Hon Amelia Kyambadde, the cabinet minister for Trade,Industries and Cooperatives has today given a brief on the Buy Uganda, Build Uganda Expo slated for 7th to 9th March 2019.
In her address at the Uganda Media Centre, she outlined the significance of this program while calling upon Ugandans to embrace it.
The 2019 BUBU EXPO will be hosted at Kololo Airstrip, Kampala.
Below is her full statement.
The Buy Uganda Build Uganda (BUBU) Policy was formulated by Government through the Ministry of Trade, Industry and Cooperatives and approved by Cabinet in 2015. The Policy together with its implementation strategy was subsequently launched by the Rt. Hon. Prime Minister in 2017.
The BUBU policy is premised on PPDA Act 2014 under which amendments are being made to among others provide for reservation scheme regulations to give force of law to the policy. The amendments.
The following are the objectives of the Policy;
- Promotion of consumption of local goods and services.
- Promotion of conformity to standards to guarantee quality goods and services.
- Provision of capacity building programs to local suppliers of goods and services.
During the two years of implementation of the BUBU Policy, the following achievements have been realized;
- Improved capacity of local producers and service provider
Iron and Steel Sector: Currently, there are 24 steel industries with an installed capacity of 1.7m tons per annum from 866,000 tons per annum five years ago.
Cement: Currently, Uganda has five cement factories producing 4.43 million MT per annum, an improvement from 2 million MT five years ago.
This exponential increase in capacity for iron and steel and cement has been precipitated by the large Government projects in the offing including roads, bridges, dams (Karuma dam, Isimba, Bujagali and others) and the planned oil and gas pipeline.
Textile Sector: Uganda has produced an average of 130,000 bales equivalent to 24,050 tons of cotton per year.
Currently, there are 39 ginneries with an installed ginning capacity of close to one million bales.
Total spinning capacity is 12.2 tons per day. The yarn produced is mostly consumed locally for production of fabric.
Uganda also has a total weaving capacity 80,000 meters per day and knitting capacity of 8.2tons per day.
- Government security agencies including police, UPDF and prisons are procuring their garments from local textile industries.
Leather Sector: Currently, there are 7 operational tanneries in Uganda, 2 of which process a small proportion of their hides and skins to finished leather.
Uganda has an installed tanning capacity of 1.08 and 2.0 million hides and skins per year respectively.
There are 7 medium sized footwear factories and more than 800 micro and small-scale footwear entrepreneurs in the country producing about 1.5 million are produced in the country. The production of shoes is still at artisanal level.
- Improved quality and standards of local products
In the last 2 years, UNBS has supported 904 SMEs in product certification processes.
SMEs are now accessing markets locally mainly in hotels and supermarkets and some are exporting in the region as a result of compliance.
- Increased shelf space of local products in supermarkets as a result of increased capacity and improved standards.
Shelf space for Ugandan products in supermarkets now stands at 40%. Products range from honey, sugar, detergents, cosmetics, food stuffs among others.
Ugandans have taken control of the supermarket business and are largely selling Ugandan products. Examples are Quality, Capital shoppers, Megha Standard, Master supermarket and many other small scale businesses.
- Support to local agro-processing: In order to support local farmers, Government has initiated the Agriculture Value Chain Development Project (AVDP) to the BUBU Policy and reserved USD 3.5 million for the purchase of local products e.g. local seed multipliers, local fertilizers and seed dealers and agro-processors. Specifically, all procurements below USD 200,000 in this project will be competed for by local firms.
- Furniture and Metal works: With the increased growth of the construction sector in Uganda now standing at 33%, there has been increased capacity and improved quality for local furniture and meal works producers.
MDAs have commenced procuring office furniture from Uganda Prisons Industries and other suppliers of locally made furniture in accordance with H.E the President’s Directive.
Schools are also procuring desks locally.
- Medical supplies/Pharmaceutical products: Following implementation of the reservation schemes, National Medical Stores locally procured medical supplies worth UGX 156.056 billion from local companies in FY 2017/18.
- Civil works: In the FY 2018/18, UNRA awarded contracts worth UGX3.7 trillions. Out of this, contracts worth UGX450 billion (12%) were reserved to national providers. In addition, a total of UGX423billion (11%) was awarded to local providers through mandatory sub contracting by foreign providers.
