uganda - gujarat technological university pdf 2012/803 - uganda.pdf“uganda” submitted to patel...

114
A Global / country STUDY AND REPORT ON UGANDASubmitted to Patel Group of Institutions, Motidau. IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ASMINISTRATION In Gujarat Technological University UNDER THE GUIDANCE OF Faculty Guide Prof. (Dr.) Hitesh Patel Submitted by [Batch: 2010-12] MBA SEMESTER III/IV (Patel Group of Institutions, Motidau) MBA PROGRAMME Affiliated to Gujarat Technological University, Ahmedabad. March, 2012

Upload: others

Post on 29-Jun-2020

0 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

A

Global / country STUDY AND REPORT

ON

“UGANDA”

Submitted to

Patel Group of Institutions, Motidau.

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ASMINISTRATION

In

Gujarat Technological University

UNDER THE GUIDANCE OF

Faculty Guide

Prof. (Dr.) Hitesh Patel

Submitted by

[Batch: 2010-12]

MBA SEMESTER III/IV

(Patel Group of Institutions, Motidau)

MBA PROGRAMME

Affiliated to Gujarat Technological University, Ahmedabad.

March, 2012

Page 2: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

TABLE OF CONTENT

SR. PARTICULARS PAGE NO

PART-1 ECONOMIC OVERVIEW OF THE COUNTRY

1 Demographic Profile Of The Country 3-7

Economic Overview of the Country 7-9

Overview of Industries, Trade and Commerce 10-13

Overview Different economic sectors of Uganda country 14-15

Overviews of Business and Trade At International Level 16-17

Present Trade Relations and Business Volume of different

products with India

18-19

PESTE Analysis 20-22

PART-II SECTOR ANALYSIS

2 Introduction of the country 24-30

Structure, Functions and Business Activities of Telecom sector 31-46

Comparative Position of Telecom sector with India 47-53

Present Position and Trend of Business (import / export) with

India during last 3 to 5 years

54-65

Policies and Norms of India for Telecom Sector for import /

export including licensing / permission, taxation etc.

66-74

Policies and Norms of Uganda for Import or export to the

Uganda including licensing / permission, taxation etc.

75-82

Present Trade barriers for Import / Export 83-88

Potential for Import / Export in India 89-94

Business Opportunities in Future 95-101

Conclusions 102 -110

Bibliography 111-114

Page 3: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

PART-I

ECONOMIC OVERVIEW

Page 4: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Demographic Profile of the Country

Populace

Estimations for this country overtly take into version the effects of excess death due to

AIDS; this can result in inferior life expectancy, complex infant death, higher death

rates, lower populace growth rates, and changes in the dispersal of population by age

and sex than would otherwise be expected.

Age structure

Below 14 ages: 49.9% (male 8,692,239/female 8,564,571)

15-64 ages: 48.1% (male 8,383,548/female 8,255,473)

Above 65 ages and over: 2.1% (male 291,602/female 424,817) (2011 .)

Middle age

Total : 15.1 ages

o Male:15 ages

o Female: 15.1 years (2011 )

Populace growing rate: 3.576% (2011 )

Natal rate: 47.49 births/1,000 population (2011 .)

Page 5: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Demise rate: 11.71 deaths/1,000 population (July 2011 .)

Remaining migration rate: 0.02 migrant(s)/1,000 populations (2011 .)

Urbanization

Urban population: 13% of total population (2010)

Rate of urbanization: 4.8% annual rate of change (2010-15 .)

Sex relation

On birth: 1.03 male (s) / female

Below 15 years: 1.01 male (s) / female

15 to 64 years: 1.01 male (s) / female

65 years and above: 0.7 male (s) / female

Total populace: 1.01 male (s) / female (2011 .)

Baby humanity rate

Entire: 62.47 demises/1,000 live deliveries

o Male: 66.05 demises/1,000 live deliveries

o Female: 58.77 demises/1,000 live deliveries (2011 .)

Life expectation at birth

Entire populace: 53.24 ages

o Male: 52.17 ages

o Female: 54.33 ages (2011 )

Total fruitfulness rate: 6.69 broods born/woman (2011 )

HIV/AIDS - adult occurrence rate: 6.5% (2009 est.)

HIV/AIDS - people animated with HIV/AIDS: 1.2 million (2009 )

HIV/AIDS - demises: 64,000 (2009 est.)

Page 6: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Major contagious diseases

Grade of risk: very high

Food or aquatic sicknesses: bacterial diarrhea, hepatitis A, and typhoid fever

Vectorborne illnesses: malaria, plague, and African try pan psoriasis (sleeping

sickness)

Water contact disease: schistosomiasis

Animal contact disease: rabies (2009)

Population

Noun: Ugandan(s) , Adjective: Ugandan

Cultural groups

Baganda 16.9 %, Banyakole 9.5 %, Basoga 8.4 %, Bakiga 6.9 %, Iteso 6.4 %, Langi 6.1

%, Acholi 4.7 %, Bagisu 4.6 %, Lugbara 4.2 %, Bunyoro 2.7 %, other 29.6 % (2002

census)

Faiths

Roman Wide-ranging 41.9 %, Protestant 42% (Anglican 35.9%, Pentecostal 4.6%,

Seventh Day Adventist 1.5%), Islams 12.1%, Further 3.1%, non Identified 0.9%

(2002 census)

Tongues

English (official national language, trained in score schools, used in courts of law

and by most journalists and some radio transmissions), Ganda or Luganda (most

widely used of the Niger-Congo languages, favored for native language books in the

wealth and may be trained in school), other Niger-Congo tongues, Nilo-Saharan

tongues, Swahili, Arabic

Literateness

Definition : 15th year and above people and over can read and write

Total populace: 66.8%

Page 7: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Mannish: 76.8%

Feminine: 57.7% (2002 census)

Economic Overview of the Country

Uganda has made significant progress in implementing economic reforms. During the

past six years, inflation came down to 5.3 percent from 16.1 percent, and the overall

fiscal deficit (excluding grants) was reduced to 6.5 percent from 11.2 percent of GDP.

Uganda has also made a strong structural adjustment effort in recent years, including in

the areas of trade liberalization, tax administration, and public enterprise reform.

Uganda has recently completed a poverty reduction strategy involving a participatory

process. While Uganda remains one of the poorest countries in the world, the share of

the population living in poverty declined to 44 percent in 1996/97, from 56 percent in

1992/93.

Uganda has considerable usual capitals, counting fertile loams, even precipitation, and

substantial mineral credits of copper and cobalt. The country has largely untapped

reserves of both crude oil and natural gas. While agriculture used to account for 56% of

the economy in 1986, with coffee as its main export, it has now been surpassed by the

services sector, which accounted for 52% of percent GDP in 2007. In the 1950s the

British Colonial regime encouraged some 500,000 subsistence farmers to join co-

operatives. Since 1986, the government (with the support of foreign countries and

international agencies) has acted to rehabilitate an economy devastated during the

Page 8: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

regime of Idi Amin and subsequent civil war. Inflation ran at 240% in 1987 and 42% in

June 1992, and was 5.1% in 2003.

During 1990-2001, the economy turned in a solid performance based on continued

investment in the rehabilitation of infrastructure, improved incentives for production and

exports, reduced inflation, gradually improved domestic security, and the return of exiled

Indian-Ugandan entrepreneurs. Corruption within the government and slippage in the

government's determination to press reforms raise doubts about the continuation of

strong growth.

In 2000, Uganda qualified for enhanced Highly Indebted Poor Countries (HIPC) debt

relief worth $1.3 billion and Paris Club debt relief worth $145 million. These amounts

combined with the original HIPC debt relief added up to about $2 billion. Growth for

2001-02 was solid despite continued decline in the price of coffee, Uganda's principal

export. Solid growth in 2003 reflected an upturn in Uganda's export markets.

Principal Growth Sectors

With the Uganda securities exchanges established in 1996, several equities have been

listed. The Government has used the stock market as an avenue for privatisation. All

Government treasury issues are listed on the securities exchange. The Capital Markets

Authority has licensed 18 brokers, asset managers and investment advisors including

names like: African Alliance Investment Bank, Baroda Capital Markets Uganda Limited,

Crane Financial Services Uganda Limited, Crested Stocks and Securities Limited, Dyer

& Blair Investment Bank, Equity Stock Brokers Uganda Limited, Renaissance Capital

Investment Bank and UAP Financial Services Limited. As one of the ways of increasing

formal domestic savings, Pension sector reform is the centre of attention (2007).

Uganda traditionally depends on Kenya for access to the Indian Ocean port of

Mombasa. Recently, efforts have intensified to establish a second access route to the

sea via the lakeside ports of Bukasa in Uganda, and Musoma in Tanzania, connected

by railway to Arusha in the Tanzanian interior and to the port of Tanga on the Indian

Page 9: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Ocean. Uganda is a member of the East African Community and a potential member of

the planned East African Federation.

Page 10: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Overview of Industries, Trade and Commerce

Trade in Goods (as a share of GDP): 36.7%

Export: $495 million f.o.b. while Bangladesh exports 6.6 billion.

o High-technology transfers: 12.4% of manufactured exports.

o Disseminate supplies:

Coffee

Fish and fish products

Tea

Gold

Cotton

Flowers

Horticultural products.

o Disseminate Allies:

Netherland-15.7%

Belgium-10.3%

US-9%

Germany-8%

Spain-6.7%,

Page 11: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Italy-5.2%

Ingress Allies

o Kenya-44.2%

o South Africa-6.6%

o India-5.6%

o UK-5.2%,

o China-4.5%

o France-4.1%

Reserves OF Foreign Exchange & Gold: $1.08 billion.

Foreign Direct Investment: $149.9 million, net inflows in reporting country.

Trade Regulations and Standards

In order to reduce costs and increase competitiveness, all 30 percent import duties were

reduced to 15 percent in 1998. Excise surcharges have been unified at 10 percent.

Further reductions are planned during the next two years.

Import bans have been phased out for beer, soda, batteries and cigarettes. Small

reductions in fuel duties were introduced in an attempt to reduce costs for producers

and transporters. The GOU has promised to lower these rates further in the next few

years.

Import Licenses

Import certificates, which are non-good-specific, are required and have a validity of 6

months. The certificates take the place of import licenses. Form E (Declaration of

Imports) can be processed by commercial banks and foreign exchange bureaus. All

importers are required to complete Form E.

Export Controls

Page 12: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Items that cannot be exported without prior authorization by the Ministry of Trade and

Industry include:

Waste and scrap of ferrous cast iron

Wood charcoal

Timber from any wood trees grown in Uganda whether sawn, unsown, hewn or

machined (but not any other articles manufactured from such wood)

Coffee husks

Fresh unprocessed fish

Game trophies

Import/Export Documentation

The following supplementary documents may be required by the Uganda Revenue

Authority at the entry point, whenever the following goods are imported:

Human and animal drug medications: Verified pro-forma invoices from the

Pharmacy Board.

Firearms: Firearms Certificate

Live animals (domestic and wild): Health Certificate

Wild endangered species: Approval Authority

Secondhand clothing: Fumigation Certificate

Explosives: Approval Authority

Seeds and plants: Phytosanitary Certificate

The following supplementary documents will be required at the Customs exit whenever

the following goods are exported:

Fish: Health Certificate and Trading License for fish

Minerals: Permit to export minerals and Mineral Dealer's License

Fresh/dry fruit, vegetables and produce: Phytosanitary health Certificate

Game Trophies: Permit to export game trophies and wild animals

Hides and skins: Export Buyers License, Export Certificate for hides and skins,

Veterinary Health Certificate

Page 13: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Temporary Entry

Many products are shipped through Uganda on their way to eastern Congo and

Rwanda. The Customs Administration has reduced the time allowed for goods to transit

Uganda to 7 days.

Classification, marking prerequisite

The subsequent detail must be clearly noticeable on imports and exports:

importer/exporter name, consignee, flight/vehicle details, place of release, quantity of

parcels, container characteristics, narrative of goods, air way bill number/bill of lading,

and host country/destination.

Prohibited Imports

The following items cannot be imported into Uganda:

Pornographic Materials

Used motor vehicle tires

Imports banned under international agreements to which Uganda is signatory

Page 14: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Overview of Different Economic Sectors of

Uganda country

Uganda's economic segments replicate the legacy of majestic constitution, the country's

place as a land-locked region, its politically turbulent past, and the entirely extensive lack

of foreign investment in sub-Saharan Africa as a whole. Uganda is extremely reliant on

agricultural exports in order to offer much-needed foreign currency and its immature

industry and services require a growing level of imports.

In order to contract with these environmental, chronological, and other material

problems, the Ugandan administration is endeavoring to expand its financial and

monetary sectors to manufacture more manufactured goods for domestic, local, and

global consumption to diminish the dependence of the economy on foreign aid and

imports. With the continuous monetary support of the world leading financial institutions

like IBRD and U. S. for Uganda's liberated market reforms there is a realistic prospect

that the economy's current diversification will add to its present growth rate is fastest in

the globe. Uganda had a middling growth rate of 7.2 percent above 1990-99, which

comprises a growth rate of agriculture of 3.7 percent, of services at 8.1 percent and

industry at 12.7 percent. This steady growth of different sectors suggests a vibrant

economy.

Global trade and finance

Since assuming control in 1986, Muaseveni's government has taken significant steps

toward trade and industry rehabilitation. The nation's infrastructure— notably its transport

and communications systems which were destroyed by war and neglect—is being

reconstructed. Recognizing the need for increased external support, Uganda conferring

a guiding principle structure papers with the IMF and the World Bank in 1987. It

subsequently began implementing economic policies designed to reinstate price stability

and sustainable balance of payments, improve capacity utilization, re-establish

infrastructure, restore producer incentives through appropriate price policies, and

progressive resource mobilization and allocation in the public sector.

Page 15: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Currency

Uganda started issuing its individual currency in 1966 through the Bank of Uganda.

Prior to the failure of the East African Currency Board, Uganda used other countries'

currency. There have been six changes of currency since 1966, but the 1987 version

has been stable. Upgrades to it have been intended to decrease counterfeiting and

make the currency more useful.

Industry Sectors

The report considers the following sectors for a detailed study:

o Agriculture

o Banking sector

o Dairy sector

o Healthcare sector

o Infrastructure sector

o Pharmaceutical sector

o Poultry sector

o Telecom sector

o Tourism sector

Page 16: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Overview of Business and Trade at International Level

For last few years, the GDP growth rate has been rising between 6.3% to 9.5% yearly,

determined by utilization and investment. However, the slowing down of the global

economy has curbed demand and consequently export growth and has shrunk wire

transfers from expatriate workers, leading to lower growth. Estimated at 5.8% in 2010, it

should consolidate during the coming years.

Public authorities are implementing the National Development Plan (NDP) over a period

of five years (2010/11-2014/15), based on the development of infrastructures and

agriculture, and aimed at stimulating exports and removing growth barriers. In the shorter

term, the government must face a hike in inflation and the reduction in international aid.

FDI in Figures

Uganda is the first among the East-African countries in terms of attracting FDIs. FDI

stocks in terms of GDP increased between 2000 and 2008 and the trend is expected to

Page 17: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

continue during the coming years. The recent discovery of oil deposits should benefit

FDIs.

Foreign Trade Overview

Uganda is open to foreign trade, which represented slightly under 50% of the GDP in

2009. It is a member of the WTO, COMESA, EAC (East African Community), the

ESAAMLG (Eastern and South African Anti Money Laundering Group) and the IGAD

(the Intergovernmental Authority on Development, which groups together the 7 States of

the Corn of Africa).

The country's trade policy aims at encouraging cooperation and integration in East

Africa, in order to boost production and export earnings. Custom duties are not very high

and the country has few trade barriers. However, corruption, and under-developed

infrastructures act as trade barriers. The significant availability of natural resources, a

low rate of inflation, the improvement in national security and the return of exiled

Ugandan-Indian entrepreneurs are factors that encourage foreign trade.

Despite increasing exports, the trade balance remains negative. The deficit deepened in

2010, due to a more significant increase in non-oil imports and the effect of the

acceleration of investment in oil production, a tendency which should continue.

Uganda mainly exports coffee, fish, tea, cotton, flowers, horticultural products and gold,

to Sudan, Kenya, Switzerland, Rwanda, United Arab Emirates, RDC, the United

Kingdom, the Netherlands and Germany. The country imports capital goods, vehicles,

petroleum products, medical products and cereal, from the Emirates, Kenya, India,

China, South Africa and Japan. Its main trade partners are the COMESA member

countries, the European Union and South Africa.

Page 18: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Present Trade Relations and Business Volume of Different

Products with India

India has been actively promoting trade with Africa in recent years. To boost the

country‘s trade with the Sub-Saharan African region, the Government of India launched

the ―Focus: Africa‖ programme under the EXIM Policy 2002-07. Target countries

identified during the first phase of the programme include Mauritius, Kenya and Ethiopia.

The Government of India provides financial assistance to various trade promotion

organizations, export promotion councils and apex chambers in the form of Market

Development Assistance under the ―Focus: Africa‖ programme.

To promote bilateral and regional commercial relations with the COMESA Region, India‘s

Exim Bank has extended Lines of Credit (LOCs) to support export of eligible goods on

deferred payment terms. The operative LOCs covering this region include US$ 5 million

each to the Eastern and Southern African Trade and Development Bank (PTA Bank), the

Industrial Development Bank Ltd, Kenya, and the East African Development Bank

(EADB). These Lines of Credit seek to expand export of product groups identified as

those with potential to enhance trade between two regions.

