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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
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
PART-I
ECONOMIC OVERVIEW
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 .)
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.)
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%
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
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
Ocean. Uganda is a member of the East African Community and a potential member of
the planned East African Federation.
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%,
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
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
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
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.
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
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
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.
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
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.
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.
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.
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.
PART-II
SECTOR STUDY
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-
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
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.
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
(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.
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
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.
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.
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
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
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.
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
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.
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+
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
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
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
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.
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
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
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).
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
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.
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.
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
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.
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.
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.
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.
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
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
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
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
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.
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
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
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.
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,
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.
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
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)
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
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.
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.
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
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
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
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
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.
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
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.
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
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
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:
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
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.
(Source – Uganda Policy review report 28/1/05)
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
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.
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
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
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.
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.
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.
In this sector the language barriers are also responsible. In the tourist sector the
very few employees are speak in many foreign languages.
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
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$13.4 million in 2009–10.
Exports from India to Uganda grew at a CAGR of 22.3%,
while imports grew at a CAGR of 47.3% between 2005
Bank of Baroda
United Telecom Limited
The Energy and Resource
Institute (TERI)
Tata Group
Road master Cycles
Mahindra Tractors
Tungabhadra Steel Products
Limited
Hindustan Machine Tools
RITES Limited
Healthcare Sector
Healthcare is one of the most important needs of human beings. However quality wise
healthcare facility is not available everywhere and if it is available the cost becomes very
high in most part of the world.
In 2009, over 300,000 patients arrived to India for medical treatment from over 30
countries around the world, USA, Canada, UK, Russia, The Middle East, Kenya,
Uganda, Tanzania, Srilanka The Central Asian Republics.
Kenya‘s And Uganda‘s health infrastructure suffers from urban rural Regional
imbalances, lack of invest and personnel shortage. The volume of trade between India
and Uganda has increased; India is now the second largest exporter: our exports
constitute around 8.5 % of Uganda‘s total import. Kenya and Uganda can be an ideal
gateway to the untapped east African community countries, which present high growth
potential for the Indian healthcare industry.
Why India?
India is a country where number of modern hospitals with world class facilities is
available. These Hospitals are backed by qualified and well trained medical practitioners
and supporting teams. Their services are transparent, the cost is unbelievably low and
there is no waiting period. However, a nice blend of top class medical expertise at
attractive prices is helping in number of Indian corporate hospitals attracting foreign
patient from all over the world.
and 2010.
Key products exported from India to Uganda are
Pharmaceutical products, vehicles other than railway or
tramway rolling stock.
(Source: Directorate General of Foreign Trade, GOI)
McLeod R
Infrastructure Sector
The volume of bilateral trade has increased from US$ 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
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.
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.
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.
• 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.
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.
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.
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
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
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.
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.
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.
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
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.
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
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.
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
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.
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.
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
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?
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
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