September
2014, 59 have been cumulatively resolved, 22 remain unresolved while eight new ones have been
reported.
Closer economic integration has resulted in increasing volumes of trade which is encouraging
business people to think on a bigger scale.
At the regional level, data from the EAC Secretariat shows that intra-EAC grew to $5.5 billion in
2012, up from $4.5 billion recorded in 2011.
SPECIAL REPORT
iii
Doing business in Uganda and beyond
The Ministry encourages
Ugandans to showcase
their products
The three Northern Corridor country Presidents, Uhuru Kenyatta, Paul Kagame and
Yoweri Museveni have launched several projects intended to ease trade across the
borders and cut costs of business people.
Hon. Kyambadde launching the NTB reporting
system developed to reduce Non Tariff barriers
to trade flows in July 2014.
Investment Environment In Uganda
STATUS OF INVESTMENT
Currently, Uganda is the second best location in the East African Community (EAC)
to locate investment. Tanzania’s leading
position is by virtue of the numerous mineral resources. Uganda has also recently
become an important source of FDI to other
countries especially Southern Sudan and
Rwanda. In 2013, FDI outward flows from
Uganda grew to $1 million.
The levels however, were lower than the $
4 million peak levels registered in 2010. FDI
outward stocks from Uganda grew upward to
$2 million in 2013.
FDI flows to Uganda have grown progressively since the 1990s from negative trends
to over $1 billion.
CREATING CONDUCIVE BUSINESS
OPERATING CLIMATE THROUGH
ONE STOP CENTRE SERVICES
FOR INVESTORS
Uganda Investment Authority (UIA) has been
transformed into a One Stop Centre offering
free services where investors can register
their businesses and get all relevant licenses
related to their business under one roof.
Currently, the core agencies include:
Uganda Registration Services Bureau
(URSB) - company registration
2. Uganda Revenue Authority (URA) - taxation issues
3. National Environment Management
Authority - environmental compliance
4. Directorate of Citizenship and Immigration Control - work permits, visas,
etc
5. Lands Ministry - land ownership verification
6. Uganda Investment Authority – Investment licenses and aftercare
UIA and URSB have entered a Memorandum of Understanding to build a physical
One Stop Centre for investor facilitation in
Kololo, Kampala.
FDI Flows to the EAC in millions of Dollars, 2006 – 2013
1.
Government has also budgeted for the development of an integrated on line system
(electronic one stop centre) that will link all
the government agencies that deal with licensing business in Uganda so that a potential investor does not need to waste time and
money in duplicating paper work for various
registrations. In the interim, the Investment
License as well as other investment needs
like industrial land can be applied for online
via the UIA website www.ugandainvest.go.ug
FDI inflows to Uganda in million USD, 1990 – 2013
iv
SPECIAL REPORT
Making a mark on regional prosperity
Q & A with TradeMark East Africa:
13
One-Stop-Border-Posts
technically
supported by TMEA in East Africa
Allen Asiimwe, the TMEA Uganda Country Director, leads top Dutch diplomats resident in the region around the Busia frontier post, which has been
revamped into a One Stop Border Post (OSBP).
What is the role of TradeMark East Africa (TMEA) in
facilitating trade and developing the competitiveness of Ugandan products?
TMEA is a specialist trade facilitation agency that
aims to grow prosperity through trade for all East
Africans.
We aim to increase trade by improving EAC
trade competitiveness that has three elements:
(i) improving physical access to markets, (ii) enhancing the trade environment and (iii) improving
business competitiveness.
We work with and support National Governments and agencies, the East African Community,
private sector and civil society organisations.
We work on a wide variety of areas that support
trade including trade facilitation, infrastructure
development, private sector advocacy and development and trade policy. You could therefore
say we facilitate trade by supporting the above
mentioned segments and by improving physical
access to markets, enhancing the trade environment and improving business competiveness.
Our key delivery targets by the end of 2016 are:
to increase trade by 10% for Uganda and the EAC
region, increase the share of intra-regional trade
by 25%, reduce time from ports of entry (Mombasa
and Dar) to points of destination (Kampala, Kigali
and Bujumbura) by 15% and reduce time through
borders by 30%.
What has TMEA done so far in this regard?
First, TMEA is helping with construction of OneStop-Border-Posts (OSBPs). OSBPs envisage a
scenario where all exit and entry formalities are
handled at one location, in the country of destination.
For example, a truck that is bringing goods to
Uganda from Mombasa, will clear at Busia, but
only at the Ugandan side and not the Kenyan side.
The basic concept behind the OSBP is to reduce
delays by allowing trucks carrying goods to stop
once, not twice, hence the term ‘one-stop’.
When a truck stops once, the officials from the
two countries share facilities on the incoming or
exiting side of the border. In addition the customs
and other border procedures involved in moving
goods (called ‘Integrated Border Management’ or
IBM) are streamlined, and electronic systems set
up to allow for faster border clearance processes.
Streamlining is also combined with better co-
ordinated management practices between the
(sometimes many) agencies at the border and
multi-tasking of officials at the border to reduce
on time. TMEA combines the infrastructure (or
‘hardware’) development of OSBPs to improve
the flow and efficiency of freight through borders
by working on the streamlining of procedures (or
‘software’).
The targets of these efforts are to reduce time
through borders by at least 30%, unleashing important time and cost savings for businesses in
Uganda and East Africa.
We support the hardware and software aspects
of 13 One-Stop Border Posts in EAC across seven
border locations. All OSBPs are being developed
in partnership with the relevant governments and
often in partnership with other agencies, especially the World Bank. The OSBPs include: Taveta/
Holili (Kenya and Tanzania); Mutukula (Tanzania
and Uganda); Kabanga/Kobero (Tanzania and
Burundi); Kagitumba/Mirama Hills (Rwanda and
Uganda); Busia (Uganda and Kenya); Nimule/Elegu
(South Sudan and Uganda), and Tunduma (Tanzania and Zambia).
It should also be noted that TMEA also is developing the Kagitumba/Mirama Hills Bridge and a 37
kilometre Ntungamo Mirama Hills road.
Secondly, TMEA supports the implementation
trade facilitation reforms such as the upgrading
of ICT technology at revenue authority headquarters. This improves efficiency at borders, such as
the TMEA support to the upgrading of Uganda’s and
Kenya’s customs systems that have reduced the
need for original paper copies of trade documentation.
Similarly Uganda Revenue Authority’s (URA) introduction of cargo tracking systems has improved
tracking of trucks which has reduced the need to
inspect consignments at borders and completely
eliminated the need for physical escorts. Furthermore, our work with URA on its Authorised Economic Operator (AEO) system has substantially
reduced the ‘at the border’ inspection of goods to
high risk freight only.