India's potential exports to these countries include machinery and transport equipment,

petroleum products, paper and wood products, textiles, iron and steel, plastic and

linoleum products, rubber manufactured products, agro products, chemicals and

pharmaceutical products. These countries can also be important sources for import of

petroleum, metallurgical goods, raw cotton, fruit, vegetables and preparations,

chemicals, non-metallic mineral manufactures, precious stones, textile yarn, gold, nickel,

and ferro-alloys. Further, these countries offer potential for investment in sectors such as

tourism, pharmaceuticals, electronics, computer software and accessories, information

technology related products, financial services and textiles

Page 19: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

The Diamond Centre

The ambition of the Botswana government is to establish Botswana as the major

diamond center of the world. Being the world's largest diamond producer was not in itself

enough and the country's ambition is to develop many other diamond-industry

competencies.

Customs and Excise Duties

In general, goods imported into Botswana from outside the Southern African Customs

Union - SACU (Botswana, Lesotho, Namibia, South Africa and Swaziland) attract

customs duties at rates outlined in the Customs Tariff Book. Customs duties are paid

against a prescribed declaration form formally known as a bill of entry, form BW500. A

tariff book as well as a goods code book is available for sale at all regional Customs and

Excise offices. There are some provisions in the Customs Tariff Book and Value Added

Tax (VAT) Act exempting payment of certain customs and excise duties as well as VAT

(10%) on raw materials imported by registered manufacturers or industries.

Industry Sectors

The oil sector has the potential to change the future of Chad. The Doba Oil Basin is the

centre of oil-sector construction and production estimates have been set at up to 250

000 barrels a day. This should result in annual government revenues of between $80

and $100 million. Chad‘s economic future is largely dependent upon the exploitation of

oil resources.

Construction on the Chad-Cameroon pipeline has begun at a hectic pace and will be

built at a cost of $3.5 billion. A consortium of oil companies and the World Bank have

provided the funding for the project. An oil refinery is planned to produce refined

products.

Page 20: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

PESTEL Analysis

Political

The Uganda Government introduced the liberalization program that was very successful

in reducing inflation, curbing the budget deficit and spurring growth.

The performance of the telecommunications sector since reform and privatization has

been on an upward trend.

The political leadership in Uganda is unequivocally committed to development of the

Telecommunication sector as a key ingredient of a sustainable social-economic

development of the country.

As a reflection of this, the Government recognizes ICT development as one of its

overriding and critical policy priorities, and a key pillar to economic transformation of the

country as per the NDP 2010.

In recognition of the growing linkages between the public and private sectors, the

Government is increasing its support to Public Private Partnerships, for instance, the

National Backbone Infrastructure (NBI), Rural Communication Development Programme

(RCDP) and Business Process Outsourcing (BPO) programme.

This is in a bid to ensure Universal access to Telecommunication services and

sustainable socio-economic development in Uganda.

Economic

Uganda‘s real Gross Domestic Product (GDP) growth averaged at 7.2% between

1997/98 and 2000/01, 6.8% between 2000/01 and 2003/04, increasing to over 8% over

the period 2004/05 and 2007/08 and finally reducing to an average of 6.5% over the

period 2008/09 to 2009/10.

Page 21: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

The drop in the last two financial years (2008/09 – 2009/10) is attributed to the economic

recession that hit the whole world.

While the national GDP has been growing at an average rate of 7% for the past five

years, growing, on average, at a rate of about 25% annually since 1998;

Investment in telecommunications infrastructure has had a steady increase over the

years, rising from USD 15.5 million in 1999 to over USD 326 million in 2008;

Excise duty on airtime of mobile phone service has grown from UGX 7 billion in 2002 to

UGX 88.73 billion in 2008;

Employment in the sector, both direct and indirect, has grown from 116,640 persons in

2002 to over 400,000 persons in 2008.

Social

With increased affordability of services, more citizens have been able to utilize them,

increasing their standards of living.

Also it‘s contains good and developmental kinds of peoples cast matching with overall

countries.

Technical

Over 99% of the Telecommunication equipment is digital. This resulted into digital

efficiency hence reduced tariffs to the customer.

Value Added Services have been developed and a Telephone is now a major tool not

only for communication but also for e-commerce through service like Mobile Money.

Broadband Infrastructure is in the major towns of the country and voice spurns even a

greater part of the country. Services like e-commerce (e.g. etax, e-banking), e-education

and e-health, are now accessible over this infrastructure.

Page 22: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Currently the Government is undertaking a migration of broadcasting technology from

analog to digital by 2012.

Environmental

All Base Stations are powered by diesel generators as the main or standby source of

energy which has an adverse impact on the environment.

The uncoordinated deployment of optic fibre cables by various operators has led to

digging of several trenches along the same route leading to unnecessary destruction of

roads, utilities infrastructure and the natural cover.

Page 23: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

PART-II

SECTOR STUDY

Page 24: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Introduction of Various Sector & Its Role in the Economy of Uganda

Government looks to reduce the service delivery delay through large-scale investments

and public-private partnerships inadequate power and poorly maintained roads have

held back Uganda‘s growth by 3 per cent and hindered the country‘s ability to enhance

trade relations. Currently, only 5 per cent of Uganda‘s population is connected to the

national power grid, while only 15 per cent, or 7,300km of Uganda‘s 65,800km road

network is covered in premix tarmac or surface dressing asphalt. The country‘s rail is in a

state of disrepair and similarly, its housing developments are reeling under the effects of

mismanagement. Sparse telecommunication infrastructure had compelled citizens to

migrate to the mobile platform, while water and sanitation is available only in the urban

centres, which hosts less than 15 per cent of the population. Poor implementation of

measures and inconsistent investments to address maintenance, repair and construction

issues has led to the decay of several government-managed subsectors. This deplorable

state of infrastructure has even delayed the production of newly discovered oil resources

in the Lake Albert region. ―Inconsistent maintenance of basic infrastructure across a

broad range of subsectors has widened the gap between demand and supply,‖ says the

analyst of this research. ―The government is currently attempting to resolve this issue by

encouraging public-private partnerships, and implementing large-scale infrastructure

repair and maintenance programs.‖ The government has already committed $400 million

to road improvement projects over the next two years. It has also allocated another $900

million to the development of Priority Proposed Projects by 2015. It needs to actively

seek and promote long-lasting partnerships that will facilitate the continuous

improvement.

Banking Sector

Prior to Uganda‘s independence in 1962, government-owned institutions dominated most

banking in Uganda. In 1966 the Bank of Uganda, which controlled the issue of currency

and managed foreign exchange reserves, became the central bank. Uganda Commercial

Bank, which had fifty branches throughout the country, dominated commercial banking

and was wholly owned by the government. The Uganda Development Bank was a state-

Page 25: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

owned development finance institution, which channeled loans from international

sources into Ugandan enterprises and administered most of the development loans

made to Uganda.

In the 1960s, other commercial banks included local operations of Bank of Baroda,

Barclays Bank, Bank of India, Grindlays Bank, Standard Chartered Bank and Uganda

Cooperative Bank.

During the 1970s and early 1980s, the number of commercial bank branches and

services contracted significantly. Whereas Uganda had 290 commercial bank branches

in 1970, by 1987 there were only 84, of which 58 branches were operated by

government-owned banks. This number began to increase slowly the following year, and

in 1989 the gradual increase in banking activity signaled growing confidence in Uganda's

economic recovery.

Healthcare Sector

The government produced its first three year national health plan in 1993 along with

Local Government Statute, and subsequently the Health sector Plan in 2000. All

documents outlined plans for decentralizing government services to district level,

including health services. Cost sharing of health services was introduced, first at the

district hospitals and then at the health centres, accompanied by setting up health

management committees, that were to include participation from local communities,

though user fees were subsequently abolished by the government in 2001.

The government has since introduced the National Health Package (NMHP) as it is no

longer able to provide unlimited free health care as budgetary allocations are insufficient

to meet rising costs. The government has had a health Sector Wide Approach to health

care funding and implementation since 2000. The National Health Policy Strategic Plan

has been formulated within the context of the provision of the constitution of the Republic

Uganda, 1995 and the Local Government Act, 1997 which decentralized government

and service delivery. In addition the new Health Policy derives guidance direct from the

Page 26: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

National Health Sector Reform Programme, and the National Poverty Eradication

Programme and Alma Ata Declaration of Health for All (HFA) strategy.

Agriculture Sector

Uganda's economy is predominantly agrarian; 36% of the GDP, 81% of the employed

labor force, and 31% of export earnings are derived from the agricultural sector. A total

of 6,810,000 ha (16,828,000 acres), or one-third of the land area, is under cultivation.

Subsistence production remains the pattern; 70% of the area under cultivation is used to

produce locally consumed food crops. Women provide over half of agricultural labor,

traditionally focusing on food rather than cash crop production. The monetary value of

market crops is exceeded by the estimated value of subsistence agriculture. Plantains,

cassava, sweet potatoes, and bananas are the major food crops. In 1999, food

production estimates included plantains, 9.4 million tons; cassava, 3.4 million tons; sweet

potatoes, 2.5 million tons; bananas, 600,000 tons; millet, 638,000 tons; Although coffee

is still the primary export earner for Uganda, with receipts in 2001 at $51.3 million, 11%

of total exports. Production of robusta, which was cultivated by the Baganda before the

arrival of the Arabs and British, and some Arabica varieties of coffee provides the most

important single source of income for more than one million Ugandan farmers and is the

principal earner of foreign exchange. Export crop production reached a peak in 1969.

Estimated production of major cash crops in 1999 included coffee, 198,000 tons; cotton

(lint), 15,000 tons; tea, 26,000 tons; raw sugar, 125,000 tons; and tobacco, 7,000 tons.

Roses and carnations are grown for export to Europe.

Pharmaceutical Sector

Uganda produces only 5% of its pharmaceutical and health product requirements. The

rest of the requirements are met through imports. Imports of pharmaceutical and health

products account for over 10% of total imports. Pharmaceutical companies in Uganda

are categorized into two groups: the manufacturers and distributors. Most imports are

done by pharmacies who act as distributors for the overseas companies.

Page 27: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

The pharmaceutical industries operating in Uganda include, Kampala Pharmaceutical

Industries (1996), Uganda Pharmaceutical Industries Ltd. (recently privatised by Global

distributors), Medipharm, Medical Products Ltd., and NEC Industries (yet to be

commissioned). These industries produce a range of pharmaceutical products, including

injectables, liquid mixtures, asparin, assembling capsules, disposable syringes,

paracetamol, surgical gauze etc.

More than 90 import licenses were issued to pharmacies in 1997. There are about 150

pharmacies which are mainly concentrated in Kampala, 1500 registered drug shops

throughout the country, 1500 clinics which also act as drug outlets and 98 hospitals

distributed in the 45 districts.

Given the favourable climate, stable macro-economic environment and political stability,

Uganda is a potential investment destination especially in the pharmaceutical and health

products sector. Uganda National Drug Authority was established to regulate, monitor

and licence private participants in the sector.

There is one factory producing disposable syringes but in any case supplying less than

20% of the market requirements. Two companies, namely Tumpeco and Clinical national

requirements by over 80%. The rest of the other products are not locally made.

Poultry Sector

A paper by Byarugaba (2007) provides a comprehensive analysis of the poultry sector,

and the distribution of poultry throughout the country and by type of farming system. This

analysis shows that free-range farming systems are common, especially in rural areas,

but there is some close-range farming, mainly in urban areas where most exotic birds

are reared. The central region had the most exotic types, because it is predominantly

urban, and the eastern region has the most local breeds. Chickens dominate the

production system as the main poultry type. Uganda‘s total poultry population was

estimated at about 32.6 million birds for 2006/2007, up from 23.5 million in 2002. Of this,

80 percent is free-range indigenous breeds, while commercial types are mainly exotic

Page 28: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

(for a detailed analysis, see Byarugaba, 2007). the most rural households keep poultry

on a small holder production. The majoring of these rural farmers are women. Poultry is

easy to sell and provides a ready source of income for farmers to use when needed

which is vital in livelihood of people in Uganda‘s rural areas.

Dairy Sector

The dairy sector is one of the critical sectors in Uganda, COMESA and East African

Community (EAC), with high potential for improving food security and welfare. Recent

analysis provides clear evidence of increasing demand for dairy products (and other

foods of animal origin) in Sub Saharan Africa (SSA) and other developing regions

of the world as a result of rapid population growth, urbanization and increasing

purchasing power. In Uganda, dairy production takes place under any of the following

four categories of farming systems;

Zero grazing (i.e. the cow is fed exclusively on concentrates; no grazing). Refers to the

confinement of a few animals in a small enclosure where feeds or fodder and water are

brought to the animals. According to study done by Mbabazi Pamela (2005), at least

20% of low income households in Ankole have received a zerograzing cow not only from

government but also from such organizations as Send A Cow (UK) and Heifer

International Project. The advantage of this grazing system is that people without much

land for grazing are able to raise cattle to produce milk for home consumption and to

earn an income. This system is widely practiced in Uganda especially is the Eastern,

Western and Southern Western regions.

Fenced/paddock grazing (i.e. grazing cattle in paddocks or/and feeding them with

concentrates) is a common farming practice in areas where the land holdings are fairly

small. This type of grazing requires land clearing and improved pasture. It‘s largely

practiced by farmers of hybrid and cross-breed cattle and has expanded rapidly with the

liberalization of the economy which has resulted in the need to make farms economically

viable. In order to increase production, dairy farmers have planted legumes, elephant

grass and alfalfa for their cattle.

Page 29: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Telecom Sector

While the telecom subdivision was almost inexistent throughout the 1980‘s, the ICT

segment is today between Africa‘s most lively, and has experienced a process of

relaxing and rearrangement which instigated around six years ago. And while Uganda

motionless had a very bad telecom substructure in the commencement of the 1990‘s,

Uganda developed the first African country with more movable than fixed subscribers in

1999. Nowadays, mobile attention spreads to all major metropolises and towns and

global roaming agreements exist with global mobile phone businesses. There are

moreover Internet cafes in Kampala and most big municipalities.

That the Uganda telecom subdivision production a extensive role in his republic‘s budget

such as snowballing in GDP, GNP, Nationwide revenue etc, also it having the upcoming

core plans and other technical plans it. So it reaches to high level of growth of country

opinion of view.

Tourism Sector

The trend in international visitor arrivals has been strongly upward in recent years, with

the number increasing from 193,000 in 2000 to 512,000 in 2004 (but falling back

somewhat to 468,000 in 2005).

Uganda's travel and tourism economy is expected by WTTC to grow by 6.1 percent in

2007 and by 4.8percent per annum, in real terms, between 2008 and 2017.

Inbound international tourism is expected to maintain the recent upward trend. Regional

tourism is also expected to register a marked increase as a result of enhanced regional

economic integration through the East African Community (EAC) and the Common

Market for Eastern and Southern Africa (COMESA).

In the 1960s, income from tourism, together with restaurant, hotels, and related services,

improved earlier than any other division of the financial system. During 1971, the peak

year for tourist gate, more than 85,000 foreigners visit Uganda, creation tourism the

Page 30: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

nation's third largest source of foreign exchange, after coffee and cotton. After 1972,

though, political volatility cracked the tourist industry. Rebels damaged and looted hotels,

decimated wildlife herds, and made many national park roads blocked. Part of the airport

at Entebbe was also shattered.

Recognize the role tourism could play in economic development, the government

assigned high priority to restoring the tourism infrastructure in its RDP. In February 1988,

ministry officials announced a plan to build four new hotels worth US$120 million as part

of a barter trade agreement with Italy. Global tourist arrival slowly increased, from about

32,000 in 1986 to more than 40,000 in every of the next two years. Tourism earns about

US$4.2 million in 1988. At the same time, ongoing unrest in the north halted

rehabilitation efforts in Murchison Falls and Keep national parks, and much tourist

attraction expected a summary environment of aggression previous to protection and

keep can be improved.

Page 31: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Structure, Function and Business Activities of

Selected Sector

Agriculture Sector

For starting a new business the data collected by the doing business:

What does it take to start a business in Uganda? According to data collected by Doing

Business, starting a business there requires 16 procedures, takes 34 days, costs 84.5%

of income per capita and requires paid-in minimum capital of 0.0% of income per capita.

Globally, Uganda stands at 143 in the ranking of 183 economies on the ease of starting

a business. The rankings for comparator economies and the regional average ranking

provide other useful information for assessing how easy it is for an entrepreneur in

Uganda to start a business.

Growth and Structure of the Economy

As a result of African values, Ethiopia is a potentially rich country, with productive soil

and good rainfall over great regions. Farmers generate a mixture of grains, including

wheat, corn, and millet. Coffee also grows healthy on southern slopes. Herders can

increase cattle, sheep, and goats in almost all parts of the country. Moreover, Ethiopia

possesses several valuable minerals, including gold and platinum.

Throughout the late l940s and 1950s, greatly of the economy remained unaffected. The

government inattentive its increase efforts on expansion of the bureaucratic formation

and ancillary services. Most farmers cultivated little plots of land or herded livestock.

Traditional and primal farming methods provided the residents with a survival standard of

living. In addition, many nomadic peoples raised livestock and followed a life of seasonal

movement in drier areas. The agricultural sector grew a little, and the industrial sector

represented a little part of the total economy.

