Ministry of Trade, Industry and

Cooperatives

Progress on Implementation of the NRM

Manifesto 2016 – 2021

Hon. Amelia Kyambadde

14th May 2019

1
 Outline of the presentation
Republic of Uganda

• Overview
• Trade development
• Trade facilitation initiatives
• Regional trade
• Export promotion
• Industrial Development
• MSME Development
• Value addition through UDC
• Standards development and enforcement
• conclusion Welcome

2
 overview

The NRM Government made a number of pledges in its

manifesto 2016 – 2021 in the Trade, Industry and
Cooperatives Sector with the aim of generating wealth for
poverty eradication and benefiting the country socially and
economically.

Significant achievements have been realized in the Trade,

Industry and Cooperatives Sector during the three years of
implementation of the NRM Manifesto 2016 – 2021

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 POLICIES BEFORE
PASSED BILLS CABINET

 National Policy on 1. Cooperative Society 1. The National

Trade in Services Amendment Bill Alcoholic
(passed by Drinks Control
Exploration Commitment
Parliament)
Bill
 National Export
Development 2. Ratification of the
Strategy African Continental 2. Competition
Free Trade Area and Consumer
Agreement (AfCFTA)
 National Policy on (passed by Cabinet) Protection
Packaged Water Bills
3. Sugar Bill (under
consultation)
 National Grain Trade
Policy 3. Scientific and
4. National Industrial
 MSME Policy Accreditation Bill metrology
(before Parliament) Bills

4
Progress in Implementation of
NRM Manifesto 2016 – 2021
Pledges/Commitments

5
Trade Development
 Trade Performance
Exports
• Exports have increased from US$2.68 billion in the FY2015/16 to
US$ 3.53 billion in the Financial Year 2017/18 representing a 31%
increase.

Imports
• The imports increased from US$4.6 billion in the FY2015/16 to US$
5.6 billion in the Financial Year 2017/18 representing a 19.7%
increase.
• This has been due to a boost in import of Capital Goods and
equipment in the infrastructure projects in the Oil and Gas Sector,
energy sector, transport sector and other Industrial Inputs.

• The trade deficit as of 2017/18 is USD 2 billion

7
 Trade in Services
• The services exports have reduced from USD 2billion 2015to USD
1.6 billion in 2017. Similarly, imports have reduced from USD 2.3
billion to 2 billion for the same years respectively.
• Priority service sectors: Travel, Transport, ICT, Construction,
Insurance, financial.
• Policy passed by Cabinet in 2017
• The Ministry trained professional bodies and their membership on
the preference schemes under Government procurement and the
BUBU initiative.
Result;
• the trainings have enhanced uptake of Government contracts,
works and services

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Trade Facilitation initiatives
 Electronic Single Window System (ESWS)

The Electronic Single Window (e-SW)

System is an online system that
facilitates trade
established to address the delays in
the clearance of goods;
provides a platform for business
community to deal with the different
regulatory agencies in the process of
clearance of international cargo for
export, import and transit.

Result:
The system has cut clearance time for
imports and exports by over 25%.
 The Trade Information Portal
•It is an online platform where all the
information regarding export, import and
transit of goods

•Launched in November 2018

•Ten products documented on the portal

according to NEDS including cotton, fish,
coffee, flowers etc

• Establishing the trade

information portal is provided for within
the WTO Agreement on Trade Facilitation

Result
•884 people visit the portal every month
 BORDER EXPORT ZONES
 The program aims to strategically position
Uganda to harness Regional market
opportunities.

 18 earmarked points include Bibia, Malaba,

Mpondwe, Katuna, Lamya-Busunga, Ishasha,
Mirama Hills, Mutukula, Amudat,
Lwakhakha, Suam, Vura and Oraba, Busia,
Lumino, Ntoroko and MadiOpei and Kikagati

 Master plans developed for 6 six border points.

i.e. Katuna, Busia, Kikagate, Oraba,
Lwakhakha and Elegu.