URA’s aim is to reduce inspections from 75% of
cargo to 15% based on pre-screening of risky consignments. Clearly these reforms have a big impact on the speed of cargo clearances at borders.
In addition, our support to the elimination of
Non-Tariff Barrier (NTBs) through support provided
to the Ministry of Trade and Industry to implement
an NTB monitoring system, and constitute an NTB
monitoring committee, that enables the general
public to report NTBs through SMS contributes to
reduction in transport costs along key corridors in
East Africa.
NTBs account for a significant proportion of the
high transportation costs in Uganda and the EAC
which are estimated to limit intra-regional trade by
approximately 15% (according to the World Bank)
and constitute significant limitations to foreign direct investment.
Finally, enhancing the capacity of Uganda National Bureau of Standards to simplify and increase the transparency of import/ export procedures; producers improve the quality of products
produced; bureau of standards staff and producers improve their understanding of standards and
requirements.
Together, the results will lead to the UNBS improving efficiency and effectiveness of testing.
Currently, the product testing and certification time
by UNBS has decreased which enables Ugandan
products to compete favourably in the EAC regional
market as well as the international market.
What is the long term vision of TMEA for Ugandan
products?
By 2017, TMEA aims to (a) reduce border clearance times by 30% from baselines conducted prior to work starting at the various OSBPs; (b) reduce
transport times by 15%; and an (c) increase by 25%
intra-regional exports of Ugandan products.
v
SPECIAL REPORT
Compliance eases cross border trade – Hima Cement
The past couple of years have seen increased volumes of trade
across borders within the East Africa Community states as well as
with other countries outside the trading bloc. For instance, recent
data from the EAC secretariat showed the EAC trade volume has
been growing at an annual rate of 22 per cent within the bloc. The
trade trend with other neighbors like South Sudan and Democratic
Republic of Congo is not far off.
This regional trade is being driven by manufactured products like cement. Hima Cement Limited, whose plant in Kasese
-Southwestern Uganda- produces 850, 000 Metric Tonnes of cement per annum is not a stranger to doing business across the
region. While a bulk of its produced cement is consumed locally,
the rest - about 350,000 MT- is exported to the neighboring countries primarily Rwanda and DRC.
Patrick Mugenyi, Hima Cement Sales Director says in the cement business there has been notable progress in cross border
trading in recent years. “We see more commonalities while doing
business with our neighbors,” Mugenyi says, “There is an ongoing
commitment by the governments in the region to see the trade
limitations removed for instance by enforcing Axel Load Legislation across the region.” But, he adds, not all businesses may be
able to attest to that depending on their business practices. “We
have seen a steady flow of trade because we comply with regulations in each market,” says the Sales Director for Lafarge Uganda
which is involved in exports to Rwanda and DRC as well as importing from Kenya.
struction activity thus driving down the demand for cement in that
market,” Mugenyi adds. Such uncertainty has also been experienced
in DRC from time to time.
sector is growing fast with many public infrastructure projects lined
up as well as private investments. The cement manufacturer plans to
continue being a key supplier for the construction sector within the
EAC bloc and beyond.
Despite such challenges, Hima Cement acknowledges this is a
good time to be in the cement business. The region’s construction
Dream big.
You’ve got Powermax
“Non-compliance by some business operators is a challenge.
It distorts trade, creating uneven playing field for businesses in
the same industry,” Mugenyi says. If non-compliance is a challenge to cross border trade, are the governments doing enough to
We have seen a steady
flow of trade because we
comply with regulations in
each market.
ensure all cement importers/ exporters comply? “We have seen
improvement and more strict measures are being taken,” Mugenyi responds. For instance, Hima Cement which relies on the road
network for transportation of its products in markets like South
Sudan and Congo is difficult.
“The poor road network in some of our markets makes it difficult for us to do business in such countries,” says Mugenyi. But
he notes that not all markets have a poor road network, Rwanda for
instance, he says, and the roads are excellent while within Uganda
the road network is fair. In the cement manufacturer’s experience,
they have had to take hits in instances of political turmoil in their
export markets. “The political upheavals in South Sudan affected
most business. For us such political uncertainty halts any con-
Powermax is the ideal cement for high
strength concrete structures such as dams,
bridges, highways and high rise buildings.
Its low heat of hydration reduces cracking
making it suitable for mass concrete works.
Use POWERMAX for your large scale projects.
Hima Cement are cashing in on the region’s rapidly growing
construction sector as spending rises for new public
infrastructure projects as well as private investments in
housing.
Part of you. From the start
vi
SPECIAL REPORT
Erasing trade barriers
Interview with Minister of East African
Community Affairs
East African Community (EAC) member states
signed the Single Customs Territory (SCT)
in 2005 to ensure free movement of goods
and services across the common borders.
The ultimate aim is to reduce the cost of
doing business in the region. SHEM BAGEINE,
Uganda’s State Minister for East African
Community Affairs, recently talked to Paul
Tentena about what has been achieved during
the past 10 years.
One of the principles agreed upon was to
establish a common tariff to expedite the
movement of goods within the region. This is
being implemented in the Customs Union, but,
to completely remove Non-Tariff Barriers, we
are going to set up a law that will completely
eliminate Non-Tariff Barriers. The law will come
with penalties and sanctions to offenders.
Well, to a certain extent, yes. When we
institutionalized the Single Customs Territory
(SCT), there were challenges in the transportation
of goods which used to take a number of days.
What are some of the unforeseen challenges
facing the Single Customs Territory?
The treatment of goods that were
exempted from paying duties still needs
improvement. Capacity building is still a
challenge as well as the collection and
management of revenue and taxes
being paid.
This was due to bad roads, very many road
blocks, and weigh bridges. Today, transporting
goods has improved taking fewer days.
Secondly, the other factors that hampered doing
business, like road networks have all improved.
Road blocks and weigh bridges have all reduced.
The supply of power has also improved. This has
all helped in cost reduction to doing business.
Clearing Agents blame the ever
growing network failures/
breakdowns as a new challenge
to doing business. How are you
handling this at a ministerial
level?
What has been the government contribution
towards this reduction?
Commercialization of agriculture cannot be
done through peasantry farming, but through
Private Public Partnerships (PPP). We’re also
developing agricultural infrastructure like silos
and road networks and encouraging value
addition. All these will lessen the cost of doing
Increase in traded goods
Non-Tariff Barriers?
Has the cost of doing business reduced with in
the region?
Working out determined priority projects like
improving the road infrastructure and energy.
This we think will lead to commercialization of
agriculture hence making Uganda a food basket.
50%
business.
Has the volume of trade across borders
increased?
The volume of goods being traded has definitely
increased. I don’t have figures with me right now,
but goods being traded have increased by more
than 50%.
The imports have gone down as we work on
import substitution.
How has the EAC fared in handling the issue of
Yes, we’re aware of the
failures in the networks
that delay the smooth
running of the business. We’re discussing it, but
at times some of those challenges may occur.