Page 32: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

By the in the early hours l950s, Emperor Haile Selassie I (reigned 1930- 74) had

improved calls for a transition from a subsistence economy to an agro-industrial

economy. To achieve this task, Ethiopia needed an infrastructure to exploit resources, a

material base to get better living conditions, and healthier health, education,

communications, and other services. A key element of the emperor's innovative

economic policy was the acceptance of centrally administered development plans.

Banking Sector

By before time the 1990s, the banking sector was include mainly of four foreign banks

(Standard Chartered, Standard Bank, Barclays and Baroda), and the two large local

banks (UCB and Co-op) that controlled 70 percent of the banking assets and liabilities

but were bankrupt. By the end of 2005, the system had significantly grown and was

made up of a formal and an informal sector. The number of commercial banks increased

to 20 in 1996, when a suspension on banking licenses was compulsory and after the

closure of some banks and consolidation, fell to 15. The formal sector encompassing the

Central bank, 15 commercial banks, 8 credit institutions, and since 2004 microfinance

deposit taking institutions, National Social Security Fund (NSSF), a Post bank, 18

insurance companies, 82 Forex bureau, 3 development institutions, and a stock

exchange. The informal sector comprises of a wide range of moneylenders, Savings and

Credit Cooperative Associations (SACCO), Rotating Savings and Credit Association and

the Microfinance Institutions. In terms of the informal financial institutions, there has been

a considerable progress in expanding the outreach of these institutions and improving

the access to financial services mainly by the rural population.

Efficiency and market structure

As a first order effect, one would expect increased competition to lead to lower costs and

better efficiency. However, as per (2001) highlights the connection between competition

and banking organization performance are more complex. Market power in banking, for

example, may up to a degree be beneficial for access to financing and the view that

competition is definitely good for financial sector performance could be more

Page 33: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

inexperienced than in other industries as enthusiastic rivalry may not be the first best for

financial sector performance.

Dairy Sector

Dairy Development Department

In the dairy register farmer‘s group supports the dairy farmers in marketing organizations

with dairy development activity like dairy extension, dairy breeding research, dairy

training, dairy products development as well as general market promotion take in

promotion of export, coordinate all dairy processing and marketing, promotional activities

such as seminars, trade fairs, workshops as well as acts as an arbitrator in any conflict

between companies and processors.

Regulatory Services Department

The Regulatory Services Department can responsible for registering plus licensing milk

processor and trader. The Government can Advising on milk standards in liaison with the

Uganda National Bureau of Standards (UNBS) as well as, calculating and regulating

dairy and its related import and export activity in conformity with the External Trade Act

however with no violating the Animal Disease Act. It is examine raw-milk traders,

transporters, processors, importers and exporters of milk as well as milk products, input

supplier and equipment, issues the certificate to ensure conformity, set and observe

quality standards.

Finance and administration department

It provides financial, organizational as well as logistical support to the dairy development

and regulatory functions of the authority plus facilitates institutional environments that

sustain these core functions.

Business Partners and Their Activity

Swedish Cooperative Centre (SCC)

o Enhancement of Dairy Productivity (EDP) Phase II. After the end of EDP

project in 2010; an evaluation be conducted by an independent consultant and

Page 34: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

the report recognized the achievement thus far gained, through lifting the dairy

farmers from the state of despair to a clear vision with a carrying out

organization. However, the issue of sustainability was quite important in the

report. Without UCCCU completing the dairy processing plant and start

generating its own income on sustainable basis the achievements so far

realized would come to not anything.

Land O‘ Lakes Inc.

o This is one of the oldest partners in dairy sector. It wishes to recognize their

contribution both to the development of UCCCU and the dairy industry in

general. Their aim to collaborating with Land O Lakes in areas of assisting

farmers in milk bulking and handling, marketing, industry organization, policy

reform, providing training on capacity building to union leaders on demand

driven basis; and facilitating study tours within and outside Uganda for lead

farmers and some of the executive members.

Dairy Development Authority (DDA)

o This is a constitutional body that falls under Ministry of Agriculture, Animal

Industries and Fisheries (MAAIF) established by the Dairy Industry Act of 1998

and was mandated to take up regulatory and developmental functions of the

dairy sector. UCCCU has collaborated with DDA in advising dairy farmers on

quality standards of milk especially in South Western Uganda. Since its

inception, DDA has been carrying out the following activities for the benefit of

UCCCU: 1) Registering and licensing milk processors and traders Supporting

dairy farmers 2) On behalf of UCCCU, DDA has also acted as arbitrator in any

conflict between dairy farmers and processors.3) Coordinating all dairy

processing and marketing promotional activities.4) Pooling dairy industry data

processing and marketing data.

Page 35: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Healthcare Sector

The functions of the MoH headquarters are:

Policy analysis, formulation and dialogue;

Strategic planning;

Setting standards and quality assurance;

Resource mobilization;

Advising other ministries, departments and agencies on health-related matters;

Capacity development and technical support supervision;

Provision of nationally coordinated services including health emergency

preparedness and response and epidemic prevention and control;

Coordination of health research

Monitoring and evaluation of the overall health sector performance.

Health service delivery

The delivery of health services in Uganda is done by both the public and private sectors

with GoU being the owner of most facilities. GoU owns 2242 health centres and 59

hospitals compared to 613 health facilities and 46 hospitals by PNFPs and 269 health

centres and 8 hospitals by the PHPs5. Because of the limited resource envelope with

which the health sector operates, a minimum package of health services has been

developed for all levels of health care for both the private and the public sector and

health services provision is based on this package.

The public health delivery system

Public health services in Uganda are delivered through HC IIs, HC IIIs, HC IVs, general

hospitals, RRHs and NRHs. The range of health services delivered varies with the level

of care. In all public health facilities curative, preventive, rehabilitative and promotive

health services are free, having abolished user fees in 2001. However, user fees in

public facilities remain in private wings of public hospitals. Although 72% of the

households in Uganda live within 5km from a health facility (public or PNFP), utilisation is

limited due to poor infrastructure, lack of medicines and other health supplies, shortage

Page 36: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

of human resource in the public sector, low salaries, lack of accommodation at health

facilities and other factors that further constrain access to quality service delivery.

The private sector health care delivery system

The private sector plays an important role in the delivery of health services in Uganda

covering about 50% of the reported outputs. The private health system comprises of the

Private Not for Profit Organizations (PNFPs), Private Health Practitioners (PHPs) and the

Traditional and Complementary Medicine Practitioners (TCMPs), the contribution of each

sub-sector to the overall health output varies widely. The PNFP sector is more structured

and prominently present in rural areas. The PHP is fast growing and most facilities are

concentrated in urban areas.

Infrastructure Sector

Railways and Ports

Uganda‘s railway network, together with the Lake Victoria port and ferries, plays a vital

strategic role in providing access to the ports of Mombasa and Dar es Salaam.

The system is, however, seriously depleted, with significant elements no longer

operational, as a consequence of either/both of unserviceable condition of the assets

and low demand.

Although there appears to have been some improvement since mid-1998, the

performance of the Uganda Railways Corporation (URC)was extremely poor, particularly

in the period 1994 to early 1998.

The organization has historically been unable to control key cost items, particularly

relating to fuel and staff.

New policies have been implemented in July 1998(staff housing) and November 1999

(staff transport) but URC still has very high overhead costs and staffing levels.

Page 37: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Reduction in staff numbers, although dramatic, has not kept pace with the reduction in

activity on the railways, in part a consequence of Government constraints.

There is limited private sector participation in the railway sub-sector through a

management contract for locomotive maintenance.

For the longer term, the main options are a long-term national concession for the

operational network (possibly supplemented by subsidized concessions to reopen the

defunct elements) or participation in single regional concession covering Uganda, Kenya

and Tanzania Railways.

Pharmaceutical Sector

According to the National Drugs Authority (NDA), there were 19 different sites licensed

for local production of medicines and health supplies in Uganda as of December 2009.

Of the 19 sites, 11 were engaged in commercial production of pharmaceuticals and

these can be categorized into large and medium scale, using the number of employees

as indicated in figure below. Using this categorization, there are four large, six medium

and one small scale local pharmaceutical manufacturer. Of the large manufacturers, two

are new (established in 2007/2008) and one of the two (QCIL) produces only ACTs and

ARVs.

Figure -Large, medium and small scale pharmaceutical manufacturers in Uganda

9%

55%

36%

Employees

Small scalemanufacturers: 6-30

Medium scalemanufacturers: 31-99

Large scalemanufacturers: 100+

Page 38: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

It is important to note that not all NDA licensed sites are actively producing medicines

and health supplies and interviews with manufacturers found that some of these sites

have no products on the market, while a number of licensed sites handle medicines and

supplies for veterinary use.

Table shows that there are about 15 different production lines and that the majority of

local manufacturers specialize in oral and topical liquid preparations. Given the similarity

in manufacturers‘ production lines, it is not surprising that their product range is limited.

Site/manufacturer’s name Production lines

1. Abacus Parenterals Drugs Ltd. Large Volume

Parenterals (LVP), Small Volume

Parenterals (SVP) and eye drops

2. Astel Diagnostics Diagnostic kits

3. Brentec Investments Ltd. Newcastle disease—vaccine for veterinary use

4. Charms (U) Limited Secondary packaging for condoms

5. Kampala Pharmaceutical Industries Ltd. Oral liquids, tablets, capsules and creams

6. Kisakye Industries Ltd. Oral liquid and topical liquid preparations

7. Kwality Afro Asia Ltd. Oral and external liquids

8. Mavid Pharmaceuticals Ltd. Oral and topical liquid preparations

9. Medipharm Industries Ltd. Oral Rehydration Salts (ORS)

Oral powders for reconstitution

Oral liquid preparations

10. Mengo Hospital Eye production unit Eye drops

Page 39: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Poultry Sector

Poultry Populations

Despite the tremendous expansion of the commercial poultry sector since the 90s,

scavenging poultry have not undergone drastic improvement but still account for more

than 90% of the total poultry production in Uganda. In Uganda the poultry population is

estimated at about 30 million of which rural scavenging poultry was estimated to

represent 26 million (about 90 % of the total) in 2005. (Mukiibi – Mukai and H Kirundi)

Generally, the non-commercial birds are raised at a subsistence level with no market-

oriented objective. Those that make it to the market are the ones that have either grown

too old or are diseased or are sold for quick financial gain to meet a domestic need. So

their meat is usually of poor quality.

Although chicken population is increasing at an average rate of 4% per annum, there

was a slight drop between 2002 and 2004 due to undocumented reasons. The most

credible speculative explanation is the incidence of wide spread insurgency in the North

East a prime source of local chicken supply. Most of this growth is coming from small

farmers who are raising chicken as a source of income. A majority of these farmers are

raising improved breeds of chicken that have proved to be a profitable business i.e. the

commercial broilers and layers.

Profile of the poultry sector

Page 40: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

The last comprehensive livestock census which included poultry was in 1991. Since then no

complete data has been collected. Numbers provided have been based either on estimates,

partial surveys or projections.

Data available in the FAO database is provided in figure. The Uganda Bureau of Statistics

provided the data used in table.

The total poultry population in Uganda was projected to be about 32.6 million birds for 2006/7

compared to 23.5 million in 2002. Of this, about 80% is comprised of free-range indigenous

breeds whilst the remaining 20% is commercial types mainly composed of exotics. Chickens

form the main poultry types, but turkeys, ducks, geese, pigeons and ostriches are also kept in

some areas.

Type of markets

Informal markets

These markets are predominately found in a typical rural setting. This type of

marketing is driven by the need to get income to settle for a one off financial need.

Some households give the chicken to a young member of the family to sell by the

roadside.

Primary markets

This is a collection of chicken traders from surrounding parishes who gather at the

trading centers in small rural towns. Often the trading is done in open spaces

lacking proper facilities such as loading ramp, holdings and toilets. Trading is held

Page 41: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

on gazette days of the week. This type of market would not have any meaningful

link with commercial trader except throughout growers who may sale their chicken

at a nearby market for quick financial gain.

Secondary markets

These also lack proper weighing, loading and hygienic facilities. The markets are

situated in Kampala where traders often come with truckloads of chicken. Chicken

are sold according to size, age and appearance through negotiation between the

sellers and butchers/traders/individuals. Previously, chicken coming from these

markets was the traditional source of commercial chicken for urban consumers of

all income segments until the arrival of factory prepared chicken in the early 90‘s.

These markets still have the largest share of urban consumers though there is

now a significant rise in the number of customers whose preference is for local

chicken especially among the high income segment.

Urban markets

These are in large towns and cities. They are situated in designated areas where

make shift stalls are erected. Suppliers to such markets are often traders who buy

chicken from the primary and secondary markets and distribute it to urban trading

centers, hotels and restaurant. Consumers from such urban markets are hotels,

restaurants and consumers Before the coming of dressed chicken in the market,

consumption of chicken was mainly catered for by the urban market traders but

their chicken lacked consistency in availability, quality in addition to high prices

are factors preventing chicken becoming common part of the diet even for high

income come earners could afford it.

Functions and Actors

The extensive, or scavenging, system has two subsystems: The traditional or village

system also called free-rang system, under this system birds have freedom to roam

around the homestead, and the backyard system, also called the family or

subsistence system, under this system birds are partly confined in their homestead.

Page 42: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

The intensive system also includes two subsystems: the semi-intensive system,

under this a small number of birds are produced in complete confinement, and the

industrial system in which large number of birds are raised based on industrial

principals where value is added to every unit of input along the production chain to

give high value products (chicken) to meet an identified need particularly in urban

markets.

Interventions at Production Level

South Western Region

In the South Western Region of Uganda, ADP is actively involved in livestock

development which includes promotion of commercial production of both indigenous and

exotic chicken. The principal objective of these programmers‘ is to equip farmers with the

necessary skills to undertake sustainable activities that generate income. In the poultry

sector, a number of interventions have been made to complement farmer‘s efforts in

establishing viable commercial poultry enterprises. Interventions included the following:

Farmer training in

1. Layer and broiler chick brooding

2. Brooder construction and temperature taking and construction

3. Poultry housing and house construction

4. Feed formulation and feeding

5. Hygiene and sanitation in disease control

6. Identification of good layers and poor layers

7. Clean collection of eggs

Donations of improved cockerels for breeding Resource facilitation in the

establishment of poultry units. Mainly for setting up demonstration farms.

Provisions included

1. Technical support in chicken house design.

2. Supervision of farm activities by ADP livestock specialist.

3. Materials

Page 43: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Iron sheets, Plain nails, Bags of cement, Roofing nails, Wire mesh.

4. Equipment:

Paraffin lantern, Charcoal stove, Drinkers

5. Feeds, drugs and vaccines

Chick mash, Growers mash, Bottles of antibiotics,Multivitamins,Coccidiostat

6. Livestock

Day old layer chicks

Eastern Region

In the Eastern region, JIDDECO is supporting the establishment of an integrated system

of micro livestock enterprises at household level involving indigenous poultry, dairy

goats, cattle and fish farming. The goal of this innovative approach is to provide

participating household with multiple sources of income while also ensuring a

satisfactory nutritional status particularly among the young members of the household.

The beneficiaries, the target group are the poorest segment of the village population and

in particular women.

It is envisaged that increased poultry production would directly contribute to food security

by enhancing consumption of eggs and poultry meat to some extent and indirectly by

enhancing income to meet domestic financial needs like school fees and medication.

Also enhanced income could be invested in other assets especially in other livestock

considered to be higher up the livestock ladder like goats and cattle.

North Eastern Region

In the North Eastern region of Uganda, SOCADIDO is engaged in a number of activities

aimed at empowering rural community socio economically through skills development

and application of appropriate technology. SOCADIDO programs cover the districts of

Soroti, Kumi, Katakwi, Kaberamaido and Amuria in the Teso region. The overall

intervention objective is to improve health and increased income of 30,000 households.

Chicken have been identified as having a

Page 44: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

The chicken development programs are built on a foundation of training in various

aspects of poultry management such as:

Shelter construction

Feeding program and feed formulation

Vaccination program

Sanitation and hygiene

Telecom Sector

The Uganda Telecommunications features Business Monitor International (BMI)'s

independent industry forecasts through end-2016 on the future strength of Uganda's ICT

market, covering the fixed-line, mobile and internet segments, and analyses latest

regulatory developments and corporate news, including investment activity, mergers and

acquisitions, joint ventures and partnerships. All leading operators and manufacturers

are fully profiled, highlighting their quarterly financial performance, capital expenditure

plans and latest contracts. BMI's Uganda Telecommunications Report provides industry

professionals and researchers, operators, equipment suppliers and vendors, corporate

and financial services analysts and regulatory bodies with independent forecasts and

competitive intelligence on the telecoms industry in Uganda.