 Shs.8.4 billion so far allocated to begin

construction at Katuna, Busia, Oraba,
Lwakhakha and Elegu (from EU through
COMESA)

 Mpondwe BEZ will be developed with funding

from the World Bank.
 LAND ALLOCATION FOR BEZS

Export Border District Size of Land

Zones (acres)
Elegu Amuru 247
Masafu Busia 173
Katuna Kabale 238.8
Mpondwe Kasese 3
Lwakhakha Manafwa 89.3
Oraba Koboko 78
Kikagate Isingiro 109
 NTB Reporting System

•Reporting tool for Non-Tariff

Barriers faced in business

•To report by mobile phone, the

user dials USSD Code *201# and
follows instructions to select the
appropriate NTB to report, and
then submits a complaint.

Result:
•86% resolution of all NTBs
reported through the system
 One Stop Border Posts (OSBPs)

•With Support from TradeMark East

Africa, construction of three OSBPs
was completed; these include
Mutukula OSBP with Tanzania, Busia
OSBP with Kenya, and Mirama Hills
OSBP with Rwanda.

• Construction of Elegu border

post with South Sudan was completed
in November 2018.

Result
•joint processing has reduced
transit costs incurred in cross
border movement
ONE STOP BORDER POSTS (OSBPS)

Mirama Hills One Stop Border Post - Uganda with Rwanda

Busia One Stop Border Post - Uganda with Kenya

 WTO Trade Facilitation Agreement

Uganda also ratified the WTO Trade Facilitation

Agreement (TFA) in 2017.

Domestication is still in process.

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REGIONAL TRADE
 EAC ECONOMIC INTEGRATION
Uganda registered a record
highest trade balance in the EAC
region of US$ 122.78 million
(Exports of US$ 628.47 million
against Imports of US$ 505.70
million)

Uganda had a surplus/favorable

balance of trade with Kenya in
the Financial Year 2017/18 of US$
US$560.8 million in 2017, from
US$ 418.3 million in 2016

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 EAC ECONOMIC INTEGRATION –
Bilaterals
 Sugar exports: Kenya recently increased the quota for
Uganda’s sugar from 36,000MT to 90,000MT, while
Tanzania is now allowing Ugandan Sugar on Tanzanian
markets;
 Kenya has lifted the ban on Uganda’s poultry products and
allowed Ugandan milk exports worth USD 100 million
annually into Kenya.
 Increased access of Ugandan products in the EAC market
such as tiles (Kn) and fishing nets (Tz) among others;

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EAC ECONOMIC INTEGRATION cont’d
 Over 1,700 standards have been harmonized across the
EAC.
 Implementing the harmonized Axle Load Control
Measures to enable transporters across all EAC Partner
States apply similar weighbridge (Axle Load) control
measures; (include tonnage) – external trade
 Developed and signed the EAC Sanitary and
Phytosanitary (SPS) Protocol to promote trade in
agriculture products across the entire EAC Region.

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COMESA
 COMESA is the fastest growing export
region for Uganda
 Exports to COMESA increased from USD
1.12 Billion in 2015/16 to USD 1.53 billion
by 2017/18 indicating a growth of 36%
 The notable growth was recorded in
exports to Kenya that increased by 64%
(from $44.3 million to $678.4 million)
 Uganda has continued to post a positive
trade balance within the COMESA region;
surplus increased from $400.16 million in
2015/16 to $643.67 million in 2017/18
 Main traded products include maize, milk,
cereals, steel, sugar etc
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 Bilateral with DRC
 Uganda and the Democratic Republic of Congo signed a
Memorandum of Understanding to promote trade,
harmonise immigration formalities and ease cross border
trade.

 The Ministry launched the simplified trade regime at all

borders and the small-scale traders in goods below USD
2000 do not pay import duty for originating goods.

 To establishing border markets at Mpondwe and Goli to

boost cross border trade.