When change is introduced, some people may
want to fight it. But, we’re discussing it, including
complaints of extra charges and arbitrary fees
being charged.
Network failures hinder transactions
 Clearing and forwarding agents insist
network and internet failures remain a major hindrance to doing business in the region,
Writes Paul Tentena
Under their umbrella, the Uganda Clearing Industry and Forwarding Association (UCIFA), Kassim Omar the UCIFA President said there should
be strong infrastructure back-ups to limit the
frustrations caused to business people through
such failures and delays.
“This is still a very big problem as far as the
Single Customs Territory is concerned. Payments through banks credit transfers, bank
cheques/drafts, and ordinary cheques, are time
consuming. Even telegraphic transfer (TTs) consume a few days. There are quicker methods like
payment through mobile money and Electronic
funds transfers (EFTs) which can be adopted to
ease business,” he said.
There are also payments through direct debit
where customers issue “Standing Orders” to
their bank to make regular or recurrent payments to third parties with accounts. There is
instantaneous debit to the payee and credit to
the receiver.
Individuals or companies use it for payments
of salaries, loans, or utility bills, among others.
Omar said the level of human resources and
allocation should also be given priority by tripling staff working at Customs points.
“The eight hour shift is too big for effective delivery of work.
Governments must triple the number of
workers to work for shorter hours to avoid delays
and exhaustion,” Omar said.
In October 2013, Presidents Yoweri Museveni
of Uganda, Paul Kagame of Rwanda and Uhuru
Kenyatta of Kenya agreed to implement a Single
Customs Territory (SCT) between them as members of the East African Community. Tanzania
and Burundi followed suit at the Summit in No-
vember 2013.
At a stroke (of the pen), the agreement removed multiple weighbridges, police and
customs checks along the Mombasa-Kampala-Kigali route and introduced computerised
clearance and electronic tracking and other innovations that overturned many of the hurdles
to free trade or Non-Tariff Barriers (NTBs) that the
Northern Corridor was infamous for.
Omar said managing other stakeholders like
the shipping lines must be handled as they impose extra charges and arbitrary fees to their
members, hence being an impediment/ a
stumbling block to doing business in the region.
vii
SPECIAL REPORT
Special Report: Doing Business in Uganda,
East Africa and beyond
The Uganda Export Promotion Board is a specialized agency set up by Government for the
development, promotion and co-ordination of
all export related activities that lead to export
growth on a sustainable basis. The institution is
supervised by the Ministry of Trade, Industry & Cooperatives of the Republic of Uganda.
The Board provides the following services;
•
TradeandMarketInformation
•
Promotethedevelopmentofexports
•
Tradepromotionalservices
•
Customizedadvisoryservices
•
Formulate and recommend to Government export plans, policies and strategies
The Uganda Export Promotion Board fully supports the widening and deepening of the integration process among the five Partner States. The
entry point of the integration process of the East
African Community is the Customs Union which
commenced in 2005. The EAC entered into a fully
fledged Customs Union in January, 2010 and
commenced the implementation of the CommonMarketinJuly,2010.
TheEastAfricanCommunityFactsandFigures
- 2014 published by the EAC Secretariat indicates
that the total aggregate output (at current prices)
for the region amounted to US$ 110.3 billion in
2013, compared to US$ 99.3 billion in 2012. The
per capita GDP for the region in 2013 ranged from
US$ 294.2 in Burundi, $633 in Uganda, $709 for
Rwanda, US$742 in Tanzania to US$ 1,055.2 in Kenya. The dominant sector in all the Partner States
in 2013 was agriculture, followed by wholesale
and retail trade and manufacturing.
This presents opportunities for Uganda’s business community, particularly the Agriculture and
agro-processingsector.Theregionalmarketremains Uganda’s most important trading block.
Total Exports to EAC stood at US$ 643.6 million
in 2014 compared to US$ 627.6 million in 2013, a
growth of 3%. Kenya was Uganda’s overall number one export destination, followed by South Sudan and Rwanda was 3rd in 2014.
SEATINI
Strengthening Africa In The World
Why Export to COMESA and the EAC?
 The COMESA, is a preferential trading area with
19 member states. EAC comprises 5 member
states.
 Marketsize–EAC(143.5millionpeople),COMESA (390 Million people) - larger and wider market.
 Reduction in transaction costs – removal of
border controls & trade barriers, less customs
procedures.
 Growing Middle Class in the region - Shopping
trends will shift to Super markets presenting
opportunities for products sold directly to supermarkets.
 Demographics:
Regional
population structure has a
young population of approximately 45% (under age 15),
31% age between 25 – 50,
21.3% is population of age 15
–24.Thispresentsopportunities for consumer products.
 Urbanization (6%) – Average urbanisation rate of 6%
presents growing demand
for construction and building
materials, mattresses, food
products, health, education
and transport-related services, and for pharmaceuticals.
 Regionaldistributionnetworksduetoregional
mobility and connectivity the following sectors
same vein stringent conditions were set on income levels and age
brackets for applicants of work permits which deny young workers’
However, 4 years down the road, access to employment in the
EAC by Ugandan youth has been limited. SEATINI-Uganda, a
Civil Society Organisation working on issues of trade and development has been advocating for policy reforms that create youth
employment within the region. Among the activities undertaken
has been research into the challenges facing the process of free
movement of workers. SEATINI conducted a study entitled, “Free
movement of workers in the East African Community: Implications
for youth employment in Uganda and the EAC”. The study analyzes how the free movement of workers process has performed
since the establishment of the Common Market Protocol 4 years
ago as well as the policy and practice factors constraining this process from impacting positively on youth employment. The issues
identified include those below:
The research study found that the constraints to the realization of
the free movement of workers across the region arise from both
the provisions within the Common Market Protocol and from the
structures of the labor market economies in the region.
For example, the protocol only allows movement of highly skilled
formal workers yet most of the job seekers are fresh graduates
who lack the skills and many are in informal sector. The protocol
also allows partner states to issue work permits as a prerequisite
for one to access employment in the region. However, the fees
charged by the partner states are too high and act as a hindrance
to movement of workers. The Protocol also prohibits holders of
a student pass from taking up employment in the host country.
It emerged therefore that partner states have a lee way to deny
young workers access to their labour markets and have been doing so even though this is against the spirit of regional integration.
