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Local Content SGR - The Issues UMA Policy Update Energy Outlook - ATA AHMED RAZA FOODS INDUSTRIES LTD Publishing CREDITS EDITORIAL Sebaggala M. KIGOZI Dear Reader, Executive Director Welcome to this issue of the Manufacturers Robert MAWANDA Journal, your source of information on the Communication Manager manufacturing sector. Lydia TUSIIME This is the first issue this year 2016. Communication Assistant I would like to first of all thank all members Michael OKETCHO who contributed to the successful publising of Policy Manager this magazine through provision of articles and adverts. Caeser HENRY KISSA Marketing Executive In this issue, we highlight key policy issue that have dominated our policy efforts in the previous Lawrence KATEREGGA year. We have also collected good informative Marketing Executive articles from members on topics like Corporate image, local content and good governance etc. I hope that you will find our articles in this issue interesting, relevant and informative. I welcome any comments, suggestions for improvement, positive criticism as well as articles. Uganda Manufacturers Association Lugogo Show Grounds P. O. Box 6966 Kampala, Uganda Robert Mawanda Tel: +256 414 221 034, 220 831 Communication and Business Support Manager Fax: +256 414 220 285 [email protected] www.uma.or.ug 0712861147 Advertise Today in the Uganda Manufacturers Association Trade Fair Catalogue 2016 UMA Business Directory 2017 Contact the Editor Tel: +256 414 221 034 Cel: +256 712 861147 Fax: +256 414 220 285 Email: [email protected] Reproduction of this publication without permission by Uganda Manufacturers Association is strictly forbidden. Page 3 CONTENTS MESSAGE CHAIRMAN UMA 6 MESSAGE EXECUTIVE DIRECTOR 10 SOUTH SUDAN JOINS EAC, 12 DRC JOINS COMESA! 17TH EAC HEADS OF STATE SUMMIT 14 SGR Local Content Uganda - The Issues 18 UMA 2015 POLICY 23 ACTIVITY HIGHLIGHTS 24 WHEN LUXURY CARS ARE A NECESSITY 27 FOR BUSINESS EFFECTIVE GOVERNANCE 30 ENERGY OUTLOOK 2016. 32 UNMASKING THE 7 AREAS OF FOCUS IN 35 MANUFACTURING BUSINESSES UMA HEST INTERNSHIP PROJECT 39 NEW MEMBERS 40 BUSINESS TIPS 41 Page 4 Mr. Manzur Alam Patron UGANDA MANUFACTURERS ASSOCIATION ADVISORY COUNCIL H.E. Abid Alam Chairman H.E. Prof. Sir Gordon Wavamunno Mr. Aga Sekalala SR Mr. Mayur Madhvani Mr. Kaddu Kiberu Mr. James Kalibbala Mr. Sebaggala M. Kigozi, Secretary to the Council Page 5 Amos Nzeyi Chairman UMA Fellow Industrialists, I congratulate and welcome you to yet another year The Association continues with its commitment to of successful business. You are all aware that the represent your interests to Government through year 2015 was particularly difficult for the business constant lobbying for better working terms and community mainly because of the Shilling that policies that positively the business climate. Last kept depreciating against the US dollar nearly year for instance we continued to lobby for the throughout the year. 5 US cents tariff for industrialists as previously promised by the President and we made a lot of I would like to congratulate H. E. President Yoweri progress towards achieving it. Museveni upon his successful election for another term in office. Through the years, his Government We are also actively pressing for the local content has been very supportive to manufacturers and I am especially the for the Standard Gauge railway optimistic that this support towards industrialists project. Once achieved, this will bring about a will continue through the next five years! significant improvement in our economy in terms of jobs and business profitability. Thank you for your continued support. Amos Nzeyi Chairman Uganda Manufacturers Association Page 6 UMA BOARD MEMBERS Mr. Amos NZEYI - Chairman Mr. Sikander LALANI - Vice Chairman Mr. Aga SEKALALA JR - Treasurer Crown Beverages Ltd Roofings Group Ugachick Poultry Breeders Ltd Mr. Alykhan KARMALI Mr. Deo KAYEMBA Mr. Richard MUBIRU H. E. Barbara K. MULWANA Mukwano Group East African Roofing Systems Ltd Southern Range Nyanza Ltd Nice House of Plastics Ltd Mr. Mwine Jim