Special Magazine 2019

MINISTRY OF TRADE, INDUSTRY JUNE 2019 AND COOPERATIVES

about investment Special Magazine 2019

52 | UDC CORPORATE

BUBU EXPO 2019 5 FOREWORD EDITOR’S NOTE

Foreword by President Museveni BUBU A Vital National Issue 1986, we already knew what to do to addition is a big opportunity for us as it peaking at the BUBU Expo 2019 Gala Dinner on May 09, Prime Minister change that situation because we had helps us hit many birds with one stone – Dr Ruhakana Rugunda made a thought-provoking statement. He remarked outlined our vision in The Ten-Point jobs for our people, it earns the country that failure to support our own local companies is akin to committing eco- programme. Item number five on the foreign exchange, creates more tax reve- Snomic suicide. That is definitely what Cabinet had in mind when it endorsed the list was “building an independent, in- nue, ensures food security and eventual- Buy Uganda, Build Uganda (BUBU) Policy in 2014. tegrated and self-sustaining national ly leads to social transformation. In March 2017, Dr. Rugunda officially launched the Policy and its implementation economy.” With peace and stability We are now producing electricity trans- framework. Two years later, there are some tangible fruits on the ground – as the established, we embarked on an aggres- formers locally instead of importing first ever BUBU Expo 2019 held at Kololo clearly showed. sive programme to ensure that a robust them. This is good as it is providing jobs, All indications are that BUBU is achieving its aims. private sector-led industrial sector is in leading to technology transfer and re- Countrywide, local entrepreneurs in the various sectors such as Education, health, place as a way of promoting a compet- ducing the outflow of foreign currency real estate and construction, Real Estate, Manufacturing, Agriculture, tourism itive export oriented economy ensur- to foreigners. ing value addition, job-creation, higher among others are in a relatively better situation than before. My commitment is to ensure that local household incomes and increased tax Micro, Small and Medium Enterprises (MSMEs), which form 90% of the Private manufacturers and producers are sup- revenue. Sector, are creating jobs and mitigating the problem of unemployment. What is ported in every way possible. The Army MINISTRY OF TRADE, INDUSTRY happening in textiles, beverages, leather and footwear, furniture, stationary, dairies, AND COOPERATIVES hen Uganda gained in- On March 7, 2019, I was delighted to and Police are using uniforms that are pharmaceuticals, foods and beverages, electricals is particularly exciting. dependence in October officially launch the BUBU Expo 2019 produced locally. This also applies to Ministry of Trade, Industry & Co-operatives 1962, it inherited an econ- at Kololo Independence Ceremonial other Ministries, Departments and There are not yet enough incentives for local producers and generally the capacity Farmers’ House, Plot 6/8 Parliamentary omyW with gross distortions including Grounds, which was a clear testimony Agencies which I have also instruct- of local producers and suppliers in complying with quality standards is still wanting. Avenue overreliance on a few export crops like to the big strides we have made over the ed to purchase local products for their Undoubtedly, more still needs to be done to ensure targeted intervention to address P.O. Box 7103, Kampala - Uganda coffee, cotton, tea and tobacco, as well last 30 years. In my speech, I stated that consumption. Through deliberate plans the challenges that hinder products and services from being accessed. Tel: +256 312 324000, +256 414 230916 as minerals such as copper. These were the crisis in Africa has always been that and actions we can confidently say that Email: [email protected] But there are assurances that focus is being put on identifying key challenges faced largely exported as cheap raw materials of buying from other countries and not Uganda’s march to middle income sta- Website: www.mtic.go.ug to Europe and related secondary prod- producing enough for our consumption by the goods and service providers in a bid to address issues of quality, standards tus is unstoppable. mticuganda @mtic_uganda ucts were imported back as costly fin- and to enable us participate meaning- and capacity among others. I wish to commend the Ministry of ished products. fully in international trade. There is consensus that this would propel infant industries to become big brands Trade, Industry and Cooperatives, In- PUBLISHED BY Going forward, my commitment is to I told the hundreds of exhibitors at the that are competitive in regional and international markets. vestment Review Publications and oth- Investment Review Publications Ltd ensuring that Ministries, Departments Expo that in the modern world, there Also, there is consensus that promoting industrialization is the surest route to mid- er partners for organizing the BUBU P.O. Box 25279 Kampala B4, JK Building, and Agencies lead the way by purchas- are three important people: the produc- dle income status. By working with the private sector to organize events like the Expo 2019 and for compiling this Plot No. 874 Block No. 215 Ntinda Kampal- ing locally-produced products and ser- er, the consumer and the Government. BUBU Expo, Government, the Ministry of Industry, Trade and Cooperatives plus BUBU Expo Magazine. aTel: +256 394 824049, +256 788 577499, vices. I wish to commend the Ministry The role of the Government/Public the other institutions are helping to increase public awareness of the existing high For God and My Country! +256 787 452220 of Trade, Industries and Cooperatives; Sector is to link producers and consum- quality local products and services in the market, which eventually helps to achieve Email: [email protected] Investment Review Publications and ers and to facilitate the process by the the anticipated benefits of BUBU. Website: www.investmentreviewug.com other partners for documenting the provision of security and infrastructure This publication is yet another brick that the Government is adding onto that effort. www.bubuexpo.com progress made in the trade and industry such as good roads and electricity. It is a rich compilation of images, voices and stories from the various stakeholders sectors. I am glad to note that today, Uganda and captures the pertinent issues that affect BUBU companies and institutions. LAYOUT In 2014, the NRM Government for- does not have to import essential goods Enjoy! mulated the Buy Uganda Build Uganda such as salt, cooking oil, soap, sugar, Yoweri Kaguta Museveni Anthony Etyang Policy as a way of ensuring that local milk, cement, paint, iron bars and sheets, President of the Republic of Uganda SALES & MARKETING producers are supported to get a market etc. We are currently self-sufficient in Peter Nyanzi, Editor for their products. the production of most consumer goods Investment Review Publications Ltd many of which we also export to exter- For decades, Ugandans were exporting Disclaimer: While reasonable precautions have hundreds of thousands of jobs because nal markets. been taken to ensure the accuracy of information there was no value addition as we lacked I was happy to see so many exhibitors provided; neither Investment Review Publications Limited, nor its advertisers, nor the printer can ac- the most basic of industries. adding value to agricultural products. cept responsibility for any damages or inconvenien- When the NRM came to power in As a largely agricultural country, value cies that may arise therefrom.

6 BUBU EXPO 2019 BUBU EXPO 2019 7 BUBU EXPO BUBU EXPO STAKEHOLDERS STAKEHOLDERS

The Public Procurement and Disposal of Public Assets Act 1 of 2003 set up the Pub- The mandate of the Ministry of Trade, Industry and Cooperatives is: “To formulate, lic Procurement and Disposal of Public Assets Authority (PPDA) as the principal review and support policies, strategies, plans and programs that promote and ensure regulatory body for public procurement and disposal of public assets in Uganda. The expansion and diversification of trade, cooperatives, environmentally sustainable in- amendments to the PPDA law have introduced several changes prominent of which dustrialization, appropriate technology development and transfer to generate wealth is the strengthening and enhancement of the role of PPDA in the execution of its MINISTRY OF TRADE, INDUSTRY for poverty eradication and benefit the country socially and economically.” regulatory mandate. AND COOPERATIVES

about investment UIRI was formally established by an Act of Parliament in 2002 to be the model in- Investment Review Publications Ltd is a media and communications firm that was stitution and regional center of excellence, for incubation of industry and pioneering founded in 2013 to enhance communication around investment in Uganda targeted industrial Research and Development activities that could elevate the level of technol- at SMEs (Small and Medium size Enterprises) and other domestic and foreign in- ogy in Uganda and the region. vestors.

The Uganda Registration Services Bureau is an autonomous statutory body estab- Uganda Investment Authority (UIA) set up under the Investment Code 1991 is a lished by Chapter 210 Laws of Uganda in 1998 to provide Accessible, Reliable & statutory agency mandated to initiate and support measures that enhance investment Innovative Registration Services for a Formalized Economy. in Uganda and advise Government on appropriate policies conducive for investment promotion and growth. The changing investment environment and Government priorities have necessitated the modification of UIA’s mandate.

Uganda Manufacturers Association is a premium business association representing the industrial sector of Uganda’s economy with membership of over 700 corporate, Private Sector Foundation Uganda (PSFU) is Uganda’s apex body for the private large, medium and small firms from the private and public sectors. sector. It is made up of over 200 business associations, corporate bodies and the major public sector agencies that support private sector growth. Since its founding in 1995, PSFU has served as a focal point for private sector advoca- cy as well as capacity building and continues to sustain a positive policy dialogue with Government on behalf of the private sector. The Uganda Small Scale Industries Association (USSIA) is a not-for-profit business association of Micro, Small and Medium Industries (MSMIs) with a strong membership base of about 5000 registered Micro, Small and Medium Industries. USSIA is driven to support and equip small and medium sized enterprises expecially the small scale industries sector of Uganda for success and economic growth.

Uganda Revenue Authority assesses, collects and accounts for Central Government Tax Revenue (includes Non-Tax Revenues) and provides advise to government on matters of policy relating to all revenue sources. Established by the UDC Act Chapter 326 of 1952, Laws of Uganda, the mission of Uganda Development Corporation is to make long-term investments in strategic sectors of the economy in order to stimulate industrial and economic development and thus spur private sector growth.

The Uganda National Bureau of Standards (UNBS) is a statutory body under the The mandate of the Ministry of Defence is to defend and protect the sovereignty Ministry of Trade, Industry and Co-operatives established by the UNBS Act Cap 327. and territorial integrity of Uganda, ensuring non-violability of peoples and individ- The Mandate of UNBS is to formulation and promotion of the use of standards, en- ual rights, the rule of law and good governance. Cooperate with civilian authorities force standards in protection of public health and safety and the environment, en- in emergence situations and in cases of natural disasters. Foster harmony and un- suring fairness in trade and precision in industry and strengthening the economy of UGANDA NATIONAL derstanding between Defence forces and civilians.Engage in productive activities for BUREAU OF STANDARDS Uganda by assuring the quality of locally manufactured products. Natural Development.

8 BUBU EXPO 2019 BUBU EXPO 2019 9 SPEECH SPEECH

Parliament To Fast-track En actment of BUBU Laws

stand here to welcome our guests cedure, legislators fast track enactment thank the Ministry of Trade, industry country by strengthening the local pro- • Upgrade of Entebbe International Our country has actively engaged in re- and wish Ugandans a happy In- of such laws that emancipate Ugandans and Cooperatives headed by my Sister ducers and traders. When we consume Airport gional integration and intensive market ternational Women’s Day. To the especially women. I want to re-affirm Hon. Amelia for developing this good local products such as milk, coffee, cot- • A standard gauge railway network creation as reflected in the implementa- Iwomen congratulations upon reach- the Legislature’s commitment to sup- policy. ton, leather and leather products, statio- with high speed trains tion of EAC, COMESA states, CFTA ing this important day and to our men port the BUBU campaign. I know It has nery, beverages, iron and steel, cement to mention but a few. This comes with During the official opening of the 24th • Upstream oil wells, midstream heated thank you for supporting us. I also wish taken us long to come up with such an and others, we are using the strength a huge market potential that we are yet Uganda Manufacturers Association In- export pipeline, and oil Refinery with to thank the organizers of this import- initiative but as the saying goes, “Bet- of our domestic market to support our to fully utilize. However in addition ternational Trade Fair (3rd -10th Octo- associated road and building infrastruc- ant event, especially for being so strate- ter late than never.” Let me take this producers. The domestic market should to thinking of these markets we must ber 2016) His Excellency the President ture needs. gic to ensure that the BUBU Expo co- opportuni- ty to directed all Government Ministries, therefore be the first opportunity for serve ours as well. This Expo is therefore • International airport construction in incided with the Women’s Day. Thank Departments and Agencies to procure our traders to sell their products. timely in as far as popularizing Ugan- Kabaale - Hoima to ease the oil ex- you once again for this good gesture locally produced products. Since then NRM Government (2016 -2021) is dan products not only in Uganda but traction towards women. “The Reservation Scheme” guidelines about steady progress. “Taking Ugan- the entire EAC, COMESA, TRIPAR- The BUBU Policy aims at of the public procurement disposal da to modernity through Jobs-creation • Multi-lane paved national road net- TITE, CFTA and the entire world! increasing the consumption of public assets (PPDA) Act have and inclusive development. The NRM work linking major towns, cities and Government must support BUBU of local goods and services been put in place. Manifesto’s aspirations are to take other strategic locations through promoting procurement and in the Public Procurement BUBU is not a unique initiative Uganda to a competitive middle income • Hydro power plants (Karuma, Isimba, consumption of local products and ser- sector and promoting for Uganda. Many other coun- country. Growth, employment and &Ayago) vices. We therefore need to invest in conformity to standards. macro- economic stability are central in sensitizing the population about this tries within and outside the re- • Science and Technology parks as well The Private Sector re- our government’s priorities. Therefore, policy. gion have implemented similar as industrial parks in each regional city quested government to arrangements. I am optimistic BUBU Policy and the Expos are a focus Once again, I thank you all and wish • International and national referral take the lead in formu- it will take us a long way. At this in the right direction. Women are the you the best in this BUY UGANDA hospitals in regional cities. lating and implementing point, we want Ugandans to ap- main beneficiaries of this policy and the BUILD UGANDA EXPO and happy a policy that encourages preciate that when we buy Ugandan Expo in particular. I want to appeal to It is gratifying to note that most of celebrations during the International the purchasing of locally pro- products we contribute to employ- my dear sisters to come up and support these are on-going and will be complet- Women’s Day. duced goods and services as well as this cause because it will create jobs for ed on schedule. Their completion will ment creation, increased tax revenues, Thank You amending the Public Procurement and transfer of technologies and our fellow women and youth and mar- boost industrial growth and develop- For God And My Country Disposal of Public Assets Act to pro- economic growth of our ket for our products. In a special way I ment thereby improving the livelihoods vide special preferences for local suppli- want to thank our sisters who are ex- of the population. ers and service providers. hibiting in this expo. You have done us Uganda has abundant natural resourc- As a pro- proud. Keep it up! es and a liberalized economy. We have We cannot develop by depending on enormous opportunities for investors imports and export of primary products in areas of Information and Commu- that have no value. We must put indus- nication Technology, Tourism, Value trialization at the centre of our plans. Addition especially agro-processing, We cannot continue to export raw ma- Commercial Agriculture, Minerals Ex- terials cheaply and importing back the traction and beneficiation. The country products of our own raw materials as also has significant oil reserves - an es- Ugandan products have proven to be timate of over 6 billion barrels. Com- superior in quality than many import- mencement of commercial oil produced products. For example look at Bella tion is expected to begin in 2021 Wine made by a Ugandan woman, it is This should be the springboard for perhaps better than many international BUBU. We can be self-reliant. We only brands. need to focus on industrialization, pro- Uganda Vision 2040 identifies a num- curement and consumption of our local ber of projects that the government in- products and services by both govern- tends to focus on. These include; ment and the private sector.