For example Kenya eliminated fees on work permits but in the
EXPORT OPPORTUNITIES IN THE REGION
a) Manufactured goods
• Cement – Rwanda, DR Congo, S.Sudan, Burundi
• Sugar–S.Sudan,DRCongo,Rwanda
• CookingOil–Rwanda,S.Sudan,DRCongo
• Steel&Iron–S.Sudan,DRCongo,Kenya,Burundi
• Soap–Rwanda,S.Sudan,DRCongo
b) Agro-processed products
• Cereal Flour namely maize, Millet and soya
flour have export potential to South Sudan, Kenya and DR Congo
• FruitJuicesmainlytoS.Sudan,Rwanda&Kenya
c) Agricultural Products:
• Rice–DRCongoandSouthSudan
• DriedBeans–Kenya,DRCongo&SouthSudan
• SoyaBeans–Kenya
• Cassava-Burundi
d) Meat and Edible Meat Offals
• Opportunities for this Product exist in DRC
Congo
Uganda Export Promotion Board
SEATINI CHAMPIONS POLICY REFORMS TOWARDS
A REGIONAL INTEGRATION THAT CREATES EMPLOYMENT
One of the biggest challenges facing the East African Region is
unemployment especially amongst the youth. In Uganda alone
youth unemployment stands at over 62%. The Common Market
Protocol which came into effect on 1st July 2010 provides for,
among others, the free movement of workers across the EAC region. This freedom has the potential of reducing the rampant youth
unemployment faced by the region.
The challenges constraining the realization of the free movement
of workers
might be expected to see expanding opportunities: ICT, transport, financial services, pharmaceuticals and healthcare and warehouse
services.
Uganda in particular was found to have a high mortality rate of
firms, where over 60% of new enterprises do not live beyond
their second birthdays. The study
noted that there is an unfavorable
legislative environment within the
partner states and low potential
to create decent and productive
work in all the economies of the
EAC. It was also noted that there
are challenges facing the use of
National Identity Cards as travel
documents, citing the delays in
issuance of these identity cards
in Uganda.
Policy recommendations towards
actualizing the free movement of
labour in Uganda and the EAC
SEATINI is advocating for a
number of policy reforms to address the challenges identified as
hindrances to the use of the free
movement of workers as an avenue to alleviate youth unemployment. These include the following:
Prof. Yash Tandon shaking hands with the Minister for EAC Affairs Shem Bageine. Looking on;
SEATINI Country Director Ms. Jane Nalunga and Mr. Martin Wandera
access to the labour market. It should be noted that the youth are
not only the most in need of jobs, but also the most suitable for
labour mobility since they are at the start of their careers, as well
as have limited responsibilities that would ‘tie’ them to one place.
The provisions in the Common Market Protocol are therefore not
cogniscent of the labour needs in the region.
The challenges arising from the structures of the partner states’
labor market economies include prevalence of unattractive wages,
unattractive terms and conditions of work in the EAC, high levels
of jobless growth and the characteristic of ‘exporting jobs rather
than creating them’ through export of unprocessed goods which is
common amongst all partner states.
The waiving of work permits fees
across the EAC to a level that is
manageable by workers especially by the youth.
The EAC Partner States should
expedite the process of deepening and consolidating systems for
Mutual Recognition of Academic Qualifications (MRAQs) because,
working in another Partner State under the CMP is contingent on
possession of requisite academic qualifications or skills, yet the
partner states have differing education systems and standards.
Establishment of a mechanism at regional level for accreditation
and validation of informally acquired skills. The study noted that
Uganda has already taken some steps in this disregard where by
Uganda’s BTVET3 Act 2008 mandates the Directorate of Industrial
Training (DIT) to assess and certify formal and informal skills training. The DIT has already established the Worker’s PAS (Proficient
Acquired Skills) which certifies the skills and competences of an
individual for a particular trade. This system should be popularized
in the region to enable access to jobs by workers who possess
informal skills.
Relevant government departments in collaboration with training
institutions and employers should review the nature of skills development training structures, systems and outcomes. Such reviews
should aim at putting in place mechanisms for improving the quality of education and making it easily adoptable to emerging labour
market needs.
Uganda ministries responsible for labour, migration, employment
and integration should undertake intense public awareness about
the available job opportunities and related prerequisites. Potential
migrants need to be informed about the conditions governing entry, work and residence, skills required, cultural issues as well as
their rights and obligations in destination countries.
Uganda should embark on establishment of a fully-fledged independent Ministry of Labour to handle the challenges facing implementation of the process of free movement of workers.
Other recommendations include, Strengthening of National and
Regional labour migration data management, institutionalization of the National Identification System, easing cross border
movement of persons, establishment of a regional framework for
social security coordination, strengthening deployment of labour
attachés, managing brain drain, and facilitating reintegration of
returning migrants.
The study was launched by the Minister of state for EAC affairs
Shem Bageine last year. In his speech, the minister under took
to raise the issues and recommendations raised by SEATINI at
the Council of Ministers meetings at EAC level. He revealed that
the EAC Ministry is in final preparations to establish regional integration officers at the border points to assist Ugandans and other
East Africans that seek to cross and tap opportunities available in
other partner states with the relevant information and supporting
documentation.
SEATINI will continue to engage with workers’ unions, higher institutions of learning, employers’ associations, policy makers, and
the media and youth organisations at both national and EAC levels
to raise awareness and to ensure that the EAC integration process
is truly people centered.
viii
SPECIAL REPORT
Communications
key in trade deals
Kampala, Uganda –The penetration of telecom services in Uganda and East Africa
as a whole, has been central in enabling business and trade to flourish within the
region.
However the cost of making regional calls has been a concern. For some time now
business people have been calling for a reduction of tariffs to complement with the integration agenda of the East African Community.
This bottleneck moved an inch closer to being solved when regional Presidents at the
5th Heads of State Summit for the Northern Corridor Integration Project held in Nairobi, Kenya, on 2nd May, 2014 and the 6th Heads of State Summit held in Kigali, on 3rd July, 2014
urged the speedy implementation of the One-Network-Area (ONA) before January 2015.
This means calls within the region are exempted from surcharges applied on international incoming calls, removal of additional charges to subscribers on account of roaming and removal of charges for receiving calls.
The one network Area enables subscribers travelling within region to be charged as
local subscribers in the visited country network and operators within the region were
required to re-negoiate their bilateral agreements to ensure full implementation of the
One Network Area.
The implementation of ONA will play a part in enhancing regional socio-economic
integration, fast-track the regional common market, reduce cost of doing business for
all members, spur other economic activities such as trade and services and increased
government revenues from increased usage of ICT services.
The coming of ONA which has been implemented in Kenya, Uganda, Rwanda and South
Sudan has made it possible for phone users to communicate cheaply leading to increased calls traffic unlike in the past when taxes forced operators to charge high tariffs.
The high tariffs charged on roaming services were a result of taxes which had been introduced by member countries to generate revenue. On July 1st, 2013 Uganda introduced
a $0.09 Excise Duty per minute of all international incoming calls to Uganda. As a result
total annual incoming international traffic fell from about 425 million minutes in June
2013 to 280 million minutes in June 2014. This amounts to a 35% decrease in traffic and
projected revenues from the said tax.
