MANIFESTO WEEK! My ministry hit 95% target between 2016 and 2021 – Trade Minister Amelia Kyambadde

The Ministry of Trade, Industry and Cooperatives says government says her ministry scored 95% achievement in the 2016-2021 manifesto. This, ahead of the 2021-2026 ‘Kisanja’. According to KYambadde, the remaining 5% in work in progress.

She says the works that make up the 95% are implementation of the WTO Trade Facilitation Agreement, Construction of warehouse at Busia (Busia District) and Katuna (Kabale District) border export zones, Commercial building at Oraba (Koboko District) and Market at Lwakhakha border, Construction of the Mpondwe Border Export Zone is ongoing at Mpondwe, Kasese District, 15 Warehouses inspected and ICT Capacity for connectivity established & supported with computers, a total of 1,357 storage facilities have been profiled in collaboration with Local Governments through the DCOs offices; Certification and distribution of ICT & Quality Kits for Seven (7) warehouse completed; Finalized the Uganda Market Access Offers for Trade in Goods and Trade in Services, consolidated them in the EAC Offer, and submitted them to the African Union Commission; Launch of the start of trade under the AfCFTA – 1st January 2020 and another Industrial park in Mbale has been developed by the Chinese under the Public Private Partnership arrangement among others.

In the next five years, there will be operationalization of the National Sugar Board and drafting of regulations for Sugar Act 2020 and establish capacity to produce industrial refined sugar. This, the ministry says, will be through the increasing production of brown sugar and monitoring the 5 licensed projects. The ministry is also expected to start five more sugar factories aiming at exporting 500,000 metric tons. Four factories have been set up so far, with two (Bwendero in Hoima and Bushenyi Sugar in Kyenjojo District) already in full production while Atiak Sugar in Amuru District and Victoria Sugar Ltd in Luwero District will commence by October, 2020.

In addition, the ministry says, Kinyara Sugar Ltd has expanded capacity by 50% and Hoima Sugar expanded capacity by 40%

Other interventions over the next 5 years are; Inter-Ministerial Industrial Coordination Committee (IMICC) to operationalize, Implement the Accreditation Bill 2021, with inclusion of a supplementary Budget and, develop and look for funding of project proposal on Accreditation and strengthening of National Metrology Infrastructure, set standards and guidelines for establishment and operation of Industrial parks developed and enforced, have Industrial Licensing Act amended and regulations developed including for Industrial Parks and establish 8 training and common manufacturing facility centers for textiles, sugar, plastics and metal fabrication established.

According to the minister, Amelia Kyambadde, this will be done through partnerships with the Private Sector and revamping the training centers established as trusts.

The minister says over the next years, her ministry will Intensify sensitization of farmers and traders on regulations governing quality standards, grading and packaging to enhance competitiveness of our products; negotiate bilateral trade agreements so as to promote exports. Give embassies targets to promote trade between Uganda and the host countries; Empower Uganda National Bureau of Standards to carry out its mandate of protecting Ugandans against substandard goods and for it to appraise companies that apply for certification in a shorter period; Address the challenges SMEs face some of which include delayed payments by big supermarkets, access to credit, equipment and workplace; Stop charging local traders rent in foreign currency; Facilitate the transformation of informal SMEs to formal through registration so that they can access credit and other privileges, provide legal certainty for businesses by enhancing free and unlimited access to the EU market (28 member states) and 500 million consumers through the Economic Partnership Agreement (EPA) and Pursue the Tripartite Free Trade Area and the African Continental Free Trade Area (AfCFTA) to remove some of the inconsistencies and costs in regional integration brought about by overlapping memberships and open wider markets for Uganda’s exports among other areas.

CHALLENGES

The ministry says there is too much sugar already in stock yet with limited market.

Other challenges are high cost of finance to acquire appropriate technologies; high cost of inputs including Laboratory testing materials, machinery; high cost of certification and PVoC fees for inputs and construction materials for factories; high cost of energy that limits value addition; the impact of the implementation of Covid 19 affected many enterprises and businesses; capacity gaps as noted by UEPB and MAAIF in respect to pack houses; general budget cut across the Ministry and agencies, and overwhelming public expectations versus the resource envelope.