MINISTERIAL POLICY STATEMENT

Transcription

1 THE REPUBLIC OF UGANDA MINISTRY OF TRADE, INDUSTRY AND COOPERATIVES MINISTERIAL POLICY STATEMENT VOTES 015, 110, 154 AND 306 PRESENTED TO THE PARLIAMENT OF THE REPUBLIC OF UGANDA FOR THE DEBATE ON THE BUDGET ESTIMATES FOR THE FINANCIAL YEAR 2017/2018 BY AMELIA KYAMBADDE (MP) MINISTER OF TRADE, INDUSTRY AND COOPERATIVES MARCH 2017

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3 Contact Information Ministry of Trade, Industry and Cooperatives Farmers House, 3 rd 6 th Floor Plot 6/8, Parliament Avenue P.O. Box 7103, Kampala, Uganda Tel: (+256) , (+256) Fax: (+256) mintrade@mtic.go.ug, ps@mtic.go.ug Website: Uganda Development Corporation Soliz House, 5 th Floor Plot 23, Lumumba Avenue P.O. Box 7042, Kampala, Uganda Tel: (+256) Fax: (+256) info@udc.go.ug Website: Uganda Industrial Research Institute Plot 42A, Mukabya Road, Nakawa Industrial Area P.O. Box 7086, Kampala, Uganda Tel: (+256) Fax: (+256) info@uiri.org Website: Uganda National Bureau of Standards Plot M217, Nakawa Industrial Area P.O. Box 6329, Kampala, Uganda Tel: (+256) , (+256) , TOLL FREE LINE: Fax: (+256) info@unbs.go.ug Website: Uganda Export Promotion Board Plot 35 Nakasero Road, 2 nd Floor, UEDCL Towers, P. O. Box 5045, Kampala, Uganda Tel: (+256) Fax: (+256) ceo@ugandaexportsonline.com, helpdesk@ugandaexportsonline.com Website:

4 Management Training and Advisory Centre Plot 175M, Jinja Road, Nakawa P.O. Box 4655, Kampala, Uganda Tel: (+256) /2/3 Fax: (+256) Website: Uganda Warehouse Receipt System Authority Farmers House, 5 th Floor Plot 6/8, Parliament Avenue Kampala, Uganda Uganda Cleaner Production Centre Plot 42A Mukabya Road P.O. Box 34644, Kampala, Uganda Tel: (+256) /958 Fax: (+256) / Website: Textile Development Agency Plot 9/11/13 Corporation Rise, Bukoto P.O. Box 6346, Kampala, Uganda Tel: (+256) Mob: (+256) texdauganda@gmail.com Website: Copyright All Rights reserved. This publication is property of the Government of the Republic of Uganda. Any quotes or phrases from this document in another shall be made in reference to it.

5 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Foreword Madam Speaker and Honorable Members of Parliament, in accordance with the Public Finance Management Act (2015), I wish to present to you the Policy Statement for the Ministry of Trade, Industry and Cooperatives. This Policy Statement provides a comprehensive account of the major achievements registered by the Ministry and its Agencies in the Financial Year 2016/17 as well as the programmes and policy interventions that have been planned for the coming Financial Year 2017/18 for debate on the appropriation of Detailed Budget Estimates. In line with Government's Budget Strategy for Financial Year 2017/18 as approved by Cabinet and Parliament in the National Budget Framework Paper (NBFP), this Ministry and Agencies' detailed allocation of resources is targeted to strengthening Uganda's competitiveness for sustainable wealth creation, employment and inclusive growth to accelerate achievement of a lower middle income status by Madam Speaker, in the preparation of the detailed Budget Estimates, this Ministry, along with its affiliated Agencies, has paid attention and will contribute to the following critical areas of the Budget Strategy: 1. Enhancing Strategic Exports identified in the National Export Development Strategy in line with complementary efforts to increase Agricultural production and productivity for food security; 2. Enhancing Private Sector Development specifically for Export Promotion and Import Substitution to address the unfavorable Balance of Payments position currently faced; 3. Making Ugandan businesses and products more competitive in domestic, regional and international markets; 4. Supporting access to affordable credit for Private Sector investments in various Cooperative Enterprises through SACCOs; 5. Improving Public Service Delivery; and, 6. Improving Efficiency in Government Operations. Madam Speaker, the Trade, Industry and Cooperative Sub-Sector's Resource Envelope for FY 2017/18 is UShs billion. The official exchange rate used to finalize these estimates for FY 2017/18 is one US dollar against Uganda Shillings (UShs.) 3, This Ministry has also prepared Responses to recommendations made by the August House touching this Sector in the for FY 2016/17 and the National Budget Framework Paper for FY 2017/18. Madam Speaker, and Honorable Members, I present this and Detailed Estimates for Financial Year 2017/18 for your consideration. I beg to move. For God and My Country, Amelia Kyambadde (MP) MINISTER OF TRADE, INDUSTRY AND COOPERATIVES i

6 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Table of Contents PRELIMINARY Foreword Abbreviations and Acronyms Structure of Report Executive Summary Organisational Structure, Strategic Statements and Functions i iii vi viii xxvii Vote: 015 Ministry of Trade, Industry and Cooperatives Vote MPS 1 Vote SubProgramme Annual Work Plan Outputs 21 Vote: 110 Uganda Industrial Research Institute Vote MPS 76 Vote SubProgramme Annual Work Plan Outputs 82 Annex: Innovation Fund Projects to be undertaken in FY 2017/18 90 Vote: 154 Uganda National Bureau of Standards Vote MPS 112 Vote SubProgramme Annual Work Plan Outputs 120 Vote: 306 Uganda Export Promotions Board Vote MPS 127 Vote SubProgramme Annual Work Plan Outputs 133 Vote: 500 Vote Local Governments 138 Preliminary ii