“Generally the cost of calling within the region had gone up. That’s why there was this
move to bring it down. Hence the One Network Area. Levying was removed for calls within
East African Northern Corridor. This has brought the cost down and eased doing business.
Burundi and Tanzania also think it’s a good thing and are thinking of joining before end
of June,” Eng. Patrick Mwesigwa the Director, Technology and Licensing at Uganda Communication Commission said in an interview.
He said with ONA in place, there has been a considerable increase in international call
traffic of about 30%. Now people are freely and affordably making calls at the same rate
as in their own country. Telecom companies, who are the service providers, have also
been quick to support ONA.
Wendy Angu’Deyo, the Manager Corporate Communications at MTN Uganda, said roaming in Kenya, Rwanda or South Sudan, will cost a subscriber Ush360 per minute to call
other countries in the One Network Area. This is whether or not you are calling back home
to Uganda or calling other networks in the One Network Area.
“For example when in Kenya, calls to Kenyan numbers will cost Ush360 the same as
calls to South Sudan and back home to Uganda. This rate is comparable to the Ushs5.5
per second rate or the Ush6.5 per second rate (MTN Zone),” Angu’Deyo said.
Other telecom service providers in Uganda have fallen suit including Uganda Telecom
Limited (UTL) the oldest telecommunication company in the country whose rates are
indicated below
Description
Charge(shs)
Eng. Patrick Mwesigwa Director, Technology and Licensing at Uganda Communications Commission
mobile services is increasing due to affordability and that
as such Operators will need to invest more money into
expansion of links and switching capacities to accommodate more calls.
“The effective rate per minute has gone down and the
revenue for those specific destinations as well. However
we are optimistic to grow back the revenue figures with
increased usage/calling due to enhanced affordability.”
Otaremwa Otuhumurize, the LAP Green Network Group
Roam, Interconnection and International Carriers Direc-
Countries
Kenya
Rwanda
South
Sudan
1.Roaming calls to one network (UTL
roaming customer calling Kenya, Rwanda,
South sudan)
Ushs
350
350
350
2.Calls back home by Roamer(UTL roaming customer calling back home)
Ushs
350
350
350
3.Receieving calls while roaming(UTL
customer receiving calls while roaming)
Ushs
0
0
0
4. International calls to one network (UTL
Customer calling Kenya, Rwanda, South
sudan)
Ushs
320
320
320
Uganda Telecom, also a service provider of both voice and data, says the usage of the
Mobile phone use has enabled trade in the region.
tor said.
Uganda Telecom, a firm with good infrastructure, has
complied with the ONA directive by setting new calling
affordable rates to the member states to enjoy telecom
solutions ranging from fixed line solutions, ISP and data
solutions, Blackberry solutions, Mobile Money services
and GSM Tariff plans.
ONE NETWORK AREA FOR DATA
Now that the One Network Area for voice is turning out
to be a success story, the next thing on the agenda is One
Network Area for data to meet the demand for internet
based communication tools like emails, website management, social media and research.
Eng. Mwesigwa said negotiations are ongoing with
operators on how to involve data on One Network Area.
He says they are optimistic these discussions should be
concluded by June.
“The regulator is yet to provide guidelines on the ONA
rate for data. When done, Uganda telecom will comply.
Based on the East African Community arrangement, the
EA Governments sat in the northern corridor and the
heads of state agreed that in order to make EAC a success, the ONA Agreement had to be taken into effect.
Based on that, the Heads of states decided to waive excise duty on international incoming calls from and to all
member states within the ONA; Kenya, Rwanda, South Sudan and Uganda. This was clearly a directive that all Telecoms in the member states complied to. The decision to
offer the same for data as well has to come from a similar
round table discussion and agreement and not a single
Telecom.” Uganda telecom explains.
ix
SPECIAL REPORT
Uganda’s Electricity Sector - Growing towards
Efficient, Reliable and Sustainable Supply
Following the ratification of the Electricity
Act in 1999, the subsequent liberalization of
the electricity industry and unbundling of
the state-owned vertically integrated utility – Uganda Electricity Board in 2000, the
performance of the electricity supply industry has steadily improved over the past ten
years with more private sector participation
and Government investment.
There has been an increase in generation
capacity from an installed capacity of 380
MW in 2003 to 852 MW by the end of 2013.
The capacity increase was occasioned by
commissioning of five small hydropower
projects, addition of co-generation capacity from sugar producing companies, commissioning of the 250 MW Bujagali hydropower plant in 2012 and establishment of
two heavy fuel oil-based plants.
Uganda’s transmission network has increased from 1,165km in 2003 to 1,626km
in 2013, the main addition being the Bujagali interconnection line. On the distribution
side, we have witnessed an increase in the
number of distribution utilities to nine from a
single utility at the time of unbundling. Energy sales have more than doubled from
1,038GWh in 2003 to 2,118GWh in 2013.
Dr. Benon M. Mutambi, Chief Executive
Officer, Electricity Regulatory Authority,
Uganda.
Electricity Regulatory Authority (ERA),
through her mandate has continued to
focus the regulatory drive on expansion
of power generation capacity with corresponding investments in transmission and
distribution infrastructure, while placing emphasis on provision of good quality electricity supply and service.
The expansion of generation infrastructure
is a key objective in seeking to ensure the
sustainability of the Electricity Supply Industry (ESI) to be able to cope effectively with
the growing demand in the sector and to
meet the strategic national objectives. The
long-term supply requirements to achieve
expanded generation capacity include
the development of large hydro resources
like the 600 MW Karuma, 183 MW Isimba
and 600 MW Ayago hydropower projects,
which will further contribute to a more sta-
ble electricity supply, thus, creating a more
conducive environment for trade and competitiveness of Uganda’s goods and services in East Africa.
Strong partnership with Development Partners has enabled ERA to establish the Global Energy Transfer for Feed–in–Tariff (GET FiT)
initiative that has facilitated accelerated
development of renewable energy resources, including hydropower, solar, wind
and biomass technologies. These technologies will diversify Uganda’s electricity mix
thereby guaranteeing adequate, reliable
and secure electricity supply. A number
of small renewable energy projects have
been licensed to add another 108.5 MW of
installed capacity to the national grid in the
next two to three years. ERA and GET FiT
Uganda recently concluded the first tender
process for Solar Photovoltaic (pv) projects
of 20 MW to be developed in Uganda. The
winning consortia of Simba Telecom Ltd./
Building Energy SpA and Access Uganda
Solar/TSK Electronica will each build, own
and operate 10 MW grid-connected solar
projects in the Eastern districts of Tororo and
Soroti. These projects will produce the first
grid-connected solar power in Uganda.
