FINAL STRATEGIC ENVIRONMENTAL ASSESSMENT (SEA) REPORT

CONSULTANCY TO CARRY OUT A STRATEGIC ENVIRONMENTAL ASSESSMENT OF THE 11TH EDF SUPPORT TO DEVELOPING A MARKET-ORIENTED AND ENVIRONMENTALLY SUSTAINABLE BEEF MEAT INDUSTRY IN AND SUPPORT TO PROMOTING COMMERCIAL AQUACULTURE IN UGANDA PROJECTS FRAMEWORK CONTRACT EUROPEAID/132633/C/SER/MULTI LOT 6: ENVIRONMENT SPECIFIC CONTRACT N° 2016/372615 PREPARED FOR: DELEGATION OF THE EU TO UGANDA PREPARED BY: PARTICIP GMBH AND GEOTEST TIMOTHY MICHAEL HEALY BOB HUMPHREY OGWANG SUBMITTED IN: MAY, 2016

This report was prepared with the financial assistance of the European Commission. The views expressed in this report are those of the consultants and do not necessarily reflect those of the European Commission.

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Particip-led Consortium comprising: Particip, Adelphi, AETS, Bipro, ELLE, ETI Consulting, Geotest, HTSPE, Milieu, NIRAS, PEMConsult, Poseidon

Table of contents

Table of contents ...... 1

Table of Tables ...... 4

Table of Figures ...... 5

Abbreviations and glossary...... 7

1 Scope of work ...... 8

2 Background ...... 9 2.1 Justification of the Strategic Environmental Assessment (SEA) for the beef and aquaculture sectors in Uganda ...... 9 2.2 Situation in Uganda for beef and aquaculture value chains and climate change ...... 10 2.2.1 Beef sector and value chain in Uganda ...... 10 2.2.2 Aquaculture sector and value chain in Uganda ...... 15 2.2.3 Climate change across Uganda...... 17 2.2.4 Study areas for SEA ...... 18 2.2.5 Proposed activities with EU support for beef and aquaculture ...... 21 2.2.6 Overview of the institutional, policy, and legal, framework ...... 23 2.2.7 Beef and aquaculture project alternatives with analysis ...... 32

3 Methodology ...... 33 3.1 General ...... 33 3.2 Scoping study ...... 34 3.3 SEA study ...... 35 3.3.1 Baseline data collection ...... 35 3.3.2 Stakeholder engagement process and site visits ...... 35 3.3.3 Workshop discussion with key players ...... 36 3.3.4 Report writing and structure ...... 36 3.4 Assumptions and uncertainties for the study with mitigating actions ...... 37

4 Baseline study and trends ...... 39 4.1 Biological environment ...... 39 4.1.1 Major ecosystems and land uses ...... 39 4.1.2 Protected areas ...... 41 4.1.3 Forests ...... 42 4.1.4 Wetlands ...... 43 4.1.5 Biodiversity fauna ...... 45 4.1.6 Birds ...... 45 4.1.7 Mammals ...... 46 4.1.8 Fish ...... 47 4.1.9 Invasive alien species ...... 48 4.1.10 Infectious diseases ...... 48 4.2 Physical environment ...... 49 4.2.1 Geology and relief ...... 49 4.2.2 Soils types and qualities ...... 50 4.2.3 Soil degradation and erosion ...... 51 4.2.4 Water catchments, water quality and pollution ...... 51

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4.2.5 Water quality and pollution ...... 52 4.2.6 Climate and climate change ...... 54 4.2.7 Air and noise pollution ...... 61 4.3 Socio-economics and culture ...... 61 4.3.1 Governance and administration ...... 61 4.3.2 Population ...... 63 4.3.3 Gender issues ...... 64 4.3.4 Poverty, education and health services ...... 64 4.3.5 Human health: principal diseases, food security and water supplies ...... 66 4.3.6 Potable water and risks from agrochemicals ...... 67 4.3.7 Land tenure issues ...... 68 4.3.8 Customary Tenure...... 69 4.3.9 Mailo Tenure ...... 69 4.3.10 Freehold Tenure ...... 69 4.3.11 Leasehold Tenure ...... 69 4.3.12 Economy of Uganda ...... 69

5 Identification of socio-environmental constraints and opportunities including climate-related aspects, and legal and policy obligations ...... 72 5.1 Constraints for aquaculture ...... 72 5.2 Opportunities for aquaculture ...... 74 5.3 Constraints for beef production ...... 74 5.4 Opportunities for beef production ...... 76

6 Identification and evaluation of potential socio-environmental impacts ...... 77 6.1 Aquaculture sector ...... 77 6.1.1 Apply the Wild Act ...... 81 6.1.2 Encourage local businesses to develop and take advantage of the presence of wild animals through ...... 81 6.1.3 Apply Fish Act, Cap. 197 (2000) ...... 81 6.1.4 Apply National Environment (Standards for Discharge of Effluent into Water or on Land) Regulations, 1999) ...... 81 6.1.5 Apply Standards for air quality, water quality, discharge of effluent into water, control of noise and soil quality ...... 81 6.1.6 Apply Standards for discharge of effluent into water or on land ...... 81 6.1.7 Apply National CC Policy document and its adaptation proposals ...... 82 6.1.8 Apply international agreement for the and the Nile Basin ...... 82 6.1.9 Develop new transboundry legislation authorising the control of use and management of all natural resources (biological and physical) travelling into or out of Uganda in cooperation with neighbouring countries ...... 82 6.2 Beef sector ...... 83 6.2.1 Such issues will fall within the domain of the UN Framework Convention on Climate Change (UNFCC) ...... 84 6.2.2 National Environment (Standards for Discharge of Effluent into Water or on Land) Regulations, 1999) ...... 85 6.2.3 Standards for air quality, water quality, discharge of effluent into water, control of noise and soil quality ...... 85 6.2.4 Standards for discharge of effluent into water or on land ...... 85

7 Analysis of the logical frameworks' indicators from the perspective of environmental sustainability and adaptation to climate change ...... 87 7.1 Logical framework for aquaculture sector ...... 87 7.2 Logical framework for beef sector ...... 88

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8 Assessment of institutional and stakeholder capacities to address environmental challenges ...... 90 8.1 Institutional capacity framework ...... 90 8.2 The Capacity of the sector stakeholders with respect to environmental management and issues covered in the SEA ...... 90 8.2.2 NEMA...... 91 8.2.3 Local Governments ...... 91 8.2.4 Beef and Fish Farmer Organizations and Associations ...... 92 8.2.5 Processors ...... 93 8.3 Summary of capacity assessment ...... 93

9 Mitigation or optimizing measures and indicators ...... 95 9.1 Mitigation or optimizing measures and indicators for aquaculture ...... 95 9.2 Mitigation or optimizing measures and indicators for beef ...... 100

10 Conclusions and recommendations ...... 102 Conclusions ...... 102

11 General conclusions ...... 102 11.1 Aquaculture ...... 103 11.2 Beef ...... 103

12 Recommendations ...... 104 12.1 General recommendations ...... 104 12.2 Aquaculture recommendations ...... 104 12.3 Beef recommendations ...... 106 12.4 Climate change adaptation recommendations ...... 106

Annex: Terms of Reference ...... 109

Indicative logframe matrix for beef sector ...... 119

Indicative Logframe matrix for aquaculture sector ...... 122

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Table of Tables Table 1: Existing policy and legal instruments for beef ...... 24 Table 2: Existing policy and legal instruments for beef and aquaculture ...... 25 Table 3: Existing policy and legal instruments for aquaculture ...... 26 Table 4: Overview of assumptions and uncertainties for the study with mitigating actions ....37 Table 5: Constraints for aquaculture ...... 72 Table 6: Opportunities for aquaculture ...... 74 Table 7: Constraints for beef ...... 74 Table 8: Constraints for beef ...... 76 Table 9: Positive impacts ...... 77 Table 10: Negative impacts ...... 78 Table 11: Positive impacts ...... 83 Table 12: Negative impacts ...... 84 Table 13: Comments against each indicator from the relevant intervention logic ...... 87 Table 14: Comments against each indicator from the relevant interventions ...... 88 Table 15: Summary of the capacity of sector stakeholders for environmental management and for implementing the recommendations of the SEA ...... 93

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Table of Figures Figure 1: distribution (numbers), ownership by household (%) and dairy and beef breeds (%) in 2008 ...... 11 Figure 2: Principal rural activities - livestock production and cropping ...... 11 Figure 3: Cattle corridor and Global Climate Change Alliance areas ...... 12 Figure 4 Schematic diagram for beef value chain ...... 13 Figure 5 : Fish exports to international markets, total fish landings from three major lakes and fish production from aquaculture in Uganda ...... 16 Figure 6: Schematic diagram for aquaculture value chain ...... 17 Figure 7: Map showing DCZs 1 and 2 in Uganda ...... 18 Figure 8 shows DCV1 and an area of cleared bush within a fenced area for beef cattle and traditional Long Horn cattle at a local market ...... 18 Figure 10: Major water catchments in Uganda and approximate areas for the proposed aquaculture sites near Masindi Port and on Island (in red) ...... 20 Figure 13: Organogram for Directorate of Animal Resources ...... 24 Figure 14: Organogram for Directorate of Fisheries Resources ...... 26 Figure 15: Vegetation dominated by woody plants & Vegetation dominated by grasses, sedges and herbs ...... 40 Figure 16: Agro-ecological zones & Average annual enhanced vegetation index ...... 40 Figure 17: Protected Areas (PAs) in Uganda & Ramsar, Biosphere and World Heritage sites in Uganda ...... 42 Figure 18: Forest cover in 2000 & Forest losses between 2000 and 2010 ...... 42 Figure 19: Permanent and Seasonal (Ephemeral) Wetlands ...... 43 Figure 20: Wetland degradation areas ...... 45 Figure 21: Bird species density distribution map & Important Bird Areas (IBAs) in Uganda ..46 Figure 22: Mammal species density distribution map ...... 47 Figure 23 :Fish species density distribution map ...... 48 Figure 24: Relief of Uganda ...... 49 Figure 25: Soils of Uganda & Soil Fertility Classes ...... 50 Figure 26: Soil degradation across Uganda & Soil Erosion near Lake Victoria ...... 51 Figure 27: Surface waters and major catchments of Uganda ...... 52 Figure 28: Drainage patterns across Uganda & Sediment flow into Lake Victoria with delta front development from 1987 to 2000 provoked by transboundary Tanzania/Uganda soil erosion ...... 53 Figure 29: Eutrophication and algal blooms on Lake Victoria near shores of (satellite image, 2007) ...... 53 Figure 30: Average annual temperature (oC) & Annual rainfall (mm) ...... 55 Figure 31: Average monthly rainfall & Rainfall variation from year to year ...... 55

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Figure 32: Predicted temperature changes (%) for the periods 2040-2060 (Feb.-April & July- Sept.) and 2080-2100 (Feb.-April & July-Sept.) relative to previous average temperatures for 1970-2005 across Africa and Uganda (Scenarios RCP 4.5. on top and RCP 8.5 below) ...... 56 Figure 33: Predicted annual average rainfall changes (%) for the periods 2040-2060 and 2080-2100 relative to previous average rainfall for 1970-2005 across Africa and Uganda ....57 Figure 34: Bush and grassland fires for pasture (frequencies between 2000 and 2010) ...... 58 Figure 35: Water level changes in Lake Victoria (1947-2009) & Lake Albert (1946-2007) ....59 Figure 36: Administrative map of Uganda ...... 63 Figure 37: Population distribution estimates in 2010 influenced in part by (a) protected areas and (b) soil organic carbon (fertility) ...... 64 Figure 38: Poverty in Uganda ...... 66 Figure 39: Access to potable water for the population of Uganda ...... 68 Figure 40: Access to markets ...... 70

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Abbreviations and glossary

ACP African, Caribbean and Pacific Group of States BTC Belgian Development Agency CEP Country Environment Profile CSOs Civil Society Organisations EC European Commissions EDF European Development Fund ESIA Environmental and Social Impact Assessment EU European Union EUD European Union Delegation EUR Euro FAO Food and Agricultural Association of the United Nations FED Fonds Européen de Développement (=EDF) FWC FrameWork Contract GHG GreenHouse Gas GIS Geographic Information Systems GoU Government of Uganda GPS Global Positioning System ISO International Organization for Standardization MAAIF Ministry of Agriculture, Animal Industry and Fisheries MIP Multiannual Indicative Program NaFRI National Fisheries Research Institute NAMAs Nationally Appropriate Mitigation Actions NAO National Authorising Officer NAPAs National Adaptation Programme of Actions NEMA National Environment Management Authority NIP National Indicative Programme SEA Strategic Environmental Assessment SWOT Strengths, Weaknesses, Opportunities and Threats ToR Terms of Reference UNDP United Nations Development Porgramme USAID United States Agency for International Development

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1 Scope of work

The Government of Uganda (GoU) and its partner the European Union (EU) are primarily addressing the development of the beef and aquaculture industries in Uganda to attain food security through home production of beef and fish products. This GoU and EU have included the Strategic Environmental Assessment (SEA) process in their support to both sectors across the value chains from source to end-user of meat and fish products. The SEA was highlighted during the identification phase for the two projects and subsequently this study was required to assess environmental challenges which the projects will face during their implementation.

The overall objective of the SEA is to appropriately safeguard that projects account for both environmental and climate change factors for beef production and aquaculture to ensure sustainable growth through value chains with appropriate support from the GoU and EU.

The global objective of the SEA for both sectors can be divided into the following specific objectives: • describe, identify and assess potential effects of project upon environment • key environmental and/or natural resource constraints for the project • provide relevant information to decision makers (GoU & EU) to identify and asses environmental management and climate change adaptation needs • recommendations for mitigation and/or adaptation to address negative effects and maximise positive effects relating to climate change and the environment.

The SEA was organized in three phases: a scoping phase (March 2016), study, draft SEA report phase and stakeholder workshop (April/May 2016), and review and report-finalisation phase (May 2016).

Stakeholders had special roles in all phases of this SEA. During the scoping phase, stakeholders provided input to: • identify the main issues and concerns to be further studied during the SEA • identify other key stakeholders • redefine the SEA objectives • suggest alternatives projects for the sector • identify data sources and data gaps for the SEA.

During the SEA study phase, stakeholders also provided inputs to the various analyses, mitigation measures, and recommendations through discussions and a workshop for key players. Stakeholders also provide review comments to the final version of the SEA.

This SEA report presents the results of work from March to May, 2016. It integrates the results of the literature review, fieldwork, interviews, discussions, a workshop and feedback

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from stakeholders. The report structure reflects the requirements of the TOR (see Annex), as follows: • Scope of work • Background (justification for SEA, describes beef, aquaculture and climate change situations, sector development objectives, geographical zones, and an overview of the institutional, policy, and legal frameworks) • Methodology (scoping and SEA phases including stakeholder engagements, with assumptions, uncertainties, and constraints) • Baseline study and trends • Identification of environmental constraints and opportunities including climate-related aspects, and legal and policy obligations • Identification and assessment of potential environmental impact • Analysis of the logical frameworks' indicators from the perspective of environmental sustainability and adaptation to climate change • Assessment of institutional and stakeholder capacities to address environmental challenges • Mitigation or optimizing measures and indicators • Conclusions and recommendations

2 Background

2.1 Justification of the Strategic Environmental Assessment (SEA) for the beef and aquaculture sectors in Uganda

The Strategic Environmental Assessment (SEA), proposed by the Government of Uganda (GoU) and its partner in Uganda, the European Union Delegation (EUD), shows both insight and foresight regarding the risks, constraints, opportunities and impacts of the projects (beef production and aquaculture) including their interdependence with factors associated with various environmental factors. The climate change adaptation scenarios for the country are now being taken seriously in Uganda and elsewhere in the world, whereby current baselines will have to assess potential variations against historical biophysical and socio-economic baselines, while forecasts could bring both positive and negative impacts for the projects, and the environment and its natural resources.

Poor agricultural practices and diminishing natural fish production from the great lakes combined with high population growth rates have resulted in greater pressure on remaining natural resources in the environment. This is revealed through lands being divided into smaller and smaller unproductive parcels throughout Uganda. In addition, land scarcity is becoming more common with projections that cultivable lands will be depleted in the near future. The GoU now aims to encourage a transition within the country’s economy from one of subsistence to commercial agriculture and aquaculture. Without such interventions, there will be increasing demands for land, and potential increased incursions into protected areas or critical ecosystems (aquatic and terrestrial) including the parcelling out of forests and wetlands for drainage. Both positive and negative effects could result from this process,

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where mitigation and enhancement measures are prerequisites to avoid long-term damage to the environment.

Development of alternative rural or peri-urban industries will take time while the poor and most vulnerable will continue to practice subsistence agriculture and will need special assistance to ensure food security, while at the same time transitioning towards commercial agricultural production. The intention is that commercializing agriculture could provide potential new ranges of jobs for unskilled workers, and equally potential opportunities for educated and skilled individuals Meanwhile, the value chain production in beef production and aquaculture will focus on increasing production along strategic paths improving market linkages, expanding financial services supporting the agricultural and fisheries sectors, as well as supporting trade related sanitary and phyto-sanitary standards and quality management systems for the benefit of consumers in Uganda, or elsewhere in the East African region, or further afield.

Transitioning from subsistence to commercial agriculture and aquaculture can have both positive and negative effects upon people, the environment and its natural resources. Assuming that rapid population growth with respective demand for food is unavoidable, the lack of commercialization in agricultural production and aquaculture through sustainable value chains could be the biggest threat to the environment, compounded by climate changes in Uganda. In the poorest regions, lack of inputs and modern technologies are provoking the shortening of fallow periods while cultivation is spreading into increasingly marginal areas where soils are especially fragile and vulnerable to erosion.

There are potential social and environmental costs with commercial agriculture and fisheries, which need to be planned and assessed prior to implementation through measures such as the SEA for beef production and aquaculture, as prescribed in this ToR. Land use policies and plans at all levels including rivers and lakes are needed to warrant that interventions that aim to improve agricultural productivity, also take into account biophysical, socio-economic and cultural issues.

2.2 Situation in Uganda for beef and aquaculture value chains and climate change

2.2.1 Beef sector and value chain in Uganda

2.2.1.1 Overview of beef sector Uganda had approximately 13 million cattle in 2013 which are divided amongst approximately 26% of the population. Indigenous breeds are the most dominant accounting for approximately 94%, while the rest are exotic breeds. The indigenous cattle are composed of 70% Zebu/Nganda and 30% Ankole. Meanwhile dairy cattle breeds such as Friesian make up most of the exotic breeds. In addition to meat, milk, manure and hides, cattle also offer a

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means of storing wealth and security in rural communities, which can be used as and when required. Most herds of cattle are found in the cattle corridor (see cattle corridor section) as shown in Figure 1, although the largest are in the north-east of the country within the corridor. Both the DCZs have significant stocks although 20 to 30% of the animals in DCZ1 are dairy or dual purpose animals, as it is drier and more suitable for exotic breeds. It is important to add that the pastoralists, not ranchers, hold the majority of the national cattle herd and produce the majority of the country’s milk and beef (Oxfam, 2008). Cattle ownership per household is generally 10 to 30 cattle, but a little higher in the DCZs at 30 to 50 animals per farmstead. Meanwhile in the far north-east and east, the numbers of cattle per household are high with 50 to 80 animals. FAO stated that its cattle corridor project has tried to expand to the north- east but is held back by donors whose focus remains upon humanitarian ventures with its partners, and not orientated to development at present (see cattle corridor section).

Figure 1: Cattle distribution (numbers), ownership by household (%) and dairy and beef breeds (%) in 2008

Livestock only production is practiced in the far north and north-east and parts of the west of Uganda. For the majority of the country, there is a mix of livestock and rain fed cropping as indicated in Figure 2. In DCZ1 this is more semi-arid land cropping systems, which risk suffering with unpredictable rains and provoking soils erosion on slopes (see water sections). Figure 2: Principal rural activities - livestock production and cropping

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The cattle corridor Figure 3 has existed for centuries and were semi-nomadic area until relatively recently, when most livestock owners herded there animals through this transhumance zone following the rains and subsequent water points and grazing. In modern times these important cattle areas have become sedentary farms with fencing for many smallholders and some larger farmers and ranches. Farmers have land titles or customary lands in the DCZs. Large farmers often have land titles and their own water points or valley dams to avoid contact with other cattle. However, the majority of small farmers, and those that are not in farmers’ associations, use public water points as well as their own, where cattle from various herds will mix and could spread diseases. In recent times FAO has initiated the Global Climate Change Alliance (see climate change sector for more information) to assist farmers in this corridor.

Figure 3: Cattle corridor and Global Climate Change Alliance areas

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2.2.1.2 Beef value chain

The beef value chain in Uganda can be described by a series of activities performed to develop a product/service from conception to a final product, and to move from production to the final consumption. The main actors in the value chain include cattle producers while activities include cattle rearing, cattle trade and transport, slaughter and wholesale trade and processing. The end products include cattle, carcass sized meat chunks and hides, mixed meat, boneless meat, and offal (see Figure 4).

Figure 4 Schematic diagram for beef value chain

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Pastoralists and ranchers are the two main categories of cattle producers in the Disease Control Zones 1 and 2. Each of the two categories of producers has distinct characteristics and approaches with regard to cattle rearing. The key characteristics of pastoralists are that their families depend on livestock for a significant part of their food and income, and they keep large and diverse indigenous herds of cattle and other animals. Diversity of livestock guarantees pastoral households subsistence livelihood as well as high chances of survival of the animals in the drought and disease prone environments in which they live. These are mainly private commercial livestock producers that keep cattle on an intensive basis purposively for profit. Presently, there are some 165 large scale ranches distributed throughout Uganda which account for approximately 2% of the total national cattle herd. These are large-scale commercial systems practicing modern animal husbandry methods.

Cattle traders and transporters operate hand in hand in purchasing livestock at various levels including direct from farmers, from village markets, from ranchers or from sub-county markets to take to their destinations which include urban slaughter houses spread throughout the country or to abattoirs in Kampala.

Abattoirs and meat wholesalers: there is no single modern abattoir in Uganda which is internationally approved for exports; but there are about half a dozen privately-owned abattoirs which do not meet international standards. Most of them specialize in red meats, dominated by beef. The major abattoirs in Kampala are Kampala City Council Authority Abattoir, Uganda Meat Packers or Uganda Meat Industries (UMI) and Nsooba is located in Bwaise at the outskirts of Kampala. These abattoirs slaughter from 50 to 200 animals per day and cut the meat into large chunks which are purchased by wholesalers who sell the meat to small scale meat retailers (butcheries), supermarkets, institutions and beef processors.

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The main meat processor in Uganda is “Quality Cuts/ Fresh Cuts” which covers around 85% of Kampala’s processed meat market and supplies supermarkets with deep freezers, a number of butcheries in the districts with their products. Their products include prime cuts, retail cuts plastic packed, sausages (hot dogs, boiled sausages), ham, minced meat both frozen and fresh etc. Two other smaller processors are “Sausage King” and “Your Choice”.

At the export level, Uganda’s performance in livestock and livestock products is still dismal. Presently, Uganda exports very small quantities of live animals and hides and skins. Information on other products is not readily available, presumably because of the small quantities involved and unrecorded informal cross-border trade. Exports are limited because of the prevalence of diseases, lack of an export-standard abattoir and the high demand on the national market. Limited export happens to niche markets such as Southern Sudan, Rwanda, and UN forces in the DRC and Somalia.

Uganda’s current system of hides collection and marketing is governed by a few large dealers who pay little attention to quality. Even though the International Standards Organization has standards for raw skins, hides and pelts to guide methods of trim, preservation and descriptions of defects, Uganda does not yet have an equivalent local standard. MAIF which is responsible for the hides and skins sector no longer has staff designated as hides and skins graders. Neither does it have grading criteria nor inspectors.