The current Chief Operating Officer of UTL is Stanley Henning. The former Managing

Director, Abdulbaset Elazzabi, and other members of the previous UTL Board of

Directors were replaced, as part of the changes mandated by the United Nations, in

2010, regarding Libyan assets.

o Benchmark BMI's independent telecommunications industry forecasts to end-

2016 for Uganda to test other views - a key input for successful budgeting and

strategic business planning in the Ugandan telecoms market.

o Target business opportunities and risks in Uganda's telecoms sector through our

reviews of latest industry trends, regulatory changes, and major deals, projects

and investments in Uganda.

o Assess the activities, strategy and market position of competitors, partners and

clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Page 45: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Strategies:

Strategies arrive from the long term time period for developing and explanation of the

existing or present factor of the countries itself.

o Enforce re-farming of frequencies in line with technological changes and market

conditions;

o Enforce a harmonized National Number Plan and Mobile Number Portability that

take into account technological changes, fair competition and other market

conditions;

o Ensure unlimited competition for the provision of telecommunications services and

infrastructure;

o Promote and encourage the licensing of regional links through the harmonization

and cooperation in respect to regulatory policies; and

o Develop the telecommunications sector specific competition provisions and

ensure they are reflected in the national competition law of the country when

developed.

Tourism Sector

Organizational formation of the department

Open worldwide arrangement, Ministry of Tourism, Trade & Industry the Ministry has

eight departments and three units, that is:

Department of Finance and Administration

Department of External Trade

Department of Internal Trade

Department of Tourism Development

Department Of wildlife Conservation

Department of Cooperative Development

Department of Industry and Technology

Department of Museums and Monuments

The strategy examination part

Page 46: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

The store Centre Unit

The Procurement and Disposal Unit.

Functions

The functions of the department are to:

o Begin and devise policies, legislation on Tourism growth;

o Devise and organize completion of regulations on International Convention,

treaties and agreements under the tourism increase sector;

o Initiate and direct development of service values, and oversee

o Enforcement of these for class word on Tourism;

o Development and issuing of guidelines to hotels, tour operators, travel agents and

eating houses;

o Direct with relevant law enforcement agencies to enforce compliance with national

laws, global convention, treaty and agreement under the sector;

o Market and promote Uganda as a tourism and investment purpose;

o Collect, compiles, analyze, and distribute information on Tourism for national

conclusion creation;

o Supervise operation of the legal bodies under the Tourism Sector;

o Liaise with International organization and any other applicable entity involved in

tourism development;

o Expand tourism products and market;

o Observe and evaluate the execution of the policy, legislation, national plans and

strategy on sightseeing.

Page 47: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Comparative Position of Different Sectors

Agriculture Sector

India‘s agricultural policy presents a puzzle. First of all, there is persuasive evidence that

India has an overall comparative advantage in agriculture. Second, government

intervention has, in the aggregate, penalized rather han assisted Indian agriculture, even

though certain inputs have been subsidized. These two observations suggest that India

would take a strong aggressive position in international negotiations, and would push for

the elimination of trade distorting policies both abroad and at home. But the truth is quite

different: India‘s efforts have been directed largely towards retaining the right to protect

its domestic agricultural sector, and in recent years, tariffs have actually been increased

on certain products. Finding the solution to this puzzle is critical to developing a case and

a strategy for both domestic reforms and proactive engagement in international

negotiations.

India‘s agricultural policy presents a puzzle. First of all, there is persuasive evidence that

India has an overall comparative advantage in agriculture (Figure 1.1a). Second,

government intervention has, in the aggregate, penalized rather than assisted Indian

agriculture, even though certain inputs have been subsidized. These two observations

suggest that India would take a strong aggressive position in international negotiations,

and would push for the elimination of trade distorting policies both abroad and at home.

But the truth is quite different: India‘s efforts have been directed largely towards retaining

the right to protect its domestic agricultural sector, and in recent years, tariffs have

actually been increased on certain products. Finding the solution to this puzzle is critical

to developing a case and a strategy for both domestic reforms and proactive

engagement in intern may be valid, it lacks analytical and empirical underpinnings. After

all, if the sector as a whole is internationally competitive, and can be expected to expand

output in an undistorted world, then that should lead to increased employment and

income for those engaged in the sector.

Page 48: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Part of the solution to the puzzle may lie in two features of Indian agriculture:

heterogeneity of production conditions and segmentation of the national market. Even

though India may have a comparative advantage in agriculture as a whole, certain crops,

regions, and holdings are not internationally competitive. The heterogeneity has

persisted because low productivity regions have been shielded from competition by

policy restrictions on, and the high transport costs of, the internal movement of

agricultural produce.

Banking Sector

Uganda‘s banking system is very week; this is not surprising in the small size of the

national markets. Weak banking systems are not necessarily uncompetitive—for

example, in open systems, the threat of entry can hold down now from overcharging.

First, concentrated banking systems may enhance market power and improve bank

profits. High profits provide a ‗‗buffer‘‘ against poor shocks and increase the charter or

franchise value of the bank, reducing incentives for bank owners and managers to take

unnecessary risk and thus reducing the probability of systemic banking suffering.

Proponents of the concentration–weakness view would also disagree with the

proposition that a concentrated banking system characterized by a few banks is easier to

monitor than a less concentrated banking system with many banks. The countervailing

argument is as follows. Bank size is positively correlated with difficulty so that large

banks are harder to monitor than small 41 banks. Holding all other features of the

economy stable, concentrated banking systems is likely to have larger banks.

As already noted, a key feature of the Ugandan banking sector is the degree of

concentration on both the loan and deposit sides, brilliant both the structure of the

economy and the size of the banking system. Loans to the top five borrowers for each

bank on the aggregate characterize about 24 percent of total loans of the system and on

deposit side, top five depositors for each bank on the aggregate account for about 21

percent of total deposit in the system. However, in comparison to small banks, large

banks lend more as measured by loan-to deposits ratio, have lower extend, have lower

transparency costs and non-performing assets, and higher profits margins. They also

Page 49: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

have much of deposits as foreign exchange deposits. This in part could be attributed to

the type of the clients they deal with, relatively less risky clients, the corporate clients.

Large Bank Small Bank

Lending rate 18.5 23.5

Deposit Rate 0.7 3.5

Spread 17.8 19.9

Overhead costs 5.7 13.3

ROA 8.5 5.5

NPA 3.0 5.6

Loan/deposits 38 36

Forex deposits/total deposits 40 29

Source: Uganda commercial banks data, 1995-2005.ks

Traditionally, research and public policy concerns about concentration in product

markets have focused on the social loss associated with the exercise of market power at

high levels of concentration. The higher prices in concentrated markets bring about

restriction of output relative to the competitive level and thereby misallocated resources.

In addition to the traditionally recognized higher prices and reduced output from market

power, there may also be higher cost per unit of output in rigorous markets because of

loose management. As concentration indices, weighted averages of banks‘ market

shares, take both the size distribution and the number of banks into account and they are

often used as a simple proxy of the market structure.

Dairy Sector

The market leader of dairy industry in Uganda is exclusively placed with other countries

to its rich soil and the capacity to produce high quality milk and being surrounded by

countries who are offering huge market is set in to a milk hub for the COMESA region.

Bilateral meet the president and the prime minister opens up new avenues of

corporation. Uganda government‘s impressed by the development model and dynamic

leadership of Gujarat.

Page 50: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Sectors of cooperation:

1. Agriculture and agro processing

2. Dairy industries

3. Petro –energy research

4. Technical skill up gradation

Uganda‘s warm invitation to progressive farmers, technical trainers and engineers of

Gujarat standing great reception for Shri Narendrabhai modi. Uganda government,

leading personalities and Indian- Gujarati Diaspora accords grand and extraordinary

welcome to the chief minister. High level delegation to participate vibrant Gujarat

Investors summit Chief Minister Shri Narendrabhai modi held separate meeting with the

Uganda president Mr. Yoweri Mushevini and Prime Minister Mr. Apollo Mishibambu. The

conversation open latest path of collaboration in various sectors.

Under the leadership of Gujarat C.M. the delegation Mr. Narendrabhai Modi has arrived

in Uganda and the Government of Uganda can carefully study the scenario and area of

assistance. Gujarat can take part in a significant role in the development of Uganda. The

approach and area of partnership is being talk about between two people. Mr.

Mishibambu can debit the strategy with his cabinet colleagues and enlarge his cordial

invitation to the progressive farmers to replicate the agriculture revolution for their

country. He would express his wish to send agriculture students of his country in the

Universities of Gujarat. C.M. can elaborate the landmark achievements and path of

Gujarat in the Water-Management and also Agriculture development. He extremely

impressed by the Narmada-Dam and Hydro Power Project of Gujarat. Mr. Mishibambu

would look for supports of expert engineers in the sector to replicate the Success and a

determined project for his country.

Uganda‘s Prime Minister has impress by the development model and dynamic

leadership of Gujarat in various sectors. The opportunity is open for the progressive

farmer and expert engineer in water sector. On the invite of the President of Uganda Mr.

Yoweri Mushevini, C.M. has initiate conversation throughout the high level meeting.

Page 51: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Kampala and Indian Association of Uganda has organized a ceremony to accord grand

welcome to the C.M. He can give standing ovation from the leaders of Trade and

Industry for appreciate them. The Gujarati Parliamentarian Shri Sanjay Tanna said,‖ Shri

Narendrabhai Modi is the Vibrant C.M. of Vibrant Gujarat, he is the first C.M. taking care

of the Gujarati Diaspora, that be a feature of in Uganda.

Healthcare Sector

It goes without saying that HIV/AIDS is as much about social phenomena as it is about

biological and medical concerns. Across the world, the global pandemic of HIV/AIDS has

shown itself capable of triggering responses of compassion, solidarity and support,

bringing out the best in people, their families and communities. But the disease is also

associated with stigma, ostracism, repression and discrimination, as individuals affected

(or believed to be affected) by HIV have been rejected by their families, their loved ones

and their communities. This rejection holds as true in the rich countries of the north as it

does in the poorer and developing countries of the south.

All over the world, ignorance, lack of knowledge, fear and denial have engendered

serious and often tragic consequences, denying people living with HIV/AIDS access to

treatments, services and support, as well as making it hard for prevention work to take

place. The epidemic of fear, stigmatization and discrimination first described by Jonathan

Mann (1987) has undermined the ability of individuals, milies and societies to protect

themselves and provide support and reassurance to those infected (Merson, 1993).

Methods

Primary approaches included key informant and in-depth interviews with individuals living

with and affected by HIV/AIDS-related discrimination, stigmatization and denial; focus

groups in communities and settings affected by HIV/AIDS-related discrimination,

stigmatization and denial; and observation in workplace, health care and community

settings where HIV/AIDS-related discrimination, stigmatization and denial might manifest

itself.

Page 52: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

India

A total of 31 key informant interviews took place in Mumbai and a further 54 in

Bangalore. They included voluntary sector workers active in HIV/AIDS prevention and

care, deans and heads of hospitals, medical professionals from a range of specialties,

the heads of personnel and social welfare departments in selected industries and

companies, and experts from the fields of insurance, law and consumer rights.

Uganda

In Uganda, researchers conducted an initial reconnaissance exercise in each of the

districts in which they intended to conduct the study. They sought to identify particular

areas within each district in which the study might be conducted, establish the household

concentration of people living with, and affected by, HIV/AIDS, and identify community

leaders and obtain their consent for the study. Additionally, researchers aimed to identify

local organizations working with, and providing services for, people living with HIV/AIDS

Eight potential categories of respondents were identified:

Infrastructure Sector

The structure of industry which has emerged over the last three decades in Uganda as a

result of the last three imp, the main part of substitution structure strategy is one of the is

heavily to the production of the consumer goods.

The industrial sector through diversified comprises mainly of agro industries, food

processing, textiles, clothing‘s, and footwear industries. There are a large numbers of

experiences processing intermediates and capital goods. There are a large numbers of

the industries firma, producing for a both domestic s and foreign market, few of them are

capital market.

The ban was sustained lifted and Uganda has restored its position as one of the main

African suppliers of fish in particular, the main patch to the European Union.

Page 53: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Telecom Sector

If we see over the comparative base then we can easily identify the which place have

secured more and less significant part of the telecom business products, like that,

(Sour

ce –

ICRA

Repo

rt

“telec

om

infras

truct

ure

indus

try in

india

”)

Note:

mobil

e

penet

ration does not accounts for one person having more than one connection

Page 54: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Present Position and Trend of Business (Import/Export) with

India Last 3 to 5 Years

Agriculture Sector

For all the country the exports and the imports is most important for the overall

development of the economy o the country. In Uganda the share of the total exports is

declining as industry grows, the agriculture sector is still the biggest earner of exports

revenues. As seen in the table i.e. in 2008 exports of primary agriculture commodities

contributed 46% of Uganda‘s formal exports earnings.

Table (1): Exports from Uganda by value (USD Million) 2004-08

2005 2006 2007 2008

Total exports 812 912 1336 1724

Agricultural exports 494 516 632 785

Percentage share 61% 56% 47% 46%

Source: UBOS: 2009 Statistical Abstract; Uganda Revenue Authority; UCDA

Table (2): Exports from India to the Uganda

Ranks

on

Imports

from

India

HS

Code

Description Ugand

a's

Import

s from

India in

2006

Uganda'

s

Imports

from

India in

2007

Uganda'

s

Imports

from

India in

2008

%

Growth

from

2006-

2007

%

Growt

h from

2007-

2008

CAGR

over 3

yrs

- TOTA

L

All products 208.99 344.97 470.49 65.07 36.38 50.04

1 17 Sugars and

sugar

confectionery

0.13 5.5 22.76 3,973.3

3

313.87 1,198.

4

2 40 Rubber and 11.07 10.78 15.02 -2.54 39.24 16.49

Page 55: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

articles

thereof

3 48 Paper &

paperboard,

articles of

pulp, paper

and board

6.54 8.26 11.72 26.39 41.86 33.9

Source: http://focusafrica.gov.in/Top%2010%20products%20of%20imports%20from%20India_Uganda.html

Table (3) Products export to India from Uganda

Source:http://focusafrica.gov.in/Top%2010%20products%20of%20exports%20to%20India_Uganda.html

Dairy Sector

Uganda's trade deficit with India has reached an all time high of US$ 451 million, a

worrying trend that has forced the minister of trade to appeal to private sector to try to

export to the Asian country in an effort to reduce the imbalance. The trend partly

attributed to India's runaway industrial and economic growth but also due to the influx of

Rank HS

Code

Descrpition Uganda'

s

Exports

to India

2006

Uganda'

s

Exports

to India

2007

Uganda'

s

Exports

to India

2008

% Growth

from

2007/2006

% Growth

from

2008/2007

CAGR

over

3years

- TOTAL All products 1.75 4.27 18.74 143.58 338.76 226.92

1 9 Coffee, tea,

mate and

spices

0.72 2.27 10.39 218.04 356.82 281.16

2 17 Sugars and

sugar

confectionery

0.00 0.00 1.75 N/A N/A N/A

Page 56: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Indian investors into Uganda is beginning to cause some concerns among Ugandan

bureaucrats Latest figures of 2008 obtained from the Ministry of Trade, show that

Uganda exported goods to India worth US$ 18.7m but we imported from India goods

worth US$470m. Whereas the trade among the two countries will increase exponentially

over the past decade, the sheer size of India's trade volume, which is becoming two

times more after every two years may be a matter of concern for policy makers. In 2006,

Uganda imported from India goods worth US$208million compared to Uganda's exports

to India worth US$1.7million.

Most of the traders in Uganda use such facilities before taking their milk to the market.

Processing is slow, but the traders believe it to be effective. Uganda has more than 300

000 milk traders who trade more than 80% of all the milk consumed in Uganda on a daily

basis. Uganda dairy sector and trade relations in the dairy sector, the EAU are the

biggest external supplier to Uganda. Together with the Middle East and South Africa, the

UEA supplies 50% of the market with increasing tendency to supply more. Additionally,

the UEA exports to Uganda via South Africa. The total value of imports of dairy products

into Uganda in the years 2005 and 2006 averaged 289 mio. USD. The value of direct

imports of dairy products from the UEA fell between 2005 and 2006 from 488,000 used

to 289,000 USD. The primary imported dairy product from the UEA is milk powder. In

2006, its import value was 273,810.

Infrastructure Sector

Foreign investment in Uganda remains strong despite recent unrest in the country

surrounding the elections earlier in the year.

On the plus side, President Museveni's victory brought continued political stability in the

country until 2016 as well as pledges to increase infrastructure investment.

Key developments

Page 57: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

In June 2011, the government announced it was allocating additional funding of

US$340mn to address the increasing demand for electricity and to develop the oil

and gas reserves in the Albertan Graven.

In May 2011, the European Investment Bank (EIB) partnered with a number of

other international development banks to provide Uganda with loans and grants to

the value of EUR178mn.

The funds will contribute to a EUR212mn (US$308mn) water and sanitation

project in Kampala which will improve water services through pipe rehabilitation,

treatment plant upgrading and network expansion.

It is expected to benefit around 2mn people.

This present downside risk for the country's business environment and to an

extent threatens inflows of foreign investment.

Gujarat

When it comes to infrastructure, any other state wouldn‘t come as close as

Gujarat. The state of Gujarat has setup an extensive road network connecting

Gujarat to most cities of the nation.

The state also offers its citizens with a consistent power supply both for

residential & commercial purposes.

Power consumption in the state of Gujarat is the highest and it stands at

1175units that is in stark contrast to India‘s average consumption of 592 units.

Similarly, commercial real estate rates are also very competitive as compared to

other parts of India.

Page 58: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Another advantage that Gujarat has is its lengthy coastline that has facilitated the

setup of 41 ports thereby, allowing easy access to the African, western & middle

– eastern markets.