The electricity industry is undoubtedly an engine of growth as it feeds into all sectors. To
support the growth of Uganda’s manufacturing sector, Electricity Regulatory Authority has continued to incentivise industrialists
to increase or shift their activity to off-peak
periods. The Authority has also ensured that
there is reliable, quality supply of electricity
by ensuring total elimination of loadshedding and periodically setting industrial tariffs
that are regionally competitive.
The Government of Uganda recognizes
the need to strengthen regional interconnection to enhance grid stability and also
share the resources available in the region
for social economic development of the
East African region. To this effect, various
regional interconnection lines are at different stages of implementation. These
include: the Uganda – Kenya and Uganda
- Rwanda projects currently under construction with expected completion in 2016; the
Uganda – Democratic Republic of Congo
and Uganda – Southern Sudan projects
which are at feasibility study stage; and
the Uganda – Tanzania interconnection
project whose feasibility studies have been
completed. Once the above-mentioned
projects are completed, the region will be
ready to trade under a power pool which
will not only provide market for our surplus
generation capacity but also give us access to any available cheap sources of energy.
Electricity Regulatory Authority is involved
in a number of continental, regional and
national regulatory activities which are essential to the development of effective
utility regulation through facilitating the
harmonisation of regulatory policies, exchange of information and capacity build-
Development Partners, GOU, ERA and KFW representatives celebrate the Solar Project
Development Awards with the winners.
ing. ERA maintains ongoing collaboration
with regulators in countries within the East
African region under the Energy Regulators Association of East Africa (EREA) and
the East African Power Pool (EAPP) to harmonize regulatory policies, processes and
standards that will facilitate achievement
of the key outcomes hence contribute to
regional socio-economic development.
East African Power pool policy coordination ensures that power generation and
interconnection projects are simultaneously planned in the region to ensure interconnectivity of the national power systems
and a common Grid Code is developed
to facilitate the integrated development
and operations of the power systems of the
EAPP member states.
and non-renewable energy sources. This is
aimed at realizing the broader objectives
of attracting investments, competitiveness
and power trade for the mutual benefit of
Ugandans.
Electricity Regulatory Authority recognizes
that availability of sufficient, reliable and
affordable energy is crucial for the manufacturing sector and therefore social economic transformation. Energy supply and
energy access are, therefore, pivotal in
ERA’s ten year Strategy, the focus of which
is the supply of sufficient, reliable, costeffective and environmentally friendly energy through promotion of both renewable
An aerial view of the Bujagali Hydro Power station.
380MW
Installed Power Generation Capacity
2000
852MW
Installed Power Generation Capacity
2013
x
SPECIAL REPORT
Ministry of Trade opens up trade and value
addition Karamoja region
Hon. Janet Museveni Minister for Karamoja Affairs asked the Ministry to help
out
The Ministry of Trade, Industry and
Cooperatives has launched an initiative to promote trade in the Karamoja
region in Eastern Uganda with emphasis on value addition to the abundant
resources in the region. Karamoja is
endowed with enormous resources
including limestone, gold, marble,
sandstone and many others, but trade
and industrial development in the region has remained minimal.
The initiative to promote trade in
Karamoja was launched by the Minister of Trade Hon. Amelia Kyambadde
in a meeting with the leadership of
Karamoja region that took place at the
Moroto district Council Hall.
Hon. Kyambadde was responding
to the First Lady and Minister of State
The Ministry has also
embarked on the
construction of the
Moroto Cement factory by Uganda Development Corporation
(UDC), and Agency of
the Ministry of Trade
for Karamoja Affairs Hon. Janet Kataha
Museveni who called on the Ministry of
Trade to assist in addressing the trade
and investment challenges faced by
the people of Karamoja.
The Ministry of Trade carried out an
assessment and identified a number
of challenges faced by the business
community in the region, and these
formed the basis of the Ministry’s intervention.
The Ministry of Trade has already
embarked on a number of initiatives
geared towards promoting trade in the
Karamoja region including support to
the District Commercial Offices in both
Moroto and Kotido districts under the
District Commercial Services Support
(DICOSS) project. These offices have
been renovated, furnished and fully
equipped; the District Commercial Officers were given motorcycles, notice
boards and airtime to carry out their
duties.
The Ministry has also embarked on
the construction of the Moroto Cement
factory by Uganda Development Corporation (UDC), and Agency of the Ministry of Trade.
The project is in progress with 50
acres of land already identified in
Rupa, studies have been carried out
and concluded that it is a viable project with ability to produce cement for
over 30 years, and UDC is now in the
advanced stages of acquiring the mining lease.
Hon. Kyambadde pledged more interventions with her ministry to support 6 groups/associations dealing in
different ventures in the 7 districts of
Karamoja for a start, and later help oth-
ers. The groups will be supported with
value addition equipment, training in
business management and entrepreneurship skills, and help them to form
cooperative societies. The groups to be
supported include;
1. Jie Community Animal Health Association (JICAWA), a honey processing
group from Kotido district. This will
be supported with honey processing equipment and capacity building in value addition and business
management.
2. Katikekile and Rupa Womens Group
of Miners from Moroto district, mining gold and marble. These will be
facilitated to transform into a cooperative society to enable them have
a stronger voice and high bargaining
power to avoid exploitation from the
middlemen.
3. Namalu Farmers Association from
Nakapiripirit district, growers of rice,
maize, sunflower, groundnuts, simsim and sorghum. The Ministry of
Trade will install the value addition
equipment that includes three rice
hullers and two maize mills given to
the association by World Food Program that have been lying idle. The
Ministry will also set up a shelter for
the equipment and help the association transform into cooperative
society.
4. Apeitolim honey processing Group.
These will be supported with value
addition equipment and capacity
building in value addition and business management.
5. Ik community members from Kamion Sub County in Kaboong district.
The Ministry will facilitate them to
transform into a cooperative society
and provide them with value addi-
tion equipment.
6. Tepeth Bee Keeping Association
from Moroto district, dealing in apiary. The group will be facilitated to
form a cooperative society, training from Uganda National Bureau of
Standards on how to improve of the
quality and standards of their honey,
and provision of market information.
The above mentioned support will
commence in February 2015 under the
One Village One Product (OVOP) Project
under the Ministry of Trade.
The Head of District Chairpersons
in Karamoja Region and Nakapiripirit
district Chairperson John Lorot commended the Ministry of Trade for the
initiative saying it will help in uplifting
the standards of living and increase
the income of the Karimajong people.
He added that the equipment will save
the farmers of Karamoja from trekking
to Mbale where they are currently taking their produce for value addition.He
said being endowed with a lot resources;
Karamoja requires full time presence of
government in the region to ensure full
exploitation of these resources.
The Resident District Commissioner
Moroto district Abura Samuel Pirir asked
government to intervene and save the
people of Karamoja from the investors
and middlemen who exploit and cheat
the local people who work in the mines.
