UN DESA Project on Capacity Building for Removing Institutional Constraints in
Utilizing Trade Related International Support Measures For LDCs
Mission Report – 22 to 30 May, 2014
1. Introduction
The United Nations Department of Economic and Social Affairs (DESA) is implementing a project
in Uganda to assist in identifying LDC-specific trade-related international support measures
(ISMs) that can help exporters to remove institutional constraints in accessing those ISMs.
With the assistance from an international and a national consultant, DESA undertook interviews
with private sector stakeholders to assess the costs and benefits for accessing ISMs for each of
the product/ISM combinations. Similarly, interviews were undertaken with representatives from
the public sector involved in using ISMs to assess the cost and benefits for accessing the ISMs.
The Consultants and DESA team also conducted site visits with a number of private sector
exporters and producers to enable a better understanding of their export processes and
therefore constraints faced.
The data gathered from the interviews was used in the Cost-Benefit Analysis (CBA) accordingly
prioritizing the particular institutional capacity constraints for accessing ISMs to be addressed. A
two day workshop with the steering committee was organized to validate the survey findings
and CBA results.
2. Surveys - private sector stakeholders
The survey with private sector stakeholders was conducted for one major exporter or association
selected for each product represented by the various respondents surveyed under Survey A (see
Annex A). The exception was made for this fish sector for the reason that the sector is divided
into two groups of stakeholders, the lower stream players consisting of processors / factories
and exporters, and the upper stream players consisting of the fishermen, middlemen / suppliers
to factories (also collectively referred to as the fishing communities). The focus of this survey was
to collect data on possible targets of institutional capacity, gaps, costs and benefits of potential
use of ISMs for each of the 8 products. This survey provided an opportunity to obtain critical
information from all relevant private sector groups and allowed them to give input to defining
parameters for the priority setting exercise of the CBA.
General Findings
The surveys revealed that challenges in meeting SPS requirements were still the highest and
most costly for exporters. The cost of interventions in SPS related assistance is equally
considered the highest of the five ISMs yet the benefits accruing in terms of increased trade was
also highest if the SPS issues were addressed.
TBT related challenges were rated least expensive, the survey however noted that the contact
point for TBT related issues under the UNBS was active and visible to the biggest number of
exporters. UNBS also worked closely with other government institutions like the Export
Promotion Board, the line Ministry of Trade, Ministry of Agriculture and with the private sector
players and associations. In fact, some of the exporters referred to UNBS for their SPS related
enquiries and indicated that they were adequately assisted regardless of the fact that UNBS
mandate is on issues related to TBT only.
Regarding the market access support measure, DFQF, the survey revealed that exporters were
not aware of the market access opportunities in emerging markets or how to access those
markets. The lack of knowledge derived from the fact that there is no known contact office to
give information on the available market access opportunities. Many exporters conduct their
own research which proves to be expensive.
There was also little knowledge of the EIF as an ISM and the EIF National Implementation Unit as
the contact point. Moreover because of the little knowledge of the structure and value of the
EIF, it was frequently ranked as the least important ISM. Furthermore, the UN Fish Stock
Agreement was unknown to the respondents.
List of Respondents:
1. UGACOF (Coffee) – Mr. James Njoroge
2. Uganda Tea Development Agency Limited – Ms Purity Mbae-Musyoke
3. Uganda Leather and Allied Industries Association – Mr. Mwebe Emmanuel
4. Uganda Flowers Exporters Association – Juliet Nekambi and Esther Nekambi
5. ESCO Uganda Limited (Cocoa and Vanilla) – Ms Winnie Nambehela
6. Uganda Fisheries and Fish Conservation Association – Mr. Seremos Kamuturaki
7. Uganda Fish Processors and Exporters Association – Ms Ovia Matovu and William Tibyasa
8. Horticultural Exporters Association of Uganda (HORTEXA) – Mr. David Lule
3. Site Visits:
As part of research and consultation process of the project, the team of Consultants and DESA
conducted four site visits: to a fish factory; a flower farm; a horticulture farm; and a tea
plantation and factory. The rationale for conducting site visits was to witness the processes
involved in the production, packaging and export of the products. The visits highlighted the
various quality control processes that the exporters engage in, including SPS related measures to
ensure that the final export product complied with the SPS standards set by the export market,
as well as measures to ensure environmentally sustainable production. In addition the team
learnt about the production structures of the 4 products visited, challenges and success stories.