Gujarat also has the distinction of being the first state in India to establish an

industrial park. It has also emerged as a leader amongst other states in

harnessing wind energy.

The infrastructure of Gujarat enjoys a strong support in public policy & is very

vital to the infrastructural requirements of the nation.

Pharmaceutical Sector

Key to accessing essential medicines and health supplies are good procurement and

supply chain management policies. Essential Medicines and Health Supplies (EMHS)

are currently mainly ordered by health units through the Ministry of Health‘s established

Essential Drugs Account (EDA) at the National Medical Stores (NMS) and the Joint

Medical Store (JMS). This arrangement ensures access to EMHS at health units

although this access does not reach the target level stipulated in the HSSP II 2005/2006

to 2009/2010. In addition, funding, procurement planning, and national harmonization of

all donor procurements of EMHS remain uncoordinated. As a result, performance

against set targets has been poor as indicated below:

Per capita funding (excluding funding from global initiatives) for medicines

remains below the set minimum of US$ 2.40 with the result that only 30 per cent

of EMHS needs are provided for in the health budget

Some 72 per cent of government health units have monthly stock-outs of indicator

medicines with the result that patients continue to rely on the private sector where

costs of medicines are three to five times more expensive than when they are

obtained through public sector procurement

Page 59: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Third party contributions (including new initiatives such as the Global Fund to fight

AIDS, Tuberculosis and Malaria) are not delivered according to an agreed

national procurement plan

Procurements by the National Medical Stores (NMS) still take a long time as,

under the Public Procurement and Disposal of Public Assets Act, NMS does not

have the maximum flexibility and responsiveness needed to meet public sector

EMHS needs. The Essential Drugs List of Uganda (EDLU) and the Uganda

Clinical Guidelines (UCG) were revised and updated during the 2008/2009

financial year but are not yet published and therefore are not available for use

Poultry Sector

Import Potential

Consistent with its Uruguay Round market access commitments, India eliminated its

quantitative restrictions on poultry meat imports in April 2001. Imports of poultry meat

and products, as well as poultry grandparent breeding stock, are now subject to tariffs

ranging from 40 percent for grandparent stock, to 108 percent for poultry meat, to 141

percent for processed products.

Despite these policy changes, phytosanitary regulations and clearance procedures

applicable to poultry meat remain poorly defined and a deterrent to imports.

Tariff levels, along with the poorly defined regulatory barriers, provide significant

protection to the poultry industry. When domestic corn supplies are tight, however,

this protection is at least partially offset by the impacts of corn import restrictions on

feed costs. With feed accounting for a large share of poultry production costs, the

TRQ regime for corn can, potentially, impose significant costs on the industry (see

section on poultry feed supply and demand).

At present, India has no restrictions on FDI in the poultry industry; hence investment

opportunities in poultry production and marketing may be stronger than opportunities

for trade in poultry or feed. So far, there are only relatively small amounts of FDI in

Page 60: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

poultry feeds, production equipment, and processing, and none in poultry breeding or

integration. Market price volatility, uncertainty on feed availability, poor power and

transport infrastructure, and high taxes on processed food are key disincentives for

foreign investment.

Page 61: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Import

All the hatcheries import their parent DOC from outside Uganda, as there are no

grandparent stock farms in the country. These are imported from various countries

including Holland, Mauritius, Kenya, Zimbabwe, UK, USA, France and Germany. Imports

from a number of these countries especially in Europe such as UK and Germany,

France, Holland were temporarily banned during the peak of HPAI H5N1 in Europe to

prevent entry of the virus through imports. These import restrictions have since been

lifted but there is continuous monitoring and the ban may be imposed at any time. MAAIF

periodically reviews the 16 Poultry sector review: countries from which imports are

allowed and issues import restrictions which are implemented through requirements for

import permits of poultry or poultry products enforced by law.

Export

India is an important trade partner for the EU and a growing economic power. With a

growth rate of between 8 and 10% per year it is one of the fastest growing economies in

the world. Per capita income more than doubled during the period 1990-2005. In parallel,

Page 62: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

in just four years, EU-India trade has increased by 31% to over €53 billion in 2009 and

EU investment to India has more than quadrupled since 2003 to €3.1 billion in 2009.

The current trade performance between the EU and India falls therefore far short of its

potential. The comprehensive and ambitious free trade agreement with India currently

under negotiation could constitute one of the most significant deals concluded by the EU.

A trade deal of this magnitude would generate sizeable benefits to both economies

which conservative estimates put in the range of €9 - €19 billion.

The following barriers are significant trade irritants with India which need to be resolved:

Burdensome licensing requirements related to new security provisions have been

proposed which would affect, if fully implemented, the access of European

operators to the commercial procurement of telecommunications. The provisions

stipulate prior security clearance and technology transfer requirements, as well as

an obligation to substitute foreign engineers with Indian ones. Such requirements

are unprecedented internationally, and would damage investment in India. In 2009

the EU exported telecommunications equipment worth €1 billion to India. 12 In

2008 the World Bank ranked India 120 (out of 178) in terms of "ease of doing

business"

Another topical trade issue concerns India's recent measures restricting exports of

cotton. From 2004 to 2009 the EU's imports of cotton have increased by 17%.

Several cotton products are facing export restrictions in India.13 Although EU total

imports of these cotton products have experienced a decline of 48% over the five

year period, recent measures on these goods are important since 23% of EU

imports of these types of cotton products came from India in 2009. Furthermore,

as the second largest cotton producer in the world (20% of global production) and

the only global net exporter of cotton, India's policy has a significant impact on

global cotton supply and hence on prices, aggravating the global upward price

spiral. European industry is therefore facing very high prices and a shortage in

supply, as India is the EU's main import source for cotton products.

Page 63: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Furthermore, India‘s investment policy continues to hinder foreign investments.

Many important economic sectors such as multi-brand retail remain closed to

foreign investment and a series of measures has been adopted to control foreign

capital flows and ensure maximum benefit for local companies through technology

and know-how transfers.

Finally, Sanitary and Phytosanitary (SPS) import requirements going beyond

international standards without scientific justification hinder various EU exports,

mainly poultry, pig meat, vegetables, fruits and timber.

(source:http://eur-lex.europa.eu/notice.do?mode=dbl )

Telecom Sector

UTL has taken its niche in the telecom industry in Uganda by storm – enjoying

phenomenal growth and an unrivalled and unparalleled profile. Now we are looking for

resources with the drive, character and ambition to contribute to the growth of the

organization in a new and exciting period of further development of our Commercial

department. From the moment you join, you will be required to find new and effective

ways to enhance the Sales and Distribution Function, committed to getting things done

right first time, and makes a difference to the future success of the organization.

Being landlocked, the country depended entirely on satellites for its international Internet

connectivity until 2009 when several international submarine fibre optic cables landed on

the African east coast, to which Uganda is now connected via a national fibre backbone

extending to its borders. By 2010, prices for international bandwidth had plummeted to a

fraction of their original cost. In parallel, wireless technologies such as WiMAX and 3G

mobile services have brought the Internet within reach of a much wider part of the

population than the limited fixed-line DSL services ever have. These improvements in

infrastructure will revolutionise the market by making broadband access more affordable

and enabling converged voice, data and video/entertainment services. With GDP growth

Page 64: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

forecast to remain stable at around 7% per annum until at least 2016, growth prospects

for Uganda's telecoms sector are excellent.

Tourism Sector

Below figure shows that in between 2005 to 2009 Indian touristic arrival in Uganda. The

figure shows that in 2005 172 Indian visitor go at their in the year 2006 the ratio will be

increased 200 touristic visit the Uganda. In 2008 the Ugandan government provided the

various types‘ facility to the foreign visitor so that‘s why in 2008 highest Indian tourist or

visited to Uganda. In the year 2009 the ratio will be decreased and standing at 271.

Indian tourist visited to Uganda between 2005-2009

Source: (Uganda bureau of statically abstract 2010)

Total non residential arrival in Uganda between 2005-2009

Source: (Uganda bureau of statistical abstract 2010)

Page 65: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Ugandan tourist arrival in India in 2007-2008

According to Indian tourist statistics the Ugandan tourist arrival in the year 2007 only 2

and the year 2008 arrival 5 tourist arrival in India. So the ratio of the Ugandan tourist

arrival in India is very low.

Source: Indian tourist statistics 2009

UGANDAN TOURIST ARRIVAL IN INDIA

IN 2007-2008

2007 2008

52

YEAR

NO.O

F TO

URIS

T

Page 66: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Policies and Norms of India for Import or Exports to the

Uganda Including Licensing/ Permission, Taxation etc.

Agriculture Sector

Introduction:

While the majority of the goods are freely importable, the Exim policy of India prohibited

imports of certain categories of products as well as conditional imports of certain items.

In such a situation it becomes imports for the importer to have an import license issued

by the issuing authorities of the government of India.

Import license issuing authority:

In India import license is issue by the director general of foreign trade. DGFT Delhi office

is situated in Udyog Bhawan, New Delhi 1100011.

Validity of import license:

Imports license are valid for 24 months for capital goods and 18 months for raw material

components, consumable and spares, with the license term renewable.

India had announced the Duty Free Tariff Preference (DFTP) Scheme for Least

Developed Countries (LDCs) on 08.04.2008. The Scheme provides for duty free market

access on 85% of India‘s total tariff lines to be implemented over a period of 5 years with

20% reduction in each year, Margins of Preference (MOP) on 9% tariff lines to be

implemented over a period of 5 years with 5 equal cuts and an Exclusion (or Sensitive)

List of 6% of India‘s total lines on which no tariff preference would be given. DFTP

Scheme provides duty free and preferential market access on tariff lines that constitute

92.5 % of global exports of LDCs.

Page 67: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Banking Sector

Entry norms

Within the light of the practices gained during the current global financial crisis, it may be

advisable to order being there in form of subsidiaries, at least in case of certain class of

banks, on prudential basis, at the entry point itself. From financial viewpoint, therefore,

following category of banks may be mandated entry in India only by way of setting up a

completely Owned Subsidiary (WOS):

Banks included in authority that has legislation which gives deposits made/ credit

conferred, in that authority a special claim in a winding up.

Banks which do not give sufficient disclosure in the home jurisdiction.

Banks with multifaceted structures,

If the Reserve Bank of India is dissatisfied that supervisory preparations and

market control in the country of their incorporation are enough or for any other

cause that the Reserve Bank of India considers that subsidiary form of

attendance of the bank would be desirable on financial stability consideration.

The Regulation of Cross Border Banks

Cross border banks play an important role in African country. They include international

banks headquartered in developed economies and banks headquartered in Africa,

Nigeria and Kenya, as well as some banks from Asia. Most of the activities of cross

border are maintain relationship and provide capital when require to financial institutions.

African bank regulators three challenges.

First, they must participate fully in the supervisory colleges of cross border banks

which are headquartered outside Africa (in London, Paris, New York, etc) and

ensure that their interests are fully taken into account by the home regulator.

Second, for the growing numbers of cross border banks which are headquartered

in Africa, the home regulator must be able to provide effective consolidated

supervision. The home regulator must be able to evaluate the risk profile and the

risk management of the consolidated bank.

Page 68: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Third, all mass regulators, irrespective of where the home regulator should extend

support to their subsidiaries banks and help to those who experience financial

weakness.

Licenses

The mainly frequent instruments of direct regulation of imports are licenses and quotas.

The license system requires that a condition issues permits for foreign trade contact of

import and export supplies incorporated in the lists of licensed merchandise.

Manufactured goods licensing can take a lot of forms and events. The major types of

licenses are common license that permits at liberty import or export of commodities

integrated in the lists for a definite stage of time; and once license for a certain product

importer to import.

Licensing procedures

An application for a license shall be made in duplicate, in the form set out in

Schedule I and shall be accompanied by the supporting documents specified in

regulation.

An application for a license must specify the class of license being applied for and

other activities that may fall under other classes of license, which the applicant

intends to carry out.

A non-refundable application fee of Uganda shillings one million for banks, and

Uganda shillings five hundred thousand for non-bank financial institutions shall

accompany each application for a license.

Two-sided Trade and Investment

The volume of two-sided trade has increased from US$ 678.5 million in 2009-10 to US$

727.9 million in 2010-11 registering an 8% growth. India is now the second largest FDI

investor in Uganda in 2011. Major exports are: pharmaceuticals, bicycles and bicycle

parts, automobile components, small industry & agro-processing machinery, 2-January,

2012wheelers, textiles, tyres, sports goods etc. Uganda imports almost 30% of its

Page 69: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

pharmaceuticals from India Bilateral trade figures during the period 2006 to 2011 are as

under:

YEAR Exports

(US$ mn)

Imports

(US$ mn)

Total

2010-11

2009-10

2008-09

2007-08

2006-07

711.199

661.546

471.029

454.860

252.206

16.68

16.975

12.761

7.761

1.495

727.879

678.521

483.79

462.621

253.701

Source: ficci

A 35-member agri-business allocation from FICCI visited Uganda from August 18-20

August 2011 and had productive discussions with President of Uganda, Minister of

Agriculture, and Minister of Information & Communications Technology Minister of Trade.

They also held a B2B meetings and Business Seminar, co-organized by Uganda

Investment Authority and Uganda National Chamber of Commerce & Industry where

more than 100 companies from Uganda participated. A number of Indian investors from

this sector visited Uganda subsequently.

Dairy Sector

India to give Uganda Exports Tariff Relief

India‘s Prime Minister Dr. Manmohan Singh recently announced. Plans to offer duty free

market access to export products from Uganda, the Prime Minister Dr Manmohan Singh

recently announced.

Under the Duty Free Tariff Preference (DFTP) Scheme, India offers duty free access to

LDCs with regard to 94 % of its tariff lines to be implemented in five years. It is open to

all 49 LDC members, including 33 in Africa. Products of interest to Africa include cotton,

cocoa, aluminum ores, copper ores, cashew nuts, sugarcane, ready-made garments,

fish fillets and non-industrial diamonds. The Indian High Commissioner to Uganda Niraj

Shrivastava, revealed that his country is considering setting up such a college in one of

Page 70: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

the African countries, and that Uganda is among the top contenders because of the

positive attitude of the government towards India investors.

Gidion Badagawa, the Executive Director of Private Sector Foundation, said that this

programme will not only help international trade participants, it will open a window of

interaction between the small and medium enterprises (SMEs) between the two

countries.

Echoing Gagawala, Badagawa, said arrangement will also be beneficial to many Indian

manufacturers to access market for the capital intensive goods.

Source: http://www.independent.co.ug/business/business-briefs/261-india-to-give-uganda-exports-tariff-relief

Healthcare Sector

Import is the antonym of export. In the terms of economics, import is any commodity

brought into one country from another country in a legal way. The economic needs of the

country, effective use of foreign currency are the basic factors which influence India's

import policy. There are mainly 3 basic objectives of the Indian import policy:

To make the goods easily available.

To simplify importing license.

To promote efficient import substitution.

Current Scenario of Imports in India

There are few goods which cannot be imported namely tallow fat, animal rennet, wild

animals, unprocessed ivory etc. Most of the restrictions are on the ground of security,

health, environment protection etc. Imports are allowed free of duty for export production.

Input output norms have been specified for more than 4200 items. The norms tell about

the amount of duty free import of inputs allowed for specified products. There are no

restrictions on imports of capital goods. Import of second hand capital goods whose

minimum residual life is of five years is permitted. Export Promotion Capital Goods

(EPCG) scheme provides exporters to import capital goods at a concessionary custom

rates. In the past 30 years Indian imports have risen quite dramatically. At present

Page 71: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

imports accounts for 17% of the GDP. Capital goods have been continued to be

imported and in the last three years, their share has fallen from 25% to 22%.

Major Indian Imports

There are facilities available for the service industries to enjoy the facility of zero import

duty under EPCG scheme. Some of the major imports of India are edible oil, newsprint,

petroleum and crude products, crude rubber, fabrics, electronic goods etc

Problems due to Large Import of Products

The recent trend of imports is of some concern. The regular imports of oil reflect upon

the fact that India is not able to produce the quantity of oil required in India. Moreover the

increase in the imports of products also highlights the fact that the Indian domestic

industries need to be developed. High cost of imports also put pressure on the foreign

exchange reserves.

Telecom Sector

Telecom is the exchange of information between two distant points in space. The

telecom industry is very important for the socio economic development of a nation. It is

one of the main architects for accelerated growth and progress of different segments of

the economy. Post liberalization the telecommunication industry has grown by leaps and

bounds.

Evolution of Indian Telecom

Year Event

1851 First operational landlines were laid by the government near Calcutta

1881 Telephone service introduced in India

1883 Merger with the postal system

1923 Formation of Indian Radio Telegraph Company (IRT)

1932 Merger of ETC and IRT into the Indian Radio and Cable Communication Company(IRCC)

1947 Nationalization of all foreign telecommunication companies to form the Posts, Telephone and

Page 72: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Telegraph (PTT),a monopoly run by the government‘s Ministry of Communications

1986 Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar Nigam

Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam

Limited (MTNL) for service in metropolitan areas.

1997 Telecom Regulatory Authority Of India (TRAI) was created.

1999 Cellular Services are launched in India. New National Telecom Policy is adopted.

2000 DoT becomes a corporation, BSNL

Liberalization

As part of the policy of liberalization, telecom equipment manufacturing was delicensed

in 1991 and value added services were accessible to the private sector in 1992.As a

result a number of manufacturing units were established across the country. The

National Telecom Policy resolution of 1994 further liberalized the telecom sector for

private initiative.