Abura says the local people have not
benefited from the minerals as they are
paid peanuts from the gold and marble,
while the investors reap big.
Hon. Amelia Kyambadde the minister for trade addressing women miners
at Rupa Moroto district on the formation of cooperatives.
Hon. Amelia Kyambadde the minister for trade poses for a group photo with some of Karamoja region leaders
xi
SPECIAL REPORT
A BETTER ROAD NETWORK
As you travel upcountry, you can see observable evidence that our roads are getting
better and Uganda National Roads Authority is delivering on its mandate. UNRA
is determined to contribute to national development through better and safe roads.
Currently there are over 2,000km of roads under construction and another 1400km
will commence in 2015.
Update of ongoing major projects
There are over 2,000km of major roads currently under construction. These roads
include;
Road Project
KM
28
Kamdini-Gulu (Funded by GOU)
62
10% of works done
29
Pakwach-Nebbi (Funded by GOU)
30
Contract awarded. Contractor mobilising
30
Sironko-Namusi-Muyembe(Funded by GOU)
32
31
Iganga-Tirinyi(Funded by GOU)
102
32
Nansana-Busunju(Funded by GOU)
47
33
Iganga –Kaliro(Funded by GOU)
32
34
Major Bridges under construction
35
New Nile Bridge (Funded by GOU and the Japanese
Government)
6
Under Construction. 10% of works completed. The works
include construction of a 6km access road
36
Birara Bridge (Funded by GOU)
-
Under Construction. 50% works done
37
Mitaano and Ntungwe bridges in Kanunugu (Funded
by GOU)
-
Under mobilization stage
Total
2,067
Status
New roads under upgrade to tarmac
1
Gulu-Atiak road (Funded by WB/GOU)
74
95% of the works done and the project will be completed by
June 2015
2
Vurra – Arua – Koboko – Oraba(Funded by WB/
GOU)
92
June 2015
3
Ishaka – Kagamba (Funded by GOU)
35
December 2015.
4
Nakapiriprit – Moroto road (Funded by GOU)
93
January 2016
5
Kampala-Entebbe Express Highway with a spur to
Munyonyo (Funded by China EXIM bank/ GOU)
51
December 2017
6
Kamwenge-Fort Portal (Funded by WB/GOU)
65
20% of the works done. The project will be completed by
January 2016
7
Atiak –-Nimule (Funded by JICA/GOU)
37
30% of the works done
8
Mbarara-Bypass (Funded by EIB/GOU)
40
13% of works done
9
Mpigi-Kanoni (Funded by GOU)
64
10% of works done
10
Ntungamo-Kakitumba/Mirama Hills (Funded by
DFID/TMEA/ GOU)
37
Physical works commenced in September 2014
11
Expansion of Kampala Northern Bypass (Funded
by EU/EIB/GOU
17
12
Mukono-Kyetume-Katosi/Kisoga-Nyenga (Funded
by GOU)
74
13
Luuku-Kalangala (Staged upgrading under PPP)
14
Kanoni-Ssembabule-Villa Maria (Funded by GOU)
15
Musiita-Lumino-Busia/Majanji (Funded by GOU)
104
Contractor mobilising. Physical works will commence in February 2015
16
Acholi Bur – Musingo (Funded by GOU)
86
Physical works commenced in January 2015
17
Olwiyo - Gulu (Funded by GOU)
70
18
Gulu – Acholi Bur (Funded by GOU)
86
Km
Status
New Roads for Upgrade to Tarmac
Kigumba-Masindi-Hoima-Bulima-Kabwoya
(Funded by AfDB/GOU)
135
Kigumba – Bulima: Re-evaluation of bids completed and the revised
report submitted to AfDB for approval. Bulima-Kabwoya: Displayed
the best evaluated bidder. The contract expected to be signed before
the end of February 2015.
2
Masaka-Bukakata (Funded by BADEA/
OPEC)
41
Evaluation of works bids completed, award and signing of contract
awaits the outcome of the on-going due diligence on the preferred
bidder.
3
Design and Build of Mubende-KakumiroKibaale-Kagadi (Funded by GOU)
107
Evaluation of bids was completed but award of contract has been
delayed by administration reviews. The third technical re-evaluation
has been completed and the contract is expected to be signed in
March 2015.
Works commenced on 14th July 2014 for a period of 3 years,
expected to be completed by end of July 2017. Project is
funded by the EU, the European Investment Bank and GoU.
4
Kyenjojo-Kabwoya(Funded by WB/GOU)
105
Evaluation of bids was completed and the report was submitted to
the World Bank for no-objection. The Bank is waiting for Parliamentary approval of the loan (Albertine Region Sustainable Dev. Project)
A new contract has been awarded. (SBI JV RCC)
5
Rukungiri-Kihihi-Ishasha-Kambuga/KihihiKanungu-Kambuga(Funded by AfDB/GOU)
112
Prequalification evaluation report was submitted to AfDB for no objection. Bids expected to be issued before end of February 2015.
66
30% of works completed
6
Tirinyi-Pallisa-Kumi/Kamonkoli (Funded by
BADEA/ OPEC/GOU)
111
120
Procurement ongoing. Prequalification of contractors was completed; the report was submitted to Islamic Development Bank (IDB) for
approval. Bids are expected to be issued by March 2015 and works
to commence by July 2015.
6
Muyembe - Nakapiripirit (Funded by Islamic
Development Bank)
94
The loan for the project was approved by Cabinet and is awaiting
parliamentary approval. Advance procurement of the contractor will
commence in February 2015.
8
Mbale-Bubulo-Lwakhakha (Funded by AfDB/
GOU)
55
Prequalification evaluation report was submitted to AfDB for no objection. Bids expected to be issued before end of February 2015.
Roads under Rehabilitation
Mukono-Kayunga-Njeru(Funded by GOU)
94
This is a design and build pavement recycling project. Contract for civil works commenced on 29 January 2015.
20
Kampala (Busega)-Masaka (Phase ll) Funded by
GOU
51
96% of works completed. The project will be completed in
March 2015
21
Mbale- Soroti (Funded by GOU)
104
97% of the works done. Mbale-Soroti will be handed overat
the end of December 2014.
22
Kawempe-Luwero-Kafu (Overlay) (Funded by
GOU)
166
95% of the works done and the road will be completed by the
end of June 2015.
23
Mbarara (Buteraniro) –Ntungamo(Funded by EU/
GOU)
59
June 2015
24
Ntungamo-Katuna Road (Funded by EU/GOU)
74
June 2015.
Mukono – Jinja (Funded by GOU)
Road Name
1
19
25
Upcoming projects
Approximately 1,400km of roads are due to commence in 2015:
52
80% of the works done and the road will be completed by
June 2015.
26
Kafu-Kiryandongo (Funded by GOU)
43
40% of the works done. The project will be completed by
Dec 2015.