General findings:
The Fish factory is foreign owned, but leased out to a Ugandan corporation who is operating the
export of fish. The main export is Nile-perch fish to Belgium. The factory has registered fish
suppliers from whom they acquire their fish. The factory maintains a relatively high level of
hygiene for both the fish and the workers in processing the fish for export.
At the Fiduga flower farm, the only produced and exported products are the cuttings which are
then replanted at the destination and sold as a finished product. Fiduga is amongst the few
flower farms that export new varieties of flowers (other than roses) to Europe. The farm was also
foreign owned and operated as a production point for the Dutch based Fides Company. Similar
establishments are in neighboring Kenya and Ethiopia.
COSEDA exports horticultural products / fruits and vegetables grown on its own farms as well as
sourced from other local farmers. The production and export is mainly demand based, i.e. the
client in Europe requests for a specific number of shipment which is grown, harvested and
exported. Horticultural production is heavily dependent on the climate patterns which with
climate change negatively affect production.
The Namayiba Tea Estate produces various brands of tea for bulk export / wholesale. The main
market for their tea is the Mombasa auction in Nairobi. The factory expressed desire to package
and exports their tea directly to the international market, however the challenge faced is the
high competition from tea exporters who already have niche products and large market share
internationally.
Institutions visited:
1. Site Visit to Fish Factory: Greenfields – Mr. Shekar
2. Site Visit to Flower Farm: Fiduga – Ms. Gertrude Obita
3. Site Visit to Horticultural Farm: COSEDA – Mr. David Lule
4. Site Visit to Tea Farm and Factory: Namayiba Tea Estate – Mr. Lawrence Ssegujja
4. Survey - public sector stakeholders:
The survey for the public sector was organised in the form of a workshop. Key public sector
stakeholders were interviewed with the focus of collecting data on possible targets of
institutional capacity, gaps, costs and benefits of potential use of ISMs as perceived by the public
sector.
General Findings:
The majority of the government officials had some knowledge on all the ISMs under
consideration with the exception of the UN Fish Stock Agreement. Many had attended the WTO
trainings on SPS and TBT and had worked with the EIF as well. The respondents also expressed
the need for additional training especially for the District Commercial Officers (DCOs) who had
not attended these topic related trainings.
The capacity of the DCOs was still lacking in the districts. Many of the DCOs were ill equipped
with only the 25 EIF Tier II funded DCOs owning laptops, access to internet and an office notice
board for their activities. They are however strategically located to disseminate trade related
information to the local producers at the district level.
List of Respondents:
1. Elizabeth Tamale - Ministry of Trade Industry and Cooperatives
2. Alex Mukuluma – EIF - NIU
3. Irene Musiime – District Commercial Officer Mukono
4. James Muganza – District Commercial Officer Jinja
5. Robert Mpakibi Waiswa – District Commercial Officer Wakiso
6. William Wepukhulu – District Commercial Officer Mbale
7. Christine Nsubuga – District Commercial Officer Luwero
8. Samuel K. Mukasa – District Commercial Officer Kayunga
9. Benjamin Ogunia – District Commercial Officer Soroti
10. Robinson Lufafa – Ministry of Agriculture Animal Industry and Fisheries
11. Francis Chesang - Uganda Coffee Development Authority
12. Damalie Lubwama - Cotton Development Organization
13. Daisy Eresu - Department / Unit responsible for tea
14. Dr Rukuunya Edward - Department of Fisheries
15. Muwanga Musisi John - Department responsible for Cocoa and Vanilla
16. Mwebe Emmanuel Zoya - Department responsible for Leather / Hides and Skins
17. Henry G.K. Nyakojo – EIF Advisor
18. Jin Lee – Embassy of the Republic of Korea
19. Embassy of Republic of China
20. Charles – United Nations Food and Agriculture Organisation
5. Cost-benefit analysis preparation (27-28 May):
Based on the data obtained from the interviews, DESA prepared the CBA and a report containing
a summary of the survey results, including institutional constraints, indicators to measure the
constraint, targets, gaps and total costs and benefits for selected product/ISM matches.