7 Ministry of Trade, Industry and Cooperatives Vote: 015 Ministry of Trade, Industry and Cooperatives Abbreviations and Acronyms AGM Annual General Meeting AGOA African Growth Opportunities Act AMCOST African Ministerial Council on Science and Technology BOQs Bills of Quantity CET Common External Tarrif CODAS Cooperative Database Administrative System COMESA Common Market for Eastern and Southern Africa CU Cooperative Union DCO District Commercial Officer LED Local Economic Development DICOSS District Commercial Services Support Project DTIS Diagnostic Trade Integration Study EAC East African Community EPA Economic Partnership Agreement ERB Engineers Registration Board FTA Free Trade Area IITC Inter-Institutional Trade Committee ILO International Labour Organisation ISO International Organisation for Standardisation LDCs Least Developed Countries LG Local Government MAAIF Ministry of Agriculture, Animal Industry and Fisheries MDAs Ministries, Departments and Agencies MTAC Management Training and Advisory Board MoTIC Ministry of Trade, Industry and Cooperatives MoTWA Ministry of Tourism, Wildlife and Antiquities MEMD Ministry of Energy and Mineral Development MoFPED Ministry of Finance, Planning and Economic Development MTEF Medium Term Expenditure Framework NDP National Development Plan NEPAD New Partnerships for Development FAO Food and Agricultural Organisation NEDS National Export Development Strategy e-sw Electronic Single Window NTB Non Tariff Barrier iii

8 Ministry of Trade, Industry and Cooperatives Vote: 015 Ministry of Trade, Industry and Cooperatives NTNT OPM OVOP PIRT PEC PNSD PPPs QUISP SACCO SADC SBWEC SDP SPS TEXDA TIFA TRACE UACCIA UBOS UNCE UCPC UDC UEPB UIPE UIRI UNBS UNCCI UNCST UNIDO WTO TMEA WRS IITC SWG UWRSA EIF UMA National Trade Negotiating Team Office of the Prime Minister One Village One Product Presidential Investors Round Table Presidential Economic Committee Plan for National Statistical Development Public Private Partnerships Quality Infrastructure and Standards Programme Savings and Credit Cooperative Southern African Development Community Small Business Week Exhibition and Conference Sector Development Plan Sanity and Phyto-Sanitary Textile Development Agency Trade and Investment Framework Agreement Trade Capacity Enhancement Uganda Allied Chamber of Commerce, Industry and Agriculture Uganda Bureau of Statistics Uganda National Commodity Exchange Uganda Cleaner Production Center Uganda Development Corporation Uganda Export Promotion Board Uganda Institution of Professional Engineers Uganda Industrial Research Institute Uganda National Bureau of Standards Uganda National Chamber of Commerce and Industry Uganda National Council of Science and Technology United Nations Industrial Development Organisation World Trade Organisation Trade Mark East Africa Warehouse Receipt System Inter Institutional Trade Committee Sector Working Group Uganda Warehouse Receipt System Authority Enhanced Integrated Framework Uganda Manufacturers Association iv

9 Ministry of Trade, Industry and Cooperatives Vote: 015 Ministry of Trade, Industry and Cooperatives PSFU TBT UDB CITES UWA SBFP PBS OBT PBB OOB UWEC UTA PWDs AGM AGOA AMCOST BOQs CET CODAS COMESA CU DCO LED DICOSS DTIS EAC EPA ERB FTA IITC ILO ISO LDCs LG MAAIF MDAs Private Sector Foundation Uganda Technical Barriers to Trade Uganda Development Bank Convention on International Trade in Endangered Species Uganda Wildlife Authority Sector Budget Framework Paper Programme Budgeting System Output Budgeting Tool Programme Based Budgeting Output Oriented Budgeting Uganda Wildlife Education Centre Uganda Tourism Association Persons with Disability Annual General Meeting African Growth Opportunities Act African Ministerial Council on Science and Technology Bills of Quantity Common External Tarrif Cooperative Database Administrative System Common Market for Eastern and Southern Africa Cooperative Union District Commercial Officer Local Economic Development District Commercial Services Support Project Diagnostic Trade Integration Study East African Community Economic Partnership Agreement Engineers Registration Board Free Trade Area Inter-Institutional Trade Committee International Labour Organisation International Organisation for Standardisation Least Developed Countries Local Government Ministry of Agriculture, Animal Industry and Fisheries Ministries, Departments and Agencies v

10 Ministry of Trade, Industry and Cooperatives Vote: 015 Ministry of Trade, Industry and Cooperatives MTAC MoTIC MoTWA MEMD MoFPED MTEF NDP NEPAD FAO NEDS e-sw NTB NTNT OPM OVOP PIRT PEC PNSD PPPs QUISP SACCO SADC SBWEC SDP SPS TEXDA TIFA TRACE UACCIA UBOS UNCE UCPC UDC UEPB UIPE UIRI Management Training and Advisory Board Ministry of Trade, Industry and Cooperatives Ministry of Tourism, Wildlife and Antiquities Ministry of Energy and Mineral Development Ministry of Finance, Planning and Economic Development Medium Term Expenditure Framework National Development Plan New Partnerships for Development Food and Agricultural Organisation National Export Development Strategy Electronic Single Window Non Tariff Barrier National Trade Negotiating Team Office of the Prime Minister One Village One Product Presidential Investors Round Table Presidential Economic Committee Plan for National Statistical Development Public Private Partnerships Quality Infrastructure and Standards Programme Savings and Credit Cooperative Southern African Development Community Small Business Week Exhibition and Conference Sector Development Plan Sanity and Phyto-Sanitary Textile Development Agency Trade and Investment Framework Agreement Trade Capacity Enhancement Uganda Allied Chamber of Commerce, Industry and Agriculture Uganda Bureau of Statistics Uganda National Commodity Exchange Uganda Cleaner Production Center Uganda Development Corporation Uganda Export Promotion Board Uganda Institution of Professional Engineers Uganda Industrial Research Institute vi