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 Progress on AfCFTA
benefits of the AfCFTA
On 21st March 2018, Uganda signed the to Uganda
agreement establishing the African expanded markets for our
Continental Free Trade Area. (AfCFTA ) growing economic
operations;
Itestablishes a single market of 1.2 billion atracts cross-border
people, with a combined Gross Domestic investment;
Product $3.4 trillion. expansion in production
of goods and services
Uganda is the current chair of the AfCFTA creates employment
Forum for African Ministers of Trade and is opportunities for our young
leading the conclusion of the AfCFTA populations
negotiations improves the interstate
infrastructure
The election is in recognition of Uganda’s interconnectivity
active participation in the AfCFTA Enhances peace and
negotiations that started in 2016 security in the continent
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 AGOA
 An AGOA strategy was developed to address the
bottlenecks that have been hampering exporters
 It focusses on niche-oriented products where Uganda has a
competitive advantage for export to the U.S market. These
include;
◦ casein (a milk nutrient),
◦ arabica coffee,
◦ fish fillets,
◦ cut flowers (sweetheart roses),
◦ home décor and fashion accessories,
◦ specialty foods (vanilla, dried fruits),
◦ shea butter, and
◦ textile & apparel (fashion & design)
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Export promotion
 Enhancing Exports – National Export
Development Strategy
 The Strategy was passed by Cabinet in 2017 and is being
implemented across all MDAs

 implementation of the NEDS has led an increase in bilateral

and multilateral Negotiations, infrastructure development, value
addition, organising of groupings in cooperatives etc

 The Ministry has coordinated initiatives with other MDAs to

enhance implementation of sector initiatives on products such
as coffee, tea, horticulture and services sectors like tourism
and ICT.

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Enhancing Exports cont’d
 Developed Trade Charters for our missions in major
markets of China, India, Dubai, Kenya, Rwanda, Tanzania,
USA and EU markets to guide on trade and investment
opportunities available in the country.
 Developed of a one-stop center for export information
and advisory services to support current potential
exporters
 Easy-to-use market information guides and materials
have been developed and made available to the public.
 Additional market information centers have been setup
in Agago and Otuke District, to provide much needed
market information and capacity building services.

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 Enhancing Exports through international Expos
 Currently Uganda is participating in the 6-months
International Exposition that is taking place in Beijing China.
 Uganda Fruits and Vegetable Exporters and Producers
Association (UFVEPA) has been showcasing fresh fruits and
vegetables at the MacFrut fair on an annual basis.
 The Intra-Africa Trade Fair (IATF) in Cairo – Egypt in 2018
 The World Export Development Forum (WEDF) held in
Lusaka – Zambia in September 2018.
 Rwanda International Trade Fair 2017
 UEPB participated in the first ever India – Uganda
investment and investment forum in Mumbai in March 2018
 promoted Tourism, exports and investments in Astana
2017.

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Enhancing Exports cont’d
 An online exporters’ directory (an output of the
registration process) has been developed and
operationalized at UEPB to promote exporters.

Results;
 An average of twenty five(25) new exporters are
registered and assisted each quarter. For the past three
years, UEPB has registered 300 new exporters
 Trial orders have been received so far.
 business leads generated

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Cooperatives Development
Promotion of Cooperatives

 3342 cooperatives have been registered since

from 2015/16 bringing the total number
registered to date to19,524, with majority being
SACCOs (8,464)
 53 cooperative societies in 38 districts have
been provided with value addition equipment
through the Rural Industrialization Development
Project (RIDP)

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 Promotion of Cooperatives Cont’d
Cooperative Compensation:
 From Financial Year 2016/17 to date, Government has compensated
UGX 18 billion to 4 Cooperative Unions that suffered war debts
 Masaba Cooperative Union – Shs.7.02 billion
 Busoga Growers Cooperative Union – Shs.2 billion
 Teso Cooperative Union - Shs.1 billion
 Bugisu Cooperative Union – Shs 7.95 billion
 Total Government compensations amount to Shs. 32.208 billion

This compensation has resulted in;

 Revitalisation of the cooperative movement
 Boosting of Production in commodities e.g Coffee and
cotton
 Procurement of equipment and to facilitate value addition
and transportation of commodities
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Industrial Development
 Industrial Regulatory Framework
 The development of the National Industrial Policy is in the
advanced stages.

 The Policy new aims to promote value addition of agro and

mineral based locally available raw materials

 Principles of the Industrial Development Bill have been developed

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 Mineral Processing
Government has undertaken the following measures;
 Passed the Mineral Processing Policy in 2019

 Have licensed two investors i.e Dong Song and Divenki

International Limited;

 the fertilizer plant in Tororo District by Dong Song was

commissioned by H.E the President in 2018. It has an annual
production capacity of 100,000 tons.