The hide trade is dominated by two companies: Hoopoe Trading Company Ltd and Moonlight Hides and Skins Ltd. The largest of these operates collection centres in almost every district in Uganda located next to slaughter houses. Some farmers bring their hides and skins (mostly green) directly to the exporters’ collection centre while some transact through collection agent or trader. The traders also procure green, dried and salted hides and skins from butchers in rural and peri-urban areas. A common practice is to keep buying and drying on the ground until the trader collects enough to make a truck load before transporting to the exporter

2.2.2 Aquaculture sector and value chain in Uganda

2.2.2.1 Overview of aquaculture and fisheries sector

The fishing industry of Uganda employs approximately 1.2 million people and contributes 2.5% to the country’s GDP. The major commercial species include the Nile perch, tilapia and mukene. Exports peaked at 143 million USD in 2005, but then dropped to 89 million USD in 2011. Over 90% of the wild fish catch is harvested from Lakes Victoria, Albert and Kyoga. The introduction of the predatory Nile perch and four tilapia species into Lake Kyoga in the 1950 and Lake Victoria in the 1960s caused a severe drop in native cichlid species. It has been estimated that approximately 150 native species disappeared and the remaining endemic lake species are threatened by the invasive fish species. In recent years the numbers of Nile perch and some other species have started to decline progressively (see Figure 5 ) due to greater fishing pressures and by notably fleets of long- line boats in key parts of Lake Victoria and the harvesting of younger fish (illegal sizes) for potential local markets, although some international exporters may also sell smaller fish. International exports have dropped (see Figure 5), which is likely linked to lower tonnages of Nile perch in great demand from EU and Arab countries and with higher value. The decline has led to rises in catches of tilapia and mukene (adding to total fish landings), and

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interestingly to the reappearance of some cichlid species, thought previously to have vanished (as Nile perch often feed on these small fish). In addition to the effects of overfishing, the localised effects of eutrophication on Lake Victoria, in particular near pollution outlets from human settlements and industry, pose problems for both commercial fish species and the remaining vulnerable native species. This issue is likely to become more problematic around the lakes, as human populations increase and expand in the catchments. The demand for fish at principally national and regional levels has led to an increase in aquaculture. Approximately 98,000 tons of fish were produced in 2012 (see Figure 5), which is significant. Meanwhile, 53,000 people gained direct employment from aquaculture including proportionally good numbers of women. However, this figure is much lower than traditional fishing. There are 3 scales of aquaculture at present in Uganda being subsistence, small-scale and commercial. The two species which dominate production are Nile tilapia and North African catfish. It is important to add that the highly prized Nile perch cannot, at present, be reared in aquaculture units, as it is a voracious carnivore.

Figure 5 : Fish exports to international markets, total fish landings from three major lakes and fish production from aquaculture in Uganda

2.2.2.2 Aquaculture value chain The principal value chain for cage or pond aquaculture is clearly shown in Figure 6. These stages include breeding to growth phases with feeding regimes followed by national and exporting transport networks to sale points for consumers. Note that waste occurs at the production stage (feed, drugs and dead fish) and in part sits in settlement ponds prior to clearing of these ponds (unclear how this material should be disposed), while processing/packaging stages (plastics and cardboard) are often incinerated or disposed to municipal waste sites.

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Figure 6: Schematic diagram for aquaculture value chain

2.2.3 Climate change across Uganda Climate indications already show that Uganda is experiencing warming trends including changing rainfall patterns, melting glaciers in the Rwenzori Mountains, and a prevalence of agricultural pests and human diseases. These factors have brought about increasing intensity and frequency of dry periods and flooding. Southwest Uganda is the fastest warming region, while higher temperatures are likely to reduce outflows from Lake Victoria. Volumes of water in lakes and watercourses are influenced by precipitation and runoff from surrounding watersheds. Projected temperature rises will increase evaporation and lead to further decline in the water levels.

Changes in these water cycles may have a direct impact upon potential aquaculture projects, but will also affect regional climates across Uganda and the availability of fodder for livestock in the beef industry. The cattle corridor is the most important land area for grazing beef animals and has in the recent past experienced dramatic land, soil and vegetation

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degradation caused by a combination of inappropriate land use practices such as overgrazing, indiscriminate harvest of vegetation cover, encroachment into wetland, wild life and forest reserves to clear land for crop cultivation within a sedentary pastoralism. Beef production systems have therefore moved a formally shifting or semi-nomadic system, which was previously far more adaptive to climate risks. Figure 7: Map showing DCZs 1 and 2 in Uganda

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The mean temperature in Uganda has increased by approximately 1.3°C since 1960, while the ice cap on the Rwenzori Mountains has receded by 40% since 1955. Seven droughts were recorded between 1991 and 2000 compared to none between 1961 and 1970. Therefore, it appears that climate change is established in Uganda and the country has no choice but to adapt now and plan for the future. This process of change will have impacts upon development initiatives including beef production and aquaculture, while these projects could also pose potential risks compounding climate changes, while new opportunities may exist or develop in time, as the environment and its natural resources are modified.

2.2.4 Study areas for SEA The study area will focus, based upon the ToR, on areas for the project within Disease Control Zones (DCZ) 1 and 2 in central and southern Uganda, respectively (see Figure 7). These areas correspond with support to develop a market to market-orientated and environmentally sensitive beef meat industry projects in Uganda.

Figure 8 shows DCV1 and an area of cleared bush within a fenced area for beef cattle and traditional Long Horn cattle at a local market

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The study will also focus upon aquaculture development sites for the following: • caged aquaculture for tilapia production on Kalangala Island within a bay near Mwena on Lake Victoria • pond based production of catfish and/or tilapia on the banks of the River Nile, north of Masindi Port, and in the village of Onetgwok within the Parish of Tarugali and District of Apac (pers. comm. Apac District Fisheries Officer). However, key informants have suggested that anchored cages may also be suitable aquaculture projects in this area.

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Figure 9: Major water catchments in Uganda and approximate areas for the proposed aquaculture sites near Masindi Port and on Kalangala Island (in red)

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Figure 11: Proposed aquaculture pond site north-west of Masindi Port in Taragoli Parish, Apac District on River Nile and cage site in Mwena Bay on Kalangala Island in Lake Victoria

Target areas for the SEA comprise of multiple Districts where relevant stakeholders from relevant authorities, CSOs and local communities will be consulted. In addition, national and regional policies will have to be addressed as they could influence the SEA target zones and projects in this study. This process will involve discussions with national and regional actors and decision makers.

The geographical limits for the SEA will be orientated to appropriate fertile lands for grazing or fodder with water points and water bodies, associated with beef production and aquaculture respectively, as selected by the projects. However, the nature of climate change will also broaden this area regarding climatic patterns influencing principally rainfall in watersheds attached to rivers and lakes influencing aquaculture. Seasonal movements of rainfall across land will also influence the production of fodder and grazing and the recharge of dams commonly used as water points for cattle.

2.2.5 Proposed activities with EU support for beef and aquaculture

2.2.5.1 Beef The EU is supporting beef production through the project “Developing a Market - Oriented and Environmentally Sustainable Beef Meat Industry in Uganda”. Beef is one of the priority commodities chosen by the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) under the Country's commodity-based approach to developing agriculture. The proposal's global objective is to contribute to a competitive, profitable, job-intensive and environmentally-sustainable agricultural sector in Uganda, in order to reduce poverty and improve food and nutrition security. This will be contributed to through the use of a holistic value chain approach in the targeted geographical areas, in order to increase the performance of the Ugandan meat industry. The programme will support both the public and the private sector to work together towards the promotion of an environmentally sustainable, local and regional export-oriented meat industry – which respects as far as possible animal welfare practices.

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The programme will be implemented in the Cattle Corridor, in two "Disease Control Zones" (DCZ 1 & 2) as defined by MAAIF, because they are surrounded by rivers and lakes as natural barriers against the fast spreading of diseases. The Zones represent 12,600 and 8,250 km2 respectively, and together hold approximately 1.8 million heads of cattle out of the total number of cattle in Uganda, which is12.8 million (UBOS, 2011). The two regions hold also the overwhelming majority of commercial ranches (165 out of 166).

Other geographical zones where actions will be undertaken are Entebbe, which is the location of the MAAIF, and Kampala (location of MTIC), both strategic points for a number of activities in the meat industry: transporters, slaughtering, processing, and also home to the most important private sector stakeholders and marketers.

The following results are expected: • Result 1: the policy, legal, regulatory and institutional framework that affects the beef/meat value chain improved (including in terms of mitigating climate change/environmental impacts, adapting to climate change and reducing greenhouse gas emissions) • Result 2: beef meat production, productivity and quality assurance in the targeted areas is enhanced, giving priority to locally-developed practices and focusing on smallholder agriculture and rural livelihoods and formation of producer groups • Result 3: improved marketing, distribution and value addition for beef meat from the targeted area. The implementation modality will be: Indirect management with the Government of Uganda and/or indirect management with FAO Direct or indirect Management – Grants – Call for Proposal (targeting NSA or IOs specialised in the beef meat industry) for the other components (production & public private partnerships). Private sector will be a key stakeholder of the programme.

The duration of the EU support for this programme will be 5 years.

2.2.5.2 Aquaculture The EU is supporting aquaculture production through the project “Promoting Commercial Aquaculture in Uganda”. Fisheries make a crucial contribution to the country's economy and the wellbeing and prosperity of a number of households and today fish constitutes an important source of nutritious food and animal protein for much of the country's population. Small-scale fish farmers have discovered that adopting new technologies is often not enough to increase their productivity unless the fish value chain for their products is enhanced at the same time. Improved value chains lead to increased production and consumption of fish, especially by poor consumers, and increased income for producers, processors and traders.

Fisheries production is one of the priority areas/commodities chosen by the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) under the Country's commodity based approach to developing agriculture. This proposal's general objective is to contribute to a competitive, profitable job-intensive and environmentally-sustainable and climate-resilient agricultural sector in Uganda, in order to reduce poverty and improve food and nutrition

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security in the context of the changing climate. The specific objective of the project is to support a sustainable, climate-resilient, productive aquaculture value chain in a comprehensive manner.

The purpose of the project will be to improve food and nutrition security, increase income and improve livelihoods, promote inclusive socio-economic development and protect environment and natural resources, focusing on a market oriented aquaculture value chain targeting the East African region, the Middle East and eventually the EU markets, through a private-public partnership. The cage-based aquaculture park that is designed for tilapia production would be located at Mwena, which is a landing site near Kalangala Island on Lake Victoria, and was chosen because it has a number of infrastructure elements that can be used for the aquaculture park. The pond based Aquaculture Park that is designed for catfish and/or tilapia production would be based on the banks of the River Nile where it leaves Lake Kyoga north of Masindi Port, and was chosen because the river provides a vertical change that can be used to flow water through the park.

The project seeks to achieve the following: Result 1: the policy and regulatory frameworks affecting the operations of the commercial aquaculture industry improved and implemented (including in terms of mitigating climate change/environmental impacts and contributing to climate change adaptation) Result 2: production and Productivity of Aquaculture Fish and Fish products Enhanced, giving priority to locally-developed practices and focusing on smallholder and rural livelihoods and formation of producer groups Result 3: post-harvest handling and marketing of aquaculture fish and fish products improved; 4: A Project Implementation Unit established.

The programmes will be implemented through: • indirect management with the Government of Uganda and/or indirect management with FAO • direct or indirect Management – Grants – Call for Proposal (targeting NSA or IOs specialised in the beef meat industry) for the other components (production & public private partnerships).

The duration of the EU support for this programme will be 5 years.

2.2.6 Overview of the institutional, policy, and legal, framework

2.2.6.1 Institutional, policy, and legal framework for the beef sector

Currently the overall responsibility of beef sector falls under the Ministry of Agriculture, Animal Industries and Fisheries (MAAIF) and specifically under the Directorate of Animal Resources and its Department of Animal Production. However, the Directorate of Crop Production and Directorate of Agriculture Support Services are also very important, as they support the Directorate through support to develop of raw materials for feeds and provide extension services for livestock farmers.

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The Directorate of Animal Resources oversees the Department of Animal Production which has responsibility for good animal husbandry practices for production and nutrition of cattle (see Figure 10).

Figure 10: Organogram for Directorate of Animal Resources

Directorate of Animal Ressources

Department of Department of Department of Animal Production Animal Health Entomology

Veterinary Veterinary Division of Division of Animal Disease Regulation and Diagnostic and Vector Control Dairy and Beef Animal Nutrition Control Enforcement Epidemiology

In addition, the principal institution related the beef sector for MAAIF is the National Agriculture Research Institute (NARO).

The Government of Uganda has put in place a number of policies and laws to guide and regulate the agricultural sector for both aquaculture and beef sectors. All of these policies and laws are attached to the Ministry of Agriculture, Animal Industries and Fisheries (MAAIF), apart from the Constitution associated with the State. The main policies and legal instruments for the beef sector are presented below in Table 1. Since these sectors are related, there are mutual policies and laws which are relevant to both the beef and aquaculture sectors presented in Table 2.

Table 1: Existing policy and legal instruments for beef Policy and legal Main provisions instruments National Meat Policy (2003) Provides formal framework upon which the meat industry should develop within a broader plan for modernisation of agriculture The National Animal Feeds Improve nutrition for Beef Policy Animal Disease Control Provides for the control of animal diseases Policy Animal Breeding Policy Promotes development of better breeds (1997) Policy on Marketing Facilitates the development of value chains for beef sector Livestock and Livestock Products. Range Land Policy Promotes the efficient management of range lands which support most cattle rearing across the country Cattle Grazing Act Chapter Provides the general rules for grazing cattle in Uganda

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Policy and legal Main provisions instruments 42 Animal Disease Control Act Provides general rules and procedures for the control and 1918 & 1964, and the management of animal diseases in Uganda Animal Diseases Regulations 2003 Cattle Traders Act, 1943 Control of traders across Uganda Cattle Grazing Act, 1945 Management of grazing areas Prohibition of burning grass Grassland and bush burning controls in grazing Decree No.5, 1974 management schemes

Table 2: Existing policy and legal instruments for beef and aquaculture Policy and legal Main provisions instruments The Constitution of the The Constitution recognizes the role of people and the Republic of Uganda (1995) state in sustainable development and provides for matters and amended in 2005 pertaining to natural resources management and pollution of the environment National Development and Several objectives/strategies for fisheries the Agriculture Sector Development Strategy and Investment Plan 2010/11- 2014/15

Land Act 1964 and its Land tenure issues affecting farms, grazing area and Amendment Act, 2004 potential lands and access for aquaculture developments.

National Agriculture Policy It promotes food and nutrition security and improves (2013) household incomes through coordinated interventions that will enhance sustainable agricultural productivity and added value; and provide employment opportunities, and promote agribusinesses, investments and trade. The National Agricultural Promotes research and innovation in the agricultural sector. Research Policy Act, 2005 Animal breeding Act, 2001 Provides for the promotion, regulation and control, marketing, import and export, and quality assurance of animal and fish genetic materials. Animal (Prevention of Supporting undue pain and cruelty upon animals including Cruelty) Act, 1957 farmed animals. Control of Agricultural Use of chemicals in agricultural systems. Chemicals Act, 1964 Agricultural Seeds and Authorised seeds for crop production. Plant Statute, 1994 Crop Protection Act, 1964 Crop protection systems.

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Policy and legal Main provisions instruments Food and Drugs Act, 1964 Food and drug use in agriculture. Food Quality Assurance Food quality standard rules Rules, 1998

In the beef sector and potential developing aquaculture sector, the legislation and policies for food safety, agricultural health issues, and compliance with international standard are generally in a state of transition. Meanwhile, some legislation or policies are obsolete or in a legal or regulatory vacuum with delayed draft bills and policies in process.

2.2.6.2 Institutional, policy, and legal framework for the aquaculture sector

Currently the overall responsibility of the aquaculture sector falls under the Ministry of Agriculture, Animal Industries and Fisheries and specifically under the Directorate of Fisheries Resources. However, the Directorate of Crop Production is an important partner through provision of raw materials to potential fish feed manufacturers supplying aquaculture.

The Directorate of Fisheries Resources oversees aquaculture management and development (see Figure 11: Organogram for Directorate of Fisheries Resources). Their overall objective is to support sustainable, market oriented fish production and added value for improved food security and household income.

Figure 11: Organogram for Directorate of Fisheries Resources

Directorate of Fisheries Resources

Aquaculture Fisheries Resource Control, Regulations Management and Management and and Quality Development Development Assurance

In addition, the principal institution related the aquaculture sector for MAAIF is the National Fisheries Resources Research Institute (NaFRRI).

The key policies and legal instruments for the aquaculture sector are presented below in Table 3: Existing policy and legal instruments for aquaculture

Table 3: Existing policy and legal instruments for aquaculture Policy and legal Main provisions instruments Ugandan Code of Conduct Aligned to FAO Code of Conduct for Responsible Fisheries for Responsible Fisheries (1995).

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Policy and legal Main provisions instruments

The National Fisheries Aimed at improving livelihoods and alleviating poverty in Policy (2004) fishing communities through sustainable fisheries management. Fish Act, Cap. 197 (2000) Provides for the control of fishing, fish conservation, purchase, sale, marketing and processing of fish and related matters. It is supported by several subsidiary regulations. Inland Water Transport Act, Authorising water navigation and transport under the 1964; Vessels Registration tutelage of Ministry of Works and Transport through the Act, 1964; Ferries Act, Transport Licensing Board (TLB). It lacks resources while 1964, and the EAC Lake landing sites are generally in poor condition, and navigation Victoria Transport Act, 2007 aids are largely damaged or missing. Fish Quality (Assurance) Rules to promote fish quality in fisheries sector. Rules, 1998

In addition to the policy and legal instruments mentioned in Table 3: Existing policy and legal instruments for aquacultureand based on the review of policies and laws in the aquaculture sector, it is evident that there are many policies and legal instruments under development to support this growing sector. Key policies and legal instruments include the following: • Draft policy on aquaculture • Aquaculture rules • Guidelines on fish farming • Guideline on aquaculture feed production • Guidelines on aquaculture seed production • Guidelines for aquaculture service providers • Guidelines on cage culture

2.2.6.3 Institutional policy and legal framework for environment and climate change issues

Responsibility for the environment and its natural resources including climate change issues is assigned to the Ministry of Water and Environment (MWE). However, there are other government agencies within this Ministry with responsibilities to regulate, coordinate and monitor different sections of the environment. The most significant authority in the MWE is National Environment Management Authority (NEMA)

The National Environment Management Authority (NEMA) was established by an Act of Parliament in May 1995 as a principal agency for the management of environment to coordinate, monitor and supervise all activities in the field of environment; advise the government on all environmental matters and participate in developing environmental

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regulations, standards and guidelines. In line with its mandate, NEMA will ensure that key aspects of this project are subjected to Environmental Impact Assessments so that appropriate mitigation measures are put in place where negative impacts on the environment are detected.

Other important authorities include: • Climate Change Department (CCD) proposed to be elevated to National Climate Change Commission (NCCC) being the focal point for the United Nations Framework Convention on Climate Change (UNFCCC). This body addresses climate change challenges and opportunities with 3 key ministries (Ministry of Finance, Planning and Economic Development [MoFPED], National Planning Authority [NPA] and Ministry of Local Government), and several other key ministries including MAAIF within an inter- ministerial platform for CC coordinated by the CCD. • Uganda Wildlife Authority (UWA) in charge of wildlife management and game ranching • National Authority responsible for management of woodlands and tree resources

The policies and legal instruments for environment and climate change are presented below: • National Environment Management Policy, 1994. The overall goal of the National Environment Management Policy is the promotion of sustainable economic and social development regarding needs for future generations. Environmental and Social Impact Assessments (ESIA) are one of the vital tools considered necessary to ensure environmental quality and resource productivity on a long term basis. The policy calls for the integration of environmental concerns into development policies, plans and activities. The policy requires that projects associated with the beef study are likely to have significant ecological or social impacts and therefore should undertake an ESIA before their implementation. Within the National Environment Management Policy, there is a relevant policy objective as follows: “to manage the nation’s rangeland resources within the capacity of the land to support both livestock and wildlife” Currently the policy is being reviewed to integrate emerging issues since its formulation in 1994. These emerging issues include: potential oil discoveries in the Western Rift valley, climate changes and increased frequency of disasters, e.g. floods, landslides and drought, and hence the need for disaster reductions and management strategies, as well as policies for potential invasive alien species. • National Environmental Act, 1995. Section 20 of the Act makes it a legal requirement for every developer to undertake an environmental impact assessment for projects listed in the Third Schedule of the Act which includes large scale agriculture which require an ESIA to be conducted before implementation. There are series of regulations and standards provided attached to this law and listed below: - Environmental Impact Assessment Regulations, 1998 - National Environment (Waste Management) Regulations, 1999 - National Environment (Wetlands, River Banks and Lakeshores Management) Regulations, 2000 - National Environment Regulations (Noise Standards and Control), 2003 - National Environment (Audit) Regulations, 2006

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- National Environment (Standards for Discharge of Effluent into Water or on Land) Regulations, 1999) - Minimum Standards for Management of Soil Quality Regulations (2001) - Standards for air quality, water quality, discharge of effluent into water, control of noise and soil quality - Standards for discharge of effluent into water or on land - Minimum standards for management of soil quality - National Environment (Mountainous and hilly areas management regulations, 2000)

• Water Act, 1997. This law describes the protection and management policies of water resources such as Victoria, River Nile, lakes, impoundments and other water bodies. Project owners planning to construct within river spaces and/or watersheds of these areas shall have to obtain permits issued by the Water Policy Committee and authorised by this Act, prior to their construction. The objective of the Act is to enable equitable and sustainable management, use, and protection of water resources of Uganda through supervision and coordination of public and private activities that may impact on water quantity and quality. • Water Resources Regulations, 1998. According to the Water Resources Regulations section 10(1) includes any person who occupies land on or adjacent to which there is a motorized water pump which, pumps water from a borehole or waterway where there is a weir, dam, tank or any other facility which is capable of diverting or impounding an inflow of more than 400 cubic meters in any period of 24 hours. Such a person is required to register the works and the water use with the Director of Water Development. In part II of the Water Resources Regulations (1998), procedures for applying for a water abstraction permit are detailed. Where dams/boreholes etc. are planned the above must be complied with. • National Climate Change Policy, 2015. The NCCP is Uganda’s integrated response to climate change (CC) based upon the country vision for development priorities; therefore, it is both important and relevant for both the beef and aquaculture sectors. The policy describes a pathway to deal with the challenges of CC within a socio- economic context looking forward to opportunities and benefits from a green and sustainable economy. Key and specific objectives include policy priorities to address CC, adaptation and mitigation with monitoring and forecasting policies, and including CC into planning and decision-making for all sectors and cross-sectors through mainstreaming and the mobilisation of financing to address CC.

Other relevant environmental policy and legal instruments include: • Water Policy, 1999 • National Forest Policy, 2001 • National Forestry and Tree Planting Act, 2003 • Uganda Wildlife Act, 1995 • Soil Conservation Measures and Guidelines, 2000 • National Adaptation Programmes of Action (NAPAs), 2007 • National Policy for the Conservation and Management of Wetland Resources, 1995.

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2.2.6.4 Framework for Strategic Environmental Assessment (SEA), Environment and Social Impact Assessment (ESIA), and Climate Change (CC)

It is important to add that the Strategic Environmental Assessment (SEA) process has just been introduced in Uganda, but there are not, as yet, any legal requirements to undertake a SEA. However, there are current efforts to integrate SEA requirements into policy and the Environment Act.

The procedures for conducting ESIAs and guidelines for ESIA practitioners and regulatory bodies are stipulated in Environmental Act. The regulations require a detailed study to be conducted to determine the possible environmental impacts and measures to mitigate such impacts. At the end of the study, the environmental assessment report is submitted to NEMA, which makes a decision to approve or reject proposed projects. The guidelines also stipulate that the ESIA process should be participatory, that is, the public should be consulted to both inform them and acquire their views concerning proposed investments. The developer has the legal obligation to seek views from the general public including all persons that may be affected by a project, and other stakeholders.

Climate change law does not exist at present in Uganda, although it does have the Uganda National Climate Change Policy of 2012. The policy recognizes climate change impacts associated with the rangeland environment and provides policy options for adaptation measures to address them including water scarcity, flooding, water borne diseases to poverty, as well as malnutrition, famine and food security. Similarly mitigation measures will be supported through promotion of sustainable management of rangelands to reduce GHG emissions from soil and land degradation, which is strongly entrenched in the policy.