11 Ministry of Trade, Industry and Cooperatives Vote: 015 Ministry of Trade, Industry and Cooperatives UNBS UNCCI UNCST UNIDO WTO TMEA WRS IITC SWG UWRSA EIF UMA PSFU TBT UDB CITES UWA SBFP PBS OBT PBB OOB UWEC UTA PWDs Uganda National Bureau of Standards Uganda National Chamber of Commerce and Industry Uganda National Council of Science and Technology United Nations Industrial Development Organisation World Trade Organisation Trade Mark East Africa Warehouse Receipt System Inter Institutional Trade Committee Sector Working Group Uganda Warehouse Receipt System Authority Enhanced Integrated Framework Uganda Manufacturers Association Private Sector Foundation Uganda Technical Barriers to Trade Uganda Development Bank Convention on International Trade in Endangered Species Uganda Wildlife Authority Sector Budget Framework Paper Programme Budgeting System Output Budgeting Tool Programme Based Budgeting Output Oriented Budgeting Uganda Wildlife Education Centre Uganda Tourism Association Persons with Disability vii

12 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Executive Summary Introduction 1. Madam Speaker, and Honorable Members, this for Votes 015, 110, 154 and 306 presents strategic interventions that the Ministry of Trade, Industry and Cooperatives will undertake, in fulfillment of its mandate in line with the NDP II strategic objectives, NRM Manifesto and sub-sector development plans. The Vision, Mandate and Objectives of the Ministry are in accordance with the Constitution of the Republic of Uganda, Vision 2040 and the Second National Development Plan (2015/ /20). 2. The performance and plans of the Trade, Industry and Cooperatives Sector is highlighted below. Overview of the Trade, Industry and Cooperatives Sector Budget 3. Madam Speaker, the following table shows a detailed outlay of the resources allocated to the Sector: Table showing Sector Budget Allocation by Institution for Fiscal Year 2017/18 Uganda Shillings Billions Entity Wage NWR GoU Devt Donor Devt NTR Arrears Total MoTIC AGOA Secretariat MTAC UDC UWRSA UIRI UNBS UEPB LG Grant DCOs Total The total Sector Budget allocation of UShs billion, a share of 0.39 percent of the UShs. 28,252.5 billion National Budget for Fiscal Year 2017/18. HIGHLIGHTS OF SECTOR PERFORMANCE a) Oversight of Statutory Bodies 5. To ensure effective, transparent, and accountable governance of the Ministry s Agencies, there is need for a competent governing entity a Board or a Council. To this effect, the Uganda Development Corporation Bill was passed into law by Parliament, and steps to appoint a Board for it are in advanced stages. The Boards Preliminary viii

13 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Executive Summary of the other Agencies have continued to oversee their operations on behalf of the Ministry. b) Policy and Regulatory Environment 6. The Ministry has been working towards creating an enabling and a conducive trade and investment environment through formulation of various laws, regulations and policies as follows. 7. The Policies so far passed by Cabinet in the recent years include: the Buy Uganda Build Uganda (BUBU) Policy, National Leather and Leather Products Policy, National Competition and Consumer Protection Policy, National Accreditation Policy, Micro Small and Medium Enterprise (MSMEs) Policy, National Grains Trade Policy, and the National Standards Quality Policy 8. The following Strategies developed and published in the Sector: the National Export Development Strategy, Buy Uganda Build Uganda Implementation Strategy, and the Sector Development Plan. 9. The Bills passed by Parliament and assented to by the President include: the Uganda Development Corporation Act 2016, the Trade Licensing Amendment Act 2015, and the Hire Purchase Act The Bills before Parliament include: The Anti-Counterfeit Goods Bill, the Sale of Goods and Supply of Services Bill, the Cooperative Societies Act Amendment Bill, the Common Market for the Eastern and Southern Africa (COMESA), and the Sugar Bill. Preliminary ix

14 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Executive Summary 11. The Bills to be presented to Parliament include: The World Trade Organisation (WTO) Domestication Bill. 12. The various Bills under Development include: COMESA Treaty Implementation Bill, National Consumer Protection Bill, Competition Bill, National Industrial Development Bill, Produce Regulatory Bill, Cooperative Bank Bill, Metrology Bill, Accreditation Bill, Kigumba Cooperative College Bill, Alcohol Bill and the Management Training and Advisory Centre (MTAC) Bill. 13. The various Trade Agreements that have been negotiated and still under negotiation include the EAC Common Market Protocol, COMESA Free Trade Area, WTO Trade Facilitation Agreement, EAC-COMESA-SADC Tripartite Agreement, and the EAC-EU Economic Partnership Agreement (EPA). 14. The Policies and Strategies that are still in advanced stages of development include: National Trade Fair and Exhibition Policy, Sale of Goods and Supply Services Policy, the Gift Policy, the Tea Trade Policy, National Trade in Services Policy, Packaged Water Policy, National Iron and Steel Policy, Intellectual Property Rights Policy, Sanitary and Phyto-sanitary Policy, Spices and Condiments Policy, Cement Policy, Industrial Sector Strategic Plan and Supermarket Regulations and Distribution Guidelines. c) Export Trade Performance 15. According to the 2016 UBOS Abstract, during 2014, the country experienced the highest trade deficit of US$ 3,462.8 million in comparison to the previous four years. The total value of imports fell by 8.9 percent in 2015 after a significant increase of 4.6 percent in The overall export earnings reduced slightly by 0.4 percent in 2015 compared to the previous year. Formal exports increased by 0.2 percent from US$ 2,262.0 million in 2014 to US$ 2,267.0 million in The Preliminary x