KABEHO Mr. Vinay DAWDA Mr. Joseph AKOL Mr. S. C SHARMA Madhvani Group Britannia Allied Industries Ltd UCIL Ltd Mehta Group Mr. Anant PARMAR Mr. Faiz ALAM Mr. Ramesh BABU Mr. T. S. SUNDARAM Sigma Knitting Industries Ltd Alam Group Abacus Pharma Cable Corporation Mr. James KAYIZZI Dr. Mohammed SSERUNJOGI Mr. Ambrose SANSA Ms. Shifa KADDU Graphic Systems Ltd Luuka Plastics Ltd Goldman Logistics Ltd Peacock Paints Ltd Mr. Joe KAYIMA Prof. Maggie KIGOZI Ms. Aggie A KONDE Spear Motors Ltd Business and Professional Women(BPW) NTV Mr. Sebaggala M. Kigozi, Secretary to the Board Page 8 TOLL FREE: 0800240100 Roofings Group Whatsapp no: 0790 242 607 EMAIL: [email protected] Sebaggala M. Kigozi Executive Director UMA Dear UMA Members, On behalf of the Board and Management of the that the shilling will remain stable. Lobbying for Uganda Manufacturers Association, I am privileged local content and promotion of exports are some to welcome you to the New Year 2016 and to present of the things that we are doing that we believe will the first Manufacturers Journal 2016. contribute towards a stable shilling. I also congratulate you upon getting through the elections season. This is a periodic journal that Long Live UMA, Long Live Uganda we publish to keep you informed of the pertinent Yours Sincerely, business issues at the secretariat. At Uganda Manufacturers Association, we continue to stand in for you; lobbying Government as much as Sebaggala M. Kigozi possible to ensure that the business environment gets Executive Director better. But the year 2015 was particularly a difficult Uganda Manufacturers Association one mainly because of the depreciating shilling which consistently weakened against the US dollar that was globally gaining against all other international currencies. Today, there is some improvement and we are optimistic Page 10 The UMA Multi Purpose Hall (the biggest in the country) Available for Hire: Exhibitions, Expos, Examinations, Music Launches, Weddings, Conferences, Award Ceremonies etc Seats more than 2000 people on tables. To Book, Contact: 0703078282 or 0772451571 or email: [email protected] Page 11 South Sudan Joins EAC, DRC Joins COMESA! What Trade Opportunities Do These Present For Manufacturers in Uganda? Vinay Dawda Managing Director Congo (DRC) has also joined Britannia Allied Industries, Chairman South Sudan has been a COMESA and this is just as UMA Membership and Communication big market for all of us as good! Many traders in Uganda Sub Committee Ugandan manufacturers in import from anywhere only implementation stage is the the recent past. Recently it has to re-export to DRC. Uganda time when the real benefits are even become more organized being the closest to South expected. The issue now is to in that some goods are going Sudan and DRC, we are at an expedite implementation and through bond for instance a advantage! But this is along as this is going to require alot of lot of biscuits coming in from they both get structured! capacity building for them countries like India go there through bond and this is a sign When SouthernA3 Sudan (297mm gets to x 420mm of order. Nevertheless, Sudan itself has no specific structures of duty and rules of origin i.e. where goods originate from; EAC or elsewhere; it is a single tariff and it is only negotiations Re e al Juic that determine the duty. Fruit If South Sudan joins the EAC and follows the Common External tariff of the EAC then products coming in from countries like India will attract Available in: duty of 25% and this definitely • 1 Ltr x 12 Packets Per Tray gives us an competitive • 250 ml x 24 Packets Per Tray advantage and we will penetrate the market better. South Sudan though still has 100% UGANDAN issues of poor infrastructure that make distribution of PASSION FRUIT products in the country difficult! But joining the EAC is a good first step and once we are in there, other opportunities can be explored. As long as they start buying from EAC and that is what really matters. The Democratic Republic of Refresh Yourself with the Nutritious Real Passion Fruit Juice Page 12 UMA MEMBERSHIP