There are calls for the National Environmental Act, 1995 to be amended, or a new Act is developed to address climate change issues in Uganda. As the GoU has already signed and ratified the United Nations Framework Convention on Climate Change (UNFCCC), Uganda is normally obliged to demonstrate action on CC through robust national legislation. In addition, the country is a partner of the East African Community (EAC), whose climate change policies call for members to create stand-alone policies and laws on climate change (see international plans and programmes, below). This process could be facilitated by the proposed status elevation of CCD to NCCC.

2.2.6.5 Other potentially important legal instruments, ministries and their authorities and private institutions for the SEA process and beef and aquaculture sector development

Occupational Safety and Health Act, 2006. The OSH Act replaces the Factories Act (1964). The Act provides for the prevention and protection of persons at all workplaces from injuries, diseases, death and damage to property. The OSH Act covers not just the 'factory' but also any workplace where persons are employed and its provisions extend not just to employees but to the self-employed and any other persons that may be legitimately present in the workplace who may be exposed to injury or disease. Employers must provide for the protec- tion of workers from adverse weather, provision of a clean and healthy work environment, sanitary conveniences, washing facilities, First Aid and facilities for meals. The Act provides for safe access to the workplaces and safe work practices.

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Summaries of other important policies and legal instruments are presented below: • National Health Policy • Physical Planning Act, 2010

Other ministries and institutions which will be potentially concerned by the SEA process include the following: Ministry of Health and its Health Division’s mandate for food safety under the Food and Drug Act of 1964 and Draft Food Safety Bill • Ministry of Lands, Housing and Urban Development with reference to the Land Act, 1998 and land tenure issues • Ministry of Trade, Industry and Cooperatives with reference to Internal and External Trade, Department of Cooperative Development and Department of Industry and Technology for value chain developments • Ministry of Tourism, Wildlife and Antiquities with reference to biodiversity and tourism developments • Ministry of Disaster Preparedness and Refugees with reference to flood and drought issues • Ministry of Defence with reference to theft and conflict issues • Ministry of Internal Affairs (Police) with reference to theft and conflict issues • Uganda National Bureau of Standards (UNBS) with standards equivalent to Codex or regional standards through harmonisation with East African Regional Standards Organisation. UNBS also has a Voluntary Product Certification Scheme for foods etc. • National Drug Authority • Uganda Investment Authority and its Investment Promotion Agency for investment opportunities and investment packages and assistance for national and foreign investors. • Local Government Authorities and their District Officers (DVOs, DFOs, and DEOs) authorised by Local Government Act, 1997 and decentralisation policy for environmental, water, agriculture, fisheries and forestry.

Private institutions are rarer in Uganda, however there is a notable one called Chemiphar being a subsidiary of a Belgium company. This body has international accreditation to perform microbiological and chemical test on foods, and also authorised by the EU to test fish exports to EU markets. In addition, Total Quality Management Leadership Ltd. has provided training in ISO 9000 and ISO 14000 management standards.

2.2.6.7 Important national and international plans and programmes

The important national plans and programmes to consider for the SEA include the following: • Plan for Modernisation of Agriculture • Vision 2040 for Uganda • National Development Plans (I & II)

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• Operation Wealth Creation Programme • Agriculture Sector Development Strategy and Investment Plan (livestock and aquaculture with FED)

The important international plans and programmes to consider for the SEA include the following: • The Sustainable Development Goals (Agenda 2030) and specially aquaculture development and codes of conduct • Comprehensive Africa Agriculture Development Programme (CAADP) and their climate policies and responses with smart agriculture and CC adaptation • East African Community and its Food Security Action Plan including climate change policy and kits (see relationship with Climate Change Law above) • Regional Pastoral Livelihood Resilience Project • The Pan African Fisheries and Aquaculture Policy • United Nations Framework Convention on Climate Change (UNCCC), 1992 (see relationship with Climate Change Law above) • Convention on Biological Diversity (CBD) • Stockholm Convention on Persistent Organic Pollutants • African Convention on the Conservation of Nature • Cooperative Framework Agreement For The River Nile Basin • Agenda for Change (EU) • Nationally Appropriate Mitigation Actions (NAMAs)

2.2.7 Beef and aquaculture project alternatives with analysis Based upon discussions with key persons, principally from the Ministry of Agriculture, Animal Husbandry and Fisheries, and stakeholders at study sites, several alternatives to the proposed projects in beef and aquaculture development across Uganda were suggested. In addition, the Consultant has added suggestions and analysis to this list based upon desk studies and observations during field visits.

2.2.7.1 Beef alternatives There are two key alternatives that the EU could consider besides the current proposed beef project:

The first alternative could be for the EU to support fully the Uganda Meat Export Development Programme tackling all the constraints that presently hinders Uganda’s beef from accessing international markets including those of the EU. The initial strategy would be to target regional markets as well as markets in the Middle East whose requirements are less stringent. Such efforts would include;

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• strengthening the Disease Control Zone concept which remains weak prior to implementation of proposed beef development project • reviewing outdated policies and laws • strengthening disease control measures including capacity building for services and private sector • supporting the establishment of an export standard abattoir • strengthening the sanitary and animal health requirements including sanitary and phytosanitary measures and Technical Barriers to Trade, among others

A second alternative would be for the EU to fully support the Government’s Operation Wealth Creation scheme for farmers which include provision of materials and improved breeds of cattle with show case pilot farms. The Operation Wealth Creation is a popular Government programme whose vision is a socially and economically transformed Ugandan society with an overall goal of enhancing household participation in commercial agricultural production through community mobilization, equitable and timely distribution of agricultural inputs, and facilitation of agricultural production chains. It is aimed at poverty alleviation of the general population.

2.2.7.2 Aquaculture alternatives The potential aquaculture project alternatives include the following: • official importation of low cost tilapia fish products from China (currently blocked in Uganda, as this may destabilise pricing in country and there are issues concerning quality of fish and additives) • focus the EU project on high priority sites for both rivers and lakes after a site suitability and selection study has been completed across the country • target the improvement of techniques and production for existing traditional fishermen including means to address and reduce degradation of water bodies, such as Lake Victoria (Odongkara, 2005).

3 Methodology

3.1 General

The overall approach to this SEA was participatory involving stakeholder at both institutional, technical and practical/grassroots levels. This was necessary as environmental management issues related to the beef and aquaculture sectors need to be addressed in the broadest possible approach. Many of the beef and aquaculture issues have been around for many years, although aquaculture issues in Uganda may evolve with the recent rapid growth for this sector. Attempts to solve issues with only technical or data analysis would not have been sufficient for the SEA. Therefore, stakeholder involvement was key in the methodology of this SEA and throughout the SEA process, where possible. During field visits to collect primary data through field observations and collection of secondary data from key persons, the SEA process worked with people involved in each

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sector. This materialised through many interviews, focus group discussions, one-on-one discussions with stakeholders, and key players workshop and stakeholder feedback.

As mentioned in Chapter 1, the SEA was organized in three phases: scoping phase (March 2016), study, draft SEA report phase and stakeholder workshop (April/May 2016), and review and report-finalisation phase (May 2016).

3.2 Scoping study

The scoping study was prepared in accordance with reporting requirements outlined in the Terms of Reference (ToR) and the Project Agreement/Contract signed between Particip Consortium and the Delegation of the European Union in Uganda for the execution of “Consultancy to carry out a SEA of the 11th EDF Support to Developing a Market-Oriented and Environmentally Sustainable Beef Meat Industry in Uganda and Support to Promoting Commercial Aquaculture in Uganda projects / Specific Contract N° 2016/372615”.

The purpose of the scoping report is to set out a clear strategy and way forward for the implementation of the assignment and to specify the various activities and actions, timing and outputs of the specific tasks for the assignment being the Strategic Environmental Assessment and this report.

This Scoping Study presents the results of the scoping process conducted during March 2016 through consultation with key players in the beef and aquaculture sectors including the European Union Delegation in Uganda to develop the following: • Description of the projects and EU support, and potential alternatives • Overview of the policy, legal, and institutional framework • Key stakeholders and potential concerns • Description of scope of environmental baseline in the SEA study • Impact identification and evaluation methodologies to be used in the SEA study • Proposal for time frame for the completion of this SEA study.

Key activities during the scoping phase included: • 14 national level beef and aquaculture stakeholders or players were consulted and interviewed • 2 reconnaissance field visits were conducted at Disease Control Zone 1 (Nakasongola District) for the beef sector and the banks of the river Nile near Masindi Port (Apac District) for the aquaculture sector • mutual issues for both sectors and specific issues for beef and aquaculture were identified through stakeholder consultations • key literature was collected and further documents identified for collection and analysis during the SEA phase • 2 alternatives projects were identified for beef and 3 alternatives for aquaculture during the scoping phase.

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Overall, the Scoping Report was based on consultations with key stakeholders in Uganda, then discussed with EU Delegation at the end of March, 2016 and subjected to further comments from the EU Commission. The Final Scoping Report for the SEA was submitted on March 29, 2016.

3.3 SEA study

3.3.1 Baseline data collection

The data needs were identified during the scoping phase, so that at the start of the detailed SEA study, there was an intensive effort to compile, summarize, and analyse most of the baseline from secondary data. However, the collection and analysis of secondary data continued for the duration of the SEA study. The environmental and social baseline provided in this SEA relied significantly upon the following: EU’s action documents for the environmentally sustainable promotion of beef and aquaculture in Uganda • National State of the Environment Report • Uganda’s Atlas for our changing environment • Where are the poor? Mapping patterns of well=-being in Uganda by the Bureau of Statistics • WRI Atlas, • EU’s Environmental Profile for Uganda, • Vital’s Uganda the measure of land • Notura’s beef study and environmental impacts • USAID environmental threats and opportunities • UNDP’s Mainstreaming sustainable land management in the cattle corridor • various climate change documents, • policy and legal documents • various national and international plans and programmes, • and inputs from stakeholders.

3.3.2 Stakeholder engagement process and site visits

During the SEA study phase, additional field visits, field observations, and stakeholder interviews, especially with farmers and fishers, were conducted to verify some of the secondary data on the ground and to obtain more in depth field-level information. The four proposed project sites were visited as follows: • cage-based aquaculture park designed for tilapia production to be located at Mwena, which is a landing site on Kalangala Island in Lake Victoria with existing infrastructure for aquaculture with established cage fish farmers and traditional fishers

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• pond based aquaculture park proposed for catfish and/or tilapia production on the banks of the River Nile where it leaves Lake Kyoga north of Masindi Port (Apac District) chosen because the river provides potential vertical change for water flow across the park. Traditional fishers live and work in the river zone and farm on the banks at present • Disease Control Zone 1 (DCZ 1) defined by MAAIF and covering 12,600 km2. This area is composed of several Districts, while the most central one was selected for the site visit and known as Nakagonsola • Disease Control Zone 2 (DCZ 2) defined by MAAIF and covering 8,250 km2. This area is composed of several Districts, while the most central one was selected for the site visit and known as Kiruhura

In general, the SEA team conducted the field visits with District Veterinary Officers (DVOs) or District Fisheries Officers (DFOs), and District Environmental Officers (DEOs) in the four areas. The site visits entailed field observations, discussions with the extension workers, and key informant interviews and/or focus group discussions with local farmers or fishers from each area. In total, approximately 60 farmers and fishers were interviewed in focus groups including women’s groups during the SEA, as well as other key players on the ground including village leaders and traders.

The farmers and fishers focus groups were organised in advance by the DVOs, DFOs and/or DEOs in each area. In addition, an interview guide was prepared in advance to address key issues with open-ended questions to structure field interviews and to ensure that most key issues were identified during the scoping and SEA phases. To capture various viewpoints during the field trips, discussions were held with various people butchers, traders, transports, and processors, as well as directly with the DVOs, DFOs, DEOs, District officials, fishers and farmers and also large scale farmers and ranch managers. All responses were later incorporated into this SEA report.

3.3.3 Workshop discussion with key players

Key findings during the draft stage of the SEA were presented during a workshop in Kampala in April, 2016. The 19 workshop participants included key stakeholders from various bodies associated with NGOs, Government and the private sector with interests in the beef and/or aquaculture sectors, and/or climate change adaptation. Participants were encouraged to contribute to the SEA in a meaningful way to support the analysis of information and data.

The SEA team noted the key points from all parties in the discussion. The stakeholders’ inputs were later analysed, while supplementary information provided or recommended by stakeholders were also assessed, prior to integration into this SEA report.

3.3.4 Report writing and structure

The draft SEA report was developed subsequent to the workshop in April and finalised at the beginning of May, 2016. The process entailed analysing and integrating all primary and

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secondary data, site visit observations, interviews, discussions, and workshop outcomes from the start of the scoping period through to the analysis of data and information for the draft SEA.

Review and comments upon the draft SEA lead to the eventual final version of SEA report.

3.4 Assumptions and uncertainties for the study with mitigating actions

For the successful completion of the assignment, it is prudent that assumptions and uncertainties were identified and mitigated, where possible, at the beginning of the study. Uncertainties in this case are those factors that may cause a failure to meet the objectives and jeopardize the successful completion of the assignment in terms of quality of results, time required, and the final outputs of the SEA.

The main objective of this section is to appreciate the potential assumptions and uncertainties, and then derive means of managing and minimising them as part of the implementation plan for the successful completion of the assignment. Meanwhile, the overview of assumptions and uncertainties are described in Table 4: Overview of assumptions and uncertainties for the study with mitigating actions

Table 4: Overview of assumptions and uncertainties for the study with mitigating actions Assumptions / Uncertainties Mitigating actions Assumptions Sufficient historic, current and forecasting If insufficient or gaps in data and information data and information are available for are discovered, efforts will be made to acquire socio-economic, biophysical, cultural and regional or national data sets from reliable climatic factors in Uganda. outside sources e.g. UNDP/GRID/FAO and international meteorological centres, as well as searches through archives within the timeframe and budget for the SEA study.

In addition, a list of data and/information was sent to the authorities and overseers of the study for prior collection and discussion at the beginning of the study. Key personnel from various ministries and A list of key persons from public and private authorities including environment and sector (including potential data/information agriculture and at local/district levels will held by them) was provided to the consultants be available during the study by the authorities and overseers prior to the study commencing. These people were contacted at the start of the study and dates arranged for meeting with them or their representatives.

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Assumptions / Uncertainties Mitigating actions There will be greater demand for beef and Assess the evolution of demand and the fish products in Uganda and/or exports to economy in Uganda and elsewhere within the the region and other international markets SEA study. (EU, etc.). Uncertainties The time frame for this innovative and The report provides recommendations which challenging study is limited and likely to highlight the need for the acquisition of new require further developments following the data, further analysis and potential further final report for both aquaculture and beef. related studies for both the beef production and aquaculture sectors. Similarly, climatic change issues and adaption responses are new to many countries including Uganda, therefore caution, caveats and proposed further detailed analysis is clarified in detailed recommendations. The projects have priority over the findings The fundamentals of the SEA approach have of the report, which may orientate the to be explained and communicated through report to positive results and/or mitigations the report to guarantee an understanding of its measures, where climatic and purpose from the beginning. Potential environmental difficulties could outweigh impasses for the projects are flagged and may the reality for the potential development of include some options for the reorientation of the projects. the projects and/or their technical designs.

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4 Baseline study and trends

4.1 Biological environment

The biological baseline covers a number of relevant topics, including: international conventions, major ecosystem types; protected areas; forests; wetlands; natural disasters: floods and droughts, and biodiversity (mammals, birds, threatened species, and invasive species).

4.1.1 International Conventions and Policies

Uganda has signed a number of important international conventions and polices to safeguard its environment and respond to climate change. The most noteworthy and relevant to this SEA include: UN Convention on Biological Diversity (UNCBD), 1992; Convention on International Trade in Endangered Species (CITES), 1973 Convention on Wetlands of International Importance Especially as Waterfowl Habitat (Ramsar Convention), 1971 Protocol for Sustainable Development of the Lake Victoria Basin, 2004; Kyoto Protocol, 2002 UN Framework Convention on Climate Change (UNFCCC), 1992 with the National Adaptation Programme Actions (NAPAs) East Africa Community (EAC) Treaty and its protocols including climate change policy and environmental management programmes Convention Concerning the Protection of the World Cultural and Natural Heritage (World Heritage Convention), 1972 Africa Convention for the Conservation of Nature and Natural Resources, 1968 & revised in 1994 The Sustainable Development Goals (Agenda 2030) Stockholm Convention on Persistent Organic Pollutants, 2004

4.1.1 Major ecosystems and land uses

The major ecosystems are based on the vegetation types described in Figure 12 below. The county is dominated by areas which are either woody (Figure 12) or non woody i.e. grasses and herbs (Figure 12). Most of these ecosystems have become degraded versions of their virgin habitats as they have been converted to principally farmland for notably subsistence grazing of livestock and/or cropland across the country. The ecosystems are greener and taller in the southern parts of Uganda with higher rainfall, and also in areas with higher elevation towards the west and eastern limits of the country. The cattle corridor is composed of altered forms of evergreen and semi-evergreen bush thicket (acacia species…) in the south western regions corresponding with DCZ2. Meanwhile variants of Combretum and Butyrospermum sp. wooded savannah grassland towards the

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north-east of the corridor and parts of DCZ1 including edaphic wooded and grassland areas near watercourses flowing to Kyoga Lake. Vegetation near the Masindi riverbanks is moist Combretum sp. wooded grassland and evergreen and semi-evergreen bush land and thicket. At the edges of the river are edaphic grasslands and wooded grassland with patches of swamp reed beds. Meanwhile, the main Kalangala Island is composed of mainly degraded peripheral semi-evergreen rainforest (see Figure 7) and the relatively recent establishment of large oil palm plantations.

Figure 12: Vegetation dominated by woody plants & Vegetation dominated by grasses, sedges and herbs

The landscapes are now determined principally the agro-ecological zones across the country. These zones are determined by the soils, climate, and topography combined with vegetation cover (mentioned above). Within the corridor there are south-western grassland farms in the south and DCZ2 used for crops and livestock, then mid-altitude and Semiliki flatlands to wooded savannah in DCZ1 used for mainly crops and livestock, and northern moist farmlands, located north of Kyoga Lake (see Figure 13 ) used for annual crops. Meanwhile the national vegetation index (NVI) show clearly the production of green vegetation, principally grasses amongst tree and bushes in the cattle corridor (see Figure 13). The lands are notably green in the south and south west, and slightly greener growth in DCZ2 compared with DCZ1 areas. Masindi riverbanks are located on northern moist farmlands used for annual crops and livestock and traditional fishing on the River Nile. Kalanaga Island is within Ssese Islands and Sango Plains used for mainly intensive banana, coffee and annual crops, as well as traditional fishing and limited cage aquaculture activities on Lake Victoria.

Figure 13: Agro-ecological zones & Average annual enhanced vegetation index

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4.1.2 Protected areas

The protected areas (PAs) of outstanding interest for conservation are located principally on the western border of Uganda and in in part on the north-eastern border (see Figure 14). In total the PAs account for approximately 15.5% of Uganda and of this 5.2% are forest reserves managed by the National Forest Authority (NFA). The larger areas for wildlife and conservation are managed by the Ugandan Wildlife Authority (UWA). However, there are significant numbers of forest reserves within the cattle corridor and some notable National Parks bordering the corridor. These national parks include: • Murchison Falls (eastern side) • Kibale • Lake Mburo

The edges of these parks and reserves are often clearly defined as farmland and cleared vegetation areas push against the limits of the PAs. In addition, some forest reserves may be more degraded today, as they may not be managed as before. National parks in particular are important for tourism revenues and in 2013 provided almost a billion US dollars to Uganda’s economy.

12 Ramsar, one World Heritage and two Biosphere sites are located across Uganda and often part of the PA sites (see Figure 14). Sites of importance near to the cattle corridor and the DCZ2 include the Ramsar site: Lake Mburo-Nakivali Wetlands, whose water is piped to areas near Kirahura District in DCZ2. The nearest Ramsar site on the shores of Lake Victoria to the Kalangala Islands is Nabajjuzi Wetland System, although this is quite a distance from the proposed aquaculture park.

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These wetlands are of international significance for both wildlife and habitats, and their natural capital in terms of ecological services, notably water, for people and farming systems in the water catchments.

Figure 14: Protected Areas (PAs) in Uganda & Ramsar, Biosphere and World Heritage sites in Uganda

4.1.3 Forests The forest cover (30% canopy cover and higher than 5m) for Uganda is presented in Figure 15. Sparser areas of forest occur in some parts of the wooded savannah in the DCZs and cattle corridor. In addition there is significant cover of forest on Kalangala Island. Areas near the banks of the Nile have little to no forest cover. Notable losses of forest (see Figure 15) are often observed near important PAs. However, most PAs (parks and reserves) have not been hit by dramatic deforestation seen elsewhere in the country. There are also sparse losses in the cattle corridor, which may be due to bush clearance for grazing and increased crop farming, especially in DCZ2. Meanwhile, significant local losses of forest are observed on Kalangala Island, which may coincide with recent clearances of land for oil palm, and croplands for local people due to population pressures.

Figure 15: Forest cover in 2000 & Forest losses between 2000 and 2010

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4.1.4 Wetlands The wetlands of Uganda cover approximately 13% or 33,000 ha’s of territory, which are permanent or seasonal during the rainy seasons (see Figure 16). These significant areas are due to good rainfall and large lowland and flat areas with depressions across the country. Most wetlands are near lakes or rivers and within drowned river valleys. The government has made political gestures to protect these wetlands (see policy and legislative framework section), although the areas still remain under pressure from development and drainage for agriculture (cropping). Within the cattle corridor there is significant numbers of wetland systems representing important buffer sites store rainwater for watercourse leading to grazing areas and cattle. However, in and near DCZ2, there are reports of extensive areas of wetland being drained for crop farming. In addition, some small areas of wetland have been generated with the creation of some communal and private valley dams in cattle zones, which have developed natural vegetation at their edges and attract various species of waterfowl and aquatic life including otters. There are also large tracts of important wetland around the areas for the proposed ponds on the Nile River in the Apac District. These areas have also been acknowledged by WWF and classified as the Albert-Kyoga-Semuliki Landscape Area i.e. high value areas of wetland and river systems for wildlife. Meanwhile, there are virtually no wetland areas on the main Kalangala Island since the shoreline meets the lake’s edge for most of this island.

Figure 16: Permanent and Seasonal (Ephemeral) Wetlands

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Use of wetland for development and principally for cropping in rural areas is compromising the value of wetland sites and their ecosystem services, principally to store water and buffer heavy rainfall patterns across the country. Impacts on these wetlands have become more severe in recent years (see Figure 17). The government has committed itself to the conservation of wetlands in order to sustain their ecological and socio-economic functions for present and future well-being of the people under the Wetlands Policy, but this commitment has come to no avail. The result of this degradation could be decreased water qualities, depleted woody fuel sources, curtailed crop yields, and/or diminished fish catches in some watercourses. It is noticeable in Figure 17 that the cattle corridor is impacted and most significantly the wetlands within DCZ1.

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Figure 17: Wetland degradation areas

4.1.5 Biodiversity fauna

Birds, mammals and fish have been selected for the SEA as they are often key species to define quality and importance of habitats. Birds and mammals are more often associated with terrestrial habitats, meanwhile birds and fish are often related to aquatic habitats apart from notable mammals such as occasional hippopotamuses and some otters.

4.1.6 Birds

Figure 18 show the species distribution densities for birds across Uganda and Important Bird Areas (breeding, feeding, roosting and migration sites), respectively. The densest areas for bird species are in wet, forested and high elevation areas being notably the western border followed by the south east, and areas around Kampala. Most IBAs are also PAs in Uganda. Within or near the cattle corridor, the two notable sites include Semiliki National Park and Lake Mburo National Park located south of the DCZ2. Bird species densities elsewhere in the corridor and the two DCZs are low to average. As mentioned for wetlands, valley dams can offer good potential man-made habitats for aquatic bird species. On the main Kalangala Island, there is one IBA known as Lutoboka Point, and two others in the region known as Nabugabo Wetland (see Ramsar sites) and Musambwa Islands to the south of Kalangala. Common aquatic bird species at the sites include cormorant, pelicans, herons and egrets amongst others, which often feed on young and smaller fish in aquaculture ponds and smaller wild fish near cages (these fish feed on excess food near cages).