15 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Executive Summary contribution of formal Traditional Exports (TEs) to the overall formal export earnings decreased from 25.8 percent in 2014 to 25.0 percent in The Asian continent maintained as the major source of Uganda s imports and the COMESA regional bloc remained as the main destination for Uganda s exports. 16. The overall reduction in export earnings may be attributed to among others, instability in South Sudan, declining fish export and the many notifications received from the EU market in respect of the standards quality shortcomings of our horticultural exports. Our main exports are maize flour, beans, agro processed foods, cement, iron and steel products, human medicine, vegetable oil and soap, tea, milk products, art & crafts, Sugar, coffee, tobacco, fruits, vegetables, beers, rice, vegetables, plastics, hides & skins, corrugated boxes, meat and chilled fish. d) Elimination of Non-Tariff Barriers 17. The Ministry engaged in bilateral and regional initiatives in respect of the elimination of Non-Tariff Barriers to trade and investment to facilitate the smooth flow of trade with support from Trade Mark East Africa. Through regional and bilateral initiatives, a number NTBs such as road blocks have been addressed. The Ministry intensified stakeholder consultations with various business communities in Uganda including holding Breakfast Meetings with the Nordics, USA and British business communities. e) African Growth Opportunities Act 18. Awareness creation workshops were held in Mbarara and Kabale on New Rules of the African Growth Opportunities Act and how to access it now. A Delegation from Ugandan Private Sector and Parliament TTI Sessional Committee were facilitated to travel to the United States of America to lobby for hosting the AGOA Summit in Uganda for the Year Unfortunately, Uganda was not successful and Togo (West Africa) is to host the Summit. Preliminary xi

16 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Executive Summary 19. USA under the new registration of AGOA requires each country to come up with a Strategy. Data collection and analysis exercises were undertaken to facilitate the development of the National AGOA Strategy as part of the legitimate requirements by the United States of America. This will help the country to focus on products with a competitive and comparative advantage rather than the broad range of 8600 products. f) Enforcement of Standards and Quality Assurance 20. The Pre-shipment Verification of Conformity (PVoC) programme has entered its third year of operation with up to 76,618 consignments inspected in country of origin. This has reduced substandard imported products by about 30%. The programme now covers 10 product categories, including food and food products, electrical and electronics including solar equipment, automotive products and inputs, chemical products including cosmetics, mechanical materials and gas appliances, toys and mosquito nets. The Standards House for UNBS in Bweyogerere was completed in February The Bureau is now embarking on construction of laboratories, and will start with Food Safety Laboratories in 2017/ A total of 95 standards were developed. These include National, Regional and International standards. Specifically 4 were for Food and Agriculture, 17 for Engineering, 45 for Chemical and Consumer, and 29 for management services. A total of 529 certification permits were issued 50 of which were issued to MSMEs as indicated. 411 were issued in the central region and 40 of them were for MSMEs, 58 were issued in the Eastern region and 3 of them were for MSMEs, 6 were issued in the Northern region and 5 of them were for MSMEs, 54 were issued in the Western region and 2 of them were for MSMEs. Out of the 50 MSMEs permits issued, 11 were for female owned products and 39 were for male owned products. Preliminary xii

17 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Executive Summary A total of 522 market inspections were conducted. This covered central, western, Northern and Easter region. The inspection was for sampled outlets which included shops, super markets and factories. A total of 5,481 samples were tested. These samples were drawn from sampled imported goods, voluntary submitted samples and samples from market surveillance. These samples included samples from small medium and micro enterprises across the country. 22. A total of 400,659 weights and measures were verified. This was achieved by working in all regions of Uganda by covering both small and big businesses equipment were calibrated. This includes equipment used by MSMEs run by men, women, youth and PWDs. A total of 50,820 import consignments were inspected. This inspection was done at all border points manned by UNBS staff. Items which are dangerous to human beings like food stuffs are a must inspect. Items which affect vulnerable groups like babies were equally targeted. A total of 13 stakeholder engagements were conducted across the country, resulting in 2 per region with an exception of central where 7 were conducted. g) Local Economic Development 23. In line with the decentralization policy, the District Commercial Offices have a critical role in the provision of trade and investment facilitating services. In the Financial Year 2016/17, the Commercial Services Conditional Grant was boosted by an additional provision of UShs. 2 billion which has enabled this Ministry to roll out its programmes to all Local Governments. However, the Grant is still limited in size to cause real impact in the Local Governments. 24. This Grant is utilized to support the Local Government Commercial Officers to promote trade through enterprise development, market linkages to domestic, regional markets, improvement of standards of products, promote consumption of locally produced goods. The Grant is also facilitating the promotion and development of cooperatives including production cooperatives, marketing Preliminary xiii

