Introduction

The theme underscores the contribution of MSMEs towards the realization of the objectives of the Sector Development Plan FY2015/16-2019/20, the NRM Manifesto, the National Development Plan II (NDP II) and Vision 2040 - which main goal is to ensure sustainable socio-economic transformation of Uganda from a peasant to a prosperous and modern Country.

The Sector priorities in accordance with NDPII are:• Increasing the share of manufactured

goods and services in total exports;• Increasing market access for Uganda’s

products and services in regional and international markets;

• Improving the stock and quality of trade infrastructure;

• Promoting the formation and growth of cooperatives; by enhancing the capacity of cooperatives to compete in domestic, regional and international markets, and diversifi cation of enterprises undertaken by cooperatives; and

• Improving the Private Sector competitiveness

Achievements of the Sector

Funds for FY 2015/16

In FY2015/16, the sector received UGX 62.171b and the funds were used to undertake the following activities;

(A) Policy and Legal Environment

The Sector formulated the following policies and regulations which were passed by Cabinet and Parliament;

Bills Passed by Parliament; Trade Licensing Amendment Bill; No. 10 (2016) and Uganda Development Cooperation Bill; No. 10 (2016).

Bills before Parliament; the Anti-Counterfeit Goods Bill, Sale of Goods and Supply of Services Bill, Cooperative Societies Act Amendment Bill, Common Market for the Eastern and Southern Africa (COMESA)

Policies Passed by Cabinet; Leather and Leather Products Policy, National Accreditation Policy and Micro Small and Medium Enterprise (MSMEs) Policy

Strategies Developed; National Export Development Strategy, Buy Uganda Build Uganda Implementation Strategy and Sector Development Plan

(B) Trade Development

The total value of Exports registered in the FY2015/16 was US$2,723.23 million and imports were US$4,416.13 million. The trade balance improved from a defi cit of US$2,249.65 million in FY2014/15 to

US$1,692.85 million in FY2015/16. The decline in exports is attributed to, among others, instability in South Sudan and declining fi sh export.

The COMESA and EAC region was still Uganda’s main export destination during the period under review. The EU market ranked the second highest destination for Uganda’s products followed by the Middle East bloc, Asia, the Rest of Africa, the Rest of Europe and the Americas respectively.

Table Showing Growth of Uganda’s Export to the Regional Bloc (2005/06 – 2014/15)

Source: Bank of Uganda

Trade Negotiations

The Ministry has spearheaded the following trade negotiations:• The US-EAC Trade and Investment

Treaty which is still on-going;• The Continental Free Trade Area

Agreement which was launched and negotiations are ongoing;

• EU-EAC EPA, which we hope will be fi nalized at the forthcoming Summit of the EAC Heads of State Meeting in Dar as salaam on 8th September, 2016; and

• The WTO Trade Facilitation Agreement.

1. Cross-Border Trade

To promote formal cross border trade, the following have been undertaken:• One-stop Border posts have been

developed in the following borders: Mirama Hills, Busia, Malaba and Mutukula;

• Cross-Border committees have been established to address challenges of informal cross-border traders.

• The Electronic Single Window System (ESWS), a trade facilitation initiative reduced the time it takes to clear goods by an estimated three days or by 46 percent.

2. Elimination of Non-Tariff Barriers

With support from Trademark East Africa Ltd, the Ministry established a National Committee on the elimination of Non-Tariff Barriers and a Unit at the Ministry to focus on the elimination of NTBs. Government has continued to eliminate Non-Tariff Barriers to facilitate the smooth fl ow of trade.

3. Local Government Capacity Enhancement for Trade and Investment.

Government has intervened to build capacity of District Commercial offi cers through conditional grant of 108 million to cover 15 Districts, and additional support from DICOSS which covered 25 districts registered signifi cant achievement.

Though the aforementioned Government support, the DCOs were able to incorporate trade and investment in their respective Districts Development Plans; collected much needed information on trade and investment opportunities and challenges, provided outreach commercial services to MSMEs and link up with the Ministry to conduct the training needs they identifi ed.

Given the success of the pilot program, Government has allocated UGX.2 billion this FY2016/17 to roll out conditional grants to all the Districts and Municipalities.

(C) Industrial Development

The Ministry is undertaking initiatives for growth of industrialization through the following strategic initiatives;

1) One Village One Product

As at December 2015, the One Village One Product Programme (OVOP) provided value addition equipment to benefi ciaries in 29 districts. The programme facilitated training of 489 members in of 18 co-operatives /groups from 16 districts in business management, value addition skills and principles of cooperative movement.

2) Micro, Small and Medium Enterprises (MSMEs)

The MSMEs Directorate has been established and is operational.

Following Cabinet approval of the MSME Policy, the Ministry received fi nancial support of UShs.1 billion for the Directorate of MSMEs to commence the Industrial Cluster Programme for Micro, Small and Medium Enterprises in Financial Year 2016/17. An additional Shs. 2 billion was earmarked to Uganda National Bureau of Standards to support MSMEs acquire Quality Marks and Product Certifi cations. Recruitment of staff for the Directorate is in its fi nal stages.

(E) Cooperatives Development

The Ministry registered 1,352 new cooperative societies last Financial Year. The total number of cooperatives is now 17,062.

The Ministry, in partnership with the Project for Financial Inclusion in Rural Areas (PROFIRA) of Ministry Finance, Planning and Economic Development, organized an

MINISTRY OF TRADE, INDUSTRY AND COOPERATIVESThe 7th Annual Sector Review Conference

Theme: “Micro, Small and Medium Enterprises as a driver towards Middle Income Status”.THE REPUBLIC OF UGANDA

Hon. Amelia KyambaddeMinister of Trade, Industry and Cooperatives

Hon. Frederick Gume Minister of State for Cooperatives

Hon. Michael WerikheMinister of State for Trade

President Museveni giving an award to one of the 33 people who were honoured for their contribution towards the Cooperative Movement in Uganda. This was during the International Cooperatives Day celebrations 2016 held in Butalangu, Nakaseke District

Hon. Frederick Gume planting a Cooperative tree as one of the activities during National Cooperatives Week 2016, on the left is the Commissioner Cooperatives Joseph Kitandwe and the Under Secretary of the Ministry Fred Ogene.

Minister Amelia Kyambadde looking at products of an exhibitor during the award of certifi cates to MSMEs supported by MTIC/UNBS to certify their products.

ongoing census of all SACCOs to ensure availability of Data on SACCOs. The project is also fi nalizing integration to enhance compliance and Accountability in SACCOs.

Government has provided processing / value addition facilities to cooperatives under One Village One Product (OVOP) Project. In this some cases grinding mills, honey processing equipment has been provided.

Government provided direct fi nancial support to some cooperative societies and unions to bail them out of liquidity crises. Bugisu Cooperative Union Ltd was given Shs. 9.12 Billion in form of compensation to resuscitate its operations.

In the fi nancial year 2016/17 Government has budgeted for Sh. 5 Billion as compensation for the assets lost by Masaba Cooperative Union Ltd during the liberation wars and insurgencies that followed.

The Ministry commends its development partners for the support offered towards the implementation of Government programmes.

For more details visit www.mtic.co.ug