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Figure 18: Bird species density distribution map & Important Bird Areas (IBAs) in Uganda

4.1.7 Mammals

The distribution of most mammal species is similar to birds in wet, forested and high elevation areas (see Figure 19). Within the cattle corridor, most mammals, such a gazelle species (Impala), have been hunted out in the past or odd strays are hunted illegally by poachers from town and villages. Monkeys and baboons occur in some places where disturbance is limited. Animals reported in the cattle corridor and occasionally in DCZ2 come from neighbouring parks such as Lake Mburo National Park in the south-west of Uganda and south of DCZ2. In addition, farmers in areas bordering are often responsible for harm to wild animals, such as the poisoning of carnivores threatening their livestock and hunting of animals in the PAs or near their boundaries.

Important mammals in aquatic environments including Kalanagla on the Lake Victoria and the Nile may include hippopotamuses and otters. Occasional conflicts between cage fish farmers and otters have been observed when cages placed near their burrows in reeds.

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Figure 19: Mammal species density distribution map

4.1.8 Fish Fish diversity is quite high in the tropics, especially in the larger lakes. Lakes Victoria, Tanganyika and Nyasa have some of the highest diversities of fish species in Africa. However, the introduction of Nile Carp into Lake Victoria brought about the extinction of approximately half of the lake’s original species (mainly cichlid species), while there are an estimated 300 remaining. The areas of importance for fish also include the wetlands within the central parts of the cattle corridor in and around Lake Kyoga with 46 known fish species and potentially in the Nile near the proposed aquaculture park site, as the site is located just west of Lake Kyoga. Meanwhile Lake Victoria still remains an important site for native fish species including Kalangala Island.

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Figure 20 :Fish species density distribution map

4.1.9 Invasive alien species

Invasive plant species have a huge effect upon ecosystems causing wildlife to move outside of PA boundaries resulting in more human-wildlife conflicts. Invasive are rated as serious threat for the ecology of Uganda alongside climate change, fire, and land tenure conflicts. Invasive plant and animal species, some being exotic to Uganda, are also a principal threat to Uganda’s biodiversity. Invasive plant species, including Lantana camara, Broussontia papyrifera, Mimosa pigra, and Senna spp have invaded large areas of the Budongo and Mabira Forest Reserves. Lantana camera is often observed in area of overgrazing in the cattle corridor and DCZs.

Aquatic environments have experiences the aggressive spread of Nile perch in Lake Victoria, which is one reason that approximately 150 species of the lake’s native fish became extinct and the continued survival of remaining 40% of its fish species is severely threatened. Exotic species such as carp held by collectors in Uganda could also pose a threat in the future to native fish species in river systems including the Nile, as well as some lakes. The extinction of a species is not only a loss to biodiversity, but due to interrelationships may also send other species into decline, destabilize ecosystem processes, decrease ecosystem and species resilience to climate changes, and affect overall the natural evolutionary processes in Uganda.

4.1.10 Infectious diseases

Diseases are numerous and a major constraint for the improvement of beef production in Uganda, due to limited animal health services. These diseases impose heavy cost on producers and reduce

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incentives to invest in higher yielding breeds or improved breeds (local and exotic). Some important endemic diseases include: • foot and mouth • contagious bovine pleuropneumonia • numerous tick borne diseases • tsetse transmitted trypanosomiasis • tuberculosis • anthrax.

Government control of diseases deteriorated during the period of civil unrest in the past. Today clinical health services are not provided by the State, but by private services. The government and their DVOs are now only obliged to prepare policy, monitor and control epidemic disease such as foot and mouth. Drugs can be used for the benefit of cattle of individual farmers, however for common diseases associated with ticks and trypanosomiasis the use of spraying and dipping techniques can provide mutual and broader protection for cattle from many farms across a region. In addition, coordinated controls of diseases such as spraying on weekends of all herds are highly beneficial. However, efforts to control disease are undermined by often poorer farmers who do not control diseases and effectively become a reservoir for diseases in an area. Past interventions with specific drugs were targeted to specific regions, where some drugs could be used or not from one year to the next. With the liberalisation of veterinary drug markets in recent times, there is now no control of uses of drugs, which has led to the development of natural resistance by pests and diseases to a variety of drugs and medications (pers. com. DVO). In addition, poor quality or counterfeit drugs are sold to farmers from unscrupulous salesmen, which can compound the issues associated disease control in herds throughout the country (pers. com. Ranch Manger).

4.2 Physical environment

4.2.1 Geology and relief The landscape is composed of some mountains and plateaus and plains. These landscapes evolved during different cycles of erosion with tectonic and volcanic activities. The oldest metamorphic gneiss rocks cover most of the country. These are followed by granitic intrusions and volcanic rock formations. The good climate in Uganda is due to principally its elevation with post of the country being between 1000m to 1200m above sea level (see Figure 21). The lowest areas are in the west and the Albertine Rift, and the highest are in the Rwenzori mountains at over 5000m and Mount Elgon on the south-eastern border. Meanwhile areas around Lake Victoria including Kalanagla, and Kyoga and the Nile River are just above 1000m. Most of the landscapes are composed of rolling hills including the cattle corridor and DCZ2, although DCZ1 near Kyoga is relatively flat bush savannah and wetlands. Figure 21: Relief of Uganda

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4.2.2 Soils types and qualities Approximately 8% of the soils in Uganda are highly fertile and located in the east and south- west of the country (see Figure 22). Therefore, the majority of soils across the country including the cattle corridor, DCVs and regions around the proposed aquaculture parks have low to moderate fertility soils. In the northern parts of DCV1, the soils are even classified as very low to low fertilities. These poor soils are often acidic with low cation exchange values limiting the availability of nitrogen, phosphorus and potassium for plants (grasses and crops). It is clear that the richer soils, in minor parts of these poor soil regions, are located in the wetland areas, which may be drained and converted for crop farming. Figure 22: Soils of Uganda & Soil Fertility Classes

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4.2.3 Soil degradation and erosion

Soil degradation and erosion is often associated with rainfall and in part wind erosion of soils. The degradation of the soils is often due to overgrazing including fires on weaker soils and in particular, soils in hilly areas (see Figure 23). However, severe overgrazing in flatter areas can lead to soil losses and lower fertilities with moderate degradation, such as DCZ1 and influence the quality of the water in Lake Kyoga and the River Nile in the Apac District. Meanwhile overgrazing and bush clearance with increased cropping in DCZ2 could lead to more soil erosion and sediment load in rivers. Soils in many areas with rolling hills in sub- catchments around Lake Victoria are already classified with moderate to high soil loss rates (see Figure 23). These soils can become sediment load in watercourses and eventually pollute freshwaters on the shorelines of Lake Victoria including areas south of the main Kalangala Island. Sediment load could be beneficial for fish production, but could also provoke eutrophication and algal blooms under the right climatic conditions (see water quality section).

Figure 23: Soil degradation across Uganda & Soil Erosion near Lake Victoria

4.2.4 Water catchments, water quality and pollution

4.2.4.1 Surface waters and catchments

The surface water of Uganda is vast covering 15% of the country, principally Lake Victoria but also Lakes Albert, Edward, George and Kyoga near the proposed aquaculture park site. In addition there are significant numbers of rivers including the Nile and swamps adding another 9% to surface waters (see Figure 24). The cattle corridor influences all the major lakes and the River Nile, while DCZ2 is upstream of Lake Edward and Lake Victoria

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catchments influence surface water around Kalangala Island (see Figure 24). Meanwhile, land uses in DCZ1 influence the surface waters to Lake Kyoga, and the River Nile, both upstream and downstream from Lake Kyoga leading to the potential aquaculture park (see Figure 24). Figure 24: Surface waters and major catchments of Uganda

During wet seasons, there is usually sufficient water for both livestock and humans. However, this amount of rainfall is sometimes high, while the seasonal distribution is not favourable and more unpredictable with climate change. Apart from the South Western parts of the Corridor such as Kiruhura District, which is characterized by short and undulating hills with wide valleys, much of the cattle Corridor is flat or gently undulating. In both cases, water from the higher elevations drains into seasonal streams or larger rivers such as Sezibwa, Kafu and Lugogo (Nakasongola District) or lakes include Lakes Kachera and Mburo (Kiruhura) and Lake Kyoga near Nakasongola. Duriong these rains the soils are easily washed away, in particular those with high proportions of sand leading to siltation of rivers, lakes and ponds (see water quality and pollution section).

4.2.5 Water quality and pollution

The drainage patterns across Uganda provide an intricate pattern of watercourses leading to the large lakes and the notable River Nile through several large lakes including Lake Kyoga (see Figure 25). Land use leading to overgrazing and potential soils erosion in these areas plus the use of chemical, drugs and fertilisers in the DCZs could eventually have reach various lakes and rivers of importance for other communities and wildlife downstream. Extreme cases of sediment load affecting water quality have been monitored by satellite and include an example of the river flowing into Lake Victoria, just south of the main Kalangala Island (see Figure 25). This case is an example of poor land management in the catchment and negative transboundary land management issues between Tanzania and Uganda upon the river and Lake Victoria. The enormity of sediment deposition over several years (1987 to 2000) created a large delta front on the lake’s shoreline.

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Sediments combined with pollution from urban areas with high nutriment loads will also create algal blooms and eutrophic conditions. These issues were observed near Entebbe in 2007 (see Figure 26). Eutrophication issues have been observed at specific sites elsewhere on the Lake where pollution from human settlements is high. The risks remain low on Lake Victoria; however current growing urban populations, commercial oil palm developments (with fertilisers and pesticides) and tourism growth on Kalangala Island are increasing nutrient loads into surrounding waters of the Lake.

Figure 25: Drainage patterns across Uganda & Sediment flow into Lake Victoria with delta front development from 1987 to 2000 provoked by transboundary Tanzania/Uganda soil erosion

Figure 26: Eutrophication and algal blooms on Lake Victoria near shores of Entebbe (satellite image, 2007)

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Summaries of the key sources of pollution and their effects are presented below: • pesticide pollution: non-point source pollution is a cause for serious concern in Uganda. There is a growing trend to apply pesticides in rain-fed mechanized agriculture schemes, which may lead to widespread contamination of both surface and groundwater including water points used by local people. Use of acaricides to control ticks in livestock either through spraying or the use of dip tanks (often emptied twice per month into surrounding fields) can lead to significant levels of pollution in the environment and groundwater in particular. Monitoring section Given the persistent nature of many pesticides and their biological manifestation in the food-chain, long term monitoring of surface and ground water should be implemented in ranches and other livestock areas; • industrial effluent: water pollution from industry is mostly limited to specific ‘hot spots’ such as Lake Victoria’s shoreline. With the current boom in industrial investment in Uganda, effluent is becoming an issue of growing concern. Many industries along Lake Victoria’s shoreline include fish processing plants, textile, food and beverages and brewery companies, as well as garbage disposal businesses do not have waste treatment plants All of these companies release their effluents into the lake, which is either untreated or partially treated. Many of the surrounding towns also release untreated sewage and domestic waste into the lake. This pollution with high levels of nitrates and phosphates leads to high COD and BOD levels in waters; • erosion in catchments have led to record levels of suspended solids in rivers and lakes in the wet season range from 3,000 ppm to 6,000 ppm which correspond to highly turbid or muddy conditions. While many of Uganda’s rivers and streams are naturally turbid, the problem has been amplified by the high rates of soil erosion due to deforestation and vegetation clearance, overgrazing and poor farming practices. These sediments can have adverse effects upon drinking water quality as well as on fish and other aquatic life including aquaculture parks and the siltation of valley dams in the cattle corridor with potential huge economic losses.

Effluents from abattoirs and other slaughter facilities are generally insufficiently treated. The abattoirs and slaughter facilities have old machinery and/or insufficient capacity to treat their effluents. The downstream effects include contamination of potable water supply and eutrophication and this has been detected in Lake Victoria. Acaricides and other livestock chemical applied in the ranches and traditional livestock systems are also often not adequately disposed off with possibilities of livestock chemicals polluting ground and surface water used by both humans and livestock. More research should be conducted by MAAIF to assess the extent of such contamination. Perhaps it is also time for ranchers to comply with water discharge standards.

4.2.6 Climate and climate change

4.2.6.1 Temperature and rainfall across Uganda

The average temperatures around the year do not vary enormously for most of the country and range between approximately 20 oC to 30 oC (see Figure 27). The cattle corridor is slight cooler in the southern regions including DCZ2 and a little warmer in DCZ1, which has a warmer climate in general and will influence surface water temperatures on the River Nile.

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Rainfall varies from less than 600mm in the drier semi arid north-east borders to the wettest areas with almost 2000mm over Lake Victoria and the mountain ranges of Mount Elgon and the Rwenzoris (see Figure 27). It is noticeable that DCZ1 has also low rainfall with approximately 700 to 800mm per annum over large parts of this zone. Figure 27: Average annual temperature (oC) & Annual rainfall (mm)

There are bimodal rainy periods in Uganda from March until May and between August and November, and notably very dry in January and February in the north of the country (see Figure 28). Meanwhile variations from year to year with rainfall are relatively large before adding potential climate change variations. Rainfall variations can be 20% to 25% over both DCZs, and similar over water catchments surrounding Lake Victoria and Lake Kyoga. These changes would affect flows on the Nile out both lakes, and water levels on the same lakes (see global climate change section).

Figure 28: Average monthly rainfall & Rainfall variation from year to year

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4.2.6.2 Global climate change and average temperatures and annual rainfall

Across Uganda there are numerous climate change (CC) impacts from average temperature rises to melting ice caps on the peaks of the highest mountains. It is clear that the frequency of extreme climatic events associated with higher temperatures and rainfall combined with the variability of seasons has arrived and will continue to have impacts for the foreseeable future. CC predications are based upon models from CSIR South Africa using the current rate of greenhouse gas RCP 8.5 emissions scenario increasing into the 21st Century; and RCP 4.5 scenario where emissions remain stable, then decline from 2050. Figure 29shows temperatures rising significantly across Uganda by a minimum of 3 to 5oC in the future and over 7oC for the worst case scenarios in principally northern and western parts of the country. Figure 29: Predicted temperature changes (%) for the periods 2040-2060 (Feb.-April & July-Sept.) and 2080-2100 (Feb.-April & July-Sept.) relative to previous average temperatures for 1970-2005 across Africa and Uganda (Scenarios RCP 4.5. on top and RCP 8.5 below)

Similar changes are observed for rainfall using the same scenarios. The minimum impact from CC would decrease (~5%) across northern Uganda and increase (5 - 15%) in southern Uganda. Meanwhile the worst case scenario would be a modest decline (5 - 10%) across the entire country. Even if the changes in rainfall are modest across the country, it is important to add that these changes can vary enormously within localities across the country, where various degrees of drought or flooding may occur. These events could dry up valley dams in the DCZs, in particular DCZ1, and lead to extreme rises and falling of the lakes e.g. Lake Victoria and river

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systems e.g. River Nile. These extreme events, in specific localities, could damage soils and vegetation leading to their degradation and potential sediment discharges into local watercourses with subsequent downstream environmental impacts within catchments and water bodies.

Figure 30: Predicted annual average rainfall changes (%) for the periods 2040-2060 and 2080-2100 relative to previous average rainfall for 1970-2005 across Africa and Uganda

4.2.6.3 Climate change, human induced issues and natural disasters

Bush fires Human induced bush fires occur every year to promote pasture and clear bush for grazing and hunting purposes. The frequency of fires are numerous in the drier north of Uganda (see Figure 31) but will also occur in the south of Uganda (less visible due to regular cloud cover in south) and would affect the cattle corridor and DCZs. Fires can also provoke soils erosion in the catchments (see water quality and pollution section). Bush fires could be exaggerated

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with climate change and drier conditions, particularly in the north of the country (see global CC and temperatures and rainfall section). Figure 31: Bush and grassland fires for pasture (frequencies between 2000 and 2010)

Deforestation and charcoal production

Deforestation of woodlands with charcoal burning is an important aspect of savannah rangeland use. Trees have for a long time been the main source of fuelwood for local people, as well as providing construction materials. In some rangeland areas, the steady increase in demand for charcoal and increase in its price have made charcoal burning an attractive activity for many communities.

In Nakasongola, public lands were the some of the first to be hit by large groups of charcoal producers, as there was nobody to control the activity. By 1988, most of the tree species with high usufruct value for charcoal such as Terminalia and Combretum spp. had been used. Currently, the focus for charcoal production is on private mailo lands, where charcoal producers are allowed to cut trees in return for a fee paid to the landlords. However, there is also indiscriminate felling of trees interferes in other areas including PAs and sensitive habitats with serious consequences for wildlife.

Deforestation or bush clearances also take place on rangelands to encourage more grazing. These changes are noticeable in both DCVs, and in particular on parts of the DCV2 with dairy and beef herds.

Changes in levels of water bodies

The lakes of Uganda vary in depth from averages of 82m for Lake Victoria to shallow lakes like Kyoga with 10m. However, the bathymetry varies across these lakes which are altered by increased sedimentation associated with CC influences. The varying depths have an important bearing upon the water storage capacities of the lakes and their sensitivity to temperature changes, particularly during periods when the levels drop dramatically. Figures

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Figure 32 display changes for water levels in Lakes Victoria and Albert. In Lake Victoria, the water levels where at there highest in 1963 during an El Nino event, and at their lowest in 1999 with a La Nina event. Similarly in Lake Albert, the highest levels were also in 1963 with El Nino. These events combined with CC could exaggerate water level changes in the future.

Figure 32: Water level changes in Lake Victoria (1947-2009) & Lake Albert (1946-2007)

Diseases and pests

Climate change (CC) will affect disease occurrence in both animals and humans and the interrelationships for some diseases passing between animals and humans associated with biological parameters and climatic variables for vectors and parasites. Based on studies of malaria principally, an increase in temperature by 2 to 3oC could increase the risks from malaria by 3-5%. CC could also change habitat compositions, which could alter the distribution of insects such as mosquitos, and tsetse flies spreading sleeping sickness to humans and trypanosomiasis in cattle. Uganda’s National Adaptation Programs of Action (NAPA) have already recorded increased disease and vector presence in 2007. Therefore, these issues need to be urgently modelled and studied further. Warmer temperatures across Uganda have also been associated with an increase in termite numbers in grazing area. Overgrazing in some areas has been compounded by the impacts of termites feeding on grasses. Termites have also reportedly been damaging local homes made of woody materials.

Diseases in humans are also exaggerated with CC and including the following: water borne diseases during flooding provokes diarrheal disease including cholera and malaria epidemics, particularly where sanitation is poor and in slum areas respiratory disease & eye: infections during dust storms arising from prolonged dry spells malnutrition and famine caused by lower food production and insecurity, particularly with widespread damage brought on by floods and droughts.

Droughts and flooding Most problems faced by the cattle farmers and to a degree fish farmers are attributed to the climate changes (CC) and seasonal unpredictability. Stark in 2011 reports that different farmers from across Luwero and Nakasongola regions reported more droughts than before

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and unpredictable rains and poor grazing due to low rain and higher temperatures with evapotranspiration. According to Uganda’s National Adaptation Programs of Action (NAPA) in 2007, livestock meat and milk production across Uganda remain low due to the availability of pasture and drinking water points, where the lack of water accounts for 72% of livestock production issues. Most cattle die during periods of drought when they are travelling over long distances in search of pasture and water. This also at times causes local disputes between the farmers and cattle keepers when the cattle encroach on crops and also disputes at boreholes and valley dams, as many farmers and their herds converge upon each other. Conflicts also occur when cattle damage crops or cause harm at water points leading to fines initiated by local water management committees. CC can provoke increased intensities of rainfall leading to land degradation and landslides with risks of loss of life and property and damage to infrastructure. Severe floods also destroy cropland and drown animals. Meanwhile frequent droughts cause crop failures, cause water shortages for livestock and people and accelerate land degradation as well as soil erosion and desertification. These events could be highly problematic for ponds with aquaculture parks. However, increased rainfall and flooding in some areas may also increase opportunities for growing crops or higher yields. Wetlands and other areas prone to flooding could provide benefits associated with the deposition of rich alluvial soils which could be excellent for the growing of crops. Similarly increases in rainfall in semi-arid areas could be beneficial for grazing and water points for some farmers, e.g. artificial lakes formed in Mbarara region in 2008.

The negative impact of climate change upon beef and aquaculture production is likely to intensify unless adaptation and mitigation measures are put in place. Presently implementation of these measures is constrained by inadequate knowledge of appropriate technologies and lack of funds to implement them. With the advent of the new Climate Change Policy together with the new Department of Climate Change, there is hope that the negative impacts of climate change will be reduced and potential benefits optimised.

4.2.6.4 Carbon footprints, sinks and carbon trading

Uganda is a signatory to the United Nations Framework Convention on Climate Change (UNCCC) in 1992 and the Kyoto Protocol. Climate change poses a major challenge for the rural poor in particular and, unless early action is taken to adapt, it may be difficult to achieve some of the new Sustainable Development Goals (SDGs). For a country like Uganda which is so dependent upon its natural resource base, any changes to the climate could have significant effects upon the economy and general well-being of the population.

Although Uganda is a net sink for greenhouse gases (GHG), the country has responded to the global challenges by contributing to carbon sequestration through the promotion of various projects including The Nile Basin Reforestation project being the first Clean Development Mechanism (CDM) and registered reforestation project in Africa, which included the rehabilitation of degraded areas of Rwoho Forest Reserve. In addition, there are several other carbon sequestration initiatives around the country. However, development in the future may increase demand upon fossil fuels with the transportation and refrigeration of more animal products across the country. In addition, higher exports by plane to foreign

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consumers, especially fish to EU, as well as fish and meat to neighbouring countries, and the movement of feeds, such as fish feed to producers.

Uganda is participating in the REDD+ activities and has submitted its Nationally Appropriate Mitigation Actions (NAMAs) to the UNFCCC. Efforts to mainstream climate change at sector and local government levels has been finalized, while integration of climate change in the education curricula is in advanced stages.

Tree-planting and conservation projects for forests with CDM or REDD+ are also vital to limit soils erosion and increase the buffering capacity of watersheds. These factors also provide significant benefits for aquaculture, and watering points and fertile grazing lands for beef production.

As Uganda becomes more experienced in addressing climate change challenges for example by participating in a number of REDD+ projects, the country may be able to deal with the consequences of climate change and reduce their negative impacts. The main constraint to tree-planting at present is inadequate funding. Despite this shortcoming, it is anticipated that Uganda will develop more CDM and REDD+ projects in the near future as donor support is forthcoming and capacity among local people to implement these projects evolves with various agencies, e.g. Belgian Development Agency.

4.2.7 Air and noise pollution

The ambient state of air and noise across the entire country is generally good due to low air or noise pollution in predominantly rural activities. However, seasonal bush fires could cause air quality problems, particularly if the winds blow the smoke into suburban and urban areas where vehicle and industrial pollution are already quite serious. Air and noise issues for the beef and aquaculture sectors are summarised below: • strong odours from fish processing sites, in particular open air sites such as filleting e.g. Jinga filleting site near JFFA • odours from informal fish markets, particularly in urban areas • odours and noises at abattoirs located in urban areas • odours from waste materials at District slaughter houses and abattoirs in urban areas • smoke from incinerators, particularly in urban areas • noise at processing factories and abattoirs in urban areas • noise and air pollution from numerous old lorries carrying cattle near abattoirs in urban areas.

4.3 Socio-economics and culture

4.3.1 Governance and administration

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The governance and administration of Uganda is divided amongst ministries for various sectors including and beef and aquaculture sectors under the Ministry of Agriculture, Animal Industries and Fisheries (MAAIF). However, in the past the country went through a decentralisation process to delegate local power and management to District levels (see Figure 33) and their sub-counties. The pertinent authorities met to discuss this SEA in the Districts included the Chairs of Administration (CoAs), District Veterinary Officers (DVOs), District Fisheries Officers, and District Environmental Officers (DEOs). The DCZs (see map in study areas for SEA section) are composed of several Districts, although many are composed of partial areas of Districts, as the DCZ limits were demarcated using natural boundaries such as rivers and hills. At the centre of DCZ1 and DCZ2 are the Districts of Nakagonsola and Kirahura, respectively. These DCZs lie in the cattle corridor under the administration of approximately 35 Districts in total (see Figure 33 for cattle corridor). Meanwhile the proposed ponds on the River Nile banks are in the Apac District and proposed caged aquaculture park on the main Kalangala Island is within the . The concept of the DCZs is unknown to most officials at District level within the DCZs, which corresponds with reports from officials at the MAAIF, as DCZs have not been managed or discussed for many years. Meanwhile, the concept of proposed aquaculture parks is known by the DFOs at both sites on the River Nile and Lake Victoria, and there is also enthusiasm for the aquaculture project from the CoA and DEO in the Kalangala District. However, the funding and resources for these officers is low and highly dependent upon projects to operate and function (see assessment of institutional capacities section).