BUBU EXPO 2019 11 SPEECH SPEECH

Hon. Prime Minister Calls For Mind-Set Change On BUBU

our country either because we prefer The BUBU Implementation Strategy go alongside developing a brand and foreign products or because we do lack is the way in which our actions can be marketing Ugandan products and ser- capacity to produce enough locally in guided towards a gradual change in our vices as unique products. The strategy our economy we are faced with a situ- mind set. The implementation of this itself will ensure conformity and com- ation of trade deficit. There is need to strategy will also be an appreciation of pliance to standards. support the local production capacity in the contribution of our sector budgets The expected outcome will be increased order to reduce importation bill which to private sector development. consumption of products locally and in- keeps increasing. I therefore call upon all MDAs and local ternationally. For instance, in 2014, our total export governments to procure in accordance The third strategic objective is to in- earnings were estimated at USD 2,676 to these reservation scheme guidelines. crease efficiency and participation of million while total imports bill stood at To achieve the objectives of the BUBU local producers in public procurement. USD 6,139.3 million. Implementation Strategy, increased This strategy is about working together In pursuit of implementation of the interaction and administrative coordi- to ensure timely payment to suppliers. BUBU Policy Implementation Strategy, nation of activities of all Government The outcome of this strategy will be that Government shall review and strength- Ministries, Agencies, and Local Gov- increased number of local traders will en the regulatory and policy frame- ernments is expected. My office, as- participate in public procurement and works which hinder the realization of sisted by the Ministry responsible for eventually in the higher value chain. the objectives of the BUBU Policy and trade will take the overall responsibility The fourth strategic objective is to in- Local Content initiatives in all sectors. to coordinate Ministries, Departments, crease the visibility of local products in Agencies and local governments to en- Government has developed guidelines local outlets. The strategy here will be sure the success of implementing this for the reservation schemes under the to engage local stockists to give shelf strategy. PPDA Act. These reservation schemes display space and mainstream BUBU cover the following areas: This strategy takes cognisance of the Policy Implementation in both private • Procurement for public contracts by existing policies and laws guiding and and public sector transactions. regulating internal trade and other mat- thresholds for national providers Expected outcome is that consumers ters of public sector procurement. It is • Reservation of at least 30% of the val- will consider local products as their first for this reason that we will need a pub- ue of works through subcontracting to choice. lic-private approach. local companies The fifth strategic objective is to increase There are five strategic objectives which • Reservation for procurement of uni- awareness about the BUBU Policy. This irst and foremost I would want addition to other requirements like tex- and soap. We would like to encourage we will pursue to implement the BUBU forms and related clothing materials Strategic objective will be to develop the launch of the BUBU Imple- tiles and footwear whose import value the consumption of such locally pro- Policy. mentation Strategy to be a call currently estimated at USD 7.6bn…. duced products in preference to import- • Reservation for procurement of low a communication strategy, coordinate The first one is to take stock of the local for mind-set change. The BUBU Policy This has contributed to high import ed like products so that we can sustain voltage cables and conductors implementation among MDAs and pri- F producers and improve their capacity to vate sector; and enhance participation is a policy that aims at increasing the bills. and expand growth in many other sec- • Reservation for procurement of select- supply. Under this strategic objective we consumption of local goods and ser- tors. of the BUBU National Committee in When we develop strategies like the ed medicines will identify producers/suppliers, build vices in the Public Procurement sector monitoring local content. BUBU Policy to support the consump- We want Ugandans to appreciate that These guidelines became effective on their capacity, formalize them, improve and promoting conformity to standards. I wish to officially launch the: tion of local products such as milk, cof- when we buy Ugandan products we 1st March 2017. their reliability, and apply preference Uganda’s population is now estimated at fee, cotton, leather and leather products, contribute to employment creation, in- schemes under the PPDA Act. The Buy Uganda Build Uganda Policy The Ministry of Trade, Industry and 36.6 million with a working population stationery, beverages, iron, steel ,cement creased tax revenues, transfer of tech- and; Cooperatives should engage owners of This is intended to increase number of of 13.9 million. The proportion of the and other products we are using the nologies and economic growth of the supermarket outlets so that local prod- local producers benefiting from Gov- The Buy Uganda Build Uganda Imple- poor population has reduced from 24.5 strength of our domestic market to sup- country by strengthening the local pro- ucts are given conspicuous display. It is ernment Procurement. mentation Strategy percent to 19.7 percent with an income port our producers. ducers and traders. The domestic mar- absurd that when we go into our super- per capita estimated currently at USD ket should be the first opportunity for The second strategic objective is to en- In 2015, the manufacturing sector grew markets, our minds as individuals are 743. Our expenditure at household level our traders to sell their products. hance the quality and competitiveness Thank you. by 1.4% as a result of increased produc- left wondering whether Uganda pro- is 46 percent on food and beverages in of local products and services. This will tion in chemicals, paint, foam products When we import what we consume in duces anything worth selling.

12 BUBU EXPO 2019 BUBU EXPO 2019 13 SPEECH SPEECH

BUBU Expo: Showcasing Ugan da’s Economic Potential

The Hon. Amelia Kyambad- was recorded at about UGX20 billion local products. de, Minister of Trade, Indus- in 2017/18. • Kkatt Consult, a Ugandan company, try and Cooperatives, has been • Iron and Steel Sector: Currently, there has partnered with Arteliu Eau and pivotal to the formulation and are 24 steel industries with an installed Environment, a French company, to implementation of the Buy capacity of 1.7m tons per annum, up provide engineering services during the from 866,000 tons per annum five years final stages of construction of Isimba Uganda Build Uganda BUBU ago. Dam. The Ugandan company was allo- Policy. She made the follow- cated USD 900,000 (UGX 3.3 billion), ing slightly abridged speech at • Sinohydro Corporation Ltd, which is constructing Karuma Hydro Power which is 22.5% of the total monetary the official opening of the first Project, is now procuring all cement and value of the consulting services contract; ever BUBU EXPO held at Ko- iron bars from local producers; • As directed by H.E the President, in lolo Independence Grounds on • Textile Sector: Uganda has produced the FY 2017/18, MDAs have bought March 7, 2019. an average of 130,000 bales equivalent furniture worth UGX351 million from to 24,050 tons of cotton per year. Uganda Prisons Furniture workshop. our Excellency, I thank you • Cement: Currently, Uganda has five However, there are some challenges for taking time off your busy cement factories producing 4.43 million such as: schedule to grace this event - MT per annum, an improvement from • Mindset change towards local goods theY Inaugural Buy Uganda Build Ugan- two million MT five years ago. and services da (BUBU) Expo; an event we intend to Hima Cement is to supply 120,000 • Gaps in legal framework hold annually. tonnes of cement for three major proj- • Delayed payments for suppliers Cabinet approved the BUBU Policy in ects: expansion of Entebbe Airport, • Low capacity of the Jua Kali October 2014 and its objectives are to: Mubende-Kakumiro-Kagadi Road i. Promote the consumption and use of Project, and Soroti-Moroto Highway; • Poor access to credit facilities local goods and services by the Public cement imports decreased by 7.6% to We highly appreciate Your Excellency’s Sector in Government procurement 284,000 tonnes in 2017. intervention in the provision of com- and; • National Medical Stores procured mon user facilities to furniture makers, ii. Create awareness for consumers to Medical Supplies from local producers welders, Women and Youth groups in buy locally-produced goods and services worth UGX 156Bn from July 2017 to urban centres to build their production capacity. iii. Ensure conformity to quality and March 2018; standards by the local producers of • Local companies have supplied lo- As a Ministry, we have undertaken stra- goods and services. cal products worth USD37.24 million tegic interventions in terms of policies, strategies and other regulatory frame- The Expo is one of the strategic inter- equivalent to UGX141 billion to the works e.g. ventions in the implementation of the Petroleum Authority of Uganda; BUBU Policy. The Event coincides with • Uganda Prisons, UPDF, Police and • Establishment of the MSME Direc- cessful implementation will contribute USD 2,694 billion in 2017. Your Excellency, the implementation International Women’s Day Celebra- Medical Personnel procure uniforms torate towards job creation and income gener- • The trade balance between Uganda of the BUBU Policy has enormously tions and, therefore, one of the activities from Picfare/NYTIL Industries. • Formulation of the National Export ation; increased competitiveness of our and the East African Region soared contributed to the growth of our local will be the National Women Entrepre- • Ministry of Finance, Planning and Development Strategy products; and consequently reducing from USD181 million in 2016 to USD industries and I would like to cite a few neurs Conference. Other activities are; Economic Development is to align the our country’s trade deficit. 266 million in 2017. examples: • National Rural Industrial Develop- showcasing our local products and ser- Agriculture Value Chain Development In view of the aforementioned, our In nominal prices, manufacturing re- ment Strategy vices by exhibitors from various sectors • Our trade balance with our major East Project (AVDP) to the BUBU Policy. economy has registered a number of corded a value addition of UGX8.3 • Construction of One-Stop-Border- of our economy and an Awards Dinner African partner, Kenya, registered im- This was implemented by the Ministry achievements among others: billion and contributed 8.4% of GDP Posts to recognize BUBU compliant Govern- provements from trade deficit of USD – indicating that an estimated USD3.5 growth in 2017/18. Overall, industry ment Institutions and local producers. • Uganda’s trade deficit has reduced (54 million) in 2016 to USD 94 million million from the total Project budget • Establishment of Border Export activities grew by 6.1% in 2017/18. In BUBU is a landmark Policy, whose suc- from USD 3,261 billion in 2015 to in 2017. had been reserved for the purchase of Zones nominal terms, the gross value added

14 BUBU EXPO 2019 BUBU EXPO 2019 15 SPEECH

BUBU Expo: Showcasing Uganda’s Economic Potential

• Electronic Single Window not apply to Uganda only; many other • ‘Buy Kenya Build Kenya’ • Elimination of NTBs countries within and outside the re- • ‘Buy Malawi Strategy’ gion have been implementing similar • Strengthening the District Commer- • ‘Build East Africa Build East Africa arrangements for some time now to cial Extension Services by the DCOs Initiative’ support their local industries. These in- • Trade Information Portal clude; • ‘Buy Africa Build Africa (BABA) under COMESA’ • Revitalization of cooperatives • ‘Proudly South African Campaign’, • The ‘Proudly British Campaign, and Your Excellency, this initiative does • ‘Made in Australia Campaign’, most recently’ • The ‘Buy America Hire America’ I thank all the Sponsors of the event and the Ex- hibitors for contributing towards this Expo. I also applaud all the participants for coming in such big numbers. Your Excellency, we appreciate the political will and commitment demonstrated in the implementation of the BUBU Policy. I, therefore, commend Govern- ment MDAs and the Pri- vate Sector for their role in the implementation of the Policy. I am optimistic that with this support, we will be able to effectively, address the challenges that hinder the effective implementation of the Policy so as to increase our production capacity; create more jobs and address our trade balance. We will ensure that there is effective interface with the Public and Private sector to promote the implementation of the BUBU Policy. Thank you!

16 BUBU EXPO 2019 BUBU EXPO 2019 17 SPEECH SPEECH

Ministry of Finance Fully Com mitted To BUBU

ed new reservation schemes guidelines the profiles of the proposed national cro level if we commit to provide reli- to promote private sector development and resident providers indicating their able and profitable demand and market by providing business opportunities capacity to undertake the sub works, for our local products. to local firms which enhances private supplies or services. For the local suppliers and SMEs, your sector growth, job creation, foreign di- 3. Reservation for procurement of uni- duty is to ensure that you provide the rect investments and overall economic forms and related clothing materials to right quality and standard products and growth. providers that have manufacturing fa- services. This affirmative action will not Further to that, the on-going PPDA cilities in Uganda, using locally grown stand if our suppliers disappoint us. Let amendments are expected to rally all cotton from ginneries, among other our local investors prioritize investing MDAs to give priority to locally man- conditions. in appropriate processing technologies ufactured goods and services, as part of 4. Reservations for procurement of to boost their production capacities, their obligation and support to BUBU electric cables, conductors and bundle ensure competitive pricing, quality, re- policy implementation. This will be a cables to providers that have manufac- liability and efficiency in their supplies. vote of confidence for the local suppli- turing facilities in Uganda. Ministry of Finance, Planning and Eco- ers, which will challenge them to ex- 5. Reservation for procurement of med- nomic Development is already a partner pand their production capacities, stan- icines and medical supplies manufac- and will continue supporting BUBU dards and quality infrastructure as well tured in Uganda to providers that have policy. However, Ministry of Trade, as supporting their regional and global production facilities in Uganda, whose Industry and Cooperatives and other aspirations. products are certified by the national partners should prioritize support to lo- The Ministry of Finance, Planning and Drug Authority (NDA) and medicines cal SMEs through training and capacity Economic Development has supported registered in the National Drug Au- building programs to improve products BUBU policy implementation through thority Register and other conditions. and services standards and quality. the revised Public Procurement and Ladies and Gentlemen, the guidelines We must urgently address the under- Disposal of Public Assets Guidelines also provide for reservations to apply to lying factors affecting effective and ef- 2018 to cater for; procurements funded by Government ficient implementation of the BUBU take this opportunity to appreciate and rationalised into supporting local and construction and development 1. Reservations of public contracts by of Uganda and development Partners policy since there already supportive the organisers of the BUBU Expo enterprises growth and development. projects. threshold to national and resident pro- except where the conditions of funding regulations and guidelines that facilitate 2019 under the theme “Showcas- The BUBU policy provides guidance Ladies and Gentlemen, as you are all viders, applicable to procurements of limit the application of reservations. private sector development. ing Uganda’s Potential”. As Ministry to channel a big percentage of these re- aware, H.E the President of Uganda supplies estimated to cost UGX 1 Bil- I Comrades, it is our responsibility to Lastly, I urge all Accounting Officers, of Finance, Planning and Economic sources to our local suppliers, helping to directed my Ministry to Amend the lion and Below, procurement of Road promote our own enterprises, support- Procurement Officers, and all parties Development, we are fully committed achieve equitable and inclusive growth. PPDA Act to provide more allowance works estimated cost of UGX 45 Billion ing our brothers and sisters to grow by involved to support the implementation to support BUBU implementation, and Comrades, the three pillars of effective for increased input of local labour, goods and below, procurement of services es- taking it as our obligation to Buy Ugan- of BUBU policy, by applying the avail- as Government, emphasis is always on and successful governance are increas- and services in the procurement of pub- timated cost below UGX 1 Billion and da, Build Uganda. As we implement the able reservation guidelines and regula- interventions that create a conducive ing value for money, improving public lic works, goods and services within the below, and procurement for non- con- BUBU policy, we also need to be mind- tions. I am tasking PPDA to continue environment that boosts investor con- service delivery and creating an en- country. sultancy services whose estimated cost ful for value for money, emphasizing working closely with Ministry of Trade fidence for private sector growth and abling environment for private sector – is UGX 200 million and below. The Ministry of Finance, Planning and efficiency and quality issues. I therefore Industries and Cooperatives to identify development. led growth. Public sector procurement Economic Development currently co- 2. Reservation of atleast 30% of the call upon all MDAs to embrace this and report on the Entities that remain Ladies and Gentlemen, Government boosts demand and growth in the econ- ordinates a multi –sectoral committee value of works through subcontracting Policy and actively support the local non-compliant. I will be holding Ac- through the Ministries, Departments, omy by; composed of Ministry of Trade, Indus- of sub-works and supply of materi- economy. counting Officers accountable for their Agencies and Local Governments 1. Developing local industries, broaden- tries and Cooperatives, Ministry of Jus- als, equipment and services to national performance on these. As Ministry of Finance, Planning and spends trillions of shillings annually in ing economic participation and creating tice, Ministry of Works and Transport and resident providers. This reservation Economic Development, we see mis- For God and My country. provision of goods, works and services employment opportunities. and Public procurement and disposal of compels foreign bidders to demonstrate match between our macro economy to the people of Uganda. This expen- public asset Authority (PPDA) to fast the form and scope of subcontracting in 2. Supporting the service delivery arm performance and slow response from diture is estimated at 60% of the total track the required amendments. its bid, values of the sub works, supplies of Government whereby public sector the micro side, we hope that BUBU will National Budget, should be realigned and services to the sub contracted, and organizations acquire goods, services, Am happy to inform you that we gazett- be the gap filler to boost growth at Mi-