18 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Executive Summary cooperatives and financial cooperatives in addition to value addition through promotion of agro processing. The Grant will also promote Local Economic Development as the sixth pillar of Decentralization. This Ministry has prepared Indicative Planning Figures (IPFs) against which all Local Governments are expected to prepare Annual Work Plans and Detailed Estimates necessary for Commercial Extension Service Delivery in line with the Guidelines provided. It is critical that the approved structure for a separate Local Government Commercial Services Department be operationalized away from the Production Departments. h) Industrial Development 25. The Index of Production which measures output from manufacturing activities recorded for the year 2015 was 222.9, which was a 1.4 percent increase from the year that ended Chemicals, Paint, Soap and Foam Products group index registered the highest increase of 24.7 percent. 26. The annual Producer Price Index for Manufacturing (PPI-M) (Combined) rose by 6.9 percent for the year ending The rise in the producer prices was due to a general rise in all the subsectors mainly due to a rise in prices of Food Processing (9.4 percent), Drinks and Tobacco (4.6 percent), Chemical, Paint, Soap and Foam Products (0.3 percent) and Bricks and Cement (11.5 percent). The PPI-M (Local) registered an annual average rise of 8.2 percent in 2015 from The PPI-M (Export) registered an annual average rise of 1.5 percent in 2015 from The growth of Uganda s Exports in the region are more inclined towards industrially processed products which include sugar, agro-processed foods and Iron and Steel, and confectionaries. The Ministry is undertaking the growth of industrialization through the following strategic initiatives. Preliminary xiv

19 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Executive Summary 28. On 15 th May 2016, Kiira Motor Corporation launched Africa's first solar-powered electric bus - the Kayoola. It is hoped that by 2018, more than 7,000 people could be directly and indirectly employed in the making of the Kayoola. Plans are underway to set up the Assembly Plant in Jinja Industrial Park. The corporation currently employs 32 people, but hopes to have 200 employees by The initial plans are to produce pick-up trucks, sedans, light and medium duty trucks and buses to East Africa and beyond. 29. With ongoing support from the South Korean International Cooperation Agency (KOICA), the Teso Fruit Factory construction in Soroti will be completed and operational by September Several Fruit Farmers in Teso Region have undergone training in the areas of modern agronomic practices, agribusiness, value addition and value chain management in hope that this training will increase production levels in terms of quantity and quality in order to sustain the fruit factory. 30. Government through the Uganda Development Corporation has procured Tea Processing equipment for Tea Factories in Kisoro and Kabale. Land was also secured from Luwero District Local Government for the construction of Luwero Fruits Factory, another project under UDC. 31. Since its inception, the Rural Industrial Development Programme (formerly OVOP) has established 40 functional value addition facilities in the thirty six districts of operation, trained 584 members from 19 enterprises supported in Business Management, Principles of Cooperative Movement, Product Quality Requirements and value addition skills, and facilitated three (3) enterprises in Kamwenge, Kabale and Kisoro districts to develop Business Plans. This year, a Feed Mixer was delivered and installed for Chicken Products Investments Ltd in Preliminary xv

20 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Executive Summary Wakiso District, a Water Purification System and Water Bottling Machine and a Juice Pasturizer were delivered and installed for Value Addition Hub Uganda Ltd. A Water Purification System and Bottle Filling Machine was also delivered to Beveron Investments Ltd in Kaliro District. A Maize Mill (600Kg/hr) and Maize Huller (600Kg/hr) were procured, delivered and installed for Bubale Innovation Platform. i) Industrial Research 32. It is vital to note that the Uganda Industrial Research Institute (UIRI) suffered a significant shortfall of UShs. 3.5billion in the first half of Financial Year 2016/17. This notwithstanding, the made the following achievements have been scored. The Institute signed a Project Implementation Agreement for a China and Uganda project to establish a Machining, Manufacturing and Industrial Skills Training Center in Namanve; UIRI embarked on an international consortium collaboration project funded by European Horizon 2020 for Biomedical Engineering Healthcare Platform Research Project; developed Biomedical Engineering Technologies; completed Technical Feasibility Study for a joint Uganda- South Africa Essential Oil Pilot Project in Luweero; UIRI Handmade Paper Production Plant was commissioned; Renewable energy production technologies were developed; transferred renewable energy technology for Bio-ethanol production - this project won an international award from World Association of Industrial, Technological Organisations (WAITRO) Social Innovation Award - Medellin Colombia on Conversion of Biomass waste into Green energy for Community Consumption; A renewable energy production technology for Briquette manufacturing was developed; Four value addition technologies were developed; Industrial training, laboratory analytical and technical advisory services were provided to various stakeholders and clients; A range of food and non-food products were developed Preliminary xvi

21 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Executive Summary and development, production and commercialization of a range of products from the UIRI business incubator was supported. j) Development of Micro, Small Medium Enterprises (MSMEs) 33. Following Cabinet approval of the MSME Policy and commitment of funds towards it, the Directorate of MSMEs is now operational. The Directorate organised the EAC Jua-Kali Nguvu Kazi (MSMEs) Exhibition at Lugogo UMA Show Grounds that was officiated by H.E. the President. 34. The Management Training and Advisory Centre (MTAC) has graduated 870 students at the level of Certificate and Diploma, and continuous assessment is being conducted to ensure we leverage the best of the entrepreneur spirit among the youth, women, men and PWDs. There are currently 437 students registered at the main campus and 238 at the Outreach Centres for ongoing entrepreneurial academic programmes. A total of 137 Students were supervised for the conference of Academic Award, while 323 were produced and issued out of the Centre. A total of 4544 participants were trained in various entrepreneurial courses across the Country in bid to promote the spirit. Most specifically of these, 104 Participants were trained in Craftsmanship Courses. k) Cooperatives Promotion and Development 35. In the Cooperative Sector, the Ministry registered 1,352 new cooperative societies last Financial Year and the total number of cooperatives is now 17,062. In partnership with the Project for Financial Inclusion in Rural Areas (PROFIRA) under Ministry Finance, Planning and Economic Development are working towards improving access to financial services through strengthening Savings and Credit Cooperatives. Preliminary xvii