 The Iron ore smelting plant by Dong song is in construction

phase and is expected to be completed in July, 2019. The
project is expected to produce 400,000 tonnes of steel.
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 Mineral Processing cont’d
 Dong song also signed an
agreement with Sino Minerals
Investment Company to provide
iron ore.
 Cement production; Simba
Launched its operations in 2018.
It has an output of 1 million tonnes
of cement.
 Tororo cement Limited has
expanded from 1.8 to 3.0 million
tonnes capacity production.
 Hima has established a plant of
1.0 million tonnes in Tororo.
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MSME DEVELOPMENT
 MSME Directorate
 Established an MSME Directorate; MSME Policy passed in
2016
 Established an SME Division at UNBS to specifically address
the unique challenges faced by SMEs in implementing
standards
 The Ministry liaises with the District LGs across the
Country to extend commercial services to many MSMEs
 The Directorate has carried out over 220 on-site trainings
for MSMEs on Good Hygiene Practices/ Good
Manufacturing Practices.

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MSME Development
 Manufacturing enterprises with respect to raw materials
and Energy management, efficiency and cleaner
production technologies with the support from the
European Union under the Switch Africa Green (SAG)
project

Results;
 Reduced cost of production
 Increased volume of products from MSMEs

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 BUBU
 Draft Retail Trade Regulations were
developed to ensure that suppliers
to supermarkets are paid within 30
days from the date of supply – now
with First Parliamentary Counsel
 Supermarkets are required to avail
40% of shelf space to local
products,
 HE the President launched the first
annual BUBU expo in March 2019
that gave a platform to MSMEs to
showcase Ugandan-made products
 Launched the BUBU logo
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 Skills development for MSMEs
 Job Creation Awareness and Entrepreneurship training
program, through MTAC, to 629 participants about 90%
have gone on to establish businesses
 free vocational and entrepreneurship skills to street 210
vendors with the aim of empowering them to start their
own small businesses
 Decentralised vocational courses throughout the MTAC
Outreach Centres in Ntungamo, Mbale, Pader, Iganga,
Bushenyi and Mbarara to support the establishment of
mini- industries through imparting vocational skills.
 These vocational training centers have now been
equipped.

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 Access to Credit for MSMEs
 Ministry has partnered with support Institutions such as
Uganda Small Scale Industries Association (USSIA), Micro
Finance Support Centre, Metropol Uganda Credit Reference
Bureau, Financial Sector Deepening Uganda and Stanbic Bank
Business Incubator among others, to avail financial training,
improve on the credit rating of the MSMEs and ease access
to cheaper and affordable credit financing.
 Uganda Warehouse Receipt System Authority is promoting
and regulating the use of Commodities produced or traded
by SMEs as collateral against which finances can be extended
(availability Vs affordability).
 There has been a boost in registration of new SACCOs
which avail affordable credit facilities to the rural population
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Minimising Post harvest losses
 Uganda Warehouse Receipt System
Authority (UWRSA) has developed a
standard for Warehouse and Warehousing
infrastructure for Bagged Pulses and
Grains.
 Quality Assurance Equipment has been
provided as common user facilities to
assist SMEs carry out Quick Professional
quality analysis of their commodities to
ensure competitiveness.
 Standards of 18 commonly traded
products have been to mitigate rejects at
regional level (EAC) and reduce losses
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 Benefits from RIDP
 Supported 23 projects across the
country to facilitate value addition to
agricultural products and other
products with a comparative
advantage
 Procured and installed value addition
equipment for 21 enterprises in rural
communities
 Trained 108 members from
beneficiary enterprises in business
management, value addition, quality
requirements and principles of
cooperative movement
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 Benefits from RIDP
 The beneficiary enterprises and the
surrounding communities have realized
the following benefits,
 Employment creation for 268 people
directly employed in value addition
facilities
 Increased income generation for
beneficiary enterprises and members
from surrounding communities
 Reduction in postharvest losses
 Stimulation of the surrounding
communities to produce more
agricultural raw materials for processing
from the established processing facilities
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 Enterprise Location Value Addition Equipment Provided

Kiwenda Horticulture Farmers Association Wakiso District Amaranthus Grinding Mill