The consultants used the CBA report to come up with preliminary recommendations for
intervention by DESA. The first was to build capacity of the enquiry and contact points of the
various ISMs listed. Following the capacity building of the contact points, the second
recommendation was for a toolkit that would provide information on the ISMs for Uganda as
well as a system of alerts to the exporters on changes in the regulations relating to their
products and from their export destinations.
These preliminary recommendations were presented to the Steering committee for comments
and applicability in the context of Uganda.
6. Workshop (28-29 May):
The workshop started off with presentations on the background of the project, phase 1 also
known as the pilot phase of the project and the progress of the project activities in Uganda and
preliminary findings of the surveys conducted. The methodology and preliminary result of the
CBA were also presented, as well as training of the participants in the use of the LDC Portal for
accessing information about ISM.
Discussions:
LDC Portal – Participants recognized the portal as a valuable tool for the dissemination of the
trade related information and other ISMs related to Uganda. They suggested that the LDC Portal
be publicized more and especially the Uganda page kept up to date so as to maximize its benefit
as a research tool for stakeholders.
It was noted that the mandate of DESA under this project was neither to conduct a detailed
study of the products nor to provide solutions for every product; rather to study the use of ISMs.
For Market Access, the aim of the project and of workshop is to show that there are
opportunities other than the traditional markets so that that later, these new duty free quota
free opportunities can be explored, products fitting for that market developed and the
opportunity taken advantage of. Some examples of emerging markets include Turkey and Russia;
to implement this, there is need for Uganda to collaborate with other development partners.
The EIF advisor noted that inclusion of the EIF should be made not as EIF Tier II but simply as the
EIF because the Tier II are not permanent project and expire in a short duration, while EIF focal
point is a permanent employee of the Ministry of Trade who can guarantee the sustainability.
Relating to the TBT enquiry point, it was noted that TBT notifications sent to stakeholders are
received; the challenge therefore is in acquiring the comments to the measures notified. UNBS
still lacks capacity to reach a wider base of producers and exporters and to mobilize for the
comments to be addressed in the WTO.
ISM enquiry point / contact points – participants agreed with the recommendation to address
functionalization of the enquiry points and focal points for SPS and DFQF not often used by
exporters. The gaps in their operation and functionality should be sought out and addressed. An
example was given that the first notification to SPS committee in 1999 was done by Tanzania on
behalf of Uganda. The SPS Enquiry point / contact point was reported to be ill equipped and
none-functional and should be strengthened.
Tool kit and e-Ping – participants were in agreements with the recommendation for the tool kit
and e-Ping, they also had additional suggestions: Participants suggested a creation of a
communication strategy which would create an institutional linkage and buy-in from all the
stakeholders. In other words it would incorporate all the national stakeholders and use the
existing national structures to get to grass roots; ownership by the national structures ensures
that the project is sustainable.
The District Commercial Officers should be trained in the use of the tool and e-Ping in order that
the information is translated to non-technical language and disseminated to the local producers
at the district levels using posters and radio. All 25 EIF Tier II DCOs are equipped with notice
boxes in their respective offices that they can use as a means of communication.