22 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Executive Summary 36. Inspections and Special General Meetings have been conducted to address governance and management challenges in some cooperative societies and unions such as Bugisu Cooperative Union Ltd, Sebei Elgon Cooperative Union Ltd, among others. A total of 380 Cooperative Societies have been supervised to ensure compliance to the Cooperatives Law and Regulations. A total of 12 cooperatives were inspected to ensure compliance and proper management and governance. A total of 10 Cooperatives were audited to ensure proper financial ability and reporting. Investigations were undertaken on 4 cooperatives. 37. Government provided direct financial support to some cooperative societies and unions to bail them out of liquidity crises. In the Financial Year 2016/17, Government has provided compensation of UShs. 5 Billion for the assets lost by Masaba Cooperative Union Ltd. l) Warehouse Receipt System and Commodity Exchange 38. Uganda faces the challenge of unstructured commodity trade especially for agricultural commodities. The lack of adequate storage facilities to enhance postharvest management and ensure quality to provide basic infrastructure for structured commodity trade are some of the factors that cause the low prices and volatility of our agricultural commodities. To address this, Cabinet approved the appointment of the UWRSA Board and we now have a functioning Authority, but there is still need for an operational and efficient Commodity Exchange. The Ministry engaged stakeholders in the matter of the revitalization of Commodity Exchange. I commend the vibrancy of the Grain Council of Uganda and UDC as new shareholders that have provided impetus for the revitalization and rebranding of Uganda Commodity Exchange to the new Uganda National Commodity Exchange. Preliminary xviii

23 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Executive Summary 39. A total of 92 storage facilities have been pre-inspected for WRS public licensing. Specifically 26 of these with capacity of 156,400MTs have been approved for licensing before end of FY 2016/17. A total of 100 producers and small scale traders have been sensitized in use of the WRS and commodity trading. 40. Standards for 18 agro-commodities mainly grains/cereals have been reviewed; implementation and enforcement mechanisms have also been developed by the Bureaus at East African Community level through the Northern Corridor Integration Projects. The Warehouse and Warehousing Standard for bagged cereals and pulses has been developed and harmonization for interpretation with other East African Partner States is ongoing. PLANS FOR FINANCIAL YEAR 2017/18 a) Policy and Regulatory Environment 41. The Ministry shall improve the Regulatory Framework for creating an enabling environment for Trade that enhances wealth creation by finalization of the competition and consumer protection Bill, implementation of the Competition and Consumer Protection policy, Finalization of the Domestication of the WTO Treaty Implementation Bill, Finalization of the Trade Fair and Exhibition Policy, Increasing Trade in Services through Implementation of the Policy on Trade in Services and Leather and Leather Products in the FY 2017/ The Sector also plans to develop sectoral Policies for Spices and Condiments, Iron and Steel, Tea Trade, Cassava Trade and Packaged Water, and subsequently submit them to Cabinet for approval. The Produce Marketing Bill and Industrial Development Bill will also be further developed and presented to Cabinet. Preliminary xix

24 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Executive Summary 43. The Ministry plans to continue undertaking Technical Guidance, Inspections & Compliance monitoring Field Visits aimed at enhancing implementation of Industrial Development Initiatives, Policy Oversight and Environmental monitoring in productive sectors of sugar, extractive industries, leather, and food processing among others. Sector strategies and key interventions shall be overseen through the organization of periodic meetings in the Ministry on key sectors including sugar, leather, textiles, and agro-processing clusters among others. b) Market Access and Export Promotion 44. Government will implement National Development Export Strategy (NEDS) to increase Exports of the Selected Priority Products. We plan to carry out studies to inform policy on the development of exports for the identified priority products and dissemination of Information on the NEDS. 45. The Ministry shall secure Market Access for Ugandan goods and Services on regional and international level through Training Staff on the National Trade Negotiation Team (NTNT) in Rules of Origin, Trade Facilitation and tariff liberalization modalities, Finalization of the Negotiation for the US-EAC Trade and Investment Treaty, Securing Market Access opportunities through Negotiation of the Continental Free Trade Area Agreement, Studies to inform Uganda's negotiating interests at the WTO, Promote Uganda's Commercial and Trade Interests through the Missions and Embassies Abroad, Increased benefits from COMESA programmes and activities through better Coordination, Securing Market Access for goods through the Negotiations of the COMESA -EAC-SADC Tripartite Free Trade Area, Technical Guidance for Policy Formulation and Implementation through regular IITC Consultation Meetings. c) Domestic Trade and Promotion of Local Content Preliminary xx