National Telecom Policy 1994

In 1994,the government move toward with the National Telecom Policy which set certain

important goals like availability of telephone on demand, providing International standard

infrastructure and services at affordable prices, enhancing India's competitiveness in

global market and encouraging exports, create environment conducive for both FDI and

domestic investment, accelerate India's growth as a major manufacturer and exporter of

telecom equipment and availability of telecom services to every village.

Telecom Regulatory Authority of India (TRAI)

The opening up of the Indian telecom sector for private enterprises resulted in the need

for independent regulation. In 1997 The Telecom Regulatory Authority Of India (TRAI)

was initiated by an act of Parliament. The purpose of this act was to regulate telecom

services, fix/revise tariffs for telecom services which till then was under the control of the

central government. The objective of TRAI was to create an environment which would

enable Indian Telecomm to play an important role globally.

Page 73: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

National Long Distance

In 2000 the government created guidelines for the entry of private sector in National

Long Distance without restricting the number of operators. Some of the salient features

of NLD are:

Unlimited entry for both inter circle and intra circle calls.

Total foreign equity must not exceed 74%.Promoters must have a net worth of Rs

25 million.

Private operators will have to enter into an arrangement with fixed service

providers within a circle for traffic between long distance and short distance

charging centers.

Private operators allowed to set up landing facilities that access submarine cables

and use excess bandwidth available.

License period would be for 20 years and extendable by 10 years.

Internet Service Providers (ISPs)

In late 90s the private sector was given authorization to be a part of this industry. In the

interest of the customers, the administration has set certain rules to grant license to

potential service breadwinners. Any Indian based company with a maximum foreign

equity of 74% is entitled for license. The segment has seen great technological

developments.

Foreign Direct Investment

Foreign Direct Investment as a FDI contributes the small and large investment in

their own country and other reputational growing country as well.

In Basic, other Value Added Service and Global Mobile Personal Communications

by Satellite, FDI of 74% are allowed subject to license granted by branch Of

Telecommunication.

FDI up to 74% is also permitted in means of communication Paging Service and

Internet Service Provider.

Now 100% participation of FDI, is allowed for Infrastructure suppliers of dark fiber

electronic and voice mail. The only consent for the companies is, they would

Page 74: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

divest 26% of their equity in Indian companies in the next half decade, if the

companies are other than the Indian origin.

Tourism Sector

To improve the tourism industry in India, Indian administration has allowable 100 per

cent foreign investment under the usual way in the hotel and tourism related industry

which cover travel agency, tour operating agencies and tourist transport operating

agencies, unit on condition that services for civilizing, venture and nature skill to tourist,

face, air and water transport facilities for tourists, meeting/seminar units and

organizations.

But Foreign Investment in LLP will be acceptable only after winning the support of

bureau of money, administration of India.

License for Tour Operator/Travels Agents

If the foreign investor want to get the license for the work permit than they get through

the concerned tourism department. Like the we wants‘ to started the motor vehicle

business at that time get the license under the motor vehicle act.

The State department of the tourist sector does the cross verification after that they give

the license for the 5 years for the base of the renewal time period.

Tax Incentives or tax holiday

In the financial plan 2010 it has complete the profit of 100% savings related tax

conclusion on capital spending for construction and in service a new hotel from selected

locations to diagonally the country. The five year tax festival under the Income tax Act

has been provided for two, three and four star group hotels positioned in all joint nations‘

instructive, systematic and cultural organizations, world inheritance sites for hotels

starting operations from 1st April 2008 to 31st March 2013.

Page 75: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Policies and Norms of Uganda for Import/Export Including License

Permission, Taxation etc.

Agriculture Sector

For the development of the every countries in all the sector there is need of the policies

and norms for the betterment of the countries. In the Uganda recently there have been a

number of policy frameworks operating in the agriculture sector, sometimes in parallel,

and this has raised concerns with regard to issues of policy consistency and the extent to

which this might affect the performance of the sector. It is helpful to outline the evaluation

of these different paradigms.

Increase access to quality social services;

Improve the stock and quality of economic and trade infrastructure;

Increase household incomes;

Strengthen good governance and improve human security;

Promote innovation and industrial competitiveness;

Enhance the quality and availability of gainful employment and;

Harness natural resources and the environment for sustainable development

Banking Sector

Monetary

On the monetary policy front, Uganda needs to increase and improve the private sector

credit and recover demand in the economy. The challenge is that how to do that and how

to control inflation. However, there is a need for the monetary authorities to survey the

level to which the so called ‗surplus liquidity‘ that the central bank measure of circulation

is really a threat to inflation. One way of doing this is to exclude commercial banks from

the primary market of Treasury bills until the surplus liquidity proves to be really so. In

practical terms, the BOU should offer

Fiscal

On fiscal policy, given the high debt to GDP ratio, Uganda‘s government should increase

infrastructure expenditure, focusing on more investment, job creation and economic

Page 76: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

growth. For example, Uganda government should give incentives to firms that create

jobs. Moreover, government should support production of non-traditional exports within

the region that have the potential of improvement in economy.

Social policies

Uganda has done well to protect its social sector budget from budget cuts in the event of

shortfalls in tax revenue. This policy should continue. The country should focus more on

improving delivery of social services, particularly to helpless groups (rural areas,

children, elderly) and regions that are more likely to be hard strike by a reduction in the

resource cover.

Accelerating normal growth and development policies

Uganda‘s focus on the private sector as the engine of economic growth is the right way

to go. However, the crisis has brought several challenges to the private sector, which

make threats its leadership in economic growth.

Dairy Sector

Legal Permission Work

This working paper examines the politics of Uganda‘s dairy sector. This sector is

important because, in contrast to many other productive sectors in Africa, it has grown

quite substantially in the last two decades. The main reason for the growth is that the

Museveni government needed to build support coalitions when it came to power in 1986.

The government took a number of early initiatives to rehabilitate the dairy infrastructure

in southwestern Uganda, where the ruling elite came from and whose support it needed.

As the government later implemented structural adjustment programs and the sector was

liberalized, milk production grew most in the southwestern area. Dairy farmers organized

and so did dairy traders, and a relatively competent Dairy Development Authority was set

up which was able to bargain with the producer organizations and achieve their

cooperation in implementing regulatory initiatives.

PVoC (Pre-Export Verification of Conformity) For Exports To Uganda

Page 77: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Uganda can promise its consumer of the quality and safety of imported goods, the

Government of Uganda implemented from June 2010 a series of rules identified as a

Pre-Export Verification of Conformity to Standards Programmed (PVoC).

PVoC can verify the conformity of all regulated products and enforces of their standards.

Fulfillment to PVoC requirements are applicable within addition to an existing import

processes.

Tax Structure

In Uganda are charged a corporate tax rate

in the range of 25%–45%, depending upon

the profitability of the product.

Uganda has fully liberalized the foreign-

exchange market, allowing the free transfer

of foreign exchange to and from the

country.

Tax slabs for individuals range between 0%

and 30%, depending upon their annual

income

TAX

RATES

(%)

Corporate Tax 30

Capital Gains Tax 30

Personal Tax 0-30

Withholding Tax (Dividends) 15

Branch Tax 30

Infrastructure Sector

The guidelines have permitted licensing for both private and public infrastructure.

Private Infrastructure License.

Under the new Infrastructure licensing regime, infrastructure for private use will be

permitted and licensed.

A private infrastructure is regarded as infrastructure established and operated based on

the following conditions:

Page 78: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

It will be for the sole use of the Owner in a private closed user group.

It will be for established within the Owner‘s property boundaries, only extending

into public domain to link up geographically separated branches owned, leased or

rented by the entity.

The telecommunication services under the license are NOT offered for monetary

gain.

Private Infrastructure License operations are Secondary operations, with respect

to interference or access to Essential Resources and Facilities.

Public Infrastructure License.

The Public Infrastructure is regarded as infrastructure established to enable provision of

telecommunication services to the general public.

This infrastructure can also be used by private companies to establish their own private

networks, as long as there is no exchange of traffic between private and public networks.

The Public Infrastructure is established and operated based on the following conditions:

Public Infrastructures can be used for both public and private purposes.

Public Infrastructures are required to be interconnected with other public provider

networks.

Public Infrastructure is for monetary gain so as to allow the provider to realize a

reasonable return on the investment.

Public Infrastructure operations are Primary operations, with respect to the use of

Essential Resources and Facilities.

Public Infrastructure is also applicable for the public sector for doing the business

activities.

Pharmaceutical Sector

The path of industrialization in Uganda is defined within the framework of the National

Industrial Policy (NIP) of 2008. This sets out the strategic direction for industrial

development in Uganda for the following nine years. The policy sets clear indicators for

Page 79: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

what the government would like to achieve during, and by the end of, this period, as

follows:

25 per cent Contribution of manufactured products to total GDP

30 per cent Contribution of manufactured exports to total exports

30 per cent Value added in industry (as a percentage of GDP)

4.2 score On the Global Competitiveness Index of the World Economic Forum

Telecom Sector

The introduction of competition into the sector occurred as early as September 1993

when Clovergem Celtel Ltd was licensed to provide nationwide mobile telephony

services. This was later followed by the opening up the value added services market,

which resulted in issuance of various licenses in 1995 and 1996 for paging services,

satellite services (private voice and data services), VSAT services, public pay telephone,

mobile trunked radio services, and customer premises internal block wiring services.

As a result, only three main licenses have been issued in the sector during the past eight

years. On the other hand there has been a Considerable of growth in number of licenses

issued in the minor category where unlimited competition has been encouraged. The

resulting market structure is summarized in Table1.

Page 80: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

(Source – Uganda Policy review report 28/1/05)

Page 81: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Tourism Sector

Government of Uganda Tourism Policy

o Some of the major functions of DGFT and its regional offices throughout the

o The Traveler agent (license) Act, 1968

o The Administration of Uganda traveler agent (Licensing) Act, 1972

o The Lodge Act, 1964

In adding, the Ministry of Tourism, Trade and Industry have available ready strategy for

visit and travel operator and travel agent, 1995, which place severe policy toward be

there hold on to by journey and tour operators.

The procedure of get the license for invests in tourism sector in Uganda.

In arrange to permit you plan in the tourism industry, will go from side to side the next

stage as a shareholder:

You will require recording your Company with the Registrar of company.

Submit an application for a savings certify from the Government of Uganda

savings power.

Open your bureau, takes on staff, and get gear in unity with the procedure issue

by the department of Tourism, Trade and Industry, as we include discuss under.

License required for a Travel Agents business

You force require a Travel Agent's certify to function your Travel Agent trade in Uganda.

The yearly Licensing charge is not additional than US$30.

If a firm operates both as a tour operator and travel agent, the fee is double and would

normally not go above US$60 per annum.

The submission method for travel agents is like to that for tour operators. You will fill the

same form and you must give the similar attachment, counting:

o The memorandum and articles of union of the corporation

o detail of the vehicle to be use

Page 82: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

o a print of the trade permit, and

o evidence of organization in the involvement of Uganda Tour Operators

One time the request has been submit, an office official resolve appointment the office.

Page 83: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Present Trade Barriers for Import / Export

Agriculture Sector

Uganda is an economy heavily dependent on the agriculture sector in terms of supplying

inputs in the industrial sector (most manufacturing activities in the country are agro

processing); employment (over 80%) and export earnings (over 90%). The contribution

of the agricultural sector to the GDP declined from about 54% in 1987 to just less than

39% in 2004 (The Republic of Uganda, 1997 and 2004) but it remains a significant sector

to the Ugandan economy. The share of agricultural sector has declined by about 2.4

percentage points since 1999/00 while the shares of industry and services increased by

0.8 and 1.6 percentage points respectively.

Sector distribution of the Uganda‘s GDP in recent years (%)

Over the last decade, policy makers in Uganda have maintained stable macroeconomic

policy environment by ensuring low and stable inflation, market determined and

competitive exchange rates, etc. This policy stance largely benefited from trade-policy

reforms initiated in Uganda since 1987 comprising the removal of controls in financial

and commodity markets; elimination of protection to import-competing firms;

simplification of the tariff structure. The country‘s tariff structure had 5,300 tariff lines with

five tariff bands namely 0%, 10%, 20%, 30% and 60% in 1993. More than 95 percent of

tariff lines were between 10 and 30 percent with a simple average tariff rate of 17%

(WTO, 1995; Kasekende, Abuka and Asea, 2001).

Uganda‘s trade structure, development and performance

Trade policy reforms initiated in Uganda over the last decade were designed to reduce

the anti-export bias associated with protection policies, induce resource allocation into

the export sector, improve export competitiveness and trade performance. As a result,

Ugandan trade has evolved drastically over the last ten years. The country‘s export

earnings have increased, for example from about US$ 258 million in 1981 to a peak of

about US$ 710 million in 1996 and about US$ 508 million in 2003 (The Republic of

Page 84: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Uganda, 1997 and 2004). The commodity composition of the country‘s exports has also

changed significantly

Analytical framework

The impact of tariff reduction due to trade policy reforms in Uganda on various sectors is

assessed in the framework of nominal and effective rates of protection7. Protection

provides a subsidy to producers of import-competing goods and implicitly taxes

production for export. Nominal rates of protection (NRP) measure the impact of trade

distortions on the price of the final output only, whilst effective rates of protection (ERP)

measure the impact of distortions on the value added of a given economic activity.

Banking Sector

While in India has opened private sector banks, but most Indian banks are government-

owned, and entry of foreign banks remains highly constrained. State-owned banks hold

roughly 70 percent of the assets of the banking system, even if private banks are

growing fast. Foreign banks may operate in India in one of three forms: a direct branch, a

wholly-owned subsidiary, or through a stake in a private Indian bank. As of June 2008,

there were 30 foreign banks with 279 branch offices operating in India under Reserve

Bank of India (RBI) approval, including 4 U.S. banks with a total of 52 branches. Under

India‘s branch authorization policy, foreign banks are required to submit their internal

branch expansion plans on an annual basis. In 2007, India granted 19 new foreign

branch office licenses.

Non-tariff barriers

Through the release of export subsidy and quota, NTBs are the majority connected to

the tariffs. Tariffs for goods manufacture were reduced during the eight rounds of

discussions in the WTO and the common contract on Tariffs and buy and sell. Following

lowering of tariffs, the principle of secured demanded the conclusion of new non tariff

barriers such like technological barriers to trade. According in the direction of statement

made at United Nations Conference on Trade and expansion (2005), the make use of

Non tariff barriers, bases on the quantity and organize of price levels has decrease

Page 85: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

significantly from 45% in 1994 to 15% in 2004, whereas exercise of other Non tariff

barriers enlarged from 55% in 1994 to 85% in 2004.

Dairy Sector

Trade barriers are government-induced restrictions on international trade. The barriers

can take many forms like. Tariff barrier, trade barrier, currency barrier, import licenses

barrier, export licenses barrier, voluntary, import quota barrier, local content

requirements, subsidies and embargo etc.

The main objectives of grand trade barrier are:

To promote original research and development.

To protect the foreign exchange resources of the country.

To make the balance with payments position favorable.

To mobilize revenue of the government ad to discriminate against certain country.

To protect the domestic industries from foreign competition.

After the Second World War there was a liberalization of trade by the developed

countries. Successive rounds of negotiations in the GATT have cut tariffs on trade in

manufactures from an average level of 40% in 1947 to about 3% now in the industrial

countries.

Indian government, following the recommendation of the Tax reforms Committee steadily

reduced the peak level of tariffs from over 300% in 1991 to 50% in 1995 to 5% in 2007.

Further, import duties on capital goods, project imports, basic feed stocks for

petrochemicals etc were brought down. Non-tariff barriers (NTBs), several of which are

described as new protectionism measures have grown considerably, particularly since

around the beginning of the 1980s. The export growth of various developing countries

has been seriously affected through the NTBs.

Page 86: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Telecom Sector

Trade barrier

Trade barriers are government-induced restrictions on international trade The barriers

can take many forms, including the following:

Tariffs

A tariff may be either tax on imports or exports (trade tariff), or a list or schedule of

prices for such things as rail service, bus routes, and electrical usage (electrical

tariff, etc.).

The word comes from the Italian word tariff "list of prices, book of rates," which is

derived from the Arabic tariff "to notify or announce.

Non-tariff barriers to trade

Import licenses

Import license

An import license is a document issued by a national government authorizing the

importation of certain goods into its territory. Import licenses are considered to be non-

tariff barriers to trade when used as a way to discriminate against another country's

goods in order to protect a domestic industry from foreign competition.

Government may put certain restrictions on what is imported as well as the amount of

imported goods and services. For example, if a business wishes to import agricultural

products such as vegetables, then the government may be concerned about the impact

of such importations of the local market and thus import a restriction.

Export licenses:

Most trade barriers work on the same principle: the imposition of some sort of cost on

trade that raises the price of the traded products. If two or more nations repeatedly use

trade barriers against each other, then a trade war results.

Page 87: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Another negative aspect of trade barriers is that it would cause a limited choice of

products and would therefore force customers to pay higher prices and accept inferior

quality.

Examples of free trade areas

North American Free Trade Agreement (NAFTA)

South Asia Free Trade Agreement (SAFTA)

European Free Trade Association

Tourism Sector

The development of the tourism sector in Uganda is very poor and also the infrastructure

and communication are very poor in this sector.