Eco Friendly Innovations Development Centre (EFID) Wakiso District Hollander Beater

Kangulumira Area Cooperative Enterprise Kayunga District Bottle Filling Machine

Nyakigufu Farmers Association Ntungamo District 4 Solar Driers

Beveron Investments Ltd in Kaliro District Kaliro District Water Purification System,

MBK General Agencies Kaliro District Air Compressor, a Welding machine,

RIDP
Mikwano EV Fruit Processing Group in Kaliro District A Batch Pasturizer

Zigoti Clays Community Organisation Mityana District Kiln (for heat treating clay products)
benefici
Bake My Day Enterprises Kampala District Brade Prover, Dough Mixer and Oven
aries
Mirembe Farm Industries Ltd Kampala District A Coffee Grinding Machine

Kasambira Yourth Enterprise Kamuli District A Rice Mill

Bwesumbu Coffee Growers and Processors Cooperative Kasese District Coffee processing machine

Bubale Innovation Platform Kabale District A Maize mill and Maize huller

Kijukizo Carpentry Hub Limited Butambala District A Wood Spindle Moulding Machine,

Rwabs Foods and Beverages Ltd Mbarara District Vacuum Sealing Machine,

Kaganja Bee Keepers Savings and Credit Cooperative Society Nakasongola District Honey Settling Tank,

Tropical Honey Cooperative Society Amuru District Manual Honey Press , a Honey Settling Tank
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INDUSTRIALIZATION/VALUE ADDITION
THROUGH UGANDA DEVELOPMENT
CORPORATION (UDC)
 Strengthen UDC to spearhead the
establishment of strategic industries
where the private sector interest has not
been forthcoming for a long time.

UDC Legal Framework

•The UDC Act was passed in 2016 to promote industrial
and economic development of Uganda.

•Board of Directors was inaugurated in October 2017

•Substantive Executive Director recruited on 1st April 2019.

•H. Ethe President on 13th April 2019 launched the UDC

ten year Strategic Plan.
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 Investment in Strategic Industries –
completed projects
Provision of transport, water and electricity
to Kalangala under Kalangala Infrastructure
Services (KIS)
•Rehabilitation, expansion and upgrading of 66km
main island road to class B gravel road.
•Power supply plant was constructed with 870
people have been connected to the grid;
•Kalangala Town council water supply system was
rehabilitated in addition to construction of water
supply systems for five major fish landing sites;

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Two Tea factories in Kabale and Kisoro
Commissioned in August 2018
each operating at 450kg/hr capacity and
Each with 1800 job opportunities (both direct and
indirect).
Soroti Fruit Factory
launched by H.E the President on April 13, 2019.
The factory has a processing capacity of 6MT/hr for
oranges and 2MT/hr for mangoes.
currently employing 123 personnel (directly) and above
1,000 (indirectly).

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Soroti fruit factory
Soroti fruit factory
Kabale Tea factorY
KISORO Tea factories
UDC Pipeline Projects
Kayonza Growers Tea Factory,
Mabale tea growers factory
Tea factory in Nebbi:
Luweero fruit factory-
An integrated Cement, lime and marble
plants to be set up in Moroto
Sheet glass project in Masaka
Lake Katwe Salt project

Zombo Tea Factory

2 cooperative societies formed
Training ongoing

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 Sugar Production
 Uganda’s annual sugar production is at 416,000MT.

Sugar plant established since 2016

 Atiak sugar Factory: Government through the UDC completed

the acquisition of 32% shareholding at a cost of 64.8 billion in
Horyal Investments Holding Ltd for the establishment of the Atiak
Sugar Factory. With completion, the industry will generate 6
megawatts of electricity and work with 2,500 out-growers spread
across five districts.The mill capacity will be expanded to 3,500
Tonnes of Cane processed per Day (TCD) in PhaseI I after 3
years.