18 BUBU EXPO 2019 BUBU EXPO 2019 19 BUBU FACTS & BUBU FACTS & FIGURES FIGURES

Uganda is the second-largest FDI recipient in the EAC region, behind Tanzania 2.9% 23% 24.7%23% For Prime Commercial bank lending Annual growth rate of the rate in 2016 in Uganda. agricultural sector which Highest in comparison to other remains the backbone of EAC member States. Ugandan livelihoods Credit to the private sector 50% 61.3% stands at about 15% of GDP

80% 40% Shelf space for local products in supermarkets

Ugx 450Bn Ugx 156Bn The worth of contracts awarded by Medicines procured by NMS Uganda UNRA worth to local companies from local companies in 2018 (125) in 2018

13% 12-15%

20 BUBU EXPO 2019 BUBU EXPO 2019 21 INTERVIEW INTERVIEW

We’re Tightening The Noose On Poor Standards - UNBS

Mr. Hakim Mufumbiro is the Deputy Executive Director in charge of Standards Development at standard. Currently when a request for able to implement quality management ufacturers to develop guidelines and the Uganda National Bureau of Standards (UNBS). He speaks about their operations in supporting a standard comes in, it delays and makes systems that respond to the needs of regulations but many of them tend to local producers to benefit from BUBU. Excerpts. us appear like we are not working. This customers in a timely manner. hide or don’t document enough. As a integration will come in with UNBS Finally, what challenges do you find result, we have to rely on information becoming fully ISO 9001 certified, from elsewhere to develop standards hat exactly does UNBS and that the areas that are projected to The use of online services has greatly working with Ugandan manufactur- which is a quality man- here which might at times not apply. do? grow are serviced with availability of improved provision of services. This ers? agement system The feeling we get is that manufactur- standards. That’s why we do a lot of hasn’t worked to the benefit of just I will start with the Stan- Our main role as UNBS that indicates ers think standards are for the standards surveys, which help them to get to the manufacturers only but UNBS as well. dards Department. We is standards development and promo- that we are body. For them, it’s about the quantity W have not had effective market as easily as possible. As you may already know we generate tion. We undertake the development of in control they have produced and not its quality. 60% more revenue because of improve- representation of man- standards for all sectors in the econo- The challenge people always point out of virtual- This is why we find ourselves at con- ment in provision of services and diver- ufacturers in stan- my ranging from agriculture sector to ly all our flict with them sometimes because they sifying the revenue streams. dards development engineering to chemicals and consum- resourc- don’t take responsibility to offer quali- because probably er products, management and systems Going forward what are you looking es. We ty products. Even in their associations, they don’t have the standards. Once we have developed at improving? want they associate on other things like hav- right technical staff them, we create awareness so they can We are issuing out a new call to stake- to be a ing tax waivers, power tariffs and others The use of online services to contribute to the be used. As of December 2017, we had holders to come on board and give us com- but not quality or consumer interests. has greatly improved pro- standards agenda. developed 3,312 standards with en- their ideas because we want higher plete in- This has been aggravated by the lack of gineering having the majority (1,163 vision of services. institutions of learning to introduce stitution There is also lack of consumer protection laws. They aren’t standards) followed by food and agri- subjects relating to standardization. data. We are supposed punitive enough. culture (944), chemicals and consumer to get information We want students to participate in As UNBS, we are tightening the noose products (837) and management and especially when working with Gov- from man- standards generation activities because on enforcement. We are now opening services. ernment agencies is bureaucracy. Does these are the next generation of people more branches in different parts of the UNBS consider this something that can Standards are heavily demand-driven who will be driving the economy. As country. We have fully-fledged affect manufacturers? and to develop them we normally look I told you we keep innovating as offices in the regions, in Gulu, at the country’s development plans and Yes that’s why we have e-services. Cur- new flourishing areas for invest- Mbale and Mbarara to effec- develop standards accordingly. Right rently, a manufacturer doesn’t need to ment come up. tively comb these areas and now we have developed over 300 stan- come to UNBS to buy a standard be- Also, as UNBS we are cur- ensure that manufacturers dards for the oil and gas sector since we cause they can do it from the comfort rently exploring the inte- all over the country con- know oil will start flowing soon. We are of their offices. One day is enough for gration of systems where- form to standards. supporting the Government to ensure one to get a standard that they require by if a client makes a that we have oil in the next three or four as long as they make the necessary pay- request at the certi- years. ments. Even for certification, there is an fication level for a What kind of support are you offer- app where you can apply on-line and in particular stan- ing specifically to local producers as a 21 days you should have your permit dard, the system way of supporting Buy Uganda Build so long as you meet the requirements. is able to trig- Uganda? We are piloting a system whereby once ger the next you have successfully applied, the certif- What we are advocating, and which is system to icate comes direct to your email. When key for standards, is the recent Govern- devel- it comes to laboratory testing, when a ment policy of BUBU. Through this we op the manufacturer submits samples, unlike are pushing for local content and ensur- need- before where they had to always walk ing that Ugandans are able to benefit e d in and out of UNBS, they can now go from big projects currently taking place online to track the status of the process. in the country. Our business is to en- Normally, manufacturers are able to get sure that the materials produced in the results in 14 days. Even in import in- country do meet international standards spection, everything is verified on-line.

22 BUBU EXPO 2019 BUBU EXPO 2019 23 Museveni Launch es BUBU Expo 2019

1 6

2 3 7 8

4 5 9

1: President Museveni launches the BUBU Expo 2-5: President Museveni inspecting numerous exhibition stalls at the BUBU Expo 6: Made in Uganda product activations at the center stage 7-9: CSR Activities

BUBU EXPO 2019 25 Women’s Da y Conference

10 15

11 12 16 17

10: URA Commissioner General, Doris Akol, Riham’s Ra- chael Luwedde and Atiak Sugar’s Amina Hersi congratulate 13 14 18 Amito Jackline on winning Ugx 1M startup capital from Riham. 12, 13, 14: Songstress Mariam Ndagire, Speeaker of Parlia- ment, Rebecca Kadaga, URA Commisioner General, Doris Akol 15: Second day of the BUBU Expo was the 2019 Women’s Conference sponsored by URA and was presided over by the Speaker, Hon. Rebecca Kadaga 16, 17: Winners awarded at the BUBU Expo Women’s Confer- ence BUBU Awar ds Gala Dinner

19 24

20 21 25 26

The BUBU Awards Gala Dinner on 9th March at Kololo Inde- pendence Grounds: 22 23 27 Awards were presented by Rt. Hon. Prime Minister Ruhakana Rugunda and Hon. Amelia Kyambadde 19: Roofings Ltd, 20: Riham Group, 21: BUBU Expo Organ- ising Committee Chairman, Asst. Commissioner Abdul Kasule introduces the organising committee, 25:Orion Transformers, 23: Plascon, 24: Lato Milk, 26: Mukwano Group of Companies, 27: Graphic Systems

BUBU EXPO 2019 29 Some of the 390 exhibitors who showcased Made in Uganda products at the annual BUBU Expo 2019 held Kololo Indepen- dence Grounds

BUBU EXPO 2019 31 OFFICIAL OFFICIAL LAUNCH LAUNCH Museveni Launches BUBU Expo 2019 ment is fully committed to correcting is expected to provide funds at a rate of that BUBU is out to ensure quality the anomaly. He paid tribute to local 12% or less. products. She observed that among the entrepreneurs for embarking on making Ministers’ assurances 350 exhibitors, 20% were importing threads from banana fibres and praised their raw materials. The Minister of Finance, Matia Ka- their determination and stand on the saija said that the Government spends She was pleased to note howeer that the promotion of locally-produced goods. about 60% of its budget on the purchase iron and steel sector has got 24 indus- Noting that Uganda today exports to of goods and services. He said that it tries. She added that five industries were the region, the President added that would be appropriate to ensure that this involved in the production of 4.43 mil- there is an even bigger potential of ex- expenditure supports our local indus- lion metric tons of cement per annum. porting to the world. He said that the tries. He allayed fears of delayed pay- She said that BUBU is there to create Government has provided security, ments for goods and services consumed awareness for consumers to buy prod- electricity and infrastructure. He added by the Government. ucts made in Uganda. that the Government was working on The Minister of Trade and Industries, the railway network as part of efforts Amelia Kyambadde saluted President to reduce transport costs. He said that Museveni for enabling the establish- the Government was working towards ment of the Export Development Fund, the reduction of interest rates through which is to be launched soon. She said the Uganda Development Bank, which

President Museveni inspects the UPDF uniforms made by Nytil at the BUBU Expo 2019

resident Yoweri Museveni has tution and creation of employment for their production and value-addition to attributed the crisis in Africa Ugandans. various items. to the situation where the con- The President said that in the modern He, therefore, called on the people of Ptinent is buying from outside and not world, there are three important people: Uganda to stop the importation of producing. The producer, the buyer and the Gov- leather for manufacturing shoes and “The crisis in Africa is that we buy and ernment, which links them to facilitate other related products but instead add do not produce. The challenge we have their business transactions through the value to the skins and hides produced is for us to wake up and use our talents. provision of roads, security and electric- locally in the country. He also recom- Excess imports devalue our national ity. He observed that without a buyer, mended that pharmaceutical-grade currency,” he said. the producer has no role, as he would sugar should be made in Uganda by re- The President made the remarks at be compelled to close business. He told fining the available raw materials so as Kololo Independence Ceremonial the hundreds of exhibitors in particu- to deliberately benefit both pharmaceu- Grounds in Kampala during the launch lar and wananchi in general that in the ticals and drugs firms. of the Buy Ugandan Build Uganda past, Uganda used to import powdered President Museveni informed Ugan- (BUBU) Expo 2019, a programme that milk from Denmark. He was, however, dans that in the past, copper used to be works under the policy of ‘Buy Ugan- pleased to note that the situation has refined up to a level of 94% instead of dan Build Uganda.’ The three-day expo been reversed as Uganda is currently 99.9%, which is required for the pro- was the first arrangement of its kind self-sufficient in milk production. He duction of various items such as wires. whose target is to ensure import substi- also expressed pleasure that wananchi He revealed that the NRM Govern- have started to wake up as exhibited by

32 BUBU EXPO 2019 BUBU EXPO 2019 33 INTERVIEW

BUBU has a bright future – Gideon Badagawa

Mr Gideon Badagawa is the Executive Director of the Private Sector Foundation Uganda (PSFU), an umbrella body for the private sector in Uganda. He speaks about the relevance of Buy Uganda Build Uganda (BUBU) policy from the private sector perspective.

s the PSFU, what is enhance competitiveness and broaden your general view Uganda’s tax base. This will help us re- about Buy Uganda duce the tax burden as well. ABuild Uganda? How ready is the Private Sector in This is a policy that terms of capacity to optimally produce comes to enhance goods to support implementation of private sector ca- this policy? pacities to pro- Private Sector capacities are still dismal. duce and supply However, we expect that as implemen- quality products tation takes root, we shall consolidate and services that our efforts especially in areas that spell meet the min- Uganda’s competitive advantage. The An official of Sheacare talks to a guest at the BUBU Expo 2019 imum expected areas would target all sectors including standards on agriculture, industry or manufacturing, once they meet the requisite market efforts of everyone to see us achieving from elsewhere. the market. logistics, general trade, information standards. Agencies such as Police, the these policy objectives. Such products How would a better economy connect technology and others. Army, government-owned schools and will compete bet- with the BUBU policy? Can you pick out some of the threats others must be encouraged to start buy- ter as they gain Once local value chains are built as a re- to the BUBU policy and how best ing locally-made goods. Government is increased access to sult of the assured markets, then we will these can be addressed for it to achieve also urged to have the BUBU law passed markets here and increase our capacity to expand invest- results? plus the local content regulations. This abroad. Government can leverage ments, increase output, create more jobs, will go a long way in supporting proper The biggest weakness we have is the increase exports and grow the economy. What major opportuni- implementation of the policy. its already existing poli- mindset of Ugandans towards goods ties does BUBU present to cies and programmes to This is how it all builds up. made in Uganda. We need to double How do you respond to those who ar- Uganda’s private sector? From the private sector angle, what is our efforts in awareness creation, train- gue that this policy violates the EAC support the implementa- your reading about the future of the There are many. In addition ing, sensitisation, communication and Common Market protocol, which tion of the BUBU policy BUBU policy? to providing expand- finalization of the law to enforce this calls for free movement of goods? ed and sustain- The policy can only make meaning now policy. One can only take advantage of the ex- able local Others say, the policy is discriminat- and in the future if we have total buy-in How best should the policy be imple- pansive markets in East Africa Com- markets, ing foreign manufactured goods yet, from the citizens and leadership at all mented by Government? munity, Common Market for Eastern the pol- levels of Government and the Private and Southern Africa and if they can we are operating in one global village. icy aims Government can leverage its already ex- Sector. It must be supported to work. penetrate and compete on their own What is your comment? to build isting policies and programmes to sup- We believe the future for this policy markets.This is why we have the Ken- BUBU does not at all seek to protect private port the implementation of the BUBU is bright. It will not only benefit those yan – Buy Kenya Build Kenya, the Ugandan products from foreign compe- sector policy. Guidelines can quickly be issued implementing it but the entire economy BUBU in Uganda and Buy Rwanda tition. It seeks to promote them instead. capacity for procurement and disposal units will gain. Build Rwanda in Rwanda. Only until This will include building local capaci- to cre- together with accounting officers to these are effective, can we have Buy East ties (volumes, standards, quality) to be ate jobs, start prioritising Ugandan made goods Africa Build East Africa. It will require able to compete with goods imported