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Figure 33: Administrative map of Uganda

4.3.2 Population The population of Uganda in 2014 was approximately 35 million people with a very high population growth rate of 3.2% per annum. The highest densities of people are in the cities and towns, although there some rural populations are also crowded around the edges of some PAs and on richer agricultural soils and near some lake shores, as shown in Figure 34. The largest numbers of people live in rural areas and dependent upon principally subsistence farming. Both the DCZs are in area with relatively low rural population densities. However there appears to be a population density sprawl around urban areas such as Kampala towards DCZ1, and from Masaka to DCZ2.

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Figure 34: Population distribution estimates in 2010 influenced in part by (a) protected areas and (b) soil organic carbon (fertility)

4.3.3 Gender issues Women in Uganda face a wide range of challenges including discrimination, low social status, lack of economic self-sufficiency, and greater risk of HIV/AIDS infection. In Uganda, as in some other African countries, gender discrimination means that women must submit to an overall lower social status than men. For many women, this reduces their power to act independently, become educated, avoid poverty, and/or escape reliance upon abusive men. The total fertility rate is the second highest in the world at almost seven children per woman, which means that women have little opportunity during their lives outside their family obligations. Poverty also underlies the fact that female-headed households are more food insecure in terms of food diversity and deficiency than those headed by men. Women are also less likely to get loans and far less likely to be able to read or write, especially in rural Uganda and the north and east, locking them into a cycle of low paid work, poverty and food insecurity. Illiteracy rates remain appallingly high amongst women in northern and eastern Uganda trapping them into low paid work and the poverty of caring for a large family. From discussion with stakeholder there are significant numbers of women working in numerous stages of the value chain for both beef and aquaculture. There is also interest in developing breeding herds of cattle. However, it is important to note that women who are married will often have to give their earnings to their husband, as he often manages the money in Ugandan households, which is likely to undermine a woman’s independence and opportunities to use her money.

4.3.4 Poverty, education and health services And extreme poverty has fallen by more than half over the past two decades, from 56% in 1992 to 24% in 2010, surpassing the first Millennium Development Goal on poverty reduction well ahead of 2015, the target year. Poverty has a major influence on the wellbeing of people and their eventual education and health. Encouraging trends to end poverty have seen more children now surviving into their 5th year as health improves, while many are enrolled in

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primary school too. However, the prospects for this young generation are not as good as they should be with only 54% of all children in Grade 3 being literate. In addition, only half of the children enrolled in school actually complete primary level. Mothers also remain at high risk with untimely deaths due to complications at childbirth and lack of skilled care with an estimated 40 infants dying out of every 1,000 births. In brief, there has been much progress, but Uganda’s education and health services, accounting for a quarter of the national expenditure, are delivering less than satisfactory results and need to improve to reach their Vision 2040 objectives for education and health. Geography has a major influence upon the location of poverty across the nation, high levels of poverty or wealthy areas are often clustered around several Sub-Counties and their Districts (see Figure 35) based upon the national poverty line for adults in 2005. Most of the people classified as poor and below the poverty line live in rural areas. It is clear that the poorest communities are found in the north and east, while mid-range poverty occurs in central Uganda and the south-east. Meanwhile, the wealthiest areas are the west, south and south-west regions of the country. Often the rationale for poverty in these areas is associated with a combination of factors being rainfall, soil quality, land and labour availability, degree of economic diversification and level of market access (see market access section), as well security and instability in certain regions. The poverty in the cattle corridor ranges from wealthier people in the south-west to much poorer in the north-east. DCZ2 is a beef and dairy zone composed of wealthier farmers and communities, while DCZ1 is principally a beef area with mid-range levels of poverty amongst many of the smaller-scale farmers. Meanwhile poverty bear the River Nile within Apac District is relatively high as most people are subsistence farmers with small herds of animals. However, fishers with croplands and a few cattle may be better off in their subsistence economy than those further from the river with mainly cattle. On Kalangala Island, most people of wealthier than other parts of Uganda, due to commerce, tourism, oil palm, cropping and fishing with access to markets in the region.

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Figure 35: Poverty in Uganda

4.3.5 Human health: principal diseases, food security and water supplies

4.3.5.1 Principal diseases

The degree of risk of catching disease is very high in Uganda. Food or waterborne diseases including bacterial diarrhoea, hepatitis A and E, and typhoid fever cause significant illnesses across the country. Meanwhile vector borne diseases such as malaria, dengue fever, and trypanosomiasis-Gambiense (African sleeping sickness) are common. In addition, water contact diseases such as schistosomiasis and animal contact diseases including rabies pose serious risks for the population. The wetlands, notably neat Lakes Victoria and Kyoga, as well as areas near the Nile River and its tributaries including parts of DCV2 will be higher risk zones for malaria and dengue fever, and potentially schistosomiasis for people walking in stagnant waters.

4.3.5.2 Food security

Nationally, almost half (48%) of Ugandans are food energy deficient. In other words their regular diet fails to provide them with the minimum dietary energy requirement to lead an

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active and healthy life. The proportion is relatively similar across regions and there is no difference between urban and rural Uganda. However, the percentage spikes are 59% in northern Uganda, which is the most food insecure region. Some 12% of the northern households are surviving on one meal a day compared with 6% at the national level. Low dietary diversity remains a key problem especially in rural and western Uganda. More than 40% of rural Ugandans have low dietary diversity i.e., they consumed food from fewer than five out of seven food groups in the week leading up to the survey. In the west well over half (55%) have a diet that's lacking in diversity. More than a fifth of rural Ugandans have ‘unacceptable’ i.e. poor or borderline food consumption. This measurement combines food diversity, food frequency (the number of days each food group is consumed) and the relative nutritional importance of different food groups. Nearly 5% have poor food consumption which represents an extremely unbalanced diet, chiefly composed of starchy maize or matooke (plantain) flavoured with some vegetables. Food insecurity is more of a rural phenomenon across all food security indicators except energy deficiency. Food security for the nation and the development of meat and fish products for export in the region or to other countries, such as the EU, raises the matter of potential competition for lands for different purposes. In the DCZ2 area, there is already a rise in croplands development for subsistence farmers amongst grazing areas. Meanwhile food crops used to make concentrated feeds for cattle or aquaculture could effectively compete with protein for people. In addition, as stated by FAO in Uganda, there is an urgent need to move more projects to agricultural development from humanitarian approaches in some of the poorer regions of country.

4.3.6 Potable water and risks from agrochemicals

Reforms for potable water access have attracted significant attention, although 38% of the population still had no access to improved water sources in 2010. Meanwhile access to sanitation figures vary, but are only 34% according to the UN. Figure 36 shows potable water access across Uganda with significant parts of the cattle corridor’s human populations having less than 20% to 60% only with access to potable water supplies. Even Kalangala Island on Lake Victoria shows only 20-40% with access to good water supplies. Often people are dependent upon boreholes and wells in drier areas and open watercourses in other areas, which are sensitive to pollution and untreated.

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Figure 36: Access to potable water for the population of Uganda

Pollution of water supplies for humans is at serious risk from spraying and dipping of cattle for tick protection to survive various diseases including East Coast fever (ECF). Animals are treated regularly or weekly with the use of acaricide spraying or dipping, before herds are returned to their fields. This process has led to spilling and/or pre-intended dumping of pesticides and used dips into the environment with a negative effect upon biodiversity and surface waters and groundwater. Soil ecosystems are also negatively affected, as is the health of those exposed to these pesticides through water supplies. Both acaricides and antibiotics used for animals are often used without any form of quality control or restrictions of use or disposal. Since farmers in DCV2 appear to have more advanced farming practices and greater numbers of dairy cattle (exotic and sensitive breeds prone to ticks), water supplies may already be at higher risk in certain parts of this zone. Meanwhile, the development of more aquaculture units may require increased treatment of fish using pesticides and antibiotics in the future. These techniques could lead to pollution and health risks for humans using ponds, rivers and lakes, as well as local groundwater supplies.

4.3.7 Land tenure issues

There are four types of land tenure systems in Uganda, customary, mailo, freehold and leasehold. Tenure systems are not confined to particular farming systems and may encompass several farming systems. Customary tenure is found all over the country, but predominates in the northern, eastern and West Nile districts. Mailo tenure is dominant in the region combined with customary, freehold and leasehold tenure systems. Combinations of customary, freehold and leasehold tenure is also prevalent in the Western

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districts and the Kigezi Afro Montane zones. Overall the country is a matrix of tenure systems dominated by customary lands. The four categories are discussed in more detail below.

4.3.8 Customary Tenure

Customary land tenure remains the most dominant land class in Uganda, whereby land is owned and disposed of in accordance with customary regulations. Specific rules vary according to ethnic groups and regions. Customary land tenure was the only system in operation before colonial rule in the late 19th century. Up to the time of the Land Reform Decree in 1975, land held under customary tenure constituted about 75% of all the land in Uganda. Principal categories of customary tenure are communal/tribal and clan/family as defined by the Land Act of 1998. This class of land is dominant in the Apac District near the Nile River, where customary lands are also sold but the owner maintains his customary rights, complicating again, the issues of true ownership.

4.3.9 Mailo Tenure

Mailo tenure was introduced as a result of the 1900 Buganda Agreement. Under this agreement 9000 sq. miles of land were divided between the Kabaka, other notables and the Protectorate government. This area represented half the estimated area of Buganda. A serious issue on mailo land is absentee landlordism encouraging squatters who have no incentives to ensure sustainable management of land. Meanwhile regulatory agencies have limited authority, which often leads to severe deforestation. This issue is problematic in the Nakasongola District including DCV1, and may also apply to parts of the northern shores of Lake Victoria and islands. 4.3.10 Freehold Tenure

In freehold tenure, ownership is also in perpetuity and a certificate of title is issued. Due to population pressures in parts of Uganda where freehold tenure exists, land fragmentation is a common occurrence. Land fragmentation is believed to have contributed to significant environmental degradation although concrete evidence is lacking. In South Western Uganda including DCV2 there are more large scale ranchers buying off the smaller properties, as lands are split and sold by families. This issue could become problematic in the future with population growth and need for lands.

4.3.11 Leasehold Tenure

Leasehold is land ownership based upon an agreement between lessor and lessee. There are two types of leasehold tenure agreements, private leases given to individual landlords and official or statutory leases given to individuals and or corporate groups under public act terms. The main disadvantage with leases is that they are costly and cumbersome to obtain, while often environmental management concerns are not specified in the lease.

4.3.12 Economy of Uganda

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4.3.12.1 National economy The Gross Domestic Profit (GDP) of Uganda was approximately 55 billion USD in 2013, which is USD 1500 per capita with economic growth of 5.1% (2012 to 2013) being high for the African continent. The contributions to GDP came from services (45.4%), industry (26.3%), agriculture (22.2%) and others (6.1%). In 2013, exports accounted for 2.4 billion USD composed of mainly coffee, petroleum products, fish, tobacco, cement, tea, animal and vegetable fats and oils. Principal countries for export are Kenya, Democratic Republic of Congo, South Sudan and European Union. Meanwhile imports of vehicles, petroleum, medical supplies and cereals come from India, European Union, Kenya and China.

4.3.12.2 Access to markets for beef and aquaculture products

The access to markets is determined by time to travel to urban markets with produce (see Figure 37), apart the scenario for some regional and national beef cattle traders and transporters, who buy at the farm gate. Limited or poor access can potentially lower prices, production, and sales of fish and beef across the country. Access to markets in the cattle corridor is average to poor from 6 to 12 hours, however it is less in DCZ1, which is on average 2 to 6 hours and slightly less accessible in DCZ2 and the Apac District near the River Nile. The best access to markets is near Kampala and around Lake Victoria including Kalangala Island. It is important to note in rural areas particularly in DCZ2 that the dirt roads become very slippery during the wet seasons and difficult to travel upon for trucks across undulating areas, which are common in this zone. . Figure 37: Access to markets

4.3.12.3 Development projects in beef and aquaculture sectors This section discusses on-going development projects in Uganda which may be of benefit or have synergies with the improvement of the beef and aquaculture sectors. In addition, this section includes appropriate projects associated with CC adaption.

FAO Cattle corridor and Global Climate Change Alliance (GCCA)

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Due to the importance of cattle to the economy of Uganda and threats from CC the FAO from 2013 to 2016, have focused on the cattle corridor under the auspices of the Global Climate Change Alliance (GCCA) funded by European countries through the EU. The project targeted 6 Districts within the cattle corridor including parts of both DCZs. The focus has been as follows: • knowledge capacities for climate change adaptation strengthened: national resource centre for CC, capacity building and planning with 2 trained staff, CC integrated into NDP II, and CC awareness campaigns • better access of livestock and crops to water through water production investments: designs for construction of 15 valley tanks (dams), review of sustainability and applied research needs, and 59 small water harvesting structures in the six Districts • resilience of agricultural production systems improved: farmer field schools used, biofuel energy plantations established, CC training for coffee farmers, agroforestry and forage demos, assessment of fuel wood needs and bio-energy plantations with commercial charcoal, efficient stove developments, shade tree management, and analysis of livestock feed and water management needs.

FAO Aquapark Project The FAO in Uganda have initiated an Aquapark Project which will focus on 8 Districts across the country and includes Lake Albert and the Nile River. The focus of the project is aquaculture for young entrepreneurs, where several test sites have been identified. The project works with NARO and NAFRRI under the fisheries department of the MAAIF. The FAO would like the project to develop into a PPP, while there is already interest from regional investors.

Netherland Embassy’s dairy value chain in South West Uganda & Solar project Netherlands Embassy supporting a dairy value chain project in South Western that aims at strengthening the technical skills and commercial negotiating capacity of dairy cooperatives with cold chain development. This project works in conjunction with a solar project supporting a farmers’ cooperative in SW Uganda to purchase quality solar products at 30-40% discount from two private companies. The two companies sell the products on credit terms with after sales services. Solar power is expected to enhance production (milking before dawn and pumping drinking water for anials), financial gain (savings on fuel), improve living conditions and mitigation of CO2 emissions. Water pumps are light and can allow farmers to pump water to grazing sites across their lands from trough to trough, which could also respond to local climatic change needs.

Iceland Embassy’s (ICEIDA) Cross-cutting Issues (Gender) The main gender concern in fishing communities continues to be marginalization of women in decision making, management and utilization of the fisheries resources. Women are therefore the most vulnerable link in the fisheries value chain. As the main focus of the cooperation with Uganda is on fishing communities at the district level, ICEIDA seeks to give distinct attention to the role women play. Valuable gender lessons have been learned from previous projects and programs in ICEIDA's Uganda portfolio that provides guidance for the new cooperation with Buikwe District. Situation analyses for health and education furthermore highlighted both sensitive and complicated gender dynamics that need to be addressed.

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Iceland Embassy’s (ICEIDA) support to the preparations of Buikwe District Fishing Community Development Program (BFCDP) The Partnership Agreement lays out the overall cooperation framework for ICEIDA support to BDFCDP under which project components for WASH (Water, Sanitation and Hygiene), education, fisheries and health will be developed and supported.

Iceland Embassy’s (ICEIDA) support to the Implementation of Quality Assurance for Fish Marketing Project (QAFMP) and support to the implementation of Kalangala District Development Program (KDDP) These two projects have been completed although the results will be valuable for the aquaculture sector project. The projects included 12 Districts around Lakes Albert and Kyoga, and included tourism in Kalangala. Aims were to improve livelihoods of the fish dependent communities in selected districts in Uganda, through improvements in the quality and safety of fish for domestic and export market. The purpose of the project was to increase the volume of marketed fish both in the domestic and export markets through reduction in post-harvest losses. In addition, there was an emphasis upon water and sanitation facilities in the selected communities.

Subsistence cattle farmers and fish farmers including traditional fishers are not always oriented to business or aware of changing economies. However, many farmers are keen to know more and learn how to develop their markets and meet consumer needs. The major constraint for them is lack of information and marketing skills. A recent trend in the beef sector is the development of a number of ranchers, who now see a niche in the market value chain to buy young animals to fatten from small-scale farmers in their region. This situation may be beneficial for both parties, i.e. smaller scale farmers selling to ranchers, if for example the sellers have insufficient grazing. Currently, many processors have an interest in exporting beef and fish, but their sources, certain fish processors and traders, abattoirs and slaughter houses do not meet required standards. Commercial demands with the development of these sectors and sustainable practices may improve the situation in the mid to long term.

5 Identification of socio-environmental constraints and opportunities including climate-related aspects, and legal and policy obligations

5.1 Constraints for aquaculture

Table 5: Constraints for aquaculture Constraints related to socio-environmental factors Difficult for most small-scale farmers and fishers (including associations) to produce low cost beef and fish products without formalisation and means to commercially reduce their costs at present (see SARNISSA, 2009. Assessment of National Aquaculture Policies and Programmes in Uganda. Sustainable Aquaculture Research Networks in Sub Saharan

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Africa). Access to new markets and means to avoid the intermediaries for both small-scale farmers and fishers (including associations) is restrained as the individuals or groups have limited experience in marketing Difficult to limit the high cost of transport of fish and meat products at national and regional levels due to concentrations of demand in limited numbers of cities and large towns across the Uganda and neighbouring countries. Limited financial capital available for subsistence and small-holder fish farmers to develop their units, as interest rates from national banks and micro-credit institutions are often too exorbitant for them. Sizes of farmland composed of fenced parcels separating land from neighbours, if often limited and may pose a problem for CC management responses in particular for grazing and water points. High costs for fish farmers as obliged to buy fish pellets from feed mills Limited number of sites due to flow of Nile (for cages and need for anchoring) Cost to pump water to ponds as required Nile Perch has high demand for export but cannot be farmed (voracious carnivore species) Land tenure conflicts principally associated with customary lands Poverty , population growth and low purchasing power Finding new markets as controlled by middlemen (buyers with trucks) Conflicting agricultural; development projects in Lake Victoria basin area including Kalangala Island associated with large scale palm oil plantations and flowers growing for international markets producing pollution (pesticides and leaching fertilisers) into local water bodies Constraints related to climate change Temperature rises due to CC combined with pollution can lead to eutrophication of principally lake systems Erratic climatic events from dry periods to heavy rains could provoke serious soils erosion events leading to sedimentation and eutrophication of stretches of watercourses and parts of lakes Constraints related to legal and policy obligations There is no specific legislation for this Strategic Environmental Assessment (SEA) at present in Uganda. There is no specific legislation for Climate Change and Adaptation at present in Uganda. Legislation to control fish sizes can be problematic for farmed fish when controlled on market Permits are issued for uses of water bodies, although this may need to be reinforced to the equivalent or status of land tenure title to provide investment security for aquaculture projects. Water catchment legislation is needed to support multiple users of resources (road users, crop and livestock farmers, foresters…) to co-inhabit a naturally delimited area or watershed

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5.2 Opportunities for aquaculture

Table 6: Opportunities for aquaculture Opportunities related to socio-environmental factors National site selection process for aquaculture sites has begun and should be supported to completion Approximately 17% of Uganda is surface water with multiple potential rivers and lakes to develop with low pollution risks at present Will from local fishermen to develop aquaculture at sites Feed is manufactured and distributed across Uganda Crop wastes can used to create potential local feed production, if feed mills will work with association and smaller units to assist with partial support for feed manufacture e.g. sale of fish meal and floaters Current demand for fish for national and regional export markets Development of fish farming associations for small-holder farmers Fish fry distribution across Uganda Opportunities related to climate change Climate Change Unit of the Ministry of Water and Environment offers an opportunity for inter-sector and inter-ministerial discussions which could offer the means for aquaculture sector to address planning and development issues with other sectors in conjunction with CC issues Opportunities related to legal and policy obligations Legislation and policy is being orientated to encourage aquaculture with multiple guidelines for the sector

5.3 Constraints for beef production

Table 7: Constraints for beef Constraints related to socio-environmental factors Difficult for most small-scale farmers (including associations) to produce low cost beef products without formalization and means to commercially reduce their costs at present Low productivity of beef animals due to traditional rearing practices which emphasizes survival rather than productivity Low genetic potential of the indigenous livestock such as the Ankole and zebu in terms of poor growth rates, low weaning rates and long calving intervals Inadequate feeding of beef cattle due to the low quantity and quality of the rangelands High prevalence of diseases such as Foot and Mouth and tick borne diseases which lowers productivity of the livestock Frequent bush burning may cause de-vegetation, loss of organic matter and soil fauna as well as

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loss of carbon and nitrogen in the environment with negative consequences Termites consume large quantities of both herbaceous and woody vegetation and may cause a decline in rangeland productivity Access to new markets and means to avoid the intermediaries for both small-scale farmers and beef associations is restrained as the individuals or groups have limited experience in marketing Difficult to limit the high cost of transport of meat products at national and regional levels due to concentrations of demand in limited numbers of cities and large towns across the Uganda and neighbouring countries. Sizes of farmland composed of fenced parcels separating land from neighbours, if often limited and may pose a problem for CC management responses in particular for grazing and water points. Chronic water scarcity threatens sustained beef production in the cattle corridor Acaricides and other livestock chemical applied in the ranches and traditional livestock systems are often not adequately disposed off with possibilities of livestock chemicals polluting ground and surface water used by both humans and livestock Frequent droughts lower beef and milk production, reduce the viability of the Cattle Corridor and precipitate conflict among pastoralists and crop farmers Lack of standard abattoirs for slaughtering animals under hygienic condition limits export opportunities Land tenure conflicts are common and are principally associated with customary lands Poverty , high population growth and low purchasing power are prevalent among pastoral communities Finding new markets for farm animals is a serious bottleneck for the farmers because markets are controlled by middlemen (buyers with trucks) Constraints related to climate change Water scarcity due to higher temperatures, evaporation and recurrent drought leads to stress, higher demands for water, human conflict, biodiversity loss and search for more grazing areas Intensive charcoal burning causes deforestation and woodland destruction releasing a lot of green house gases in the atmosphere Erratic climatic events from dry periods to heavy rains could provoke serious soils erosion events leading to sedimentation and eutrophication of stretches of watercourses and parts of surface water including streams, rivers and lakes Implementation of adaptation and mitigation measures is constrained by inadequate knowledge of appropriate technologies and lack of funds to implement them Building carbon stocks through tree planting in degraded areas is constrained by inadequate funding Farmers reported that climate change has led to emergence of alien invasive weeds in rangelands which threatens pasture and beef cattle production Constraints related to legal and policy obligations There is no specific legislation for this Strategic Environmental Assessment (SEA) at present in Uganda There is no specific legislation for Climate Change and Adaptation at present in Uganda Most of the laws governing beef production are too old to reflect current circumstances Other laws have taken too long to be approved by parliament

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Some laws are not being implemented due to inadequate funding Water catchment legislation is needed to support multiple users of resources (road users, crop and livestock farmers, foresters…) to co-inhabit a naturally delimited area or watershed

5.4 Opportunities for beef production

Table 8: Constraints for beef Opportunities related to socio-environmental factors NEMA is becoming more vigilant in inspecting waste water treatment plants from industries including abattoirs to reduce contamination of Lake Victoria Livestock farmers coming together to form primary societies and nationally to amalgamate into Uganda Beef Producers Union provides an opportunity for them to enjoy economies of scale in their transactions and to achieve better bargaining power for more profits Feed is manufactured and distributed across Uganda There are numerous agro-industrial by-products in Uganda that could be incorporated into feed formulations for finishing beef animals under feedlots There is high demand for beef and live animals in regional export markets Opportunities related to climate change Climate Change Department of the Ministry of Water and Environment offers an opportunity for inter-sector and inter-ministerial discussions which could offer the means for the beef sector to address planning and development issues with other sectors with regard to climate change issues Uganda will develop more CDM projects in the near future as donor support from Development Partners is forthcoming and capacity among locals for CDM project implementation has been built Increase in rainfall in semi-arid areas could be beneficial, given mobile pastoralists take advantage of the rains Opportunities related to legal and policy obligations Given the right environment such as adequate funding, Uganda has many laws governing livestock production which could be implemented to encourage production of large quantities of high quality beef

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6 Identification and evaluation of potential socio-environmental impacts

6.1 Aquaculture sector

Table 9: Positive impacts

Positive impacts Evaluation

1. Income generation and employment for small scale and subsistence farmers • Business plan support required to verify that there will be positive returns for labour and investment as previous. • Ugandan studies have suggested that returns are not guaranteed (see study by SARNISSA in 2009)

2. National tax revenues from exports and local sales, as well as potential • Tax systems have to be applied in rural areas as this is avoided for political payments to support District revenues and principally the activities of District gain with farmers in some areas. Officers (fisheries, livestock and en environment)

3. Training and extension services for fish farmers • Advisory services have to be improved before this will be possible.