It was also agreed that the easiest way of communicating is by phone and laptop and the
relevant stakeholder in the private sector have internet access. Furthermore the private sector is
more likely to use this too as long as the they know of its existence and value to their work,
therefore promotion and raising awareness of the tool is key to ensure it works amongst the
private sector. The idea of a live chat was also considered a good addition to the toolkit.
It is also critical to ensure validity of the information; and that the tool works so that users can
trust it as a reliable source of information. For example, the EU rapid alert works efficiently and
therefore many exporters use it. Participants were also concerned about how the success of the
toolkit would be measured. Suggestions were made for a survey after a period of 12 months
from the launch of tool kit and tracking the number of visits to the pages.
Workshop participants:
1. Elizabeth Tamale –Ministry of Trade, Industry and Cooperatives
2. Cyprian Batala –Ministry of Trade, Industry and Cooperatives
5. Henry Nyakajo – EIF Advisor EIF - NIU
6. Alex Mukuluma – EIF – TRACE II project
7. Lwere John Bosco – Uganda National Export Promotions Board
8. George Opio – Uganda National Bureau of Standards
9. Dr Charles Mukama – Ministry of Agriculture Animal Industry and Fisheries
10. Mr. Othieno Odoi – National Planning Authority
11. Mr. Lawerence Othieno – Ministry of East Africa Community Affairs
12. Moses Ogwal – Private Sector Foundation Uganda
7. Preparation of follow up actions (30 May)
The Team of consultants and DESA also met with a selected number of the steering committee
members to conclude on the validation of the mission findings and discuss the next steps of the
project implementation.
Discussion:
A sketchy road map was drawn by DESA; it is expected that the final report with
recommendations should be ready by the end of June, copies will be sent to the Ministry of
Trade focal point to disseminate to the stakeholders and relevant stakeholders in July. UNDESA
will then come up with an implementation strategy which possibly includes organization of
workshops with Uganda and the other three countries in which the project is also being
implemented, development partners and international organizations. Follow up activities would
be implemented in the second half of 2014 and 2015..
Jacquiline Pimer (National Consultant)
pimerj@live.com
Annex A: Survey Part A Respondents
List of Respondents – Survey Part A
1. Kailash Natami - UGACOF Ltd (Coffee and Cocoa)
2. George Sekitoleko – Uganda Tea Association (UTA) (Tea)
3. Purity Mbae-Musyoka – Uganda Tea Development Agency (UTDA) (Tea)
4. Ms Matovu Katiti Ovia Lily - Uganda Fish Processors & Exporters Association (UFPEA) (Fish)
5. William M. Tibyasa – Uganda Fish Processors and Exporters Association (UFPEA) (Fish)
6. Philip Borel De Bitche - Greenfields Uganda Limited (Fish)
7. Kamuturaki Seremos – Uganda Fisheries and Fish Conservation Association (Fish)
8. Charity Namuwoza – National Organic Agricultural Movement of Uganda (NOGAMU) (Cocoa
Beans and Vanilla)
9. Mr Aga Sekalala Jr – Uganda Vanilla Growers Association (UVAN) (Vanilla)
10. Winnie Nambalele - Esco Uganda Limited (Cocoa and Vanilla)
11. Mr. David Lule - Horticultural Exporters Association of Uganda (HORTEXA) (Horticulture)
12. Juliet Musoke - Uganda Flowers Exporters Association (UFEA) (Flowers and cuttings)
13. Ms. Esther Nekambi - Uganda Flowers Exporters Association (UFEA) (Flowers and cuttings)
14. Lamech Wesonga - Uganda Manufacturers Association (UMA) (Semi-processed Hides and
Skins and Leather)
15. Mwebe Emmanuel Zoya - Uganda Leather and Allied Industries Association (Semi-processed
Hides and Skins and Leather)
16. Regina Corry - Uganda Telecom Limited (UTL) (Telecommunication services)
17. Rogers Karebi - Uganda Business Process Outsourcing Association and Dail-A Services (ICT
enables services)