25 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Executive Summary 46. In bid to promote local content through the BUBU Implementation Strategy, several stakeholder consultative meetings has be organised, an inventory of locally produced goods and services shall be prepared, and non-certified BUBU products shall be identified and prepared for certification. A survey of products and services Government may demand shall be undertaken and key Private Sector Associations and businesses shall be sensitized on the roles to implement Buy Uganda Build Uganda Strategy. 47. The Ministry shall also conduct verification of tobacco stocks grown by men, women and youth in the specific districts to assess how best to promote and regulate the trade in tobacco for their economic benefit. 48. Capacity Building for Trade Promotion shall be built by enhancing skills and competencies of staff from Trade Facilitating Institutions, Private Sector and other MDAS. Training of SMEs in Trade promotion activities. A total of 5,000 Application Forms and Certificates shall be printed and issued for Non-Citizens, Tobacco and Traveling Wholesalers Licenses countrywide. A total of 500 Hire Purchases Application Forms and Licenses printed and issued. 49. Product Market Research and Development/Trade policy research, Trade Licensing Data shall be collected from 20 Municipalities for the development of the Business Register, the Sector plans to carry out verification visits on Non-Tariff Barriers at various border posts. 50. Trade Information and Product market Research: Trade Licensing data shall be collected from 20 municipalities for development of an Authentic National Business Register. Preliminary xxi

26 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Executive Summary 51. Economic Integration and Market Access: Non-Tariff Barriers to Trade shall continue to be identified, monitored and verified for redress at 6 border posts on a Quarterly basis by the National Monitoring Committee with support from TradeMark East Africa (TMEA). Uganda's position shall be represented at the EAC Technical, Sectoral and Summit meetings regarding progress on EAC integration. There shall be coordinated delivery of Aid for Trade and TRTA within the Sector and its associate and interdependent Sectors. The implementation of the Diagnostic Trade Integration Study (DTIS) Action Matrix shall continue to be supported. 52. Trade Policy shall continue to be implemented at District through Commercial Inspectorate Services. Uganda s products and services shall be promoted for the regional and international markets. The Sector shall continue rooting for increased benefits for the Ugandan Private Sector from the EAC Integration arrangement and the COMESA FTA. This shall best be achieved through implementation of the EAC Common Market and promotion of Private Sector Competitiveness. d) Cooperative Promotion and Development 53. To revitalize the Cooperative Movement, one thousand (1,000) Cooperative Societies shall be supervised to ensure compliance to Cooperative Law, ten (10) Cooperatives audited to ensure proper financial ability and reporting, ten (10) Cooperatives inspected to ensure proper management and governance by the leaders and ten (10) investigations will be undertaken. International Cooperative Day shall be nationally commemorated to keep up public awareness on the Cooperative Movement and its latest developments. 54. Government shall support cooperatives to produce export value-added products. Further efforts shall be made by Government to diversify the range of cooperative Preliminary xxii

27 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Executive Summary enterprises. Government shall compensate Cooperative Unions for the losses incurred in war debts to the tune of UShs. 2 billion. e) Warehouse Receipt System and Commodities Exchange 55. The Uganda Warehouse Receipt System Authority shall sensitize and train 800 stakeholders on WRS Cooperative business management and entrepreneurship. The UWRSA shall deploy the delivery assurance mechanism at licensed warehouses. A total of 15 Storage Facilities shall inspected. Stocks in 15 facilities shall be inspected and certified. The Warehouse Receipt System operations shall be strengthened with Quality Assurance Kits and ICT Kits in licensed storage facilities for the promotion of structured commodities trading. 56. Through Uganda Warehouse Receipt System Authority, the Ministry shall support Commodity Standards Development and harmonization of interpretation of EAS (East African Standards for Grains and Cereals), inclusion of other commodities like coffee, tea, cotton other than grains and cereals in the structured commodity trading to ensure export promotion in the Fiscal Year 2017/18. f) Industrial Promotion and Development 57. Through implementation of the Rural Industrial Development Project, the Sector shall establish various Agro-Processing facilities across the country to promote value addition to the NDPII Priority Crops including: cotton, coffee, tea, maize, rice,cassava, beans, fish, beef, milk, citrus and bananas. 58. A total of 60 Technical Guidance and Inspection Field Visits shall be conducted to various Industrial establishments across the country to assess their performance, production capacity, challenges and prepare Policy remedies to address them. Awareness on the role of industries in the economic development of Uganda shall Preliminary xxiii

28 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Executive Summary be done through commemorating the Africa Industrialization Day in November Various value addition technologies and product prototypes shall also be promoted. 59. The Uganda Development Corporation shall continue works on the Teso Fruit Factory in Soroti in collaboration with KOICA, the Kiira Motor Corporation developments on the Car Plant establishment, the Isingiro Fruit Factory and the Tea Factories establishment in Kyenjojo and Kayonza among other industrial investments to be undertaken by Government. UDC shall participate in local and regional symposiums on the latest agro-processing technical regulations and standards and their related impact on the trade competitiveness of agro-processing entities. g) MSMEs Promotion and Development 60. An MSME Online Digital Registry shall be developed based on existing information within Government organs to support synergies and coordination of Government interventions, including the classification of enterprises, to extend customized support for the various clusters formed. A total of 200 MSMEs and Stakeholder Institutions shall be trained in Technical Hands on Skills and on Public Sector Best Practices for MSMEs Development. Benchmarking Studies shall be undertaken on Best Practices in in MSME Technology and Market Development. A total of 300 MSMEs supported to participate in National and Regional Exhibitions through coordination and Business-to-Business (B2B) Linkages. Workshops shall be organised for MSMEs on Operational Business Plan Development. 61. A National State of MSMEs Sector Study shall be undertaken for Policy Guidance and entry in the National Database/Registry. Two Awareness Campaigns shall be Preliminary xxiv