The railway services are available in very few areas especially for the major tourist

attraction the railway services is irregular and also the air transport are do not available

in tourist attraction.

Uganda political instability and insecurity are also affected to this sector from the

following ways: -

Put more animals in the reserve.

The decreasing the development activity in this sector e.g. like railway and air

transport and roads.

Increasing the hunting activities of birds and animals so the community

decreasing.

Many areas of the tourist attraction are very risky so that the foreign touristic don‘t

want to go at their.

The Ugandan tourism sector can not advertise at the international level and the

foreign tourists they don‘t know what the tourist attraction is are available in

Uganda.

The compared to the other foreign country than the Ugandan tourist sector is very

poor and redeveloped. The facility for the foreign tourist is not available.

Page 88: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

In this sector the language barriers are also responsible. In the tourist sector the

very few employees are speak in many foreign languages.

Page 89: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Potential for Import/Export

Agriculture Sector

Agriculture, a core sector of the Indian economy, accounts for 30 per cent of the

country‘s GDP, 20 per cent of total export earnings, two thirds of country‘s workforce and

livelihood for 70 per cent of the total population. The past accomplishments of this sector

are a great strength to face the current problems and future challenges in the areas of

greater efficiency (competitiveness), sustainability, poverty alleviation and continued food

self-sufficiency. With trade liberalisation, agricultural exports have also become an

important national goal.

The new economic regime, initiated since early nineties, has led to resetting of the goals

of Indian agriculture towards global competitiveness and export orientation without

compromising the basic premise of self-reliance. The emergence of the concept of

sustainability of agricultural production has made the task more difficult for all those who

are associated with agricultural production systems in the country. The present goals of

Indian agriculture warrant reformation of strategies and action plans. Agricultural exports

increased from about 600 million US dollars in 1960-61 to 3520 million US dollars in

1990-91. During post economic reforms period, the value of agricultural exports has

nearly doubled. The share of agri-exports in total exports, however, has remained more

or less stable around 20 per cent, though the share of exports in agricultural GDP has

been rising. Commodities such as marine products, oil meals, rice, coffee, tea, spices,

cashew, tobacco, castor oil, groundnut, sesame, fresh fruits, vegetables, pulses etc., are

important export earners and are being exported to more than 110 countries.

Dairy Sector

In the 21st Century, Gujarat can introduce new Mantra‖ Development of Gujarat for the

Development of India‖, Participial of Gujarat has taken up Good-Governance, practical

Governance, has presented the Model for Special Economic Zone and Special

Investment region, additional the C.M. to introduce of ―New Progressive Gujarat within

Gujarat‖. C.M. invited all in the direction of participates in to Vibrant Gujarat-2009 and to

Page 90: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

remain committed to celebrate Swarnim Gujarat. He proposed to set up a committee for

Swarnim Gujarat.

More the Principal Secretary Shri G.C.Murmu and Chairman Tourism Corporation Shri

P.D.Vaghela. Most important industrialists have also connected the trip to East Africa for

batter relation.

Source: www.narendramodi.in/%E2%80%9Cgujarat-delegation%E2%80%9D-under-the-leadership-of-shri-

narendrabhai-modi-in-uganda/

Although inviting Modi to Uganda, Museveni had expressed his country‘s resolve to

strengthen trade ties with Gujarat in copper, cobalt, crude oil, gas, coffee, tea, tobacco,

maize and cotton. Modi will address representatives of the government and society to

promote the Vibrant Gujarat Global Investors Summit 2009, besides meeting the Indian

High Commissioner in Uganda. The delegation will be felicitated by Hindu Council and

Akshar Purushottam Swaminarayan Sanstha in a grand function at Nairobi, the release

said.

Source: http://www.indianexpress.com/news/cm-to-lead-highlevel-delegation-to uganda/386305/

Uganda- India: Partners In Progress

Bilateral trade and agreements Indian investors

Important bilateral treaties and agreements are:

Double Taxation Avoidance Agreement (2004)

MoU for Cooperation in the areas of Agriculture

and Animal Resources (2007)

Bilateral trade with India stood at US$220.3 million, with

India‘s exports totalling US$206.9 million and imports

amounting to US$13.4 million in 2009–10.

Exports from India to Uganda grew at a CAGR of 22.3%,

while imports grew at a CAGR of 47.3% between 2005

Bank of Baroda

United Telecom Limited

The Energy and Resource

Institute (TERI)

Tata Group

Road master Cycles

Mahindra Tractors

Tungabhadra Steel Products

Limited

Hindustan Machine Tools

RITES Limited

Page 91: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Healthcare Sector

Healthcare is one of the most important needs of human beings. However quality wise

healthcare facility is not available everywhere and if it is available the cost becomes very

high in most part of the world.

In 2009, over 300,000 patients arrived to India for medical treatment from over 30

countries around the world, USA, Canada, UK, Russia, The Middle East, Kenya,

Uganda, Tanzania, Srilanka The Central Asian Republics.

Kenya‘s And Uganda‘s health infrastructure suffers from urban rural Regional

imbalances, lack of invest and personnel shortage. The volume of trade between India

and Uganda has increased; India is now the second largest exporter: our exports

constitute around 8.5 % of Uganda‘s total import. Kenya and Uganda can be an ideal

gateway to the untapped east African community countries, which present high growth

potential for the Indian healthcare industry.

Why India?

India is a country where number of modern hospitals with world class facilities is

available. These Hospitals are backed by qualified and well trained medical practitioners

and supporting teams. Their services are transparent, the cost is unbelievably low and

there is no waiting period. However, a nice blend of top class medical expertise at

attractive prices is helping in number of Indian corporate hospitals attracting foreign

patient from all over the world.

and 2010.

Key products exported from India to Uganda are

Pharmaceutical products, vehicles other than railway or

tramway rolling stock.

(Source: Directorate General of Foreign Trade, GOI)

McLeod R

Page 92: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Infrastructure Sector

The volume of bilateral trade has increased from US$ 678.5 million in 2009-10 to US$

727.9 million in 2010-11 registering an 8% growth.

India is now the second largest FDI investor in Uganda in 2011.

Major exports are: pharmaceuticals, bicycles and bicycle parts, automobile components,

small industry & agro-processing machinery, 2-wheelers, textiles, tyres, sports goods

etc.

Import export activities of india with the Uganda is very good business conditions, terms

and are also the better and affectable working condition for doing the business by india

to the Uganda.

Uganda imports almost 30% of its pharmaceuticals from India. Bilateral trade figures

during the period 2006 to 2011 are as under:

Year Export(US$mn) Import(US$mn) Total

2010-11 711.199 16.68 727.879

2009-10 661.546 16.975 678.521

2008-09 471.029 12.761 483.79

2007-08 454.860 7.761 462.621

2006-07 252.206 1.495 253.701

A 35-member agri-business delegation from FICCI visited Uganda from August 18-20

August 2011 and had fruitful discussions with President of Uganda, Minister of

Agriculture, and Minister of Information & Communications Technology Minister of Trade.

Poultry Sector

The Indian poultry industry is growing. As the country progresses and people become

prosperous, they change their food habits and eat more eggs and meat. This

phenomenon is seen throughout the world. India is a country of contrasts. There are

various religious beliefs and many people are against eating eggs and meat. There

Page 93: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

are certain religions, which prohibit particular Poultry meats. Beef is taboo for Hindus

as pork is for Muslims.

Indian poultry industry has the inherent potential to become the world- leader. A survey

to study the prices of eggs and prices of poultry feed in 45 countries points out that eggs

are cheapest in India, even though feed costs are not cheapest.

The strong position that the poultry is in today can be understood from the

following facts and figures:

India is the fifth largest producer of eggs in the world. It employed about 5 lakh

people four years back. Today, the figure must be around 12 lakhs.

Egg production is growing by 4-6% every year whereas broiler production is

growing by 8-10%.

It is being estimated that this industry can possibly bring in Rs. 2000 million in

foreign exchange in the next five years.

Poultry has a great role to play in employing huge number of people. If there is to

be a unit increase in per capita consumption of eggs, then it will create 25,000

new jobs.

Telecom Sector

Uganda telecom sector plays an important role in the internal as well as external

economy point of view, such as its try to increase other countries economy as specially

for India itself.

It stands for almost 2020 in future plans few years like 2.3 % to 4.9 %.It also covering the

whole worlds normally rank as negatively flow to Indian telecom sector as 7.5 times.

Which will take a 10 million attained customers level itself.

Few more Telecommunication Sector Opportunities in India include opening of Internet

telephony services, privatization of VSNL, and introduction of a number of worldwide

long space services sector.

Page 94: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Tourism Sector

The distinctive attraction of Uganda as a tourist destination arises out of the variety of its

game stock and its scenic beauty. Uganda generally has substantial natural resources

for tourism with a variety of landscape and ecosystem, climates and cultures. Some of its

features are outstanding by international standards such as the sheer variety of bird

species, while other is unique.

Page 95: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

BUSINESS OPPORTUNITY

Agriculture Sector

The Indian food industry is in a unique position with both challenges and opportunities

existing at the same time. Till the late 70s, India was a food deficit nation. Post-70s, the

country moved to become a food surplus nation, thanks to efforts from eminent

personalities like Dr. Swaminathan who led the ―Green Revolution‖ drive. Today, India is

the second largest producer of food, next only to China. Around 26% of GDP in India

comes from food and agriculture. Food processing sector ranks fifth in terms of its

contribution to GDP. There is tremendous untapped potential which is presently

languishing in darkness. India has incredible opportunities in the field of food processing

because of various factors.

India has the second largest arable land in the world. It has diverse agro-climatic zones:

hot and humid in its long coastal line area, dry and cold in mountain ranges, hot and dry

in plateau regions. This makes India unique for producing many kinds of horticultural and

agro-products. Apart from this, India with a population of 1.08 billion, growing at 1.6% per

annum, has a favorable demographic profile making it one of the largest consumption

hubs.

Banking Sector

Business Opportunities in future of Uganda country

Potential sectors

for investments

Opportunities

Agriculture and agro

processing

• The Government of Uganda has encouraged growing highlands

rice.

• The Government of Uganda is promoting the use of organic

fertilizers and the production of improved animal supply such as fish

supply.

Page 96: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

• Opportunity areas contain commercial farming and the produce of

input and the supply of rural machinery.

• Uganda also offers Abundant opportunities in areas such as

timber processing for export, the producing of more quality furniture

and wood products and other packaging material

Manufacturing • Opportunities exist in the provision of modern family planning

services, manufacture of drugs, medical equipment, and processing

of herbal medicine.

• The country also offers scope in the construction of modern

houses and production of footwear.

Mining • Uganda has opportunities in value addition to gold refineries,

stone cutting and polishing.

• The discovery of petroleum wells improve.

Information,

communication and

technology

• The Government of Uganda also plans to generate at least

100,000 jobs for new graduates in the sector annually.

• Uganda is expected to experience a high percentage increase in

mobile subscriptions. By 2014, more than 70% citizens of Uganda

are expected to own mobile phones.

Banking and

financial services

• Investment opportunities exist for investors promoting new or

innovative financial products such as mortgage finance, venture

capital, commercial banking and leasing finance.

Bilateral trade and agreements

Important bilateral treaties and agreements are:

Double Taxation Avoidance Agreement (2004)

Bilateral trade with India stood at US$220.3 million, with India‘s exports totaling

US$206.9 million and imports amounting to US$13.4 million in 2009–10.

Exports from India to Uganda grow at 22.3%, while imports grow at 47.3%

between 2005 and 2010.

Page 97: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Key products exported from India to Uganda are Pharmaceutical products,

vehicles other than railway systematic supply.

Indian investors

Bank of Baroda

United Telecom Limited

The Energy and Resource Institute (TERI)

Tata Group

Road master Cycles

Mahindra Tractors

Hindustan Machine Tools

Dairy Sector

Research from the University of Botswana in 2008 has found that farmer‘s ordinary

practice of overstocking cattle to cope with drought losses made ecosystems further

vulnerable and risked long term damage to cattle herds, in turn, by actually depleting

scarce biomass. The study of the Kgatleng district of Botswana predicted that by 2050,

the cycle of mild lack is likely to turn out to be shorter for the region (18 months instead

of two years) due to climate change.

Uganda presents several opportunities for trade and business. Uganda is making fast

strides to appear because leading commercial centers in East Africa. The importance of

Uganda as one of the most progressive economic country in Sub-Saharan Africa, more

than 600 participants from above 35 countries can participated in the Uganda

International Trade Fair held in Kampala recently. Many companies present in the Middle

East countries looking to promote their products in the lucrative markets of East Africa.

Page 98: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Healthcare Sector

What Investor Say

Uganda as a place to invest in is regularly in the calculations of hundreds of

businesses worldwide.

Here are some comments from businesses that recognized the benefits, then

followed through and invested in Uganda.

Doing business

Doing business in Uganda is straightforward.

Focus on Uganda executives together with our commercial and public sector

partners will make the process as smooth as possible.

If you invest in Uganda you operate in part of the East African Community and

Common Market of East and Central Africa (COMESA) giving you access to over

400 million inhabitants.

Uganda is committed to developing a knowledge-based economy and encouraging

innovation and entrepreneurship.

Foreign investors in Uganda have unrestricted access to all economic sectors and

have the same access to credit as local companies.

Ready for help

Investment projects can be complex operations. However, the complexity can be

significantly lightened by choosing Uganda as a location. Over the decades, has

developed considerable expertise in the investment process. Working in partnership

with our commercial and public sector partners such as Uganda Investment Authority,

we can advise you on every aspect of running a business in Uganda, from property

selection through to maximizing financial incentives and recruitment.

Infrastructure Sector

Since assuming power in early 1986, Museveni's government has taken significant

steps toward economic rehabilitation.

Page 99: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

The nation‘s transportation and communications structures which were destroyed by

war and neglect—is being reconstructed.

Identifying the need for enlarged outside support; Uganda bargained a policy outline

paper with the IMF and the World Bank in 1987.

It consequently start implementing monetary policies designed to restore price

strength and sustainable balance of payments, improve capacity utilization,

rehabilitate infrastructure, restore producer incentives through proper price policies,

and improve resource mobilization and allocation in the public sector.

Investment as a percentage of GDP was estimated at 20.9% in 2002 compared to

13.7% in 1999.

Private sector investment, largely financed by private transfers from abroad, was

14.9% of GDP in 2002.

Gross national savings as a percentage of GDP was estimated at 5.5% in 2002.

Recent analysis provides clear evidence of increasing demand for infrasture in Sub

Saharan Africa (SSA) and other developing regions of the world as a result of rapid

population growth, urbanization and increasing purchasing power.

Being an African cattle corridor, Uganda has the highest chances of infrastructure

Sector Business and investment opportunities in Africa.

Bi-lateral trade between Uganda and the United Arab Emirates has been registering

a steady growth during the last five years.,

“We are committed to improving the incentive structure and streamlining bureaucratic

procedures in order to make Uganda competitive as an investment location for

investors,” says President Yoweri Museveni. “The Government of Uganda will also

continue to work on improving the infrastructure to support private enterprise,” he said

during a recent conference in Kampala.

A number of International carriers operate regular flights to and from Entebbe. These

include Air India, Air Tanzania, British Airways, Egypt Air, Emirates, Ethiopian

Airways, Gulf Air, and Kenya Airways. Cargo and passenger flights in and out of

Page 100: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Uganda are increasing rapidly with Entebbe emerging as an important regional

airport alongside other established ports in the region.

Pharmaceutical Sector

Multipurpose chemical plant for bulk production of intermediate inputs such as

paracetamol and aspirin.

Processing of locally available sugar, salt (sodium chloride) and ethanol to

pharmaceutical grade for pharmaceutical industry use

Commercial processing of traditional medicines: diverse flora exists in the country.

Establishment of a chemical plant to manufacture anti-tuberculosis, anti-leprosy,

antibiotic rifampicin from the penultimate state.

Manufacture of Quinine by extraction from Cinchona bark and subsequent purification

and synthesis to Quinine Sulphate

Manufacture of medical equipment and supplies such as syringes, catheters and

gauzes for the regional market.

Telecom Sector

Uganda telecom sector have an exceptional opportunity for investors. Located almost in

the centre of the African market, it is already the preferred home of several leading

global corporations and global Organizations. It is one of the fastest growing economies

and one of the most liberal countries for foreign investment in Africa.

Because the country's economy is still young, the potential and the choice of investment

opportunities are much wider for the probable investor than would be the case in more

developed economies.

One might add that cross-border marketing between the East African countries has been

facilitated by the re-launched East African Community and its non-tariff barriers on cross-

border trade, the harmonization of standards and good specification within the region.

These initiatives, as well as attempts to harmonies their fiscal and monetary politicize,

make East Africa an interesting region for future investments in the ICT sector. With the

Page 101: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

upcoming participation in the EASSy cable and in the regional fibre-optic cable, Uganda

is additionally hoping to affront the problem of being able to provide affordable Internet

bandwidth.

Other initiatives such as incubator projects led by the Government or by the USSA

(Uganda Software Services Association), which is a small and dynamic organisation,

promote support to small companies in the period of establishment and leave affirmative

image of the future of the ICT sector in Uganda.