BUBU EXPO 2019 35 COVER STORY COVER STORY

processes to give preference to local- says the country now produces an av- their garments locally from Southern ly-produced goods—an initiative that erage of 130,000 bales equivalent to Range Nyanza also known as Nytil Pic- would ensure that close to US$300 mil- fare. BUBU Reloaded lion is clawed back. The trade ministry estimates that the Two years on since her pronouncement, country could actually earn Shs 6.7 bn How the Government’s BUBU policy is revi- she came back to the Uganda Media if parents purchased locally-produced Centre on Feb.26 to brief Ugandans The government would school uniforms for pre-primary pupils. talizing local manufacturing sector about what her policy has achieved so rake in over US$300 mil- It could also earn upwards of Shs 190bn far. Speaking ahead of the first BUBU lion or a trillion shillings from locally-produced school uniforms Expo, Kyambadde noted that over the for primary and secondary school uni- last years of implementation, there has every year if Ugandans forms annually while the Army, Police been improved capacity of local prod- were encouraged to con- prisons and UWA uniforms would ucts and service providers. sume locally produced fetch over Shs 33bn if sourced locally. She added that Buy Uganda Build goods. According to the Trade ministry, the Uganda policy is premised on the Uganda National Bureau of Standards PPDA Act, 2014, under which amend- (UNBS) has so far supported over 900 ments are being made to among other small and medium scale enterprises 24,050 tonnes of cotton per year. This things provide for reservation scheme with product certification to improve has been attributed to an upsurge in the regulations to give force of law to the their chances of accessing the local mar- ginnery business around the country. policy. ket; mainly in hotels and supermarkets There are close to 40 ginneries with an Its objectives include; promotion of and some are exporting in the region as installed capacity of close to one million consumption of local goods and ser- a result of compliance. bales with a total spinning capacity of vices; promotion of standards to guar- As a result, there has been increased 12.2 tonnes per antee quality goods and services; provi- day. sion of capacity building programmes to local suppliers of goods and services. Trade ministry officials say the In the iron and steel sector, for instance, yarn produced is there has been an upsurge in steel man- mostly consumed ufacturing with 24 steel industries com- locally for pro- ing on board with an annual installed duction of fabric. capacity of 1.7 million tonnes. This is An official from Blowplast interacts with guests at the BUBU Expo 2019 Uganda has also almost double the total installed capac- markedly im- ity five years ago, which stood at just By Our Reporter The government would rake in over the policy say the business market is not proved its weav- 866,000 tonnes per year. hen the ‘Buy Uganda US$300 million or a trillion shillings driven by passion for home-made prod- ing capacity of Similarly, there have been marked im- Build Uganda’ policy was every year if Ugandans were encouraged ucts that will only last a short time when 80,000 metres per provements in the cement industry. first mooted in 2014, the to consume locally produced goods. better quality imports are available. day and knitting Uganda currently has five cement facto- architects of the initiative were not Kyambadde has always had her back- Other critics like Bank of Uganda Gov- capacity of 8.2 W ries producing 4.43 million tonnes per tonnes per day. only determined to have Ugandans take ers such as the Uganda Manufacturers ernor, Emmanuel Tumusiime Mutebile year - an improvement from two mil- pride in consuming locally-made goods Association. They say individual con- say the policy is against the spirit of The recent im- lion tonnes five years ago. and services, they were also aware of sumers usually make relatively small the East African Customs Union’s free provement made what the policy would do for Uganda’s purchases and manufacturers can only trade. Mutebile has even called the pol- Kyambadde explains that the exponen- in the local textile poor trade imbalance. speed up production and become more icy a “selfish economic policy” that can tial increase in capacity for iron and industry has been steel and cement has been precipitated Ms Amelia Kyambadde, the Minister efficient if the government which buys easily derail the East African Country quite impressive by large Government projects includ- of Trade, Industry and Cooperatives, in bulk is compelled to buy local. integration progress. that government ing roads, bridges, dams (Karuma dam, said if adopted, the policy would en- But critics of the policy say the cam- But Kyambadde has always been de- security agencies Isimba, Bujagali and others) and the hance consumption of locally produced paign can only do better if the private termined to ignore her detractors say- including police, planned oil and gas pipeline. goods and services by giving preference sector which the ministry expects to play ing during the launch of the policy UPDF and pris- to them over the imported goods and a crucial role is supported with friendly in March 2017, that the government There has been some progress in the ons are now pro- services. manufacturing policies. More critics of would soon re-align its procurement textile sector too. The ministry of trade curing most of

36 BUBU EXPO 2019 BUBU EXPO 2019 37 COVER STORY

ment economist based at Makerere construction of power lines were im- land surveying, clearing and forwarding, University, says it is still early to attri- ported from China and India. civil works, supplying fuel, conducting bute the recent uptake of locally-man- But at the moment, the Uganda Elec- environmental impact assessment stud- ufactured goods and services to the in- tricity Distribution Company Ltd re- ies, communication and waste manage- ward-looking policy. serves the procurement of cables to ment. “It is not clear whether the Government manufacturing companies in Uganda. In probably one of the best cases, Kkatt has deliberately imposed taxes on im- In the 2017/18 financial year, UEDCL Consult, a Ugandan company, recently ported fabric to force the armed forces partnered with Artelu Eau and Envi- to buy that which is locally produced,” ronment, a French company, to provide Muhumuza said, “Besides, the armed engineering services during the final forces have been buying fabric even be- stages of construction of Isimba Dam. fore the BUBU policy was passed.” Ugandans have taken The Ugandan company was allocated US$900,000 (Shs 3.302 bn), which is Away from textiles, Kyambadde says, control of the supermar- the local footwear industry has been 22.5% of the total monetary value of the boosted by seven medium sized foot- ket business and are consulting service contracts. wear factories and more than 800 micro largely selling Ugandan Similar inroads have been made in the and small scale footwear entrepreneurs products tourism, entertainment and education in the country producing about 1.5 mil- sectors. Going forward, the trade minis- lion pieces of footwear. Still, she says, try says the Buy Uganda Build Uganda shoe production is still at artisanal level. initiative implementation will even gain procured energy equipment worth Shs Within the furniture and metal works, more traction in the country if entre- 1.1bn from local companies. there has also been growth of the con- preneurs improve hygiene, packaging, struction sector in Uganda which now In the emerging oil sector, the Petro- comply with the required standards and stands at 33%, thanks to increased ca- leum Authority of pacity and improved quality for local Uganda says local furniture and metal works producers. companies have supplied local As a result, the government depart- products worth ments have started procuring office US$ 37.24 mil- furniture from Uganda Prisons indus- lion (Shs 141bn) tries and other suppliers of locally made or 28% of the US$ furniture in accordance with the pres- 133 million (Shs ident’s directive. Some schools are also URA boss, Doris Akol (left) hands over a gift to Trade Minister, Hon. Amelia Kyambadde 500bn), which has procuring desks locally. been spent in the shelf space of local products in super- The policy is spurring local agro-pro- That sentiment seems to be shared by In the medical supplies/pharmaceuti- oil and gas sec- markets as a result of increased shelf cessing in order to support local farm- Neville Igasira, the Marketing Manager cal sector, the National Medical Stores tor by the end of space of local products in supermarkets ers; the Government has initiated the of Jumia, an online shopping company. procured medical suppliers worth Shs 2018. as a result of increased capacity and agriculture value chain development 156.056bn from local companies in the Jumia is renowned for selling high-qual- Ugandans have improved standards. Shelf space for project to the BUBU policy and re- 2017/18 financial year. In the 2017/18 ity imported products but last year it benefitted by sup- Ugandan products in supermarkets now served US$ 3.5 million for the purchase financial year, the Uganda National encouraged our vendors to promote plying local made stands at 40%. of local products such as local seed mul- Roads Authority awarded contracts Ugandan-made goods and services so foods, beverages, tipliers, local fertilizers and seed dealers worth Shs 3.7 trillion and out of this, Products range from honey, sugar, de- as to dispel the notion that Ugandan office supplies, and agro-processors. contracts worth Shs 450bn (12%) were tergents, cosmetics, food stuffs among products are of poor quality. drilling and pro- reserved for national providers. others. Ugandans have taken control of Officials at the Uganda Manufacturing Igasira says last year the company en- duction materi- the supermarket business and are large- Association say the BUBU initiative has couraged its vendors to market Ugan- In addition, a total of Shs 423bn (11%) als, construction ly selling Ugandan products. Examples helped improve productivity in the local dan products. Igasira says the campaign were awarded to local providers through materials and in of such supermarkets include Quality, manufacturing sector. Previously, some was a resounding success and Jumia mandatory sub-contracting by foreign offering services Capital Shoppers, Megha Standard, of the industries were operating at 55% intends to carry on with the campaign providers. In the energy sector, before like catering, Master Supermarket and many other of installed capacity but have now risen this year. the issuance of the guidelines on reser- transport, security, small scale businesses. to almost 70%. vation schemes; 90% of the cables for But Dr. Fred Muhumuza, a develop- management, and

38 BUBU EXPO 2019 BUBU EXPO 2019 39 CORPORATE CORPORATE

formalize their businesses. Ms Kyambadde says the biggest challenge is the mindset of Ugandans who Soko Selling BUBU Alam Group Scaling The Heights still think local products are inferior and do not match international standards. lam Group makes international-quality products and is one Funding, also remains another chal- of the leading trainers, em- lenge for local entrepreneurs to be ployers and taxpayers in Uganda able to produce the goods to a certain A level of standard, she adds. For over 50 years, Alam Group has been a household name thanks to its product “There is also a knowledge gap on how portfolio, which has grown from just to access UNBS, what BUBU means aluminum and glass products to other and information about the industry items such as gumboots, sugar, cooking that manufacturers want to develop.” gas among others. “These are some of the challenges we Founded by Manzur Alam, the com- have encountered,” she says. But the pany has grown business tentacles to minister is also optimistic about the Background The solution was designed to tackle each support the construction sector in East future noting that the growth of ICT problem and solve the raised issues by Africa. In doing so, a host of other sister will boost the initiative by helping oko Uganda is an initiative, which creating an online advertising portal that companies have been formed to further Ugandans access some of the services. was developed in partnership with would make available reach and access consolidate its set objectives. “We are working hard to bridge the the Ministry of Trade, Industry and of products manufactured in Uganda, information gap,” she says. SCooperatives; Abercom Uganda Tech- Alam Group boasts of a wide range nologies Ltd, and Uganda Manufactur- though only standardized products will of prized products thus commanding To Kyambadde, Buy Uganda Build ers Association in 2018 with the aim of be showcased to prove the good quality market trends across the region. Other Uganda is the highest level of patrio- Alam Group exhibition stall at the BUBU Expo 2019 marketing Ugandan products and thus of Ugandan products. Soko Uganda will sister companies have been established tism that we must all embrace as citi- help to increase market access for local- carry out campaigns for the project which in neighbouring countries including He described the recent BUBU Expo being proud of their own. Let’s work zens, investors and stakeholders in the ly-manufactured product (goods and ser- will create awareness about your product KUSCO in Kenya and Casements Af- as a great experience for local manufac- together to building a greater Uganda, Ugandan economy. “ and it will enable vices) in both domestic and global mar- and our portal, our prices will be pegged rica Ltd in Kigali, Rwanda. turers as they showcased their products, this starts with supporting fellow Ugan- us attract more investment and reduce on the factory price since majority of kets. Basically, it supports the creation of The Group, is also one of Uganda’s big- which opened up a channel through dans so I would like to see more Ugan- on our import bill. middle men who hike prices will be elim- efficient supply chains. Soko Uganda is gest tax payers, and is also among the which improvements in quality and in- dans indulging in the BUBU campaign “It will also help us strengthen our inated which creates competitive price free of charge and any manufacturer in biggest employers and on-the-job train- crement in consumption becomes pos- to improve on the quality and quantity national capacity to undertake major figures that is affordable to majority of the Uganda is entitled to have their products ers - employing over 1,200 Ugandans. sible. of local manufactured goods. Let’s Buy national infrastructural projects with uploaded if they meet the standardization consumers. Uganda to Build Uganda!” Because of their high quality (products He is also optimistic that such a forum appreciable national content.” requirement. Goals are both ISO and UNBS certified), the will help the government to focus on Alam product portfolio The online platform was developed under To accomplish are that in 3 years the proj- company’s products have been on high the few but serious remaining challeng- • Casements Africa Ltd (aluminum the guidance of the Government’s BUBU ect is worldly known and anybody who demand for decades. es that the local manufacturing industry steel and glass fabrication) policy with the view of enhancing the wants to buy Ugandan product can access is facing. That is why Alam Group management • Rhino Footwear (gumboots and other participation of local firms in domestic it, people in Uganda can be able to pur- is very positive about the BUBU strat- On where he sees Alam Group in the protective wear) trade. chase more of their own. More employ- next few years, he says the Group has egy. • Sugar and Allied Industries Ltd (Ka- Problem ment creation due to the scale of demand been in existence for over half a century “I am very optimistic about the BUBU liro Sugar and Co-gen electricity) and supply. thanks to its unique selling prepositions Many Ugandans consume less of our local strategy as we have been lacking an Improved quality in Uganda and promot- that make it one of the biggest players • Oxygas Ltd (all types of gases - Med- products due to different reasons like; in- organizational structure to bring local ed local content. in the local market. “We still strive to ical, industrial and cooking) adequate access to some of the products, manufacturers together for a common reach greater heights and are working poor quality of some products, which has This initiative is part of the BUBU policy cause of improving local manufacturing. towards maintaining and improving created bias, limited advertisement reach and is expected to encourage local manu- I think it’s a very good initiative and I our ranking so yeah I see Alam Group and high prices of some of the products. facturers to showcase their potential and would like to take this opportunity to dominating more of the market in years Solution let the world know what we produce as a thank the Ministry of Trade, Industry to come,” he says. nation. and cooperatives plus the Investment Review Publications for such an idea.” “I call upon all Ugandans to continue