29 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Executive Summary undertaken on Business Start-ups. MSMEs Products and Production Systems prepared to acquire Certification and Quality Marks for uptake of products on Domestic and Regional Markets. MSMEs innovations and Technologies supported to adopt Best Industry and Cleaner Production practices to increase their Efficiency and Productivity to match Domestic Demand Select MSMEs from Strategic supported in Product Packaging and Branding to trigger others to adopt the Same. 62. A total of 200 MSMEs shall be monitored for performance, capacity and classification, and appropriate technical guidance shall also be provided to them. A total of 12 Technical Guidance Visits and On-Site Business Meetings shall be undertaken. MSME Products shall be classified and Clusters formed for focused Policy and Programme interventions. A total of 50 MSMEs shall be trained in hands on skills to produce demanded Products and Services in right Quality Framework. A total of 100 ToTs (Trainers of Other Trainers) shall be trained in Development of MSMEs at the Local Government Level to stir Local Economic Development (LED). A total of 250 MSMEs shall be supported with practical knowledge and skills in Business Financial Management Tools and trained on the Development of Operational Business Plans. A total of 20 awareness guidelines and training materials developed on quality maintenance. A total of 20 registered MSMEs certifying their products. A total of 50 MSMEs products and systems prepared to acquire certification and quality marks. Five (5) Quality Assurance and Testing Kits shall be acquired to support MSMEs. 63. The Management Training and Advisory Centre (MTAC) shall continue engaging its Governing Council on matters pertaining to the Centre s growth. The Centre plans to aggressively promote the MTAC Brand in current and new markets. The Centre shall facilitate and coordinate enterprise development research. There will also be continuous Quality Improvement in Research and Consultancy, Preliminary xxv

30 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Executive Summary revitalization of the Consultancy department through Product Development, production of Research, consultancy and publications, increased range of business support services, facilitation and coordination of the enterprise development research, enhanced monitoring, evaluation and reporting on MTAC SPI courses and projects at the Centre. CONCLUSION 64. With the support of the key stakeholders such as Parliament, Development Partners, the Private Sector, and other Government Departments, the Ministry will continue to pursue its mandate to realize its objectives and those in the Second National Development Plan. This will eventually lead to wealth creation, employment, economic growth and national development. Preliminary xxvi

31 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Organisational Structure, Strategic Statements and Functions Organisational Structure of the Ministry Hon. Ministers Permanent Secretary Director; Micro, Small and Medium Enterprises Director; Trade, Industry and Cooperatives Under Secretary, Finance and Administration Commissioner, Business Devt & Quality Ass. Commissioner, Processing & Marketing Commissioner, Internal Trade Commissioner, External Trade Commissioner, Coop. Dev t Commissioner, Industry & Tech Executive Director, UEPB Executive Director, UWRSA Executive Director, UIRI Chairperson, AGOA-Sec Executive Director, UNBS Executive Director, UDC Executive Director, UCPC Executive Director, MTAC Executive Director, TEXDA Policy and Planning Human Resource Internal Audit Procurement & Disposal Unit Resource Centre and ICT Accounts Unit Legal Unit Local Government, Commercial Services Departments Preliminary xxvii

32 Trade, Industry and Cooperatives MPS: Trade, Industry and Cooperatives Organisational Structure, Strategic Statements and Functions Vision 1. The vision of the Ministry is: Sustainable cooperatives, competitive trade and world class industrial products and services Mission 2. The mission of the Ministry is: To develop and promote a competitive and export-led Private Sector through accelerating industrial development for economic growth. Mandate 3. The mandate of the Ministry of Trade, Industry and Cooperatives (MoTIC) as derived from the Constitution of the Republic of Uganda (1995 Article 189, Sixth Schedule Sections 11, 12, 13, 20, 23, 25 and 29) is: To formulate, review and support policies, strategies, plans and programs that promote and ensure expansion and diversification of trade, cooperatives, environmentally sustainable industrialization, appropriate technology development and transfer to generate wealth for poverty eradication and benefit the country socially and economically. Key Functions 4. The key functions of the Ministry, as derived from the mandate are to: i) Formulate and review, where necessary appropriate policies, legislation, regulations and standards for sustainable development of trade, industrialization and technology development, cooperatives movement and other tradable national products for increased wealth creation and benefit to the country; ii) Initiate, coordinate, support, oversee and where applicable, facilitate implementation of strategies and programmes aimed at enhancing the development and promotion of trade, the cooperatives, industry and technology, and ensure their maximum benefit to the country; iii) Inspect, monitor and evaluate the performance, progress, standards, state and efficiency of the various sectors, under its mandate for quality assurance, policy direction and guidance; iv) Conduct studies and evaluate the impact of the sectoral, fiscal and other policies on the advancement of the diversified sectors and their effect on the poverty eradication program so as to advise authorities appropriately; v) Promote and coordinate research activities and initiatives of the sector with a view to ensure that results are efficiently and effectively utilized and are beneficial to the country and all stakeholders; vi) Assess the need and where necessary, mobilize resources to support balanced industrial, cooperatives, and entrepreneurial development for eradication of poverty in the country; and, vii) Collect, process, analyze, store and disseminate national and international information on the sectors and provide an input for rational decision-making; Strategic Objectives of the Sector in NDP II 5. The strategic objectives and their accompanying resources listed below are derived from the Second National Development Plan (2015/ /20) and the Trade, Industry and Cooperatives Sector Development Plan (TIC-SDP), and their strategies are incorporated into the NRM Party Manifesto. Preliminary xxviii