Tourism Sector

Uganda offers an exceptional opportunity for investors. Located almost in the centre of

the African market, it is already the included home of some leading global companies

and international Organizations. The Uganda is growing fastest in a view of economically

and especially for the tourism sector is also grow fastest. So it‘s the better opportunity for

the foreign investor. Because the Uganda economy is very stringiest for many recent

years. The alternative of investment opportunity in tourist sector in very large level

available.

Reasons for investing in Uganda‘s tourism sector include

Uganda has major tourism attraction for wild-life and many more tourist attraction is

included in this sector.

Government of Uganda provided the attractive packages and reduction the rules and

regulation to the foreign investor.

The competition of this sector in Uganda is very less compared to other country so

it‘s a very big opportunity for the foreign investor.

Ugandan government provides the more profitable packages to the foreign investor.

And in this sector very large tourist attraction are available so investor can get the

long term benefit in this sector.

Page 102: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Conclusion and Suggestions

Agriculture Sector

The agriculture sector is most contributing sector for the growth of the economy of the

Uganda. Generally 2.5 million farmers are smallholding and scattered large commercial

farms provide the majority of their own and the rest of the Uganda‘s staple food

requirements. There is the mostly the cotton, coffee, tea, and the tobacco is the mostly

contributing cash crops in the Uganda‘s export income.

Uganda is now characterized by a relatively more liberal trade regime after rationalizing

the tariff structure and reducing the maximum tariff rate from 60% to 15%. Both financial

and commodity markets have been liberalized. This analysis shows that the average

nominal rate of protection due to applied tariff rates fell from 22% in 1994 to about 10%

in 2001 with corresponding average effective rates of protection reducing from 35% in

1994 to 18% in 2001. The effective rate of protection arising from transportation costs

reduced slightly from 30% in 1994 to only 25%. Clearly, this is still above the protection

accorded to import competing producers from tariff measures.

There are no explicit taxes on Ugandan exports but the effective burden to exporters due

to costs of overland transportation only is high, although it has been reduced from over

30% on average to about 25% for exports (mainly non-traditional exports). However,

transport (air freight) costs for perishable exports are considerably upper than, as high as

50% of unit price. Uganda is attempting to diversify into non-traditional agricultural

exports, bulk of which is perishable products. A limited analysis done under this study

indicates that high freight and other charges place Ugandan exports at competitive

disadvantage relative to other exporters. Policy implications of study findings are clear

(some of which are outlined above), that non-policy induced barriers such as transport

system should be given attention as a way of minimizing implied transaction costs and

improving the competitiveness of Ugandan exports.

Page 103: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Banking Sector

Uganda‘s desire to achieve the double objectives of ensuring soundness of commercial

banks and efficiency in the banking sector through liberalization of the sector lead to

mixed results. To achieve accuracy of the banking sector, the 1969 Banking Act was

replaced with the 1993 Financial Institutions bill with strong regulatory and supervisory

measures, which most local banks could not.

Accordingly, liberalization of the banking sector in Uganda has lead to limited

competition in the sector. Commercial bank lending interest rates have remained

persistently high at between 18 – 20 percent mainly on account of Uganda‘s policy

choice to control inflation and ensure a competitive exchange rate through accumulation

of reserves or deliberate intervention in the market.

On the supply side, banks particularly commercial banks have difficulties in dealing with

clients especially those located in rural areas on whom they have limited information

because the cost of obtaining information is high. Where information problems arises

because bank has not know the behavior of the peoples.

Suggestions

In such a situation a recommended that bank of Uganda should improve the

attractiveness of such clients to commercial banks i.e. increases the demand for financial

services.

Enhancement of demand for financial services would require implementation of a

comprehensive rural development strategy that focuses on economic empowerment of

people in rural areas

.

The drive for soundness of the banking sector in Uganda has been achieved at the cost

of surrendering the key tenets for which liberalization of the banking sector was fronted

i.e. competition, and reduced investment costs.

Page 104: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Dairy Sector

Uganda‘s dairy sector has been increasing very slowly. Milk production is 7% annually.

There has also been an increase in the degree of pasteurized milk. The milk production

in Uganda grow because of a mixture of targeted government initiatives towards south-

western dairy production and a general liberalization of the sector that allowed milk to be

traded.

Uganda government‘s impressed by the development model and dynamic leadership of

Gujarat. Uganda pleasant invitation to progressive farmers, technical trainers and

engineers of Gujarat standing ovation for Shri Narendrabhai modi. The two presidents of

two countries enhancing trade opportunities.

Prime Minister Dr. Manmohan Singh recently announced India plans to offer duty free

market access to export products from Uganda. It‘s a great opportunities for India and

Uganda.

.

Healthcare Sector

Suggestions

The ministry of healthcare sector should improve its quality of healthcare service

to the Ugandian people.

There are more and quick source of health sector should available for the people

of Uganda country.

The government of Uganda should help of the poor people for better health

facilities.

There are undoubtedly lessons to be learned from the Ugandan experience. But a

comment of James Katorobo, a Ugandan professor and consultant who was a member

of the PSRRC and a consultant to the Government on civil service reform, should be

remembered. He is quoted by Petter Langseth as saying that ―rebuilding Uganda

involves remaking all aspects of Ugandan society – from physical infrastructure to the

Page 105: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

soul and spirit of the nation‖.25 Building (or rebuilding) a nation is not only about

economic policies or about infrastructure.

Uganda was coming from a very low base. It had been brought to this not only Because

of unhelpful changes in the world economic environment which had such adverse effects

on much of the African continent with its preponderance of infant economies but also and

perhaps mainly because of civil strife and gross mismanagement of the economy.

Uganda knew from experience that it could do better. The signs are that it is doing so.

Infrastructure Sector

Infrastructure is of strategic importance to Uganda‘s economic growth

Emphasis in the NTMP and the National Development Plan is given to

rehabilitation/upgrading of the existing lines and construction of new regional and

national links

While Government can finance studies and preliminary engineering designs, the

Private Sector and Development Partners are critical in the upgrading and new

construction work.

Depending on the form of financing, the most feasible infrastructure management

option will be decided.

It is one of the fastest growing economies in East Africa, and its government is

working to better the lives of its people by establishing a representative form of

governance and laying the groundwork to establish a viable commercial market.

Prime Minister Dr Manmohan Singh recently announced India plans to offer duty

free market access to export products from Uganda. It‘s a great opportunities for

India and Uganda.

Economic liberalisation policies adopted by the government of Uganda in recent

years, coupled with the geographic proximity of the two countries has played an

instrumental role in promoting direct trade between the business communities of

the two countries.

Recognizing the need for increased external support, Uganda negotiated a policy

framework paper with the IMF and the World Bank in 1987.

Page 106: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Pharmaceutical Sector

Suggestions

Establish a coherent promotional policy for the pharmaceutical sector. Ideally, this

should find consensus across the relevant ministries.

The costs and benefits of policy measures such as import restrictions have to be

carefully examined and debated. Experiences from Nigeria and Ghana can be

studied but compatibility with WTO membership obligations needs to be ensured

Explore the possibility of equipping the NDQCL with the latest equipment and

providing training on its use

Support the Ministry of Health in ensuring that other ministries‘ policies reflect the

needs of the local pharmaceutical manufacturing industry

Support the lobbying activities of the Uganda Pharmaceutical Manufacturers

Association

Uganda‘s local pharmaceutical manufacturers have the potential to contribute to

improving access to essential generic medicines and health supplies in their country.

Today, local pharmaceutical manufacturers only utilize a fraction (on average some 30

per cent to 55 per cent) of their installed production capacity. This installed capacity, with

additional investment in technology and human resources, can easily be utilized given

the relatively large market in Uganda and a huge market in the EAC and COMESA

region. Since some 90 per cent of medicines and health supplies in Uganda are

imported, there is clearly scope for import substitution.

Supporting and limiting factors for local pharmaceutical manufacturers in Uganda

Supporting factors

o Open market economy

o High demand due to expanding regional market size (EAC and COMESA,

southern Sudan and DRC)

o Industrialization policy of government and support from NDA

Page 107: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

o Existing distribution networks both in public and private sector

o Financial capacity

o Low local labour costs (for non-technical tasks) Limited financial capacity

for new development.

Limiting factors

o Unreliable and costly electricity supply

o High investment requirements for WHO GMP certification and product

prequalification

o Lack of coherent and effective government support

o Limited technical expertise (in both firms and regulatory institutions)

o Limited access to technology

Poultry Sector

During the study we found that the most rural households keep poultry on a small

holder production. The majoring of these rural farmers are women.

Poultry is easy to sell and provides a ready source of income for farmers to use

when needed which is vital in livelihood of people in Uganda‘s rural areas.

Local poultry needs are proffered because they are visitant to diseases and

adaptive to the environment.

There are notable opportunities for poultry to flourish in many rural areas. It is

because of the development of trading centers with high demand for poultry

products increasing awareness of the need to consume poultry products as a

source of protein and better access to drugs from numerous drug stores.

Informal local community organizations help by providing loan facilities. Through

friendship and neighborhood networks rural people have learned many things

related to poultry farming. Thus their informal network becomes strong.

Poultry has cultural significance within Uganda livelihood chickens are important

part of people‘s cultures especially for marriage burial and naming of children.

Page 108: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

During the study we noted that people have knowledge about poultry diseases

and how they are spread including through buying infected birds. However there

is a need of public education of the dangers of poultry disease.

Suggestions

Here, some suggestions given the severity of disease outbreaks and their impact on

people‘s livelihoods and poultry.

Pilot interventions should be implemented and adapted to different situations in

different regions of the country to enhance role of poultry in people‘s livelihood in

Uganda.

To avoid catastrophe for poor populations the concerned authorities should focus

on disseminating information about disease outbreaks and causes their

prevention and control including how to obtain veterinary services and the risks of

consuming sick birds.

Government should widen its focus on formal institutional set-ups such as the

agriculture and health line ministries charged with fighting disease outbreaks and

should include informal institutions such as village community organizations in

spreading its message.

Telecom Sector

In the end of global country study we can say that the Uganda telecom sector \ play a

wide role in his country‘s economy such as a increasing in GDP, GNP, National income

etc, also it having the future core strategies and other technological plans it. So it

reaches to high level of development of country point of view.

Also another point comes as a suggestion for Uganda Telecom Services‘ (UTL‘s) so we

not giving the better suggestion for increasing overall development of telecom sector but

we highlight like that,

Network operation and service provision should be segregated.

Service providers shall be given license to encourage competition only as Virtual

Network providers sharing these networks of the licensed network operators. With

Page 109: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

such a system, money transaction service could be given without any service cost

to user; by profitably deploying the huge amount of real cash remain within the

system and franchisee charges from commercial and institutional dealers. The

facility can be extended to fixed lines also.

Convergence of Fixed phone and Mobile phone networks, end links, user end

devices and services by all telecom service providers shall be encouraged.

Solar power enabled mobile phone chargers shall be made available in public

places and at subsidized price for mobile phone users in the rural areas where

there is no electricity and for those who cannot afford electric connection.

Tourism Sector

We prepare this project & analyzed them than we know about the actual

economical position. And also we know the tourism sector play the role in the

economy of Uganda.

Uganda's travel and tourism economy is expected by WTTC to

grow by 6.1 percent in 2007 and by 4.8percent per annum, in real terms, between

2008 and 2017.

Uganda government takes various actions for the development of tourism sector

and arrival of the foreign tourist. In the year 2005 total foreign tourist arrival in

Uganda 468. Out of 468 foreign tourist 172 Indian tourist go at their. In next two

years the ratio of foreign tourist arrival in Uganda will be increase & in the year

2008 standing at 844.but in the year 2009 the ratio will be decrease and standing

at 807.

o The Tourist Agents (Licensing) Act, 1968

o The Tourist Agents (Licensing) Act, 1972

o The Uganda Hotel Act, 1964

Below shows Some factor affecting on the tourism sector of Uganda.

In major tourist attraction of Uganda do not developed and tourist board of

Uganda do not take any action about the infrastructure and development of this

sector.

Page 110: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

The railway service in Uganda is very slow and available in some few areas and

also air travel facility is not available in major tourist attraction.

The advertisement of tourism sector of Uganda is very poor at international level.

Suggestions

In the economy of Uganda tourism sector play important role. The some barriers

affected to the tourism sector of Uganda the government of Uganda take the

various actions for the development of this sector.

The tourism ministry of Uganda analyzed the foreign tourist suffer in the travelling

and take the action. For example in Uganda railway services is inefficient and air

services are available in some few areas so the ministry of tourism of Uganda

analyzed and solve this problem for development of tourism sector.

The advertisement of tourism sector of Uganda is very poor at international level

so improve it.

In the tourism sector of Uganda the new employee of this sector can‘t know the

other foreign language. So the ministry of tourism sector of Uganda can get the

people how know the foreign languages.

Foreign Investment in tourism sector of Uganda is very low because the

procedure of the beginning of business is very long so many days are left in this

procedure. Than government of Uganda should take the action give the incentives

to the foreign investor.

Page 111: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Bibliography

Agriculture Sector

We have used the following websites for the finalizing this projects. 1. www.google.com

2. http://www.fao.org/DOCREP/005/AC912E/ac912e03.htm

3. http://www.eximguru.com/exim/Guides/How-To-Import/Ch_6_Import_License.aspx

4. http://www.doingbusiness.org/~/media/fpdkm/doing%20business/documents/profiles/

country/UGA.pdf

5. http://www.africa-do-business.com/uganda.html

6. http://www.ugandainvest.go.ug/index.php?option=com_k2&view=item&layout=item&i

d=61&Itemid=212

Banking Sector

Source:

Uganda commercial banks data

Bank of Uganda

Website:

http://www.blog.jaluo.com

http://www.financialregulatorsgateway.com

http://www.bank of baroda.com

http://www.worldbank.com

http://www.FICCI_Country profile Uganda

Dairy Sector

www.google.com

http://www.dda.or.ug/index.php/development-department.html

http://www.sunrise.ug/component/content/article/40-business/589-ugandas-trade-deficit-

with-india-shoots-to-all-time-high.pdf

http://focusafrica.gov.in/Uganda_international_trade.html

Page 112: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

http://www.independent.co.ug/business/business-briefs/261-india-to-give-uganda

exports-tariff-relief

http://www.narendramodi.in/%E2%80%9Cgujarat-delegation%E2%80%9D-under-the-

leadership-of-shri-narendrabhai-modi-in-uganda/

http://www.indianexpress.com/news/cm-to-lead-highlevel-delegation-to-uganda/386305/

http://www.africa-business.com/features/uganda_dubai.html

http://www.cheap-kenya-vacation-tips.com/dairy-sector.html

http://www.globaltenders.com/economy-uganda.htm

Helthcare Sector

www.health.go.ug

www.focusuganda.org

UGANDA LOCAL NEWSPAPERS:

Daily Monitor: Uganda news

Walk to work

Red papper

Infrastructure Sector

www.google.com

http://focusafrica.gov.in/Uganda_international_trade.html

http://www.africa-business.com/features/uganda_dubai.html

Pharmaceutical Sector

www.google.com

http://focusafrica.gov.in/Uganda_international_trade.html

http://www.africa-business.com/features/uganda_dubai.html

POULTRY SECTOR

http://eur-lex.europa.eu/Notic.do?

Page 113: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

Mode=dbl&lang=en&ihmlamg=en&ingl=en,ro&ing2=bg,cs,da,de,el,en,es,et,fi,fr,hu

,it,lt,

http://www.ulii.org/ur/legis/consol act/nael1995237/

http://madrasspca.org/pcact.html

http://scribd.com/doc/37376716.OECD-FAO-agriculture-outlook-2010

http://eur-lex.europa.eu/notice.do?mode=dbl

Telecom Sector

We have used the following documents for making the betterment of the study report

itself.

Uganda telecom encyclopedias and dictionaries.

Uganda ICT sector performance review2009/2010 report.

Bringing affordable telecommunications services to Uganda by Wairagala Wakabi

Review of sector taxation policies and determining the elasticity of penetration and

price of the various telecommunication services in Uganda

Telecommunications reform in Uganda

Global Internet Policy Initiative, (2002), Best Practices for Telecommunications

Reform.

Government of Uganda (1993) Report of the Commission of Inquiry into Uganda Post

And Telecommunications Corporation,, 1993

Government of Uganda (1993), Report on the Committee on Investment in

Telecommunications, November, 1993.

Government of Uganda (1994), White Paper on the Reform of the

Telecommunications Sector.

Henstridge, Mark and Kasekende, Louis (2001), Exchange Reforms, Stabilisation,

and Fiscal Management, in: Reinikka, Ritva and Paul Collier (2001)

“Rural Communications Development policy for Uganda”, Uganda Communications

Commission, January 2009, www.ucc.co.ug

http://www.monitor.co.ug/News/National/-/688334/923586/-/x064gm/ /index.html

Page 114: UGANDA - Gujarat Technological University PDF 2012/803 - Uganda.pdf“UGANDA” Submitted to Patel Group of Institutions, Motidau. ... Overview of Industries, Trade and Commerce 10-13

http://www.monitor.co.ug/Business/Business%20Power/ /688616/915798/-/ljc8dp/-/

index.html

http://www.tradechakra.com/indian-economy/industries/telecom.html

Tourism Sector

Market Information Service; Graphics: EPRC, July 2007

Uganda Bureau of Statistics

Uganda beauro of statistical abstract 2010

World trade and tourism organization

Ministry of Tourism, Trade and Industry and World Tourism Organization