40 BUBU EXPO 2019 BUBU EXPO 2019 41 42 BUBU EXPO 2019 BUBU EXPO 2019 43 the time were not responding to the dynamics of the business environment. They were largely manual, burdensome Iconic URA Tower and subject to manipulation. The client base and work volumes were increasing Tax Body Sets Up Centre Of Excellence For Better Service Delivery and yet URA’s capacity to handle them was not at a commensurate level. of land on which the magnificent URA World class premises, innova- There was an urgent need to improve headquarters is situated. tions, systems and highly mo- the quality of service to both local and tivated staff driving URA to While the desire to own a headquarter external clients in a client-focused man- new heights. building for staff to work in a conducive ner. Until then, there had been minimal environment was an overarching goal deliberate effort on the part of the Insti- magine a workplace where after in the earlier years, there were limited tution to focus on the client. Even that a stressful day, you refresh with funds at the time to afford it. A delib- little effort was being watered down by a massage and a workout in the erate effort was thus taken to refurbish rampant corruption and the breakdown gym. and construct a number of stations. of internal communication within the It may sound like a far-off dream, but Some of them were previously housed organization, which was exasperated by Iit is one of the amenities that staff can in uniports and makeshift structures the lack of strong leadership to counter enjoy at the new URA Towers. That is and with staff having to deal with ex- it. Ultimately, both the internal and ex- URA Commisioner General Ms. Doris beside the spacious parking area, crèche tremely difficult working conditions. ternal clients suffered. Akol These staff would certainly not provide for nursing mothers, sky gardens, and a Today, all this is history; URA is now a the kind of service that the tax payers medical and grooming centre. been a simple one; it has been a turtle’s model of excellence and tax bodies from deserved. And as we approach URA’s 27th Anni- race. Sub-Saharan Africa and the world over, versary, there could be no better homage In the earlier years, URA did not own Such horrid conditions, coupled with are visiting it to benchmark and witness than a 22-storey building to remind us the land where the massive building continuous land wrangles at the time, first-hand, the service innovations that that the tax body has now come of age currently sits in Nakawa leave alone any awakened URA management to not URA is using to simplify business pro- in its quest to deliver quality services to of its upcountry stations. Most were only purpose to own permanent struc- cesses. tures but to also restructure URA hu- the taxpayers under one roof. Also, it is rented structures owned by third par- The next phase of the URA journey will man resource base so as to create an ef- a milestone to show Ugandans that they ties and private companies with a very continue to focus on anchoring the suc- ficient and effective tax administration too can deliver on upscale building proj- strong attachment to them. cesses of the Modernisation Programme system. ects in a quality and timely manner. Thankfully, the URA management and enhancing voluntary compliance While the URA Tower is an office fought fiercely to reclaim the eight acres Most importantly, the business process- through excellent service delivery while structure to die for, the journey has not es and systems that URA was using at leveraging a professional workforce and cutting-edge technologies. The next era of Excellence in Service Innovation will also see wider seamless enterprise integration of all data from multiple data-collecting sources within and outside the organization to facilitate the increased use of enterprise analytics and trend reporting. The proposed innovations will further exploit and harness mobile technologies in keeping with URA’s value proposition of offering excellent revenue services. For this to be achieved, the agents will need to work closely with the taxpayers, and wherever possible to extend countrywide support to the clients and ensure a seamless uptake of these technologies.

44 BUBU EXPO 2019 BUBU EXPO 2019 45 ments and growing capital inflows. “Economic growth and political stability are deeply interconnected,” he adds. Furthermore, he adds, the transformer market in Uganda has been character- ized by one-off imported orders that often resulted in the supply of low quality transformers that don’t have any on- the- ground support or after-sales care. “We saw this market failure as an opportunity to change the paradigm of the supply of transformers. More importantly, we decided to invest in top quality facilities in the region before starting the sales process and this positively im- pacted our entry into the Uganda elec- trical industry and cemented our posi- tion as leader,” he adds. On the BUBU policy, which the government is implementing, Mr says it would be pivotal in transforming Ugan- da into a middle-income country. President Museveni at the Orion Transformers’ stall at the BUBU Expo “We all need to support the manufacturers in Uganda so they improve Orion Transformers and increase the standard of skills and product we are already have and can The Orion Transformers factory and service center was founded have which in turn grows the econo- in 2015. It was recently commissioned by H.E President Yoweri my. I especially appeal to government Museveni. agencies, which are the largest consumers of transformers in Uganda, to he company’s main operations as UMEME being the biggest clients. choose to make use of the transformers include the manufacture, repair However, in terms of new transformer made in Uganda,” he says. and servicing of transformers. sales, industrial clients are 60% of their Indeed, Mr Hanlin is positive about They also specialize in the manufac- market. T Uganda’s economy, which he says is ture of oil-immersed transformers and On what was the major factor in their growing fast with an attractive invest- produce three different types of cores decision to invest and start producing in ment client, and as such there are plenty namely; cooper, aluminum and amor- Uganda, Mr Hanlin, the General Man- of foreign-owned businesses. “So em- phous. The factory is equipped to manager, says Uganda has had a politically phasis should be made on the ‘Made in ufacture various transformer capacities stable environment, which increases Uganda’ tag as the BUBU policy also from 16kva to 2.5mva and to repair ca- investor and consumer confidence and applies to businesses with foreign inves- pacities up to 7.5mva. results in improved business environ- tors as well as local investors. Additionally, they produce switchgears Commenting on the BUBU Expo and panels together with their recent of which Orion was one of the major expansion into power line construction sponsors, Mr Hanlin says the expo was in Wakiso District and other surround- the first of its kind and a multitude of ing districts like Tororo. manufactures in Uganda exhibited a Currently, the company’s total invest- variety of their products and widened ment value is estimated at Shs 24 billion their exposure. and directly employs 75 people. In terms of service and after sales care, 95% of their operations involve repair- ing transformers, with agencies such

46 BUBU EXPO 2019 BUBU EXPO 2019 47 FEATURE

While prompting the use of local ma- vices sectors. Production and export of - education, tourism, distribution, Busi- terials in the production process with a agricultural products consist of: coffee, ness Process outsourcing (BPO), logis- view of stimulating growth, it also sup- tea, cotton, fruits, spices, cut flowers, oil tics, health, and professional services. ports the consumption of locally-pro- seeds, fish, cattle products, cereals, hon- The growing middle class in urban cen- BUBU POLICY duced goods and services and provides ey and vegetables. The country man- tres has income security and capacity to for an affirmative action to be taken ufactures beverages, processed foods, maintain a moderate lifestyle. Ugan- as part of Government procurement textile, clothing, footwear, leather, pa- da has the youngest population in the processes. On the other hand, the Na- per products, pharmaceuticals, building world at 83% with 77% below 30 years at a glance tional Industrial Policy (NIP) of 2008 materials, wood and metal products, and of age, according to World Bank statis- Five years ago, the Government of Uganda passed the “BUY UGANDA BUILD UGANDA POL- emphasizes the need to develop domes- handicrafts. Ugandans are also engaged tics. It is also estimated that more than ICY” in response to the Private Sector’s pleas to take policy decisions and promote practices that en- tic resource-based industries and the in the supply of tradable services such as courage the consumption of locally-produced products. promotion of competitive industries that use locally-produced raw materials. It further encourages existing industries and new investors to utilize the services of local technologies and consultants as a means of developing national tech- nological capabilities. Yet, despite the Private Sec- tor’s important contribution to the growth of domestic demand, Uganda continues to import finished products worth billions of dollars, to the disadvantage of local producers, suppliers, and consumers and the econ- nder the jurisdiction of the BUBU Support Ministries, Departments, Agencies and Institutions omy given the important Ministry of Trade, Industry role local producers play in Government Ministries: Ministry of Energy (MoEMD) and Cooperatives (MTIC), ensuring food security and Ministry of Trade & Industry (MTIC) Department and Agencies: the BUBU Policy is formulated with- higher household incomes. U Ministry of Finance (MoFPED) Uganda National Bureau of Standards in the framework of several national A S.W.O.T analysis con- development Policies and Strategies. Ministry of Justice (MoJCA) Uganda Bureau of Statistics (UBOS) ducted by the MTIC on These include the National Trade Pol- Ministry of Local Government (MoLG) Uganda Registration Services Bureau BUBU made interesting icy (NTP), the National Industrial Pol- Ministry of Education and Sports (MoED) Uganda Investment Authority (UIA) revelations. icy (NIP), the National Standards and Ministry of Agriculture (MAAIF) Uganda Prisons Service (UPS) Strengths Quality Policy (NSQP), the National Ministry of Defense (MoD) Uganda Police Force (UPF) Backed by a strong political Cooperatives Policy, the National Tex- Ministry of Health (MoH) National Drug Authority (NDA) will to support private sec- tile Policy, the National Sugar Policy, Ministry of Housing (MoHUPD) Uganda Revenue Authority (URA) tor growth, Uganda contin- the Public Procurement & Disposal of Ministry of ICT (MoICT) Uganda Public Procurement Disposal of ues to enjoy relative politi- Assets Act (PPDA) and the Develop- Public Assets Authority (PPDA) Ministry of Tourism (MoTWA) cal stability since 1986 and ment Strategic Investment Program Kampala City Council Authority (KCCA) Ministry of Works &Transport (MoWT) a number of economic re- (DSIP). Private sector Agencies Ministry of Foreign Affairs (MOFA) forms have been introduced Uganda Manufacturers Association The National Trade Policy (NTP) of Ministry of Gender & Labour over time. 2007 affirms that it’s the Government’s Private Sector Foundation Uganda Ministry of Water & Environment Uganda’s economy is dom- role to: “Encourage the consumption of Uganda National Chamber of Commerce Ministry of Internal Affairs (MoIA) inated mainly by the Agri- locally-produced goods and services.” and Industry (UNCCI) culture, Industry and Ser-

48 BUBU EXPO 2019 BUBU EXPO 2019 49 FEATURE FEATURE

90% of the informal sector is dominated dates inscribed on products, and listing framework is in line with what has been should be populated by local products. by young workers. If fully utilized, the of product ingredients, has made it dif- done by other countries in the region iii. All MDAs strictly abiding by PPDA youth could be a tremendous asset for ficult for small producers. and beyond. Act during procurement processes. the country. For example, the certification process Policy Target iv. 50% of local products conforming to Uganda’s Private Sector comprises of demanded by UNBS Certification In order to attain the objectives set out national standards. 90% MSMEs of which 80% are located Scheme is very laborious and expensive. in this policy, the BUBU Policy aims v. 50% local resources and raw materials in urban areas. These provide employ- The approval process requires users to to achieve the following strategic tar- being utilized in production. ment to approximately 2.5 million peo- either apply for a certification (quality ple, and contribute 75% of the Gross ‘Q’ mark) or a standard mark referred to It further calls for Government part- Domestic Product. If BUBU policy is as ‘Q&S’ mark, which force many pro- nership with the private sector and the implemented fully, it would enhance the ducers to just give up. promotion of synergies with the private sector in the implementation of the growth of MSMEs by assuring them Opportunities: There’s huge opportunity of a ready market hence impacting on BUBU policy. Also, the Government is There’s huge opportunity to produce their incomes and growth. to produce locally what is mandated to support the Private Sector locally what is being imported though being imported though in the development and marketing of Weaknesses largely untapped. largely untapped Ugandan brands through supporting There is still much bureaucracy and red The worsening trade balance from a Private Sector initiatives such as the tape in registration processes, which deficit of $2.4 billion in 2010/11 to $2.5 BUBU Expo and other trade fairs. make it hard for local companies to billion in 2011/12 (UBOS) means that To achieve BUBU objectives, Govern- formalize. Additionally, meeting the gets by 2020: Uganda continues to export primary ment is to: minimum requirements such as a cer- products that yield low revenues and on An exhibitor talks to a guest at the BUBU Expo 2019 i. 20% of Government procurement by i. Carry out an inventory of locally-pro- tificate of company registration, a Tax the other hand imports finished prod- value should be of local products and uniforms, school meals, furniture, and suppliers of local produce, but would duced goods and services. Identification Number (TIN), Barcode/ ucts that fetch higher cost. This presents services. pharmaceutical items thereby creating also have a positive spillover effect on EAN number, proper packaging, expiry a big opportunity ii. 50% of shelf space in supermarkets ii. Carry out an inventory of local- opportunities for local producers and all sectors of the economy. This legal ly-consumed products. to BUBU compa- manufacturers. nies. Threats Also, the discov- Global brands and their aggressive and ery of oil, amount- costly marketing strategies, branding ing to over 2.5 and advertising, pose a serious challenge billion, presents for local products, which find it hard to a window of op- compete favorably. portunity for local manufacturers To make matters worse, there’s a mis- and producers to taken mindset among the increasing- supply the sector. ly-sophisticated consumers that Ugan- Indeed, Ugandan dan products may be inferior to foreign oil laws mandate products. This mindset has to change. oil companies to Policy actions to support BUBU ensure local con- In 2013, Parliament amended the Pub- tent. lic Procurement & Disposal of Public Additionally, the Assets (PPDA), which provides for growing Services the application of preference and res- Sector accounts ervation schemes under public pro- for 52% of GDP. curement. The schemes guarantee the For example, the Government to take an affirmative Education Sec- action to encourage supply from small tor alone does medium industries when procuring for present a huge goods, works or services. The rewards market for scho- of this, it was anticipated, would not be lastic materials, limited to producers, manufactures and

50 BUBU EXPO 2019 BUBU EXPO 2019 51 FEATURE

iii. Facilitate bulk marketing and adher- to facilitate the collection; analysis and shall: ence to commodity standards through dissemination of trade information. i. Create awareness among the local pri- Cooperative Societies and Area Mar- vi. Facilitate local suppliers to organize vate sector producers and manufactures keting Cooperative Enterprises and and attend Trade Fairs, Exhibitions, and regarding conformity to standards and Farmers Groups. Bazaars that will help promote Ugan- quality requirements. iv. Oblige industrial enterprises to use dan products in the market. ii. Encourage and support the acquisi- local materials and/or products in their vii. Provide incentives to local producers tion and use of appropriate technology. production processes. in order to promote the BUBU Policy. iii. Create consumer awareness on stan- v. Through a Public-Private Partnership To achieve the objective of conformity dards and quality certification marks. to develop a market information system to quality standards, the Government iv. To promote innovation, value addition, and exploitation of local materials. To achieve the objective of providing training and capacity-building programs for BUBU companies, the Government shall: i. Enhance the capacity of local producers and suppliers to comply to supermarket requirements such as bar-coding packaging, business registration and standard certification. ii. Address other supply-side constraints to influence acceptability and increased shelf space in leading supermarkets. iii. Undertake capacity-building programs with a view of boosting the capacities of socially and economically-disadvantaged sections of the community. iv. Design and implement appropriate strategies to promote value addition, production of high-value- low volume products, and niche marketing. v. Increase public awareness of the BUBU policy through local leaders and District Commercial offices.