4. National food security through providing fish to local markets with improved diets • Prices will have to lower which is contrary to what fish farmer associations for households (protein intake), leading to health improvements, especially for want at present, and it will take time for the national economy to improve to children, pregnant women and breastfeeding mothers have an immediate effect on the population’s diets through consummation of more fish products.

5. Opportunity to use by-products and waste for small livestock (poultry, pigs) • Follow new guidelines for aquaculture feeds and national international norms

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Positive impacts Evaluation

6. Accumulated feed under cages or at ponds water discharge may provide fertile • Idem. feeding grounds for wild fishes which may grow faster, and subsequent increased opportunities to fish around cages

7. Maximise use of aquatic natural resources • Apply Ugandan Code of Conduct for Responsible Fisheries • Apply Fish Act Cap. 197 (2000)

8. Alternative to traditional fishing decreasing existing pressure upon wild species, • Need for legislation to target Nile perch fishing to reduce numbers and assist but also an opportunity to increase pressure on Nile perch and leave an recover of native endemic species of fish opportunity for small native species to recover in Lake Victoria with good lake management plans and zoning

9. Response to population growth and needs • Apply the National Fisheries Policy to improve livelihoods. • Government needs to respond to population growth threats as it does to CC issues.

Table 10: Negative impacts Negative impacts Evaluation Provocation of nutrient enrichment, water eutrophication, alga/hyacinth • Fulfil national norms for pollution and waste management controlled by NEMA. bloom, sediments and pollution issues in rural and urban area. • Use NaFIRRI’s Ecologically Sensitive Areas (ESAs) study to classify specific release of organic matters, nutrients and sediments from uneaten feed and areas as “off limits “ or “controlled zones” for their protection including wetlands, fish faeces (Lake already has localised hyper-eutrophic areas) ; forests, river mouths, rocky outcrops and sheltered bays, while avoiding existing and localised eutrophic zones near built up areas next to water bodies e.g. Lake • release of drugs (antibiotics, vaccines, hormones, etc. used for fishes; Victoria. • release of heavy metals, hydrocarbons, POPs (persistent organic pollutants), or • Develop new legislation to protect and legalise these ESAs. other toxic substances (paints, used oil, anti-fouling, anti-corrosive, pesticides, etc.);

• earth works close to shore for the construction of ponds, leading to erosion and increased sediments exports toward water bodies Reduction of water current velocity associated with cages leading to • MAAFI (Fisheries) would like to complete its national site selection process. increased sedimentation.

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Negative impacts Evaluation Loss or degradation of aquatic / riparian flora and habitats. • Use NaFIRRI’s Ecologically Sensitive Areas (ESAs) study to classify specific areas (see Point 1) • Destruction of riparian / river banks / flood plains vegetation to install landing infrastructure, farm ponds or cages • Develop new legislation to protect and legalise these ESAs. • Diminution of open water space within lakes and large rivers associated with the increase of cages and farming structures • Loss and perturbation of benthic habitats associated with cages • Subsequent losses of flora biodiversity and abundance Impact on wild fish populations and other aquatic fauna: • Apply the Wild Act. Increased pressure on low value fishes and other aquatic fauna / plankton for • Develop new legislation to protect and legalise these ESAs. the production of fish feeds; • Apply Ugandan Code of Conduct for Responsible Fisheries and Fish Act Cap. genetic impact associated with farmed fish escapes/releases and spawning, 197 (2000) leading to the decrease of genetic diversity, drop of wild fish population, and reduced capacity of wild fishes; Competition between released / escaped farmed fishes and wild fishes potentially leading to a decrease in the population size or the elimination of wild specie if new exotic species are introduced (Nile perch dilemma again)

increase of predators associated with the release of farmed fishes, potentially leading to the destabilisation of the natural food chain equilibrium and collapse of wild populations

impact of pollution, eutrophication and habitat degradation (such as nursery along the river banks), leading to the reduction of fish population or various damages

• spread of fish diseases

• bioaccumulation of toxic substances and pathogens through water filtration and the food chain

• Impact of aquatic / riparian / benthic habitats degradation (including nurseries, benthic substrate, etc.), potentially leading to a decrease of wild populations

• Changes (increase or decrease) in the abundance of various macro-invertebrates

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Negative impacts Evaluation and subsequent imbalance within the food chain

• Subsequent loses of fishes biodiversity and abundance

• decrease of healthy and genetically strong genitors

• Impact of pollution, eutrophication and degradation of aquatic/riparian environment upon farmed fish • Spread of fish diseases and bacteria resistant to antibiotics • Increased pressure on low value fishes and other aquatic fauna / plankton for the production of fish feeds ; • Genetic impact associated with farmed fish escapes/releases and spawning, leading to the decrease of genetic diversity, drop of wild fish population, and reduced capacity of wild fishes; • Competition between released / escaped farmed fishes and wild fishes potentially leading to a decrease in the population size or the elimination of wild specie if new exotic species are introduced (Nile perch dilemma again) • Increase of predators associated with the release of farmed fishes, potentially leading to the destabilisation of the natural food chain equilibrium and collapse of wild populations

• Impact of pollution, eutrophication and habitat degradation (such as nursery along the river banks), leading to the reduction of fish population or various damages

• Spread of fish diseases

• Bioaccumulation of toxic substances and pathogens through water filtration and the food chain

• Impact of aquatic / riparian / benthic habitats degradation (including nurseries, benthic substrate, etc.), potentially leading to a decrease of wild populations

• Changes (increase or decrease) in the abundance of various macro-invertebrates and subsequent imbalance within the food chain

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Negative impacts Evaluation

• Subsequent loses of fishes biodiversity and abundance • Marketing plan and support mechanisms focused on small-scale farmers and Impact on the fish farming industry itself, potentially leading to a decrease of associations across the country. Through incentives move the industry to production or profits through : organised smaller scale systems to avoid the industry being dominated by large companies as seen in other counties in the region, such as Tanzania. • higher prices and decrease of feeds for fishes

• Bioaccumulation of toxic substances and pathogens through water filtration and the food chain, and subsequent damages to fish quality and human health Impacts on other fauna populations as follows : • Cages / ponds attracting birds, crocodiles or other “pests”/predators from 6.1.1 Apply the Wild Act other areas • Fight against and destruction of “pests”/farmed fish predators (birds, 6.1.2 Encourage local businesses to develop and take crocodiles, hippos, otters, etc.) advantage of the presence of wild animals through tourism Generation of wastes, including : 1 Dead / diseased fishes and fish wastes 6.1.3 Apply Fish Act, Cap. 197 (2000) 2 Expired veterinary drugs and pesticides 3 Sludge / sediments from cages and ponds 6.1.4 Apply National Environment (Standards for Discharge of Effluent into Water or on Land) Regulations, 1999)

6.1.5 Apply Standards for air quality, water quality, discharge of effluent into water, control of noise and soil quality

6.1.6 Apply Standards for discharge of effluent into water or on land Direct conflicts over space on land or water, as aquaculture require significant • Apply Physical Planning Act, 2010

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Negative impacts Evaluation surfaces, including : • Apply various Water Transport Acts from 1964 and update these acts for Conflicts over land uses at pond sites (could compete with housing, planning purposes on rivers and lakes agriculture, tourism, recreational activities, grazing and access to water for livestock, • Integrate the sector development plans formally into the National as well as general customary land conflicts issues across the country Development Plans (NDPs) Navigation and fishing issues on lakes and rivers (cages) Competition between protein demand for fish and human food security, • Apply Physical Planning Act, 2010 including : • Integrate sector development into the NDPs Competition over low value fishes which may be consumed locally • Work with WFP and Ministry of Health Competition over land for the production of soy or other vegetal feeds for fish versus subsistence crops such as maize, cassava, etc. Focus on exports (regional and international) and not necessarily national nutrition needs Temperature fluctuations in water bodies and changes in water flows already associated with El Nino and La Nina could be exacerbated by predicated CC 6.1.7 Apply National CC Policy document and its dynamics/impacts, which could effectively limit opportunities for the aquaculture sector to develop within adaptation proposals Trans-boundary conflicts associated with issues such as navigation right of ways, water uses, flux of pollution, expansion of eutrophication, fish species / genetic 6.1.8 Apply international agreement for the Lake stocks, introduction of exotic species, diseases outbreaks / propagation and degradation of trans-boundary ecosystems (e.g. Lake Victoria, Nile River) Victoria and the Nile Basin

6.1.9 Develop new transboundry legislation authorising the control of use and management of all natural resources (biological and physical) travelling into or out of Uganda in cooperation with neighbouring countries

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6.2 Beef sector

Table 11: Positive impacts

Positive impacts Evaluation

1. Where livestock assemble, their dung and urine can be a good source of manure • This is practiced in the cattle corridor especially by ranchers where manure is to improve crop production applied to banana fields for high yields improving food security and harnessing additional income • Small scale farmers and pastoralists should be trained to adopt the use of manure for crop production • At a ranch visited by team, the owner was able to generate biogas which is used for cooking and other household needs; this is clean energy which also saves on the use of fuel wood hence reducing the impact of climate of climate change.

2. Where flooding occurs in a beef production area, the flood water can be • Ranchers are able to take advantage of this and construct valley dams or harvested in valley tanks to supplement ranch needs for livestock. reticulate the water into storage tanks to be used by livestock; pastoralists usually cannot afford this.

3. With proper building structures, much of the rain water can be harvested and • Many families can be encouraged to can engage in water harvesting conserved for human consumption reducing competition for water between especially during the wet season; this will reduce the time women take to humans and livestock collect water from wells and other point sources; it will also reduce competition for water between livestock and humans; this is also a very important adaptive mechanism to climate change; however, the farmer will have to possess a corrugated iron roof housing.

4. Most areas in the cattle corridor are flat hence erosion broadly may not be a • This means that pollution of surface water such as streams, rivers or lakes serious concern if livestock numbers are not too high. will be less than anticipated; communities downstream who may not be

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Positive impacts Evaluation

livestock farmers will be able access clean water from upstream

Table 12: Negative impacts

Negative impacts Evaluation

1. Intense drought conditions usually cause a shortage of water encouraging • Movement in search of water often results in conflicts with other communities livestock to travel long distances in search of water. This can cause overgrazing as pastoralists traverse other people’s land or access water belonging to and soil erosion on the livestock tracks and also promote the spread of animal other communities diseases. • Drought also exacerbates poverty in that not only will it negatively impact on livestock but it will cause general food insecurity due to crop failure

2. Flooding as a result of climate change brought about by livestock activities may destroy property and infrastructure, cause soil erosion and kill livestock.

3. Soil erosion which results from land degradation due to overgrazing can have • Even if soil erosion occurs in localized areas it will still reduce soil fertility in many impacts often culminating in poor crop yields hence food insecurity the area to the detriment of crop production while at the same time reducing pasture production to the detriment of livestock production • Soil erosion can also be responsible for siltation of rivers and other water bodies causing pollution, drying of the water bodies and destroying aquatic biodiversity; where this occurs, it will contravene not only the National Environment Act, but also the Convention on Biological diversity

4. Where stocking rates are high, vegetation can be destroyed due to overgrazing which may also encourage bush encroachment, lowering pasture productivity for 6.2.1 Such issues will fall within the domain of the UN livestock, promoting soil erosion and becoming a climate change issue. Framework Convention on Climate Change

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Negative impacts Evaluation

(UNFCC)

5. Some large scale ranches can encourage competition between livestock and If a proper balance is not struck, it will contravene the Wild Act wildlife to the detriment of the latter negatively affecting tourism and a balance between the two should be promoted Wildlife can also transfer disease to livestock and vice versa

6. Drug administration using syringes and other equipment can be an environmental hazard if not properly disposed of. Similarly spraying or dipping animals to control 6.2.2 National Environment (Standards for Discharge ticks can easily pollute surface and ground water for both livestock and humans. of Effluent into Water or on Land) Regulations, 1999)

6.2.3 Standards for air quality, water quality, discharge of effluent into water, control of noise and soil quality

6.2.4 Standards for discharge of effluent into water or on land

7. Lack of proper sanitary conditions in abattoirs and other beef slaughtering facilities • This one of the main reasons why Uganda cannot access many international can easily pollute the environment. markets such as the EU as the country cannot fulfil the Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT) requirements; the country then ends up losing a lot in potential foreign exchange earnings • Lack or inadequate treatment of waste water from these facilities can also be an environmental hazard especially when disposed of in water bodies such as Lake Victoria, a shared water body with other Nations in the East Africa region

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Negative impacts Evaluation

8. Transporting animals in too many trucks on bad roads can pollute the air and N/A increase greenhouse gas emissions, becoming again a UNFCCC issue.

9. Bushfires which is common in rangelands not only destroys animals including N/A valuable insects and other forms of biodiversity.

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7 Analysis of the logical frameworks' indicators from the perspective of environmental sustainability and adaptation to climate change

To maximise the impacts of the logical frameworks’ indicators for environmental sustainability and climate change (CC) adaptation for each sector, comments have been made next to each indicator. The full logical frameworks for each sector are in Annex XX.

7.1 Logical framework for aquaculture sector

The comments for each indicator in the aquaculture sector are presented in Table 13

Table 13: Comments against each indicator from the relevant intervention logic

Indicators Comments

5. Agricultural and food exports in total Need to also include production for national exports. needs and demands

6. Rural poverty levels (percentage Focus on fishing community focus areas below poverty line). compared to other fishing areas and national figures

7. Quantity of aquaculture fish marketed: Current and new markets

8. Fish consumption per capita Measured against nutrition figures/capita

9. Jobs created. Across the entire value chain

10. Environmentally sustainable and Site selection and techniques to address climate resilient practices scaled up changes in water quality and quantity for by the project. cages and ponds; and sustainable feed initiatives

11. Number of policies, laws, regulations Illegal imports of fish (China), control of and guidelines adopted, reviewed, exotic species, water rights in lakes, clear operationalised and enforced. markets for undersized farmed fish linked to transporting permits

12. Productivity in the established Quantities of fish and number of aquaculture parks is achieved. beneficiaries

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Indicators Comments

13. Total annual fish value. Profit margins per kg. after all costs accounted

14. Amount of revenue of the targeted Per capita and family measured against beneficiaries. other principal revenues

15. Agricultural and food exports in total Need to also include production for national exports. needs and demands

16. Rural poverty levels (percentage Focus on fishing community focus areas below poverty line). compared to other fishing areas and national figures

17. Quantity of aquaculture fish marketed. Current and new markets

7.2 Logical framework for beef sector

Table 14: Comments against each indicator from the relevant interventions

Indicators Comments

1. Agricultural and food exports in total Add “number of people directly employed in exports the agricultural sector” between indicator 1&2

Geographical area is limited so sample should not be a national one but based on the relevant districts in the Cattle Corridor

2. Stunting levels in the Western and Geographical area is limited so sample South Western Uganda should not be a national one but based on the relevant districts in the Cattle Corridor

3. The quantity of beef marketed Geographical area is limited so sample should not be a national one but based on the relevant districts in the Cattle Corridor

4. The number of high standard beef Geographical area is limited so sample processing units should not be a national one but based on the relevant districts in the Cattle Corridor

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Indicators Comments

5. The beef meat consumption in Uganda Change to “The per capita beef consumption in Uganda” and move it between indicators 11&12

Geographical area is limited so sample should not be a national one but based on the relevant districts in the Cattle Corridor

6. Number of policies, laws and Enforcement could be deleted because it is regulations adopted or reviewed, difficult to measure within the short life of the operationalised and enforced project; it could be assessed in later years

7. Productivity at the level of targeted Easily measurable indicators should be used ranch such as birth weight, mortality rate, calving rate, weaning weight etc

8. Increase in the revenues of the This will require the targeted beneficiaries to targeted beneficiaries (small, medium and be trained first in book keeping which is rare big holders) in the ranches at present

9. Percentage of exotic and cross-breed Baseline data should be collected from the animals in the targeted areas targeted geographical area

10. Number of beef meat producing farms Criteria for assessing farm improvement improved needs to be defined

11. Amount of feed produced according to This could require collaboration with a the quality and environmental University where its students would carry out sustainability standards experimental investigations in the selected farms to determine feed quantity and quality

12. Number of beef meat animals Baseline data should be collected from the produced targeted geographical area

13. No. of facilities modernized Baseline data should be collected from the targeted geographical area

Additional indicators suggested for the beef sector include the following: • number of farmers keeping good records • number of farmers ear-tagging or branding their animals • number of farmers with weighing scales

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8 Assessment of institutional and stakeholder capacities to address environmental challenges

8.1 Institutional capacity framework

Institutional capacity can be assessed through three categories: • policy capacity, which comprises issues related to whether an organization has the mandate, instruments, and procedures (e.g., manuals) to do a function; • resources capacity, which includes not only having the right skilled people in adequate numbers, but also the related databases and laboratories to do a function; • financial and organisational capacity, which comprises having adequate budgets, networks, and organizational structures to do the function (e.g., alliances between national and district authorities, and multi-sectorial forums).

8.2 The Capacity of the sector stakeholders with respect to environmental management and issues covered in the SEA

The specific capacity aspects related to policy, human resources, and financial and organisational aspects (as defined in the capacity assessment framework mentioned above) of each key stakeholder (Ministry of Agriculture, NEMA, Producers Associations, Traders and Transporters, and Processors) is addressed in more detail below, and then summarized in the Table 15.

8.2.1 Ministry of Agriculture, Animal Industry and Fisheries (MAAIF)

8.2.1.1 Policy (mandate, instruments, and procedures) The Ministry of Agriculture, Animal Industry and Fisheries, commonly known as Ministry of Agriculture carries out its role by enhancing crop production, improving food and nutrition security, widening export base and improving incomes of the farmers. The Ministry is the overseer of the Agricultural sector where it formulates, reviews and implements national policies, plans, strategies, regulations and standards and enforces laws, regulations and standards along the value chain of crops, livestock and fisheries. The Agriculture Policy promotes collaboration with the environment institutions to protect the environment.

8.2.1.2 Human resources (skills and technical hardware/data/ equipment) Regarding human resources, the number and qualifications of the MAAIF staff is fairly adequate, but it is relatively ‘hands off’ when it comes to the environment. There is supposed to be a desk officer (Environmental Liaison Unit) in the Ministry but this both inactive and not readily visible. It could be useful to expose more MAAIF staff to environmental issues during the project. MAAIF has some dispersed monitoring data, but it is insufficient to monitor production impacts at present.

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8.2.1.3 Financial and organisational capacity The Government of Uganda funds MAAIF. As with many other sectors of the economy, the government generally lacks funds to adequately support the Ministry’s activities including monitoring and supervision. The organizational structure of the Ministry is adequate to play these roles through the respective departments. Its mechanisms to coordinate with NEMA on environmental management in the agricultural sector should also be strengthened.

8.2.2 NEMA

8.2.2.1 Policy (mandate, instruments, and procedures) NEMA has a strong policy mandate (including regulations, instruments, and procedures) for environment management. It is considered the Government’s principal instrument to implement policies relating to the environment, and it exercises general supervision and coordination over all matters relating to the environment. It generally has a critical role in monitoring and assessing activities that could lead to environmental damage. It also has a mandate to undertake, in cooperation with relevant lead agencies, programmes to enhance environmental education and public awareness about the need for sound environmental management, and to enlist public support and encourage the effort made by other entities in that regard. As an expert agency, it can provide advice and technical support to entities engaged in natural resources management and environmental protection such as the MAAIF through the project.

8.2.2.2 Human resources (skills and technical hardware/data/equipment) NEMA has adequate key human resources for environmental management, and is in the process of building its capacity to manage and monitor SEAs. Two SEAs have already been completed in Uganda under NEMA’s supervision; one on Oil and gas exploration and the other on road infrastructure. However, its total number of staff at central and district level is insufficient to meet its full environmental mandate, and to adequately monitor the implementation of this SEA.

8.2.2.3 Financial and organisational capacity NEMA has some of the needed organizational mechanisms: it has district - level representation; it has inter-sectorial review mechanisms for ESIAs, but usually its budget is quite restricted. In addition, it does not have a designated environmental contact/desk officer within MAAIF.

8.2.3 Local Governments

8.2.3.1 Policy (mandate, instruments, and procedures) In conformity with the Local Government Act (1997) promoting the decentralization of delivery of services to Local Government, MAAIF will work through the District Veterinary Officers (DVOs) and District Fisheries Officers (DSOs) in all districts within Disease Control Zones 1 and 2. At that level, the Local governments will perform the following functions: • Mobilize traders and farmers in their areas to promote formation of societies and associations

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• Mobilize farmers and stakeholders to facilitate their training in all aspects of meat production and processing • Establish and maintain appropriate livestock markets and slaughterhouses • Enforce regulations and legislations in the meat industry

National policies for meat and fisheries provide for environmental concerns to be incorporated in all programmes and projects, an issue which should be taken into account by the relevant Local Governments with their District Environmental Officers (DEOs).

8.2.3.2 Human resources (skills and technical hardware) During field visits to Kiruhura, Apac, Kalangala and Nakasongola Districts, the Officers listed the following blockages to their performance: • inadequate staff • lack of transport (they had very old vehicles) and frequently no fuel budget • shortage of equipment including lack of surgical kits and monitoring equipment e.g. water quality etc. • necessary chemicals have expired • lab equipment id often broken • no allowances for doing fieldwork

The District Veterinary and Fisheries Officers lacked environmental management skills. During project implementation these Officers should be supported and integrated with the District Environment Officers (DEOs), whom should be financed in part by the project.

8.2.3.3 Financial and organisational capacity Local Government finances are generally inadequate for most activities at that level because of heavy dependence on Central government subventions. The project will have to provide funding to support the activities of the DVOs, DFOs and DEOs and other relevant District staff.

DFOs, DVOs and DEOs are often well connected to producers so they should be able to provide effective backstopping. The DEOs have adequate contacts/networks within NEMA at central level and with producers at local levels.

8.2.4 Beef and Fish Farmer Organizations and Associations

8.2.4.1 Policy (mandate, instruments, and procedures)

Explicit mention about environmental and social management in the mission statements of associations is unknown, as the core functions are orientated to principally growth of businesses and trade for members.

With respect to this SEA, the environmental and social management and monitoring roles of the associations should become more explicit as these organisations mature.

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8.2.4.2 Human resources (skills and technical hardware) The organizations often require awareness about key environmental issues related to production as well as those related to this SEA and ESIAs in general.

8.2.4.3 Financial and organisational capacity Since associations depend primarily on members contributions, it is financially weak. However, the number of associations is growing with networks and organizational capacities. In time, this development could allow them to have a person dedicated to environmental matters and affairs with in each association or at least the national networks for these associations.

8.2.5 Processors

8.2.5.1 Policy (mandate, instruments, and procedures) The roles of these processors are not explicitly specified in the national policies, but as private sector entities their main motive should be maximizing profits through sale of high quality products. Policies do support the private sector as the main actors in production, processing and marketing of products. The policies also support processing, value addition and enforcement of standards in the industries.

8.2.5.2 Human resources (skills and technical hardware) There is no staff that are explicitly designated and trained to fulfil environmental and social management and monitoring duties. In future, appropriate staff needs to be trained for the purpose of training their staff and suppliers down the value chain how to support and maintain good social and environmental standards.