27
Kiryandongo-Kamdini (Funded by GOU)
58
10% of works done
9
Zirobwe-Wobulenzi
25
At project preparation.
10
Kapchorwa-Suam (Funded by AfDB/GOU)
73
At project preparation.
11
Hoima-Butiaba-Wanseko
111
The design was completed. Procurement of the contractor is ongoing.
12
Kayunga - Galiraya
88
At project preparation
13
Kampala-Jinja Expressway
80
Detailed Engineering design completed. Construction will be financed under PPP. Tendering for financing and implementation is
expected in April 2015.
Kampala Flyover Project
5
14
Roads for Rehabilitation
15
Kyenjojo-Fort Portal (Funded by GOU)
50
Procurement ongoing
16
Ishaka-Rugazi-Katunguru(Funded by GOU)
55
Procurement ongoing
17
Mbale-Nkokonjeru(Funded by GOU)
20
Procurement ongoing
18
Fort Portal-Hima-Katunguru(Funded by GOU)
93
Under Procurement
Kampala-Mukono(Funded by GOU)
20
Total
1,380
19
xii
SPECIAL REPORT
East African Business Week I February 23 -March 1, 2015
Standards bureau facilitates business
 The Uganda Bureau of Standards (UNBS) has
been at the forefront of ensuring that quality and
high standard goods are traded on the Ugandan
market. This is its statutory mandate and a pivotal
cornerstone for sustaining higher levels of trade.
In an interview, Ben Manyindo, the UNBS Executive
Director elaborates. Below are excerpts;
How does UNBS facilitate trade? What is your role?
1. UNBS has to develop or adopt standards of commonly traded goods to ease on compliance to
quality standards. Over 2100 Uganda standards
are available for use.
2.For manufacturers, UNBS ensures that products
made within the country meet relevant standards through inspection, sampling, testing and
certification.
3. For traders/importers a new program requiring
that goods are inspected and given a certificate
of conformity in the country of export known as
PVOC program allows the importer faster clearance of their goods and assurance of quality at
point of destination. On-line clearance is in offing using the UNBS E-portal.
How has the lack of standards harmonization affected your operations and trade in general?
tion, Quality Assurance, Meteorology and Testing Act
of recognition of quality marks. All Ugandan products that possess the UNBS quality mark are accepted in EAC countries without having to undergo
testing again. So Ugandan standards are acceptable within the EAC region and outside.
How are you helping manufacturers & service providers among others to adhere to these standards?
The East African Community and Common Market for Eastern and Southern African (COMESA) regional harmonization of standards is an on-going
process. A work programme was agreed on starting with the most traded goods to facilitate intraregional trade.
Over 1200 EAC harmonized standards are available for use. At EAC, the harmonization exercise is
being facilitated by TradeMark East Africa and other
development partners.
How widely accepted are UNBS standards?
There is a requirement under the EAC Standardisa-
Uganda exports mainly food and agricultural
products that require adherence to highest safety
and quality standards. Exporters have to obtain
the necessary quality assurance certification from
competent authorities. Because of the lucrative
nature of the business, some traders want to take
shortcuts and avoid the cost of inspection, testing
and certification.
UNBS together with other agencies of Government provide the necessary technical requirements and information including training in quality standards and other requirements.
What are some of your achievemnets in last 25
years?
The achievements registered are:
•The number of staff has grown in numbers and
professionally in the areas of standardization.
With the current staff strength at 240, UNBS is
able to offer its services in standards development, laboratory testing, certification, training
and consultancy, imports inspection and metrology
•The number of Uganda standards that have been
developed to facilitate trade as well as regulation has increased to 2,376 as of November 2014.
• Increased stakeholder engagement has informed our internal process and service delivery, ensuring that the business community is
compliant to set standards
• The Pre-Export Verification of Conformity to standards (PVOC) has been successfully established,
thus reducing on importation of substandard
goods by 20-30% to date.
•The work environment for staff continues to improve by constructing a new office block (Standards House) and soon will embark on construction of laboratories through Government
financing.
• UNBS Act 1983 was amended to align it with current regional and international requirements
and practices.
•The completion of construction of the UNBS home
(Phase 1A - shell structure) that was completed
and handed over in April 2013.
All these achievements are aimed at facilitating
trade.
UGANDA NATIONAL BUREAU OF STANDARDS
UNBS mandate: Develop and Promote Standardisation, Quality Assurance,
Laboratory Testing, and Metrology to Enhance the Competitiveness of Local Industry, protect the consumers and to promote Quality, Safety and Fair
Trade. Obtain more details from our website www.unbs.go.ug
QUALITY INFRASTRUCTURE AT UNBS: This is the standards,
quality assurance, metrology and testing that is required for inspection, testing
and certification of products to access local, regional and international markets. More than 2100 Uganda standards are available at Standards House,
Bweyogerere in the areas of food and agriculture, engineering and building
materials, chemicals and consumer products, and management services.
Some of these are harmonised East African standards of most traded goods
to facilitate intra-regional trade. Testing laboratories at Nakawa are being
strengthened to meet the increasing demand of business community; while
manufacturers seeking for certification have increased. If you are sure of your
product, get it certified by UNBS. Our certification team at Standards House
will guide you.
 IMPORTERS: Your business is regulated under UNBS Import Inspection regulation. Get your products inspected in the country of export and obtain a certificate of conformity to standards. Approach the appointed offices
of SGS, Intertek, Bureau Veritas, and for used motor vehicles, JEVIC, East
Africa Automobile, Jabal Kilimanjaro. Non compliance attracts a 15% CIF
value penalty before destination inspection is undertaken. With a certificate
of compliance your goods are verified and cleared instantly.
 MANUFACTURERS: Your business is regulated under the UNBS
Act. Approach any of UNBS offices to have your business registered, your
products inspected, tested and certified. The S- mark or Q-mark is an assurance that your products are safe and meets relevant Uganda Standards.
Ensure your equipment is calibrated every year before certification. Do not
miss the Quality Gala 2015 scheduled for 20th November 2015
 CONSUMERS: value your life, property and money. Demand for safe,
quality products and report to UNBS any suspicious product that appears
substandard, being sold when expired, being adulterated or repackaged
without authority. Use the toll free telephone line of 0800 133133. Buy only
from known suppliers and not hawkers. UNBS is enhancing consumer education and public awareness on quality and standards
 TRADERS: The law prohibits sale of substandard goods i.e. No person
shall import, distribute, manufacture, sell or have in his possession or control for sale or distribution any commodity for which a compulsory standard
specification has been declared unless such commodity conforms to the
compulsory standard specification. Ensure UNBS team has verified your
weighing and measuring equipment including fuel pumps, road tankers and
bulk measures.

View file - East African Business Week

Transcription

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