52 BUBU EXPO 2019 BUBU EXPO 2019 53 ADVERTORIAL ADVERTORIAL

UDC Guns For Top Employer Status

The Uganda Development Corporation (UDC) is the Business arm of the Government of Uganda. Dr In accordance with our strategic plan, Patrick Birungi, the Executive Director, spoke to BUBU Expo Magazine about their vision and oper- we will focus on agro-processing in the ations. various rural districts such as Zombo, Yumbe, Kyenjojo, Nwoya, Gulu where lease give us a brief background also run the Kalangala Infrastructure we are setting up a cassava and Shea about UDC? Services which operates a ferry and sup- nuts factories. We’re also focusing on mineral beneficiation such as the ce- UDC was founded in the 1950s plies electricity and water in Kalangala ment factory in Moroto, sheetglass to be the business arm of the govern- among other things. President Yoweri Museveni launches the UDC ten year strategic plan on April P factory in Masaka and a salt factory at ment. In the 1960s, it was the second What plans do you have ahead? 13th, 2019, as Trade Minister Amelia Kyambadde looks on. Katwe in western Uganda. In services, largest employer in Uganda after the We have launched our 10-year strategic we’re looking at a mass transport sys- Public Service. It had interests in plan with a vision to be a strong busi- tem for Kampala and later a facility for agro-processing industries, ho- ness arm of the Government. We aim at international meetings. A construction tels and produce. In the 1970s, creating jobs in the different regions of enterprise is also in the pipeline but at the policy of nationalization the country and addressing market fail- a later stage. of industries was introduced, ures across the board. which weakened it. The 1980s What were your impressions of the What do you see as the main challeng- were years of political insta- inaugural BUBU Expo? es facing BUBU companies and the bility then in the 1990s the I think it was an eye-opener on the po- local industrial sector generally? policy of liberalization was tential the local market. It showed that introduced with the privatiza- One of the main challenges is compe- there is a lot that we can do. Going tion of public enterprises. There tition from dumping of cheap materials forward, more actors should be able to was a change of heart in the 2000s from other countries, which is a prob- showcase. There is also need to cluster when the UDC was re-established lem in an environment where people the actors in their various industries. under the framework of the Ministry consume products depending on the There’s also need for more media cov- of Finance, Planning and Economic price and not the quality. erage and a catalogue so that people Development. The UDC Act of 2016 The other problem is that of getting who are not able to attend the expo was eventually enacted by Parliament the whole government system behind don’t miss out completely. creating the UDC. The Board was BUBU. Last word for our readers? H.E Yoweri Kaguta after visiting the Uganda Development Cooperation stall at fully constituted in 2018. the BUBU Expo 2019 Also, there is a need for an appropriate I urge all Ugandans to continue sup- How many people are employed by tax regime that incentivizes local pro- porting BUBU. Also, the Government UDC? ducers. should offer even more support to the We have 35 staff at the headquarters Where do you see UDC in the next 10 local producers so as to develop the but there are hundreds of direct and years? economy. indirect jobs in our various industries across the country. What are some of the industries you’re involved in? UDC owns some of the industries such UDC aims at creating jobs as the Soroti Fruit Factory while others in the different regions of are operating under a concession and the country and address- 5th Floor Soliz House, others are operating on leased equip- ing market failures across Plot 23, Lumumba Avenue ment. P.O. Box 7042, Kampala (U) the board These include tea lines in Kayonza in Tel: +256 414 258204 Kanungu and Zombo District. We Website: www.udc.go.ug Part of UDC’s Soroti fruit factory in Arapai, Soroti district 54 BUBU EXPO 2019 BUBU EXPO 2019 55 CORPORATE

Plant, the Electricity Tariff will reduce at growing demand and increasing the from US Cents 4.97/kWh (year one to consumption of electricity. These in- year 10) to US Cents 2.7/kWh (year 11 clude: to year 15), and US Cents 1.17/kWh 1. Heavy investment in Industrial Parks (after year 15). The changes in the gen- where industries are expected to con- eration Tariffs for the respective plants sume a substantial amount of energy. is on account of fluctuation in the debt Out of the 25 planned Industrial Parks, service obligations. Basing on these works on four (4) electricity substa- generation Tariffs and the utilization of tions in Mukono, Iganga, Namanve, the power plants, the Weighted Average and Luzira are at advanced stages, with Generation Tariff is projected to reduce. commissioning expected by June 2019. Following the commissioning of the The 25 Industrial Parks are projected to Isimba and Karuma Hydropower consume upto 1,000 MW in eight years’ Plants, a critical factor for the reduction time (by 2027). Mr Wandera is Manager Communica- of Electricity End-User Tariffs will be tion, Electricity Regulatory Authority 2. Electrification of all Sub Counties growth in Demand for/Consumption across the country and all potential con- of electricity. The generation Tariff for in the Weighted Average Generation sumers along the Sub County electric- Isimba Hydropower Plant is lower than Tariff and therefore reduction in the ity lines. This project is at mobilization the Weighted Average Generation End-User Electricity Tariffs. stage and once implemented, all Sub Tariff. Increase in electricity consump- In support of the Demand Growth Counties shall be connected to electric- tion (for both Domestic and Industrial agenda, the Government of Ugan- ity. customers) will lead to increase in dis- da working with several stakeholders 3. In August 2018, the Government of patch/utilization of Isimba Hydropow- has initiated several measures aimed Uganda launched the Electricity Con- er Plant. This will result into reduction President Yoweri Museveni (center) plants a tree at the launch of the 183MW Isimba Dam on March 21, 2019 Power generation to top 1,777 MW in 2019, says ERA

ERA says increased electricity generation will bring both domestic and industrial tariffs down

By Julius Wandera support of Government Policy on accel- fies as follows: he Installed Capacity of Ugan- erated access to clean energy and indus- The Isimba and Karuma Hydropower da’s electricity generation in- trialization for the country’s socio-eco- Plants have been developed by Gov- creased to 1,177 MW in March nomic transformation. However, some ernment of Uganda, with Government 2019, following the commissioning of stakeholders have used different media being the borrower of the project debt. T platforms to cast doubt on the possible the Isimba Hydro Power Plant (HPP), Compared to privately-developed pow- which added 183 MW to the National reduction in Electricity End-User Tar- er plants, Isimba and Karuma will gen- Grid. The Isimba Hydro Power Project iffs following the commissioning of the erate electricity at relatively lower tariffs was developed by the Government of Isimba HPP in March 2019, and the over the term of the Licence. 600 MW Karuma HPP expected later Uganda; with 85% of the project costs The Electricity Tariff for the two plants in December 2019. financed with a loan from the EXIM will reduce over time, in a phased man- Bank of China, and 15% financed by In light of the several assertions and ner, from US Cents 4.16/kWh (year the Government of Uganda. discussions about the expected Tar- one to year 15) to US Cents 1.01/kWh The Isimba Hydropower Plant’s addi- iff trajectory due to these projects, the (after year 15) for Isimba Hydropow- tion to the National Grid is timely for Electricity Regulatory Authority clari- er Plant. For the Karuma Hydropower

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nections Policy to accelerate access to erated connection through the Energy 6. The Government of Uganda is electricity across the country. The policy Rebate Mechanism. The Rebate mecha- fast-tracking the implementation of re- targets to promote mass electricity us- nism ensures that Industrial Customers gional interconnection projects, which age by all Ugandans with a connection who use their own resources to fund an will boost export of power within the target of 300,000 Domestic Customers electricity connection to a plant/indus- East African region, with an export po- per year. try recover their money over a period of tential of 690 MW, to countries such 4. In order to support the Electricity three years through consumed energy as Burundi, Kenya, Rwanda, Tanzania, Connections Policy, the Government Democratic Republic of Congo, and of Uganda has obtained funding worth South Sudan. United States Dollars 200,000 from the With these initiatives aimed at massive World Bank, for the Energy for Rural electricity consumption in both homes Transformation (ERT) Program (Phase Isimba Hydropower and industries, the revenue base of the III). Part of this funding will be utilized Plant’s addition to the Electricity Supply Industry will grow, to improve electricity connection, tar- National Grid is timely subsequently leading to reduction in the geting growing the number of Certi- for support of Govern- End-User Tariffs. fied Wiremen/women and contractors. These will provide sufficient manpow- ment Policy on accelerat- er to connect houses and factories in a ed access to clean energy timely manner. 5. For Industrial Customers, ERA is rebates. implementing an incentive for accel-

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UIRI Skilling Ugandans for BUBU The Uganda Industrial Research Institute (UIRI), a Government parastatal under the auspices of the Ministry of Science, Technology and Innovation (MoSTI), continues to step up steadily in meeting its mandate to promote Technology, Research and Innovation. It does this with the aim of boosting industry, which metes out opportunities that contribute to the Buy Uganda Build Uganda (BUBU) effort.

or over a decade, the UIRI has services, technology transfer, and devel- with other Government Ministries and undertaken two BUBU-fos- opment schemes. These harness the ca- Development Agencies in enforcing the tering assignments: Incubating pacity to innovate, develop novel prod- BUBU policy. As UIRI continues to Fbudding business initiatives and Skill- ucts as well as enhance value-addition nurture Uganda’s manufacturing sector ing Ugandans into setting up industrial options for agricultural produce. to produce quality products that hold enterprises. Through these efforts, nat- While joining the Ministry of Trade competitive advantage on the local and ural agricultural value-added products Industry and Cooperatives (MTIC) international market, we pledge to part- such as Livara cosmetic products, Just ner with the BUBU Campaign to equip Joy juice, Klassie pumpkin products, our business incubatees and trainees to Wild Bees body creams, Kweyo Peanut be able to compete in markets outside Butter, Mega Milk & Yoghurt as well Uganda. as Biochar fertilizer among others, have As a center of excellence We congratulate the MTIC for this found their place both on the Ugandan ideal Government policy, which will as well as the regional market. These in industrial research, we provide a platform for Ugandan en- among others, were ably showcased at recognize and embrace trepreneurs to market all their local- the recently concluded inaugural BUBU this initiative in all our ly-made goods and services, encourage Expo 2019. Also, free skills training in patriotism in the general public and laundries & cosmetics, fruit juice pro- entrepreneurial endeav- promote networking and coordination cessing, and weaving was provided to all ors at the institute around the BUBU Policy. As a center interested Ugandans under the Corpo- of excellence in industrial research, we rate Social Responsibility docket. recognize and embrace this initiative in UIRI buffers these activities with cut- for the launch of the BUBU online all our entrepreneurial endeavors at the ting-edge research, analytical laboratory marketing platform, the UIRI bonded institute.

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Exporters Speak Out On Bottlenecks

By Our Reporter o change these figures, companies have to increase production and sell more to foreign Lato Milk To Be The markets.T Many have set strategies to hit this target, as an official at one of the exporters – Picfare Industries Limited - tells us. With over the 30 years of its existence, Largest it has managed to scoop awards for its Dairy In Africa contribution to the country’s export earnings. Launched just seven years ago, state-of-the-art milk manufacturing ality. Richard Mubiru, the Company’s Direc- Lato Milk is now one of the facility, we adhere to local and interna- What advice would you give to the au- tor in charge of Corporate Affairs, says country’s leading dairy compa- tional standards. Our products are well thorities? they currently export volumes worth accepted by the consumers. at least $3million annually - exporting nies. The Head of Operations, To scrap VAT on the sale of processed mainly to the East African Community Mr. Bijoy Varghese spoke to How optimistic are you about the milk and to provide access to capital at BUBU strategy that the Government (EAC) and The Common Market for Investment Review Publica- an affordable cost to farmers. is implementing? Eastern and Southern Africa (COME- tions about their operations. How have you managed to deal with SA) countries. We are very excited about the BUBU the stiff competition? initiative as it will increase consumption However they had reached highs of The dairy industry in Uganda has mul- of locally-manufactured goods, which $7million at the time when South Su- tiple players with whom we compete on Simba Automotives exhibition stall at the BUBU Expo 2019 riefly, what is the historical in turn will increase job opportunities dan, DR Congo and Burundi were sta- a level playing ground. background of Lato Milk Ltd? and support economic growth. ble. Mubiru says they were hit hard by but with the way they are administered. harmonize standards as proposed by To what extent have you harnessed the the conflict especially in South Sudan Lato Milk was established in What were your impressions about the “We are entitled to refunds of Value member countries of the EAC is also export market? because it was their biggest product B2012 in the milk-rich district of Mbar- first ever BUBU Expo held at the be- Added Tax but these take forever. Re- hurting them. Kenya has the majority destination. ara with the aim of helping the local ginning of March? We are the largest exporter of Ugandan member we are borrowing from com- industry standards in the EAC and if dairy farmers to sell their produce. To- dairy products and we believe we will However, now the company that sourc- harmonization as proposed by the re- It was organized really well and had mercial banks at high rates of 20% to day, we have a production capacity of continue to look for markets within es raw materials from as far as India, gional bloc is done, exporters anticipate great public participation. 23%. Even when URA is unable to re- 800,000 litres a day - putting us among Uganda as production capacity increas- Brazil and Scandinavian countries, says fund in time, it does not pay interest,” that penetration of products to other What are some of the main challenges the largest dairies in Uganda. es. that no paper manufacturing facility in adding that exporters should be allowed member countries like Kenya would that the dairy sub- sector in Uganda is East Africa is hopeful that business will be smoothened as clearance times and What is your product portfolio cur- Where do you see Lato Milk in the a window where they can offset their facing currently? soon normalize as South Sudan is be- testing costs will be reduced. In Ugan- rently? next few years? liabilities without continuing to sink Tax (VAT) on processed milk makes it coming stable and oil has started flow- money into a bottomless pit. da, the Uganda National Bureau of We manufacture milk powder, long-life We see Lato Milk becoming the largest cost prohibitive for consumers to con- ing whereas the post-election period in Standards is already biting to ensure UHT milk, flavored milk, butter, ghee dairy in Africa. Also he proposes that the refund budget sume safe quality milk and instead they DR Congo is soon shedding off to calm that products on the market and those and butter oil. be increased to reflect the growth with- consume raw milk, which has multiple Your last word to your customers? the crisis that has been going on for the that leave the country are certified for in the economy. Currently, the amount What is your assessment of the mar- health risks. Farmers need support in previous few years. quality. Recently, the regulator made it We will continue to invest in technol- budgeted for monthly was established ket for your products over the last few terms of accessing finance to improve mandatory for every product manufac- ogy and machinery and to ensure that The company now worries about how five years ago yet the turnover of com- years? the infrastructure on their farms espe- tured in the country to have a quality we provide the safest quality products to to increase export volumes amidst the panies is not static. The mismatch is There is a demand for quality products cially in regard to clean water and irri- certification mark. our consumers. challenges, which include taxation. For chocking exporters, Mubiru adds. in the markets we operate in. With our gation to manage the weather season- him, the problem is not with the rates Mubiru, who also doubles as a board Apart from that, he says the delay to