8.2.5.3 Financial and organisational capacity The processors have good networks with the value chains as well as the producers across the country. However, the companies should establish an environmental and social management desk (and desk officer) within an Environment, Health and Safety Unit. The desk officer should be trained in environmental and social management and monitoring and be responsible for monitoring the contents of the SEA.

8.3 Summary of capacity assessment

Table 15 presents a summary of the capacity of the sector’s stakeholders with respect to environmental management and issues covered in the SEA.

Table 15: Summary of the capacity of sector stakeholders for environmental management and for implementing the recommendations of the SEA

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Institution Policy (mandate, Human resources (skills and Institutional (finances, hardware) network, regulatory 1. 2. # 3. Hardware organizational instruments, Skilled of (database, mechanism) guidelines) staff staff Equipment) MAAIF The agricultural 1. Has skilled staff, but staff Insufficient finances from monitoring not conversant with GoU. environmental issues, System for environment desk officer not environmental visible. Its mechanisms to quality is coordinate with NEMA on insufficient. environmental 2. Has a good # of staff, but management in the not skilled in environment. agricultural sector should be strengthened.

3. MAAIF has some dispersed agricultural and fishery monitoring data, but it is insufficient to monitor production impacts. NEMA Has adequate 1. Has skilled staff for Insufficient finances. Environmental environmental management.

Monitoring Has adequate guidelines and 2. Insufficient # of staff to contacts/networks to systems, which monitor this SEA. coordinate with MOA, the are sufficient for Districts and other

stakeholders. monitoring this 3. Has sufficient data and SEA. equipment to monitor this SEA. Local Has adequate 1. Has skilled staff for Insufficient finances. Governments Environmental environmental management.

(Districts): Monitoring DVOs, DFOs Has adequate guidelines and and DEOs 2. Insufficient # of staff to contacts/network with systems, which is monitor this SEA. NEMA at the centre and sufficient for with producers at local

level. monitoring this 3. Has insufficient data and SEA equipment to monitor this SEA. Producer Has a clear 1. Has insufficient skilled staff. In adequate finances to Associations mission to attract implement its plans.

all sectors in the

industry 2. The few staff lack skills in interested to environmental management. Potential to develop budgets at national participate in a long term process network levels. of creating a 3. Have insufficient data and sustainable and equipment to monitor this profitable part of Particip GmbH | Page 94 Draft SEA Study Report

Institution Policy (mandate, Human resources (skills and Institutional (finances, hardware) network, regulatory 1. 2. # 3. Hardware organizational instruments, Skilled of (database, mechanism) guidelines) staff staff Equipment) Uganda’s SEA. economy.

No explicit mention of environment management in its mission and core functions. Processors Their mission and 1. The staff lack skills in As private sector, they activities are environmental management. have adequate financial explicitly influence to support the

recognized in SEA if it is imposed national policies. 2. Have insufficient data and through legislation. equipment to monitor this

SEA. They have good networks with the traders/transporters and other processing sites, as well as the network of producers across the country.

9 Mitigation or optimizing measures and indicators

9.1 Mitigation or optimizing measures and indicators for aquaculture

Recommendations Indicators 1. Land use planning, land tenure and siting : Thematic maps: natural • Avoid sensitive areas, for example reproductive areas for aquatic habitats; water native species, pristine areas with high aquatic/riparian quality; water depth; biodiversity value, breeding and feeding ground for fish water velocity; land / predators (birds, crocodiles, etc.), areas with pure wild water uses; economic population of the farmed fishes; activities; localisation of Avoid areas with high risk of eutrophication and sensitive to fish farms; pollution, including natural sinks for organic debris, shallow and stagnant waters; prefer areas with swift currents, good % of titled land Particip GmbH | Page 95 Draft SEA Study Report

oxygenation conditions and sufficient water depth Prefer areas which are most suitable to natural and stable Size of land per farmer flows from rivers or within lakes Plan carefully land / water use to optimise economic and Compensation costs social benefits and minimize adverse impacts for local people and (monetary or in land) their livelihood, taking into consideration other activities such as agriculture, tourism, livestock, fishing, navigation etc. as well as basic needs for housing and public infrastructures; food production for local people should be prioritised in land planning; Land tenure needs to be addressed though prior engagement and fair attribution of tenure compensation and security for all persons concerned 2. Control the development of aquaculture projects: Carrying capacity per • Assess the carrying capacity of eco-regions (ecosystems) / eco-region / site sites in relation with eutrophication and pollution issues, and Size of fish farms ensure that the production remains within this carrying (cages or ponds) capacity; this has to take into account the impact of climate Economic profit of change upon temperature, and water level and flow farms • Avoid the unnecessary expansion of fish farms and ensure that space is used efficiently, through adequate training and extension services • Promote profitability of farms, in order to avoid that farms are abandoned after a while subsequent to economic losses and discouragement of farmers 3. Promote efficiency and good practices within fish farms: % of intensive, semi- • promote more efficient feeding systems, by using better intensive and extensive feeds (including non-disintegrating feeds), correct feeding farms frequency (eventually with feeding detection systems), Production efficiency : better training, and using more efficient farmed strains; quantity of feed / water / • assess the possibility of using wastes / by-product from chemicals / energy / agriculture or livestock waste per production • implement proper biosecurity frameworks and minimize unit or profit ($) unit stress in ponds and cages, preventing diseases and % feeds produced from avoiding the use of chemicals and other treatments; waste • avoid intensive farm systems with heavy use of medicine, % waste recycling chemicals and feeds; also avoid the use of growth % of water recycling hormones % of escapes from • maintain the riparian / river banks vegetation around pounds cages and landing areas % of releases of fry

• assess the advantages and feasibility of semi-closed and Types and occurrence closed systems with water re-circulation in the context of of diseases Ugandan producers’ economic means and climate change % of cages / ponds constraints / impacts : these systems can retain more than equipped with devices 80 percent of organic matter and recycle up to 90 percent of against predators water, but can be too expensive for most aquaculture species and involves high energy use ; a comparative cost / Quantity of wastes per benefits analysis should be conducted type and mode of • promote predator-proof cages / ponds to avoid unnecessary disposal elimination of farmed fish predators % of farms producing • prevent or minimize escapes and releases of farmed fishes macrophytic algaes into the wild (assess the commercial value of disregarded % of farms using fries unfit for high value market) rotation • minimize wastes production, promote wastes recycling

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(such as using fish by-products and wastes for small Water quality, as livestock) and environmentally sound disposal method for all appropriate (pH, types of wastes, including fish wastes, sediments, perished temperature, oxygen, feeds, perished chemicals, etc. nutrients, pesticides, • promote the cultivation of macrophytic algae on fish cages medicine, bio-indicators, and / or near water discharge from ponds to absorb excess etc.) nutrients and to generate oxygen • promote the rotation of culture grounds to allow sufficient time for the bottom sediments to recover and water quality to be restore, • have a plan for emergency corrective actions (contaminant / nutrient abatement) and salvage of fish stocks in case of contaminant / eutrophication peaks 4. Safeguard endangered and endemic/native species and Surfaces, types and maintain the overall equilibrium of aquatic food chain, health of protected / through : restored habitats • Protection and restoration of natural habitats which are List, number, critical for these species, including their breeding and abundance, health and feeding grounds genetic diversity of native species • If appropriate, breeding of endangered species to be released in the wild (with specific care to optimize the Number of fishing natural genetic variability within species) and reconstruction infractions of viable populations Size of catches for each • Fishing regulation specifically targeting the protection of species endangered or endemic/native species, including “low value Quantity of gametes / fishes” which may be used for fish feeds and those species sperm / gene for each which may be affected by competition with or predation from endangered species escaped/released farmed fishes

• Selective fishing of exotic species responsible for the collapse of native species (such as Nile Perch) • Bank of gametes / sperm / genes for endangered species 4. Maintain genetic diversity by management and Genetic diversity of regulation at national and regional level : farmed fish • Promote gene banks for storage of fish reproductive Origin of genetic stocks material Quality control & safety • use of local genetic material for stock development, as indicators pertinent depending upon farmed species • Avoid inbreeding and maintain high genetic diversity • Maintain stock integrity and regulate carefully hybridization and genetic modification based upon benefits, ethics, environmental and health impacts, consumers acceptance and international regulations (particularly regulation within buying countries) • Minimize transfer of genetically different stocks : minimize transfer of stock from one river basin to another or from a large water body to another; • Guaranty quality, performance and ecological safety in genetic improvement of broodstocks

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5. Promote sustainable production of feeds: Conflict registry held by civil society groups. Avoid land conflicts between areas for food for local people and feed supplies for fish/aquaculture Identify source of fish mean to maintain and apply a Apply standard rules sustainable value chain e.g. ASC to supply of fish meal Impose a non-voluntary standard such as Aquaculture Stewardship Council (ASC) for all commercial fish farms for sustainable production Use all indicators from standards e.g. ASC to monitor sustainable practices 7. Promote preparedness related to eutrophication and Amount of money contamination, through : dedicated to research programs research, alert systems and information disclosure to foresee eutrophication, algae blooms and pollution issues (in Number of beneficiaries relation with temperature, water level, and flows) associated with alert systems and measures to prevent nutrients / contaminants peaks and information disclosure eutrophication Water quality, as emergency measures to save fish stocks appropriate (pH, temperature, oxygen, nutrients, pesticides, medicine, bio-indicators, etc.) 8. Regulate the introduction of species / genetic stocks to Number of proposals prevent diseases, genetic impact and other adverse effect on per year wild and farmed stocks, through the following mechanism: % approved / rejected • Proposal to introduce a particular species in a particular Species names / area genetic codes • Independent review of proposal by competent authority, Duration and number of including ecological and socio-economic risk assessments stocks quarantined • Rejection, revision or acceptance of proposal Results of tests • Quarantine and disease tests as necessary 9. Increase economic profits and opportunities for Ugandan Amount of money small farmers / household dedicated to training and extension services • Offer adequate training and extension services focusing on best practices, sustainability and quality of products Number of extension officers and their level • Clearly inform candidate farmers on economic risks and of expertise burden of fish farms Number of beneficiaries • Promote equitable trade principles and certification associated with training, • Promote access to market prices information extension services, awareness and information disclosure Market prices for the main inputs and products of aquaculture

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10. Promote active participation of fish farmers and their Idem communities in the development of sustainable aquaculture Number of associations management practices, through : and number of • Consultation and participatory development planning and members research % farms adopting • Training, extension and capacity building adequate codes of conduct, • Associations of fish farmers % of farms associated • Codes of conducts, Clean Production Agreements, with Clean Production traceability programmes or certification systems (including Agreements, traceability organic), etc. programmes or certification systems including organic. 11. Promote food security in Uganda: Compare national nutrition statistic with • Focus the project on meeting nutritional needs for Ugandan food supply statistics populations in unison with exports from project sector • Focus feed on by products and monitor and react with policy to avoid conflicts between food for fish and crops feeding people 12. Promote integrated development, where economic Number of self-sufficient activities such as aquaculture, tourism, agriculture, livestock and sustainable farms and fishing may benefit from each other through : circular economy (for example, recycling of wastes Number of alternative associated with the production of feeds or fertilizers; etc.) from / to economic activities agriculture and small livestock Financial benefits to mutual benefits (for example, touristic visits of fish farms local and bird watching around ponds / cages; fishing to harvest wild communities/individuals fishes benefitting from feeds falling from cages or water from alternative discharges from ponds; supply local restaurants and hotel with economic activities. fresh fish; etc.)

13. Develop appropriate international consultation, Number and name of agreements, notification & monitoring mechanism and countries involved cooperation with riverine countries of transboundary waters (e.g. Lake Victoria, Nile River) based upon the following Number/type of issues: consultations, navigation right of ways agreements, water uses mechanism, pollution / eutrophication control cooperation preservation of wild fish species / genetic stocks introduction of exotic species Amount of money prevention of diseases outbreaks / propagation dedicated to preservation of trans-boundary ecosystems international programs

Pertinence and efficiency of these programmes

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14. Natural disasters and climate change Numbers of different adaption projects by • Respond to risks form natural disasters and climate change, District we need to improve urban planning, encourage extensive tree planting and afforestation, water conservation, Biophysical and socio- strengthen social support programmes and develop long- economic indicators in term initiatives to combat climate change. key water catchments

15. Promote research programmes: Number of research • Water modelling (including climate, flows and water programmes for water movements, water levels, water quality and biology) aiming to and ecological recommend appropriate carrying capacity of aquatic purposes. ecosystems, sound management of activities affecting these ecosystems and early warning systems to prevent / respond Financial benefits from to eutrophication or contaminants peaks each research programme • Ecological and biological (taxonomic) research related to breeding of endangered / endemic species, reconstructing viable populations and preserving their genetic diversity

9.2 Mitigation or optimizing measures and indicators for beef

Mitigation Indicators 1. Mitigate the impacts of drought which Number of families harvesting rain water causes water scarcity

- Harvest rain water run-offs during wet season and preserve for dry period Number of valley dams/tanks constructed in - Support excavation of valley dams/valley the target geographical area tanks for commercial farmers and farmer groups - Protect watersheds and conserve and Evidence of watershed protection store water 2. Mitigating the impacts of floods Number of storage tanks Harvest excess water in storage tanks Construct valley dams to store excess Protect watersheds Number of valley dams/tanks constructed in the target geographical area

Evidence of watershed protection 3. Minimize soil erosion Number of farmers in the region who are • Reduce overstocking selling surplus animals • Encourage diversification of economic Particip GmbH | Page 100 Draft SEA Study Report

activities Number of farmers involved in economic activities other than livestock production 4. Control bush encroachment Area burnt for bush control/year • Apply prescribed burning • Manual cutting of bush Stakeholders sensitized on prescribed burning

Area of bush removed manually 5. Reduce competition between livestock and Where livestock and wildlife graze in the wildlife in grazing areas same area, separate grazing areas Where possible, separate livestock and wildlife during grazing 6. Proper disposal of solid waste at farm level Veterinary equipment disposed off in • Syringes and other veterinary equipment designated areas in the farm disposed off in safe areas on the farm • Proper drainage of dip chemicals e.g. in soak pits Good drainage system constructed in the farm to direct dip chemicals 7. Improve sanitary conditions in abattoirs Waste water treatment facilities in good and other beef slaughtering facilities condition Put in place appropriate waste water treatment facilities Improve drainage of waste water from Satisfactory drainage systems around abattoirs and other beef slaughtering facilities abattoirs and other beef slaughtering facilities Provide workers with appropriate personal protective equipment (PPE) Slaughtering facilities regularly inspected by qualified personnel 8. Control tree cutting for whatever purpose Put in place a licensing and monitoring Put in place licensing and monitoring system for charcoal burners system for charcoal burners Enact by-laws to regulate activities of charcoal burners 9. Improve transportation of livestock to and Livestock transported under humane from markets conditions Transport recommended number of animals in well maintained trucks Improve the condition of feeder (village) Well maintained trucks used to transport roads which are used by trucks livestock

Condition of the roads used by trucks 10. Sensitize stakeholders on the use of prescribed burning Area of grazing land subjected to Reduce bush burning burning/year 11. Promote tree planting and woodlots in Total area under planted trees and woodlots

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degraded/deforested areas 12. Enact or enforce by-laws to support District by-laws enacted to minimize sustainable rangeland management overgrazing

Determine carrying capacity of defined grazing areas 13. Provide alternative sources of income Support alternative livelihood activities such Identify and support suitable alternative as honey production, goats rearing, timber sources of income for livestock farmers products, fruit tree production, fish farming etc. 14. Promote Supplementary feeding Number of farmers engaged in Demonstrate opportunities for supplementary feeding during the dry season supplementary feeding e.g. using residual standing hay , feeding crop residues and industrial by- products during periods of feed insecurity Number of farmers feeding silage to livestock Sensitize, train and assist livestock farmers in silage making 15. Introduce feedlot operations Number of farmer groups participating in Select farmers groups to participate in feedlot operations feedlot operation Prepare suitable rations for feedlots Suitable rations available for feedlots

16. Improve market infrastructure for selling Number of livestock markets and slaughter livestock and beef slabs constructed or rehabilitated • Construct/rehabilitate livestock markets and slaughter slabs

10 Conclusions and recommendations

Conclusions

11 General conclusions The issues highlighted in the SEA are appropriate for the development of proposed aquaculture and beef through their value-chains in Uganda. The SEA has highlighted numerous legislation and policy documents which are very appropriate; however, these have often not applied until now. Environmental and social impacts of the proposed EU project can generally be managed if the appropriate mitigation measures are implemented (see chapters in this SEA) combined with key indicators for monitoring. To establish the industry it is important and essential to encourage

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strong institutional networks, updating obsolete policies and laws and supporting the capacity of relevant technocrats to monitor project implementation. If these steps are achieved, the industry will attain the desired results and comply with the SEA. The population growth is currently over 3%/annum which is likely to counter measures to improve livelihoods and efforts to adapt to CC. Currently, there is no effective government response to population growth. Meanwhile, there are potential measures proposed by CCD to address CC. These CC adaptation proposals are feasible for Uganda and could be applied in the immediate future.

11.1 Aquaculture There are already important opportunities and national and regional demands for fish products, which are forecasted to grow. Meanwhile, there is also growing demand for exports from EU and Arab countries for fish at present and potential opportunities to sell more fish, if quality controls are achieved, particularly for EU markets from fish processors in country. Meanwhile, declines in wild fish production from primarily the lakes of Uganda could be offset with developing aquaculture being cages on lakes and ponds near suitable rivers. Poverty and disposable incomes for fish will limit positive impacts from aquaculture upon food security for the majority of Ugandans. If supported and targeted correctly, aquaculture could offer alternative or improved livelihoods for small scale farmers in particular those attached to associations. However, this can only happen if markets are developed and prices are commercially attractive in the future. Aquaculture has to integrate itself into the environment and not be regarded as a panacea to economics collapses in lakes due to mismanagement of fish stocks, localised waste and watersheds, as well as the introduction of invasive species. Meanwhile pollution risks and selected fish use in aquaculture need to be managed, if not aquaculture could pose a problem for itself in the future.

11.2 Beef Cattle rearing in DCZ1 and DCZ2 are similar to other parts of the country being dominated by traditional pastoral systems, where the owners of cattle sell animals when in require cash for various needs such as school fees, medical bills etc. The more commercially oriented ranchers contribute only about 2% of the total herd. In addition, despite the fact that Uganda has a great potential for the development of an export-oriented meat industry, the subsistence nature of cattle rearing cannot ensure sustainable cattle supplies for the valoue chain to be vibrant. Exports are limited because of the prevalence of diseases, lack of an export-standard abattoirs and the high demand from national markets. The cattle corridor has experienced dramatic land, soil and vegetation degradation caused by a combination of inappropriate land use practices such as overgrazing, indiscriminate harvest of woodlands, and encroachment into wetlands, wildlife and forest reserves to develop croplands motivated principally by sedentary pastoralism. The effects of climate change will aggravate the risks of damage to natural resources from extreme temperatures and erratic rainfall patterns. These conditions precipitate major challenges for livestock farmers to provide forage and water supplies. These can be mitigated with both environmental management and potential climate change adaptation options, which are included in the recommendations.

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12 Recommendations

12.1 General recommendations

The key general recommendations are presented below: • strengthen the activities of beef and aquaculture producer associations in order to gain from EU support. Although they are presently weak these associations could assist traceability in the value chain regarding social and environmental requirements for national and export markets • capacity building of members of associations regarding improved rangeland, good fish farm practices and management, feed supplementations, negotiation skills for sale and marketing of cattle and fish products, and overall environmental compliance • food security and income generation projects need to work in parallel with national efforts to reduce population growth • responses to CC require immediate practical actions beyond pilot schemes across the country and its beef and aquaculture production areas • strengthen environmental monitoring in the sectors at all levels of the value chain with support through NEMA and District Environment Officers (DEOs) • provide relevant equipment for monitoring environmental standards at all levels of the value chain • increase the participation of women in the sectors by supporting women groups to participate in specific areas of the value chain e.g. raising breeding bulls, urban sale of cooked beef products, developing small-scale cage or pond aquaculture systems with preference loan agreements • improve sanitary conditions in fish and meat processing facilities with appropriate and compulsory waste water treatment facilities • Improve drainage of waste water from abattoirs and other beef slaughtering facilities • Provide workers with appropriate personal protective equipment (PPE) • Support NEMA and DEOs to inspect these facilities for environmental compliance • Ensure that all projects normally requiring an EIA must complete a stand-alone ESIA report, which also incorporates the SEA mitigation measures and subject to NEMA regulations: these will include all infrastructures in the value chain for beef and aquaculture • issues highlighted in the SEA need to be addressed in future ESIAs for all interventions including Aquaculture Parks (ponds and lakes) and beef production including their respective value-chains.

12.2 Aquaculture recommendations

The key aquaculture recommendations are presented below: • legislation, national standards and policies for environmental protection with fish production should swiftly and immediate be applied with actions, beyond pilot projects across the country, this should focus encompass current an developing policies for aquaculture including international frameworks and East African Community agreements aligned with Uganda

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• site selections, logistics, requirements and projected production need to respond to both national, regional and potential export demands, where national demands regarding food security are maintained as a priority • strategies for aquaculture development need to avoid environmental degradation in pursuit of fish production and the errors of natural resources mismanagement from aquaculture in the past. This strategy need to be developed through a collaborative approach whereby there is participatory management of aquatic systems including wetlands for all parties. The overall objective being sustainable integrated fisheries and natural resources management encompassing aquaculture and strict management of water rights permits in lakes and rivers • support disposal of waste systems in aquaculture at all levels in the aquaculture value chain and other industries in sensitive zones, in particular, localised eutrophic sites on Lake Victoria • fish feed regulations need to developed further and applied prior to aquaculture systems increasing across Uganda regarding content of feed and impacts on natural systems • apply strict national abstraction permits to conserve water courses and natural ecosystems • promote sustainable aquaculture as a strategic means for economic diversification and poverty alleviation along the value chains from rural to urban settings with a focus on SMEs and potential development and taxation advantages to prioritise their development • promotion of the use of stress tolerant and vigorous wild species of fish to avoid risks from potentially weaker specimens selected for primarily growth including the banning of releasing live farmed fish into natural ecosystems • improve and strengthen transboundary cooperation regarding fisheries ecosystems • strengthen the existing national wetland policy to prevent wetland degradation and encroachment including protection, as wetlands are inherent buffers for water catchments and flows to sites for aquaculture in rivers (ponds) and lakes • restoration, conservation and research of wetland systems, partially sites regarded as environmentally sensitive, as part of integrated management of water catchments associated with aquaculture and other beneficiaries of natural resources, such as sites around Kalangala Islands • wild fish stocks need to be sustainably managed in the immediate future and not be discounted in favour of offsetting through aquaculture production. • focus on controlled management of invasive species, in particular, the impacts of Nile Perch, exotic Tilapia species and collection species such as carp, upon endangered wild species of fish in all aquatic systems, notably Lake Victoria and Nile Perch • reinforce the application of the Uganda 2004 National Fisheries Policy for sustainable management of fisheries with an emphasis upon the protection of aquatic ecosystem for all proposed aquaculture developments, in particular conflicts with other users such as Palm Oil development on Kalangala Islands • avoid development of aquaculture sites in areas regarded as environmentally sensitive or of environmental value including landscape areas of importance such as the Nile near Kyoga Lake and surrounding wetlands

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12.3 Beef recommendations

The key beef recommendations are presented below: • minimize soil erosion and soil compaction with the following measures: - sell off excess livestock to reduce overstocking and overgrazing - sensitize farmers on the benefits of commercializing livestock production - provide information to farmers on market opportunities - encourage diversification of economic activities • protect watersheds and conserve and store water with the following measures: - harvest rain water during wet season and preserve for dry period - support excavation of valley dams/valley tanks for commercial farmers and farmer groups - Promote culture of water conservation and protect watersheds - protect watersheds and conserve and store water • control bush encroachment through prescribed controlled burning by manual cutting of bush and promoting tree planting and woodlots in heavily degraded/deforested areas • support proper disposal of solid waste at farm level with sensitisation of farmers to disposed of syringes and other veterinary equipment in safe areas on the farm; and train farmers to construct drainage facilities e.g. soak pits to ensure proper drainage of spray and dip chemicals.