- Energy supplies: Before issuance of the guidelines on reservation schemes, 90% of the cables for construction of power lines were imported from China and India. Currently, Uganda Electricity Distribution Company Ltd reserves the procurement of cables to manufacturing companies in Uganda.
In FY 2017/18, UEDCL procured energy equipment worth UGX 1.1bn from local companies.
- Oil and Gas: According to statistics by the Petroleum Authority of Uganda, local companies have supplied local products worth USD 37.24 million equivalent to UShs 141 billion (28%) out of USD 133 million equivalent to Ug.Shs.500 billion which has been spent in the oil and gas sector by the end of calendar year 2018. Ugandans have benefitted by supplying local made foods, beverages, office supplies, drilling and production materials, construction materials and in offering services like catering, transport, security, management, land surveying, clearing and forwarding, civil works, supplying fuel, conducting environmental impact assessment studies, communication and waste management.
- Kkatt Consult, a Ugandan company partnered with Arteliu Eau and Environment, a French company to provide engineering services during the final stages of construction of Isimba Dam. The Ugandan company was allocated USD 900,000 (UGX 3,302,100,000) which is 22.5% of the total monetary value of the consulting services contract.
Other Services with improved Capacity and standards
- Entertainment Industry
- Education services
- Role of District Commercial Officers
- Formalization of businesses through URSB
- Establishment of the MSME Directorate
Way forward in BUBU Implementation
- Ensure hygiene
- Improve on the premises
- Improve packaging
- Comply with the required standards
- Formalization of businesses
The BUBU Expo 2019
The Ministry of Trade, Industry and Cooperatives together with other partners has organized the inaugural Buy Uganda Build Uganda (BUBU) Expo 2019, as one of the initiatives aimed at creating more awareness about the BUBU policy.
It will take place at Kololo Independence Grounds from Thursday 7th to Saturday 9th March 2019 under the theme: “Showcasing Uganda’s potential”
The 3 day event will feature the following;
- an Exhibition for local products (goods and services),
- a National Women Entrepreneurs’ Conference;
- an awards dinner to recognize the BUBU compliant government institutions, local producers and service providers with quality products and competent local service suppliers;
- And a networking conference between Government and the local private sector players.
The exhibitors have been drawn from a broader scope comprising of construction, energy, textile, stationary, footwear, agricultural products, dairy, pharmaceuticals and so much more.
We are targeting over 300 MSMEs as exhibitors and over 140,000 show-goers during the 3 days.
I urge all Fellow Ugandans to turn up in big numbers at Kololo Independence Grounds to appreciate the potential we have in Uganda.
During the three days of the Expo, a number of institutions will offer Corporate Social responsibility services.
- Free medical services from Nakasero Hospital, Dr.Agwarwal’s Eye Hospital, Makerere Joint AIDS Program, Reproductive Health Uganda, AAR Healthcare, Point of Touch Nutrition and Health Services, Naguru Hospital; AHF Uganda Cares, Elpa Uganda and Uganda Blood Transfusion services
- Free hands on skills training in cosmetics, juice and soap making, and brickets making by Uganda Industrial Research Institute
- Free registration of businesses advice by Uganda Registration Services Bureau
- Advice on electricity use by Electricity Regulatory Authority
In conclusion, BUBU is the highest level of Patriotism that we must all embrace as citizens, investors and stakeholders in the Ugandan economy and it will enable us attract more investment and reduce on our import bill. It will also help us strengthen our national capacity to undertake major national infrastructural projects with appreciable national content.
Let me take this opportunity to thank all our partners who have contributed generously towards this cause. Allow me to mention some of them; Pearl Dairies (Lato milk), Roofings Group, Atiak Sugar, Southern Range Nyanza Ltd, Riham Group, Alam Group, Vivo Energy, Plascon Ltd, Nile Agro, Premier Distillers, Steel and Tube and others.
I also thank the Government MDAs that have worked closely with us to ensure a successful BUBU expo, and the companies that have offered to provide probono/CSR activities during the Expo.
I thank you all for listening to me.