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Atiak Sugar Factory
Sugar Production cont’d
 Kanungu - Rukungiri Agro Industries Limited set
up a sugar mill with a capacity of 1250 tons of cane per
day in Kanungu district and started full production in
2017
 Bwendero Sugar Limited set up a sugar mill with a
capacity of 1500 tons of cane per day in Kitoha Sub
county Hoima district and production has started.
 Bushenyi Sugar Limited set up a sugar mill with a
capacity of 1500 tons of cane per day in Katoke Town
Council Kyenjojo district

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Other Licensed Mills
 Kafu Sugar Ltd, was licensed in 2018 to establish a sugar
mill with capacity of 2,500 TCD, located near Masindi Port,
Currently cane planting is in progress and expect factory to
start operations by January ,2021.
 Kiryandongo Sugar Limited was licensed in 2018 to
establish a sugar mill with capacity 2,500TCD , to be located
at Mutunda Sub-county, Kiryandongo District and is expected
to start operations by December, 2021.
 Mubende Sugar Limited, was licenced in 2018 to
establish a 3,500TCD near lake Wamala, in Mubende.The
investor has already planted over,1000 Acres of sugar cane
and procurement of factory equipment has started.

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 Other Licensed Mills cont’d
 Balagi Group Ltd, licenced to establish a 1,500TCD sugar mill
at Nakaseke and about, 850 acres of cane has been planted
and development of more land for cane is on going.
 Hoima Sugar Ltd to increase capacity from1,500TCD to
3,500TCD within 2 years
 Kamuli Sugar Ltd to expand from 1,500TCD to 5,500TCD
and installation of new equipment’s for expansion in progress
 Sugar and Allied Industries –Kaliro to expand mill capacity
from 1,650TCD to 3,500TCD , and expansion in progress

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Standards Development and
Enforcement
 Facilitation to strengthen UNBS Mandate
 A new regulation for UNBS to enforce implementation of
the Distinctive Mark was approved,which will compel all
companies producing goods with mandatory standards
must be certified by UNBS.
 UNBS has decentralised its certification and market
surveillance operations to other regional offices in Gulu,
Mbale and Mbarara besides those at Kampala Head Office.
 Government has provided additional Ugx 10bn towards
recruitment of staff in order to increase the presence and
coverage of UNBS to other regions and entry points of the
country.
 An additional Ugx 6bn during FY 2017/18 towards the
construction of food safety laboratories in Bweyogerere
which are expected to be commissioned by November
2019. 63
 Standards Development and Enforcement
 815 standards were developed.
 2,257 products certified.
 5,354 market outlets inspected.
 35,455 samples tested.
 313,008 import consignments inspected under PVOC

 As a result, the proportion of substandard products on the

market has been reduced from 73% to 54%
 The number of certified products accessing the Region has
increased hence increased regional exports

64
 Automation of product standards services:
In order to make UNBS services easily accessible to MSMEs, UNBS
has invested in automation of all its core services which are now
available online.These include;

 The Certification Information Management System

(CIMS). It enables online applications for certification.
 The Standards Information Management System
which is in charge of tracking the progress of development
of standards was developed.
 The Laboratory Information Management System
(LIMS) was fully implemented. The status of the analysis of
samples is now possible for both internal and external
clients. Clients are now able to trace the stage at which the
analysis is on. 65
Automation of services cont’d
 The UNBS Webstore was also developed. This is
responsible for the selling of standards online.

 The UNBS App was launched which enables clients to

be able to track their records under their respective
user accounts online.

 A new application (support.unbs.go.ug) was

developed as a management system for clients where
they can make any enquiries and receive immediate
response.

66
 Certification of MSMEs products
UNBS has entered into MOUs to build capacity in
implementation of quality standards with;
 Uganda Small Scale Industries Association
 Uganda National Agriculture Development Organization
 Biomass Energy Efficient Technologies Association
 National Organic Agriculture Movement of Uganda
 Kampala Butchers and Traders Association
 Uganda Manufacturers Association
 FARM Africa on issues of postharvest handling and grain
quality standards in Teso sub region.

67
 Conclusion
• The Ministry is grateful to all the partners including the
Government MDAs, Development Partners, Academia
and Civil Society for the support offered towards the
implementation of the NRM Manifesto 2016 – 2021.
• However, the Ministry still requires more resources in
order to fully execute its mandate effectively.
• The Ministry will continue to consolidate the above
outlined achievements to ensure the full implementation
of the NRM Government programmes with the aim of
generating wealth for poverty eradication

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THE END

THANK YOU

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