12.4 Climate change adaptation recommendations

The key climate change adaptation recommendations are presented below: • promote supplementary feeding to reduce greenhouse gas production and enhance livestock growth rates and demonstrate to farmer groups the value of supplementary feeding e.g. using residual standing hay, feeding crop residues and industrial by- products during periods of feed insecurity; and sensitise, train and assist livestock farmers in silage and hay making • introduce feedlot operations to reduce overgrazing, reduce greenhouse gas production and enhance livestock growth rates for higher profits with select farmers’ groups to participate in feedlot operations; and prepare suitable rations for feedlots • promote the use of cattle manure (dung and urine) by training farmers’ groups to adopt the use of manure for crop production; and train farmers to generate clean energy from biogas production for household use • promote potential impacts of climate change and potential adaptation methods for all beef and aquaculture stakeholders including individuals, associations, communities, resources managers and policy makers • develop and ensure integrated planning and management of transport for beef and aquaculture value chains integrated with siting of locations for collection, processing and distribution networks for products • evaluate the availability of water in the present and future to ascertain water catchment management needs to guarantee supplies for beef and aquaculture sectors including their value chains for all stakeholders • promote integrated water management including contingency management and planning for extreme events such as droughts and flooding affecting the beef and aquaculture sectors and their value chains in the future including monitoring and flood warning networks

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• development of biogas plants using waste products from various steps in the value chain from production and processing waste for both aquaculture and beef sectors • minimise energy use and carbon footprints using water syphoning and solar systems to reduce impacts of fossil fuels for pumping of water into ponds systems for aquaculture and irrigation and watering of cattle, while also reducing critical costs for farmers.

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Annexes

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Annex: Terms of Reference

SPECIFIC TERMS OF REFERENCE

Consultancy to carry out a Strategic Environmental Assessment of the 11th EDF Support to Developing a Market - Oriented and Environmentally Sustainable Beef Meat Industry in Uganda and Support to Promoting Commercial Aquaculture in Uganda projects

FWC BENEFICIARIES 2013 - EuropeAid/132633/C/SER/Multi LOT 6: Environment Contract Nr: 2016/372615.

1. BACKGROUND

The Government of Uganda (GoU) and the European Union (EU) signed the multiannual indicative program (MIP) 2014-2020 in December 2014. The MIP provides a general framework for all programmes funded under the 11th European Development Fund (EDF) that are to be implemented in Uganda for the period 2015 – 2020. The MIP has three focal sectors for support namely: transport infrastructures, food security/agriculture and good governance. In this framework, under the food security/agriculture focal sector, an indicative amount of EUR 15 million has been given to support the development of a market oriented and environmentally sustainable beef meat industry in Uganda; and an indicative amount of EUR 10 million has been given to support the promotion of commercial aquaculture in Uganda. In view of this background, identification fiches were drafted and approved in October 2015 for both projects. Now project formulation missions are planned to commence in February 2016 to detail out the proposed support. However, one major issue that was highlighted during the identification phase of these two projects is the need to detail out the environmental challenges that these two projects will face during their implementation. Consequently, a Strategic Environmental Assessment (SEA) is recommended to review these two projects under preparation. It was foreseen under Section 3.2.6 of the 11th EDF NIP – Appropriate type of Environmental Assessment - as follows: "Specific environmental and climatic change risk assessments will be carried out during identification and formulation of all new activities in the focal area, as necessary, including assessment of measures addressing mitigation an prevention of environmental impacts. When needed, the appropriate type of environmental assessment (strategic environmental assessment or environmental impact assessment) for the focal sector will be carried out". It is expected that the SEA will help integrate environmental mitigation and climate change adaptation measures in the preparation, implementation and monitoring of these two projects. The key environmental problems identified in Uganda include soil erosion and declining soil fertility, deforestation, and pollution of land, water and air, loss of biodiversity and over-harvesting of forests, fisheries and water resources. Since Uganda is highly dependent on agriculture and natural resources, further degradation of natural capita; will have a negative impact on long-term economic progress and will aggravate poverty. Government has accordingly put in place institutions charged with policy formulation, enforcement of environmental laws, bylaws, and norms, and providing advice and/or assistance during crises. It is implementing a policy whereby most new projects, both public and private, are subjected to scrutiny by the National Environmental Management Authority in terms of their possible impact on the environment. In spite of this, so many environmental challenges remain. The major documents to consider are: • The State of Environment Report (2012) • The National Climate Change Policy (2012) • The National Environment Act (1995) • The Uganda Atlas of our changing environment

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• The Uganda national Policy for the Conservation & management of wetlands Resources (1995) • 11th EDF National Indicative Programme • The Uganda Land Policy (2013) • The identification fiche of the support to the development of a market oriented and environmentally sustainable beef meat industry in Uganda project (FED/2015/037-994) • The identification fiche for the support to promoting of commercial aquaculture in Uganda project ( FED/2015/038-334) • The formulation study report of the support to the development of a market oriented and environmentally sustainable beef meat industry in Uganda project • The formulation study report for the Promoting of commercial aquaculture in Uganda project

2. DESCRIPTION OF THE ASSIGNMENT

2.1 Global objective

The global objective of the assignment is to ensure an appropriate integration of environmental and climate change concerns in the implementation of the 11th EDF's objective of promotion of inclusive growth agriculture through value chains support (called Projects1 thereafter).

2.2 Specific objective(s)

Describe, identify and assess the likely significant effects on the environment of implementing this Programme as well as the most important environmental and natural resource related constraints bearing on the implementation of these Projects.

Provide decision-makers of the Government of Uganda and the EU with relevant information (quantitative and qualitative) to identify and assess the adequacy of environmental management and climate change adaptation measures in the Projects under formulation.

Provide concrete recommendations on mitigation or adaptation measures to be integrated in the Projects under formulation so that potential negative effects can be minimized and positive effects can be optimized.

2.3 Requested Outputs

The SEA is composed of two parts: a scoping study and an SEA study.

a) The scoping study will define the issues that need to be addressed in the SEA study, considering the specific context in which the Projects will be implemented. Precise activities and calendar for the SEA study will be determined on the basis of the conclusions of the scoping study.

The scoping study will provide:

• a description of the Projects concerned and their alternatives (if any); • a brief description of the institutional and legislative framework of the sector; • a brief presentation of the relevant environmental policies and objectives in the country (taking into account the information provided in the last country Environment Profile (CEP), including climate-related aspects as appropriate); • an identification of the key stakeholders and their concerns; • an identification of the key Projects - environment interactions (including climate-related aspects); • a description of the scope of the environmental baseline to be prepared;

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1 The support to the development of a market oriented and environmentally sustainable beef meat industry in Uganda project (FED/2015/037-994) & the support to promoting of commercial aquaculture in Uganda project (FED/2015/038-334)

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• an identification of the impact identification and evaluation methodologies to be used in the SEA study; • an estimation of the time frames, costs and resources needed to carry out the SEA study (within the available resource envelop). • A scoping study report of the projects will be produced (as detailed above)

b) The SEA study will deliver the following results:

• An environmental assessment of the Projects, taking into account the environment-related risks, constraints and opportunities linked to the Projects (including climate- and natural resource-related aspects), the potential environmental impacts of its implementation and its consistency with partner government’s and EC’s environmental policies and objectives; • Recommendations at the Projects level for inclusions of adaptation and mitigation measures (including performance indicators, use of technical assistance and other aid delivery methods). • A SEA study report of the projects will be produced

The SEA study will be based on the results of the scoping stage (following approval of the scoping study report) and include an environmental baseline study, an identification of environmental constraints and opportunities (including climate-related aspects), an identification and assessment of the potential environmental impacts, an analysis of the logical frameworks' indicators from the perspective of environmental sustainability and adaptation to climate change, an assessment of the institutional capacities to address environmental challenges, and conclusions and recommendations.

Environmental baseline study

A description and appraisal must be made of the current state of the environment, focusing on those key environmental components of the Projects identified by the scoping study. The trends for, and pressures on, the various environmental components must be identified and a projection must be made of the state of the environment on the short-, medium- and long-term under the assumption of no implementation of the Projects, taking into account the expected effects of climate change (to the extent they can be predicted with some reliability). External factors must be taken into account, including the influence of other sectoral policies. The geographical (or mapping) units to be addressed should be described, if relevant.

Identification and evaluation of environment-related risks, constraints and opportunities

The environmental factors that can affect (positively or negatively) the relevance, effectiveness, efficiency and sustainability of the Projects, including climate - and natural resource-related aspects, should be identified, described and assessed. These factors may include natural resource availability (e.g. water availability for beef cattle or aquaculture), as well as the current and projected effects of climate change. This part of the study should also consider the environmental issues that could potentially be addressed by the assessed Projects. The study should assess if the Projects provide adequate responses to these constraints and opportunities. In particular and as relevant, the study should assess whether the Projects, in view of identified vulnerabilities, includes adequate responses in terms of adaptation to climate change – or may, on the contrary, lead to inadequate responses (‘maladaptation’).

Identification and evaluation of impacts

The potential environmental consequences of implementing the Projects, including the positive or negative contribution to greenhouse gas emissions (if significant relative to national emission levels), must be identified and described for each alternative being studied; their significance should be determined taking into account the characteristics of impacts, the views and concerns of stakeholders and the sensitivity of the environment. The potential cumulative impacts of the envisaged sector

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activities should be identified, since they may differ from the sum of individual project impacts. Those impacts which are significant should be assessed in detail taking into account:

• the views and concerns of stakeholders; • the consistency with international commitments (Multilateral Environmental Agreements); • the socio-economic consequences (especially on vulnerable groups and ethnic minorities); • economic externalities; • compliance with environmental regulations and standards; • consistency with environmental objectives and policies; and • their implications for sustainable development.

As far as climate change mitigation is concerned, different strategies may lead to different outcomes in terms of greenhouse gas emissions or carbon fixing. If various alternatives are under consideration and involve significant differences in this regard, these differences should be evaluated in the study.

Identification and evaluation of impacts in terms of vulnerability to climate risks

The direct and indirect impacts of Projects' implementation in terms of increased or reduced vulnerability to climate variability and climate change should be assessed.

Analysis of the Projects logical framework indicators

Performance indicators proposed by the Projects should be assessed from an environmental perspective i.e. with regard to their usefulness to identify the environmental effects (positive and negative) of the Projects implementation, to monitor the environmental and climate-related constraints bearing on the Projects and to promote environmentally sustainable, climate resilient development. Based on this analysis, proposals should be made as appropriate for the improvement of the existing performance assessment framework, including proposals for the Projects indicators and monitoring system.

Assessment of the capacities to address environmental and climate-related challenges

The capacity of regulatory institutions to address the identified environmental and climate-related issues, both in terms of adaptation and mitigation, should be assessed.

Conclusions and recommendations

This chapter will summarise the key environmental issues of the Projects, including policy and institutional constraints, challenges and main recommendations. Recommendations should be made on how to optimise positive impacts and make the best out of environment- and natural resource-related opportunities, as well as on how to mitigate negative effects, adapt to environmental and climate related constraints and manage risks. They should suggest the selection of alternatives in the implementation of the Projects, potential changes, implementation and monitoring modalities, or cooperation actions. The recommendations must be operational, applicable and tailored to the specific situation analysed.

The limitations of the SEA and its assumptions should be presented. The recommendations should take into account the views presented by the stakeholders and explain how these were integrated. In the case of concerns that were not integrated in the final recommendations, the reasons thereof should be given.

Stakeholder engagement

Data collection for the purposes of the study should be organised in a way that supports the consultation of the wide range of stakeholders along the value chains of the Projects, including (within

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the limits of available time and resources) representatives of the farmers and processors targeted by the Projects. In addition, a validation workshop involving a wide range of public sector and private sector stakeholders will be organised at the end of the study phase, for the purpose of presenting preliminary findings and conclusions and collecting stakeholder feedback to be integrated in the study report. This report will include information about which stakeholders were consulted and by which means.

2.5 Language of the Specific Contract

The language of the assignment and reporting is English.

2.6 Subcontracting

Not foreseen

3. EXPERT PROFILE or EXPERTISE REQUIRED

3.1 Number of requested experts per category and number of man-days per expert or per category

The Consultant's study team will comprise of two (2) experts with a total of 72 man days

3.2 Profile per expert or expertise required:

i) Expert Category I /Team Leader/ Environmental Expert requested for a total of 36 man days

Education: Master level or post-graduate studies in environmental sciences, environmental economics, climate change sciences or equivalent Professional experience: A recognised expert in environmental/climatic change issues particularly in developing countries with at least 12 years of relevant professional experience. 5 years specific professional experience in carrying out environment impact assessment in the ACP region, preferably in sub-Saharan Africa is required with at least one of these assignments as a team leader. Soft skills: Excellent computer skills Language skills: Proficient in English

ii) Expert Category I /Environmental Expert requested for a total of 36 man days

Education: Master level or post-graduate studies in environmental sciences, environmental economics, climate change sciences or equivalent Professional experience: A recognised expert in environmental/climatic change issues particularly in developing countries with at least 12 years of relevant professional experience. 5 years specific professional experience in carrying out environment impact assessment in the ACP region, preferably in sub-Saharan Africa is required. Soft skills: Excellent computer skills Language skills: Proficient in English

The team of experts must at least provide the following expertise for more added advantage:

• Proven experience in developing and conducting SEAs and other types of environmental assessments for agricultural development projects especially aquaculture and/or livestock sub- sectors. • Possess a sound level of knowledge, experience and skills, in the following areas: - Experience of conducting studies using standard methods - EC aid programmes and delivery methods. -Proven track record of delivering high quality consultancy reports on time.

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- All the experts are expected to have excellent communication skills, both in spoken and written English.

4. LOCATION AND DURATION

Starting period: The expected contract commencement date is by 14 March 2016.

Foreseen finishing period or duration: For the purpose of executing this assignment, the foreseen duration is 40man-days per expert. The foreseen end date is 20 May 2016.

Location(s) of assignment: The main location of the assignment will be Kampala but with travel for the consultations to the proposed beef2 and aquaculture3 value chains project sites. During the in- country mission the expert will keep close contact with the National Authorising Officer, the Sustainable Development Section at the EU Delegation, and MAAIF.

The timetable below is indicative and may change during the assignment based on needs arising: Activities Date/Time Frame Responsibility ▪ The scoping study 14 March – 18 March 2016 Experts/EUD/NAO ▪ Presentation of the scoping study and 23 March 2016 Experts/EUD/NAO get approval on the main parameters of the SEA study ▪ Submission of the scoping study 24 March 2016 Experts report EASTER BREAK ▪ SEA study 4 April – 19 April 2016 Experts/EUD/NAO ▪ Validation workshop (if necessary) 25 April 2016 Experts/EUD/NAO ▪ Submission of draft SEA report 22 April 2016 Experts ▪ Submission of comments on SEA 6 May 2016 EUD report to expert ▪ Submission of Final SEA report 20 May 2016 Experts

Indicative distribution of man-days: Objective/Task Man-days ▪ The scoping study 5 days x 2 experts = 10 man-days ▪ Presentation of the scoping study and get 4 days x 2 experts = 8 man-days approval on the main parameters of the SEA study ▪ SEA study 12 days x 2 experts = 24 man-days ▪ Preparation and holding validation workshop 5 days x 2 experts = 10 man-days

2 The Support to Developing a Market - Oriented and Environmentally Sustainable Beef Meat Industry project in Uganda will be implemented in Disease Control Zones1 & 2 (map is attached).

3 The Support to Promoting Commercial Aquaculture project in Uganda will be implemented as follows: the cage-based aquaculture park that is designed for tilapia production is proposed to be located at Mwena, which is a landing site near Kalangala Island on Lake Victoria; . The pond based aquaculture park that is designed for catfish and/or tilapia production is proposed to be located on the banks of the River Nile where it leaves Lake Kyoga north of Masindi Port.

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and including follow-up of comments ▪ Submission of draft report and debriefing 5 days x 2 experts = 10 man- days ▪ Submission of Final report 5 days x 2 experts = 10 man-days Total 72 man-days

5. REPORTING

5.1 Content See detailed description above under point 2.3

5.2 Language All reports and annexes have to be submitted in English.

5.3 Submission/comments timing See required outputs 2.3 and timeline above under point 4.

5.4 Number of report(s) copies Three (3) hard copies and one (1) soft copy of all reports will be submitted to the Delegation of the European Union.

6.0 Incidental expenditures

Other limitatively identified reimbursable costs, with their details:

• The contractor shall provide its staff with appropriate premises, sufficiently equipped (including communications, stationary, etc.), as well as the necessary backstopping and support staff (administration, secretariat, etc.) needed so that the expert can perform her/his assignment.

• National Travel: the per diems include intra-city and up-country travel. Inter-city and up- country travels are to be included under local travel costs. An indicative provision of maximum EUR 6,000 should be included under reimbursables for inter-city and up-country travel.

• International travel in economy class is foreseen to be included under reimbursables.

• An indicative provision of maximum EUR 4,000 should be included under reimbursables for the workshops to be organised for approximately 50 participants. The contractor will be responsible for the organisation of the workshop.

• Per diems will be paid for the duration of the stay in Uganda, excluding any leave days, at the rate applicable at the time of request (see EuropeAid website). The experts may work six days per week, when requested and agreed by the EU Delegation.

• For national experts, per diems will only be paid for missions outside the usual place of residence and/or work.

The local taxes upon eligible incidental expenditure incurred under the Specific Contract shall be reimbursed in full.

7.0 Monitoring and evaluation The assignment covered under these Terms of Reference is deemed clear in terms of expected results and outputs.

Definition of indicators:

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• Timely submission and quality of scoping study report, draft final SEA report and final SEA report in line with the requirements as detailed above (point 2.3).

• Number of interviews, meetings, and stakeholder consultations held and documented.

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Annex: Logical Frameworks for Beef and Aquaculture Sectors

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Indicative logframe matrix for beef sector

Intervention logic Indicators Baselines Targets Sources and Assumptions (incl. reference (incl. reference means of year) year) verification To contribute to a Agricultural and food exports Latest figures Realistic targets National Institute of Agriculture will competitive, profitable, in total exports to be taken will be drawn Statistics (UBOS) remain a key job-intensive and from the 2015 from the Data and MAAIF development

environmentally- UBOS report Government Statistical Reports sector in sustainable agricultural strategy during Uganda, and the

sector in Uganda, in order the inception commodity/value

to reduce poverty and phase chain approach 43% of the improve food and nutrition Stunting levels in the Western population in will remain a

security. and South Western Uganda this regions are priority for the

Overall objective: Impact stunted Government. To use a holistic value The quantity of beef 2.1 million Realistic targets UBOS and MAAIF No major cattle chain approach in the marketed cattle will be drawn statistical reports disease targeted geographical slaughtered per from the outbreak,

areas, in order to increase year Government Government will the performance of the strategy during continue to

Ugandan meat industry. the inception prioritise the

Tbd during phase. Beef Sector. The number of high inception phase standard beef processing

units 6.3 kg of

carcass per The beef meat consumption capita

in Uganda.

e (the data will be updated during the inception

period).

Specificobjective: Outcom Output 1: The policy, Number of policies, laws An overview of The target is to MAAIF periodic The interest of

legal, regulatory and and regulations adopted or the policies and obtain a fully reports. Surveys decision makers ts

Outpu institutional framework reviewed, operationalised legal framework functional, targeting the private will be to support

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that affects the beef/meat and enforced. linked to the operational, operations, meat this initiative, value chain improved livestock/beef environmentally- producers, including at the

(including in terms of sector will be sustainable and transport operators, Cabinet and mitigating climate carried out animal friendly etc., carried out by Parliament change/environmental during the policy the project. levels, in order to impacts) and enforced. inception period framework for speed up the of the the sector. process of programme. modification and/or approval of legislation/policie s Output 2: Beef meat Productivity at the level of To be defined Targets to be MAAIF periodical Good production, productivity targeted ranch during the defined during reports, Local cooperation with and quality in the targeted inception the inception Government the Local areas enhanced, giving phase, at the period, together Reports, Project governments, priority to locally- level of each with the surveys. support from developed practices and beneficiary beneficiaries, MAAIF Increase in the revenues of focusing on smallholder group MAAIF and local specialised the targeted beneficiaries agriculture and rural governments, veterinary livelihoods and formation (small, medium and big based on the departments in holders) of producer groups. 0.8% in 2008, needs and certifications. new data will capacities of the be collected targeted areas. Percentage of exotic and during inception cross-breed animals in the targeted areas

Output 3: Improved Number of beef meat To be defined Targets to be Project's periodic The legal and marketing, transportation producing farms improved during the defined during reports policy framework and value addition for inception the inception will be reviewed beef meat from the phase, together period, together in time, including targeted area: aiming to Amount of feed produced with the LG and with the Marketing reports feeds standards, promote local meat according to the quality and identified beneficiaries, animal welfare consumption to stimulate MAAIF and local practices, etc., in environmental sustainability

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the market, stimulating standards partners. governments, Local Government order to offer a the demand for processed based on the sustainable Reports meat products, ensuring needs and framework for animal welfare practices Number of beef meat capacities of the the activities during transportation. animals produced targeted areas. under this output.

No. of facilities modernised

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Indicative Logframe matrix for aquaculture sector

Intervention logic Indicators Baselines Targets Sources and Assumptions (incl. reference (incl. reference means of year) year) verification To contribute to a competitive, Agricultural and food Latest figures Realistic targets National Institute of Agriculture will profitable, job-intensive and exports in total exports to be taken will be drawn Statistics (UBOS) remain a key environmentally-sustainable from the 2015 from the Data and MAAIF development

agriculture sector in Uganda UBOS report Government Statistical Reports sector in strategy during Uganda, and the

the inception commodity/value

phase chain approach will remain a

priority for the Rural poverty levels ( Government.

percent below poverty

Overall objective: Impact line) To support an environmentally- Quantity of Current Realistic targets MAAIF and FAO Government will sustainable, productive, job- aquaculture fish aquaculture fish will be drawn statistical reports continue to intensive aquaculture value marketed. production is from the prioritise the chain in a comprehensive estimated at Government aquaculture sub-

manner. 111,033 MT strategy during sector. the inception

phase.

Fish

The data will be consumption is updated during between 7.7kg the inception

ctive: - 10 kg per period

Fish consumption per capita

capita

Specificobje Outcome

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Jobs created

Environmentally sustainable and climate resilient practices scaled up by the project Output 1: The policy and Number of policies, An overview of Targets to be MAAIF periodic The interest of regulatory frameworks affecting laws, regulations and the policies and defined during reports. Surveys decision makers the operations of the commercial guidelines adopted, legal framework the inception targeting the fish will be to support aquaculture industry improved reviewed, linked to the period. farmers, fries this initiative, and implemented (including in operationalised and aquaculture producers, feed including at the terms of mitigating climate enforced adopted sector will be producers and Cabinet and change/environmental impacts) carried out traders etc., carried Parliament during the out by the project. levels, in order to inception period speed up the of the process of programme. modification

and/or approval of legislation/policie

s/guidelines Outputs Output 2: Production and Productivity in the To be defined Targets to be MAAIF periodical Good Productivity of Aquaculture Fish established during the defined during reports, Local cooperation with and Fish products Enhanced, aquaculture parks inception the inception Government the Local giving priority to locally- established phase, at the period, together Reports, Project governments, developed practices and level of each with the surveys. support from

focusing on smallholder and beneficiary beneficiaries MAAIF. rural livelihoods and formation of group and/or and MAAIF producer groups aquaculture based on the

park needs and capacities of the

targeted areas.

Current annual

fish trade value

Total annual fish

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value is approx. €49.5 mio

To be defined after selection of beneficiaries Amount of revenue of the targeted beneficiaries Output 3: Post-harvest handling 1.Number of To be defined Targets to be Project's periodic The legal and and marketing of aquaculture aquaculture fish during the defined during reports policy framework fish and fish products improved marketing points set inception the inception will be reviewed

up phase, together period, together in time, including with the LG and with the Marketing reports feeds and

identified beneficiaries, operating

partners. MAAIF and local standards, etc., governments, Local Government in order to offer a

based on the Reports sustainable needs and framework for capacities of the the activities targeted areas. under this output 2. Number of fish products available on

the market

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