Population (Millions)

38.82

2017

GDP (Billion)

$25.89

2017

GDP Growth

5.9%

2017

Inflation

5.6%

2017

country brief

Uganda

Country Context &
Overview.

Uganda strategic geographic position makes it a vital node for the region’s trade with South Sudan, Kenya, Rwanda, and DRC. Since 2010, Uganda’s annual economic growth rate has averaged 5.4% with the country surpassing the MDG target of halving poverty by 2015 (United Nations Development Programme MDG Goals Report 2015).

The country continues to face economic challenges including a high trade deficit, high cost of doing business due to poor infrastructure and low-value addition to its agriculture exports. Stagnant domestic revenue mobilization and uncertainty around oil production further compounds the situation. These challenges, hinder the development of key sectors like agriculture, manufacturing, and services, thus limiting their ability to satisfy the demand for jobs and contribute to poverty reduction. Uganda poverty level currently stands at 19.5%.

The Government of Uganda’s flagship Second National Development Plan aims to tackle some of these challenges.

TMEA aims to deliver further reductions to time and costs of doing business in Uganda. This will be achieved through support to ICT for Trade (ICT4T), enhancing coordination among trade agencies and upscaling successful interventions such as Electronic Cargo Tracking System (ECTS) and Authorised Economic Operator (AEO) to the regional level. TMEA will encourage export-led growth by supporting the production of higher value added tradable products. Supporting the private sector advocacy around standards, quality and market access for high potential products will increase the export capability of Uganda. To complement this, the programme will facilitate reforms in technology, skills and data within the logistics sector to enable agile, lean and efficient supply chains.

Continuity and Innovation in
TMEA Strategy 2:

TMEA aims to deliver further reductions to time and costs of doing business in Uganda. This will be achieved through support to ICT for Trade, enhancing coordination among trade agencies and upscaling successful interventions such as ECTS and AEO to the regional level. TMEA will encourage export-led growth by supporting the production of higher value-added tradable products. Supporting private sector advocacy around standards, quality and market access for high potential products will increase export capability of Uganda. To complement this, the programme will facilitate reforms in technology, skills, and data within the logistics sector to enable agile, lean and efficient supply chains.

New areas of work will include an intermodal logistics hub at Gulu, which will elevate the Gulu-Juba Corridor; supporting the increase in trade with DRC and South Sudan, and greater inclusion and gender mainstreaming- through support to Women in Trade.

OUTCOME 1: REDUCING BARRIERS TO TRADE

Improved efficiency and capacity of transport and logistics networks

DETAILS EXPECTED RESULTS BY 2023

OSBP/ Jetty improvement at Ntoroko and Goli (DRC); Improved efficiency of cross border infrastructure at Ntoroko and Goli and Busia
Cross-border markets (Elegu, Busia) Enhanced cross border trade
Gulu Logistics Hub Efficient trade logistics services; More efficient cargo distribution in Uganda
Transport Funding Policy (revenue options) Improved operational and regulatory environment in Uganda
Transactional support on PPPs (Jinja/ Malaba) Enhanced regulatory framework for policy reforms in the transport sector

Improved standards and NTBs

DETAILS EXPECTED RESULTS BY 2023

UNBS and private sector improves quality and standards Enhanced testing capacity; Enhanced efficiency and recognition of private sector laboratories
NTB Elimination Efficient implementation of national and regional NTB mechanisms

Improved and more transparent trade processes and systems

DETAILS EXPECTED RESULTS BY 2023

Customs Development Improved efficiency in processing and improving key trade transactions to fulfill import, export and transit regulations in Uganda; Improved availability of trade process information for formal and informal traders and operators

Improved regulatory environment for trade

DETAILS EXPECTED RESULTS BY 2023

Regional trade integration – policy Enhanced EAC regional integration for trade

OUTCOME 2: ENHANCING PRIVATE SECTOR MARKETS FOR TRADE

Better private sector-led advocacy for trade

DETAILS EXPECTED RESULTS BY 2023

Public-Private Dialogue and advocacy framework on trade issues Enhanced quality of Private sector/ civil society-led policy formulation for trade

Increased efficiency in private sector logistic service

DETAILS EXPECTED RESULTS BY 2023

National Logistics Platform (NLP) Increased efficiency in the provision of trade logistics services
Export growth for export-ready businesses Increased export capacity of TMEA Supported SMEs
Market System Upgrading Improved linkages of specific sectors along the value chain
Trade in services (tourism and other services sectors) Improved competitiveness of the tourism sector

Increased export capacity of East African businesses

DETAILS EXPECTED RESULTS BY 2023

Export growth for export-ready businesses Increased export capacity of TMEA Supported SMEs
Market system upgrading along growth hubs Improved linkages of specific sectors along the value chain
Trade in Services (tourism and other services sectors) Improved competitiveness of the tourism sector

Greater inclusion of women and small businesses in trade

DETAILS EXPECTED RESULTS BY 2023

Gender-responsive trading environment. Enhanced quality of Private sector/ civil society-led advocacy and policy formulation for gender inclusive trade
Capacity building Improved small traders capacity in key trade procedures and processes
ICT and Innovation Simplification of trade processes for women and informal traders

Increased Physical Access to Markets

Details Results To Date
• Construction of One Stop Border Posts (OSBP) at Busia, Mirama Hills, Kagitumba and Mutukula • Upgrade Mirama Hills Road • Busia, Mutukula and Mirama Hills OSBPs completed and handed over to GoU • Road construction started in September 2014 and is 60% completed

Enhanced Trade Environment

Details Results To Date
Modernize Customs Business Systems: 1) Customs Management System(ASYCUDA World) 2) Authorized Economic Operators(AEO) 3) Electronic Cargo Tracking System (ECTS) • Customs modernization programme (AEO, ECTS, ASYCUDA) have contributed to a reduction in transit cost from US$ 3,390 to US$ 1,176 and reduced average transit time from 34 days in 2010 to 13 days in 2016 • Reduction in clearance time from 3 days to 1 day for AEO companies ( 80% of customs revenue) All these reforms contributed to a 48% increase in customs revenue
Support improvements in testing by Uganda National Bureau of Standards (UNBS) Reduction from 19 days in 2013 to 8 days in 2015
Increase in the number of sample products tested by the Bureau of standards from 7,277 in 2013 to 9,940 in 2015
Eliminate NTBs 54 out of 64 NTBs identified by new SMS reporting were eliminated in 2015

Improved Business Competiveness

Details Results To Date
Set up a Logistics Advocacy Platform- 2 positon papers developed by Shippers Council: – Use of local insurance; and – Revamping Lake Victoria Transport System
Upgrade Quality Standards for Maize – SEATINI • Approval of legislation on Sesame Standards by the World Trade Organization. Training of over 1,667 farmers (400 women); • Adoption of quality based pricing leading to the increase of maize price from UGX400 per kg to UGX 700 per kg in these districts

Moses Sabiiti

Uganda / South Sudan – Country Director

Moses is currently the Country Director for TradeMark East Africa in Uganda where he has worked for eight years. Moses is a highly experienced professional with 25 years of experience in implementing trade facilitation, regional integration, logistics and investment climate reforms in East Africa.Moses previously worked with URA at the Commissioner General’s office for 17 years in areas of Reform and Modernisation, Corporate Performance Reporting, Monitoring and Evaluation and Customs. Moses holds a Master of Business Administration, a Master of Public Administration and Management and a Bachelor of Arts in Management.

Email:Moses.sabiiti@trademarkea.com

Phone:+256 312 223 400

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