62 BUBU EXPO 2019 BUBU EXPO 2019 63 CORPORATE CORPORATE

member at the Uganda Manufacturers three years, the education sector imports challenges facing exporters are tackled Association (UMA), is hopeful that instruction materials worth $100 mil- considering that buses and trucks move Cable Corp. Can Satisfy Local Demand Uganda will be able to export more as lion for primary and secondary schools in and out of these countries without already there’s acceptability of Uganda’s only. Even though Government would much trouble through the various bor- t is exactly 52 years since Cable network expansion that is seriously un- products in other African countries. want the publisher of instructional ma- der points. Corporation Ltd was incorporated derway and the growing rural electri- Additionally, many exporters are ham- terials to remain Oxford, Longman or Top manufactured products in Year 20 by the Mehta Group to manufac- fication scheme. “There are no electric pered by the high cost of credit and its Macmillan because of their credibility 17/18 ture a wide range of cables and electric conductor cables that we cannot sup- and longtime experience, he says print- I wires. ply to them. Our turnover is about US short term nature. This is partly because Beer - 213,750,489 liters ing and binding can be done locally. All the country has not yet leveraged the Mr. T.S. Sundaram, the chief executive $ 12m annually, which translates into that Macmillans should do is to give the Carbonated Soft drinks - 66,450,837 savings in the pension funds to be able officer, says Cable Corporation Ltd is about Shs. 44bn. It would be in the re- country ready-to-print CDs, which he litres to avail long term credit. leveraging on its long history and expe- gion of Shs. 75bn if we supply to Rural says would not only expose Ugandans Water - 14,278,670 (Liters) Electrification Projects,” says Mr. T.S. Even with these challenges, he says rience to be the leading manufacture of to that international experience but Sundaram, the chief executive officer. producers see BUBU as an opportunity Spirits - 5,471,061(Liters) high quality electric cables in the region. also print in bulk which will in the end that can boast both local production. He adds that Cable Corporation Ltd. is, broaden the tax base. Cosmetics (litres/kgs) - 2,031,421 Established in 1967 to supply cables to Mr T.S Sundaram however, comforted by H.E. President The bigger idea, Mubiru says, is that Sweets and chocolates - 424,163 the Uganda Electricity Board (UEB), Already, he adds, Uganda has the ad- Museveni’s keen interest in ensuring as the private sector, which they are (kilograms) Cable Corporation was until 1972 run ects in that when contracts are award- vantage of being in the middle of the that it is given preference in supplying working with to unlock the excess ca- by the Mehta Group. It was nation- ed to multinational Chinese or Indian supply chain for the interior of East Cigarette industry (Milles) - 191,410 to Government projects, which, how- pacity, remains untapped. The printing alised and embedded into UEB up to companies, they bring duty-free and and Central Africa. With the country ever, depends on the compliance of the investment capacity created is in excess Sugar - 167,323 tonnes 1980 when the Government invited the VAT-free import materials from their bordering with major markets in the procurement mechanisms. of $380 million yet they still face a chal- Cement - 143,926 tonnes original owners to return to Uganda. countries of origin. Rather than sup- Central African Republic, Burundi, lenge of low business volume available porting the local industry, Uganda is in South Sudan and DR Congo, exporting (Source: URA database) It was run under a 51-49 per cent share to printers. For example, every two to effect exporting jobs to India and China to these countries will be easy if other arrangement in favour of the Govern- ment until 2009, when it was fully pri- by importing from those countries! vatised to the Mehta Group. Cable Industry is Over the years, the company has grad- operating at 50% ually improved on the quality and capacity utilisa- quantity of its products. It expanded tion at present but its production in 2011/2012 to manu- if the ‘BUBU’ Pol- facture large cable sizes of up to 4 core icy is implement- 300 sq.mm and XLPE insulated cables, ed properly, by which were required by Umeme as a using only local- new product. It started using aerial bun- ly-manufactured dled cables (ABC) in 2012. By 2017, goods for Rural the production processes had been fully Electrification modernized and expanded. jobs, Cable industry will achieve Today, Cable Corporation manufac- full capacity uti- tures very high quality products certi- lization; the more fied to UNBS, ISO 9001:2015 (Quality they produce, the Management System), ISO 14001:2015 more profits they (Environmental Management System) make and thus & OHSAS 18001:2007 specifications more growth in and has the capacity to meet the local employment and demand for cables. economic devel- However, the market liberalization fa- opment. vouring imports is one of the biggest The advantage to challenges the company is facing. the electric cable Mr Sundaram says that while the manufacturers BUBU Policy is a very commendable is the electricity initiative, it is affected by turn-key proj-

64 BUBU EXPO 2019 BUBU EXPO 2019 65 ADVERTORIAL Alfasan’s World Class Veterinary Drugs lfasan is a certified Good others. Manufacturing Practice Fac- Veterinary drugs production at Alfasan tory, a system for ensuring is in three phases: that products are constantly produced A Alfasan will be training - The first phase comprises of inject- according to scientifically-acceptable ables, oral liquids, and hydro soluble quality standards. farmers in animal hus- powders. This covers aspects of production from bandry practices and also - The second phase includes Acaricides the starting of materials, premises, hosting university veteri- equipment, to the training and personal - The third phase includes Vaccines. hygiene of staff. nary students National Drug Author- ity audits Alfasan production processes and issues a certificate of Au- thority to the Company, and in so doing, Alfasan is curbing down on drug shortages and prices, and developing technical expertise as well as creating employment for professional nationals in the veterinary pharmaceuticals sector. It also contributes to BUBU policy an economic development phi- losophy, which the Gov- ernment is promoting. The company will be training farmers in animal husbandry practices and also hosting university veterinary students who undertake research in the development of various veterinary pharmaceuticals. Alfasan has about nine products. They include Neotetra, Chick Plus, Cocontrol, Alfacycline 20, Finiworm, Alfavit forte, Egg Sytic, among

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identifies hospitals There should be a plan and road map for sustainability of the Mengo Rotary Blood Bank Cost recovery System UBTS to continue advocating for increased funding and support for the Blood safety program – Government and Private – Public –Partnership (PPP) UBTS to strengthen partnership with Maternal and Child Health programmes; Road Safety Programmes, Malaria control; HIV/AIDS Pro- grammes to reduce the need for blood through prevention and good maternal UBT Networks care. ing Health care facilities. This includes; • Operationalise additional transfusion Uganda Blood Transfusion Monitoring and Supervision Program committees to monitor Hospital blood • Training more clinical users in best (M&E) Blood transfusion practice through a use and Intensify RBBs to prepare ad- Service Saving Lives UBTS has embarked on Monitoring formalized MOU with Mbarara Uni- equate blood components to meet pa- and Supervision program for appropri- versity of science and Technology with tient care needs in Health care facilities in Uganda. A Unique Service In Uganda Of Saving Life With Safe Blood ate clinical use of Blood in the Transfus- support of the MOH

lood is a vital health care re- on 100% Voluntary non-remunerated blood collection operations; processing source used in a broad range of blood donations (safest) . The service and distribution. clinical services. is over seen by a quality Management • Donor sensitization and mobilization BThe Uganda Blood Transfusion Service system that ensures Blood Safety in all for voluntary non-remunerated blood (UBTS) is a semi-autonomous Nation- aspects of the transfusion chain (Vein – donation vein) and Blood is tested for HIV, Hep- al Health System with Government of • Recognition of outstanding donors to atitis B, C, Syphilis & Blood group. Uganda (GoU) funding. Blood is used encourage repeat blood donation to treat pregnancy related complica- Partners: Uganda Red Cross Society, • Strategic partnerships with several tions, severe childhood anaemia, Road the Rotary Club of Uganda and others corporate organizations – NSSF; Faith traffic accident victims, cancer and to make blood available. based organizations surgery patients, sickle cell disease and Strategies To Increase Blood Collec- • Specific mention: Rotary Club of HIV patients. tion Uganda for the construction and equip- The core activity of UBTS is to make Uganda is yet to meet the WHO blood ping of the Rotary Blood Bank block at available safe and adequate quantities requirement for collecting blood equiv- Mengo hospital. of blood and blood products FREE OF alent to at least 1% of the total popula- Looking ahead CHARGE to all hospitals in the coun- tion. There is need to increase blood try for the management of patients in collection in order to meet the Hos- UBTS will continue to strengthen part- need. Blood can save lives but can be a pital blood demand due to growth in nerships with government agencies, vector for harmful infectious diseases the population; increase in transfusing corporate bodies, cultural and religious such as HIV and Hepatitis; therefore, health facilities & improved health care institutions in order to increase blood should only be used when there is no services in the National Super Special- collection and avert blood shortages in alternative. ized Hospital – Mulago. the country. Since 1989; UBTS has progressively Strategies adopted: UBTS to functionalize the equipped developed into a Nationally coordi- Mengo Rotary Blood Bank to be able • Increased government funding for nated Blood Transfusion Service based to test, process and distribute blood to

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What BUBU Means From Petr oleum Sector Perspective

By Pamela Natamba al development that is expected from The desire for government to protect The Minister of Energy and Mineral these very important initiatives that will selves, I am certain we can do it for the he petroleum sector seems to international players who are either national content is echoed in the re- Development issued regulations in June give us an opportunity to participate in next generations. have embraced this BUBU contracting directly with government quirement for any provision of goods this year which provide more detailed the petroleum sector. What we need to Pamela Natamba is an Associate Direc- concept ahead of other eco- (licensees) or their contractors and sub- or services which are not available in guidelines on how the broad require- do on our part is to be fully aware of the tor at PwC contractors. Uganda to be undertaken by a compa- ments contained in the laws will be op- initiatives, continue preparing ourselves nomic sectors in Uganda. In 2013, the (Source: https://www.pwc.com/ug/en/ T ny that has entered into a joint venture erationalised. to make use of these opportunities or Government of Uganda introduced two Uganda’s perspective of national con- press-room/buy-uganda-build-uganda. with a Ugandan company which must start preparing ourselves if we have not new laws to govern exploration, pro- tent is hinged on the need to give pref- These national content initiatives bring html) duction, storage and transmission of erence to goods which are produced or have a share capital of at least 48% in Uganda in sync with oth- already started. If we can’t do it for our- petroleum products. The two laws were available in Uganda and services which the joint venture. er petroleum producing the Petroleum (Exploration, Develop- are rendered by Ugandan citizens and The laws also introduced the require- states which already have ment and Production) Act, 2013 and companies. Therefore a requirement to ment to demonstrate commitment to- national content laws and the Petroleum (Refining, Conversion, this effect was included in the new leg- wards maximising training and transfer- regulations in place. What Transmission and Midstream Storage) islation. Further, a mechanism for mon- ring knowledge to Ugandans in order to perhaps differentiates the Act, 2013. These laws replaced laws that itoring achievement of this requirement equip them with the necessary manage- various states is how na- existed at the time which did not appro- has been prescribed by requiring licens- ment and technical skills and expertise tional content is defined priately address some of the issues that ees, contractors and subcontractors to relevant for the oil and gas sector. The and achieved in each of the are pertinent to the sector. The concept provide a report of their achievement expectation is that the skilling process respective states. In African of national content (also commonly in utilizing Ugandan goods and services will take into account gender balance, states such as Angola, Gha- referred to as local content) was intro- to the petroleum authority within sixty consideration for persons with disabil- na, Nigeria and Chad, there duced in the new laws to give guidance days after the end of each calendar year. ities and the inhabitants of the districts seems to be a common un- on the level of contribution to nation- in which petroleum activities take place. derlying theme for national content, being the use of locally produced goods and services rendered by local indigenous people, although the specific measures for implementation may differ. Over the next couple of weeks, I will be sharing with you insights into how Uganda intends to achieve its national content objectives highlighted in today’s article as contained in the regulations published in June this year. I will also share insights into how other countries have implemented national content, how they have benefited and what Uganda can learn from the challenges they have encountered. I would like to believe that we as Ugandans welcome

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on retained earnings as working capital markets has been low, venture capitalists buying or selling company shares. It mentioned above. However, retained are an option, given that they fund small therefore requires companies to not Why Uganda’s BUBU Companies earnings are not significant enough to companies looking to expand but lack- only be legally registered but limited by spur considerable growth/expansion, ing access to equities markets. However, shares so as to provide an entry point Avoid Equity Financing and according to the Capital Market equity finance come with its fair share for investors. However, about 50% of Authority, they are quite unpredictable of demands that may be challenging for Uganda’s enterprises are informal, and and have little scope for risk-sharing. Uganda’s SMEs, yet, on a brighter side, by 2013, only about 8% of Ugandan By Job Lakal to the private sector’s role in develop- cost and business size. According to Specifically, with retained earnings, these demands provide an opportunity companies were limited by shares, of ment. Indeed, in Uganda, the second the 2013 World Bank enterprise sur- here is a growing financing growth can be piece-meal (until a cer- for SMEs to develop. which 2.6% had traded shares. This National Development Plan (NDPII) vey data, 49% of firms in Uganda used gap required to meet the glob- tain threshold) and may not provide They require ownership stake in the means only 8% of firms could raise eq- estimated at least 42% of its total fi- retained earnings to finance working al Sustainable Development the impetus, compared to firms that enterprise, which can be done through uity, but just 2.6% were actually doing it. nancing to originate from the private capital while about 28% of enterprises Goals (SDGs). Estimates by the Orga- have external options to T sector. However, to meet the above ex- borrowed some working capital from nization for Cooperation and Develop- get them to the threshold pectation, Uganda’s domestic private commercial banks. ment (OECD)—an organization of the needed to take off. top 35 economies in the world, indicate sector needs to be fully integrated in the Drivers development process and they them- Equity financing—an op- that developing countries have an an- Local financial institutions (LFIs) are selves need to be adequately financed tion rarely used by Ugan- nual US$ 2.5 trillion SDG investment a major source of finance to Uganda’s before they can ably invest in the inter- dan entrepreneurs gap. private sector, but due to high economic ventions required to meet SDGs. Because financial insti- This financing gap has pushed the de- risks, debt financing has been very cost- tutions are expensive and velopment community to rethink the Sources of financing ly. The high cost is manifested in the retained earnings may not conventional approach of relying on aid Enterprises can be financed either high interest rate which averaged 21% provide the much needed and government revenues. through debt, equity, or a combination during January 2017-June 2018. big-push, equity financing of both. The choice of capital mix is de- As a result, focus is increasingly shifting This partly explains the huge reliance may come in handy. termined by several factors, including Equity financiers acquire a stake in the business by buying shares. They become part owners of the enterprise and hence are able to exercise some level of control. The add-on with equity investors is that they often come with experienced investment managers who provide managerial support for the business. They are known to help improve corporate governance by putting in place internal control systems and external oversight. Equity investors can only recover their investment through selling their shares (mostly at a higher value later). This means they seek growth opportunities and have the incentive to help the business grow. In the African context where exposure to equity

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The rest of the other firms (92%) cannot To set the groundwork for boosting eq- is what potential investors use to as- raise equity because potential funders uity financing, we ought to increase dis- sess the state of your business, without do not have a legally safe way to put a cussions and knowledge sharing about which they cannot invest in you. stake in their entity and later cash out. equity as an alternative financing form Government also needs to put in place Equity financiers look for a pipeline of for SMEs. a supportive regulatory framework for bankable projects (growth opportunity). This will necessitate cultivating a com- equity investments. This requires the conduct of proper due munity of practices focused on bringing diligence to establish credit worthiness the wider business community to ap- The Writer works with the Economic and bankability of their potential in- preciate the reforms and benefits that Policy Research Centre. vestment. It also requires SMEs to have come with equity. Three key reform credible and easily verifiable corporate areas that Uganda’s SMEs will have to Source: www.http://eprcug.org/ information, especially on credit history, take to attract equity are: blog/630-why-do-ugandan-f irms- avoid-equity-financing which is lacking among most SMEs in 1) Consider having your company/en- Uganda. terprise as limited by shares, this will They often require enterprises to have give liberty to both the business and eq- strong corporate governance system, uity investors to safely transact example having a strong board in place 2) Improve corporate governance. Most so as to tighten internal control and SMEs in Uganda are family-run busi- accountability. About 72% of enterpris- nesses with founders shy of account- es in Uganda are sole proprietorship, ability or losing control of their inher- meaning they are more likely to have itance. loose internal control systems and own- 3) Keep credible corporate information. ers are only accountable to themselves. Information is key in every business, it

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BUBU Expo 2019 Participants P.O Box 6240 Kampa- Lubamum Courts- AAR Atiak Sugar la Elizabeth Ave Aki Bua Road Africa Agribusiness Acade- Atomic Energy Makerere Kagugube my International Ltd Coffee House Jinja AWa Foods Africa Devt Model Road Afrizone maketing & Com- Babirye YAFU Kampala munications LTD P.O. Box 6113, Kam- Baby Store Ug Afro Finance and Leasing pala Kampala LTD Banura Sunflower Cooking P.O. Box 403, Hoima Agoa Mutungo Oil Agro Commodity Value Bareliable (New Trust Fur- Ahmed Raza Foods Indus- Plot 1787 Kyadond niture) tries Limited Bombo Road P.O. Box 9500 Nan- Bella Wine Alfasan Uganda Limited Luwum Street fubambi Rd, Kampala Aloesha Organic Bombo Road Benzene M Toxicology Plot 503, Kampala Amari Naturals (UIRI Incu- Bismart Furniture Mpererwe-Kanyanya Plot 107 Kampala batee) Blowplast Uganda Ltd Plot 27-31 kampala Amazing Grace Foods Entebbe Blue Flame ltd Workers House Kigunga Trading Books Distribution Ug Ltd Lweza Kajjansi Asakawalo Ent LTD Center Breeze Cosmetics Kaberamaido

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BUBU Expo 2019 Participants BUBU Expo 2019 Participants Brisk Beverages Kisasi Chromatic Paints Kampala Plot 32, Lumumba Flemea Kampala Dr. Agarwal Ntinda Industrial Makindye - Salama Avenue Footsteps Furniture Pot 26Jinja Road Britania Allied Industries Chrome Outdoor Furniture AREA road Kampala Road Opp DTB Forna Health Foods Wadegeya Plot 109A, Namu- Community care for devel- Cham Towers Brood Uganda Limited Kireka Frotextured Hair Products wongo road opment Eagle Investments Ltd Plot 506 Jinja Wankulukuku, Ruba- Buddo Distillers Kampala Community Womens En- Easyway Black Seed Wandegeya Geno-Hitech Plot 2479 Bukoto ga Bukonte farm & Bio Jigsaw terprise Network Ebenezer Energy Trading P.O.BOX 1494 Kam- Nakawa P.O. Box 269512 Gentex Enterprises Limited LTD Crestanks Namanve Kampala Saving Store Ltd pala Bulemezi Agro Vet P.O. Box 25216 Bux- Bukoto Street, New Dama Medical herbs Emerald Global Ltd/Uga- Gifted hands Kampala- Ebenezer ton rd,Kampala Kira Road Police 1097 Block N.O 232 Business Owner Magazine kart Global Company (U) Ltd House Desire Beauty Produtcs Ltd Kawempe Station Kireka-Banda Plot 2 Enjuba Loop Bwendero Diary Plot 180 Mengo DFCU P.O. Box 70, Kampala Enjuba Spelling Bee Uganda Global Paper Products (U) P.O. Box 3764 Kam- Cable Cooperation limited Luwero P.O. Box 1623, Kam- Bukoto Ltd pala DHL Cefa Uganda & Equatorial P.O. Box 7725 Naka- pala Plot 15 Shimoni Rd, go5packagingug@ ERA GO5 Packaging Commercial Lussiaj wa Plot 9-17,factory Kampala gmail.com Doctor’s Choice P.O. Box 14364, street Jinja Erimu Company Ltd Jinja road Granite Dyke Uganda Ltd Chain Uganda Mengo Dolphin Fashions Apex House Ntinda Kinawataka road Luzira-old portbell Euroflex Graphic Systems Namugongo - Dozer Build (U) Ltd Trad- kireka road Chap Chap Africa LTD Plot 4499 Kampala Kyadondo ing as pavers Fatumah Foods and Flowers Kampala

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BUBU Expo 2019 Participants BUBU Expo 2019 Participants Guru Nanak Oasis Mall,Kampala International Womens Cof- Kansai Plascon Uganda Plot 8 2nd street In- Mehta Cables Natete Wakaliga Plot 32 - 33, Bombo fee Alliance Limited dustrial Area Mesha Steel Harris International kireka zone D kabaka Road, Kawempe, Isaac Golo (Wine) Katlan Agency MG Holdings Kamwokya Hectra Ventures Kawempe Isabella road Micro Finance support P.O. Box 33711 Kam- Kentaro Handmade Prod- Hema Beverages Ltd Kampala Ishaazi Bweyogerere P.OBOX 514Kampala centre LTD pala ucts Hermela Kampala Ishita /Baby Store Mikazi Collection Bukoto street,plot 50, P.O. Box 7230 Kam- Jesuit Refugee Kijani Baby P.O. Box 7817, Kam- Hima Cement Ltd kamwokya Ministry of ICT pala JMS pala Kinyara Sugar P.O. Box 179 Masindi Housing Finance Bank P.O. Box 1539 Lyamutundwe - P.O. Box 7096, Kam- Johnathan catering services 7th street industrial Ministry of Lands Ice Pop Wakiso Kisoro Tile Works pala area P.O. Box 7230 Kam- Johnes Vocational Training Mlima Safaris and Agri- IGG Kooke Enterprise Ltd Bukasa road Muynga Makerere Kagufebe pala Institute tours Ltd Kweyo Growers P.O. Box 30927, P.O. Box 19123, MM Manufacturers P.O. Box 8123 Imperial Gas Supply Johnson’s Quality Roasters Kyeyune Exhaust Mohca Beauty and Skincare Kawempe Bombo Kasangati Plot 50, Kireka road Imperial Paints Gayaza Road Kakira Sugar Ltd / Madh- Kyoga Mazinga Limited Madhvani Building La March Coffee Uganda Plot 1660 off Gayaza Lugogo bypass, Agip Imuka (Access ) Ventures Makerere University vani Mt Meru Petroleum UG Ltd Ltd road House kampala Independent Magazine Kamoga Plot No. 100, Kashari Mukwano Group of com- Plot 30 Mukwano Inspiring Interiors Bukoto Kampala Siti Industries Lato Milk - Mbarara panies road Leaticia YAFU Multichoice Uganda Ltd Kololo head Office leem Electronics Ltd & Namanve Business P.O. Box 70400 Mum’s Products (U)Ltd Furniture park Livara P.O. Box 25261 Kam- Nakasero Hospital M Toxicology LTD Plot 503 Namugongo pala P.O. Box 295 Berkeley Ma Holdings NARO MAIF(Vegetable oil) road Mak4 Oreanic skin & health Nation Wide Properties Butabika care Natural Juice Maliba Sandals Makerere kikoni NC Bank Uganda Limited Mama Children’s Village Wandegeya Nextel Systems Ltd Plot 1-15 miro road Mapa Enterprises Nile Agro Industries Ltd Marisson & jones Vocation Jinja Plot 159-162 6th training Nileply wood Ltd Master Industries Uganda street Industrial Area LTD Nisha catering services Matunda Hub Soroti Nsambya Crafts Mbawo Timber Works & P.O. Box 7140, Kam- P.O. Box 180 Kampala NSSF Great lakes brands pala Mbunda Company of Numa Feeds Ltd Kabwohe Shema Health Products Nyakalozi good samaritan MEACA(Ministry of EastA- Orion Transformers & Nakasero road frican Community Affairs) Electrics Medical Missionaries OWC

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BUBU Expo 2019 Participants BUBU Expo 2019 Participants Pearl Wood St Josephs Devine Works Uganda Plastics Manufac- Plot 1129 Mambule Kitemu Nsangi Vishtara Limited Pebuu Ltd turers & Recyclers Associ- Nakasero road Road Plot 26A Lumumba BMK house, Ngabing ation Vita form Uganda Ltd Bweyogerere PIBID Stack Online trade show Avenue road P.O. Box 7182, Kam- Plot 15-17 Nkurumah Uganda Prisons Vitafoam P.O. Box 9396, Kam- Statewide Insurance Com- P.O. Box 9393 Bombo pala road Picfare /Nytil pala pany road Uganda Tea Dev’t Rubaga Plot, 43-59 Seventh Vivo Energy Plot 39, Nakasero Steel and Tube Industries P.O. Box 33784 Kam- UMA St, Kampala PPDA road LTD pala UNBS P.O. Box 6329 West Nile Distilling Com- P.O. Box 6402 P.O. Box 6034 Kam- Plot 86/90 5th street UNBS Etag pany Ltd Premier Distillers LTD Sugar And Allied Industries pala industial area UPDF Wimbrob Bees CO Ltd Kampala Presidential Initiative on Soliz house,Lumuba Winworld Impex Ltd Kawanda Plot 15-17 Nkurumah Suhhen Sehhen URA banana industrial develop- Avenue road P.O. Box 6848, Kam- Women Intergrated Em- ment Ntinda Industrial URSB Jinja SWT Lanners LTD pala powerment Dev’t Group Area Princess USSIA Nakawa Xing Tong Takisha Kampala P.O. Box 33980 Kite- USSIA Beinacas & Mashal- Xtrong International Ltd Ntinda Print’N’ Carton (U) Ltd Lugogo bypass tika The medical concierge Seguku lah Plot 243, Bukoto-Kira Plot 65 Yusuf Lule The Shea House Kampala Yo Kuku Property Services Limited Vexe Products Ltd Kabojja Road road The Uhuru Institute For Plot 1 katalima cre- Vida Management Consult P.O. Box 1357 Bakule Youth of 21st Century Rabbit Empire Kampala Social Development sent Naguru Ltd complex Raper Free Brands Plot 62BI Lugogo Tiang Tiang P.O. Box 5246 kam- bypass Rapha Tea Powder pala TK Natural juices Kiwenda Plot 34, Mukabya Top Finance Bank Reco Industries road Nakawa Tripple M hygiene Products Kampala Rene Industries Limited Kireka LTD Riley Packaging (U)Ltd blovk 180/189 kyagwe Turquaz Home Decoration Kampala Roofings Lubowa-Entebbe road P.O. Box 7267,Kam- UCDA Roperfree Brand Products Nkurumah road pala Route skilling Young adults Uganda Bookshop Busega Uganda Commercial Aloe- Saachi Manufacturers (U) P.O. Box 26569 kam- Rashid Kamis Road Ltd pala vera Farmers Association 5th floor, Soliz house P.O. Box 4627,Kam- Uganda Development Coo- Sadolin Paints plot 23 Lumumba pala pration Sebu Elgon Co-operatives Avenue Sesaco Kyengera Uganda Fishnet Manufac- P.O.Box 3025 Plot turers Limited 108-112 5th street Shreeji Stationery 2009 (U) P.O. Box 36468 kam- LTD pala Uganda Industrial Research P.O. Box 7086 Naka- Institute wa Sido Press Solutions Uganda Intercottage Indus- Kamu Kamu & Part- Simba Automotives Ltd P.O. Box 24281 tries Coparative Society Ltd ners Skin House Uganda Investment Author- P.O. Box 7418,Kam- Smile Plast Luzira Industrial Park ity pala Southern Range Nyanza Ltd Uganda Performing Right Plot 99 Kira road P.O. Box 7797 Mu- Society Spencer Holdings LTD tungo zone1

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