ANNEX 5 
UGANDA  EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-487 
 
 
 CONTENTS 
Page 
I. ECONOMIC ENVIRONMENT A5-491 
 (1) M AIN FEATURES OF THE ECONOMY  A5-491 
 (2) R ECENT ECONOMIC DEVELOPMENTS  A5-492 
 (3) T RADE INVESTMENT AND PERFORMANCE  A5-496 
 (4) O UTLOOK  A5-502 
II. TRADE AND INVESTMENT REGIMES A5-504 
 (1) G ENERAL FRAMEWORK  A5-504 
 (2) T RADE POLICY OBJECTIVES  A5-506 
 (3) T RADE AGREEMENTS  A5-508 
 (i) World Trade Organization (WTO) A5-508 
 (ii) Regional and bilateral trade agreements A5-508 
 (4) I NVESTMENT REGIME  A5-508 
III. TRADE POLICIES AND PRACTICES BY MEASURE A5-511 
 (1) I NTRODUCTION  A5-511 
 (2) M EASURES DIRECTLY AFFECTING IMPORTS  A5-511 
 (i) Registration, customs procedures and valuation A5-511 
 (ii) Tariffs A5-512 
 (iii) Other duties and charges A5-513 
 (iv) Import prohibitions, restrictions and licensing A5-514  (v) Contingency measures A5-515 
 (vi) Standards and other technical requirements A5-515 
 (vii) Other measures A5-519 
 (3) M
EASURES DIRECTLY AFFECTING EXPORTS  A5-519 
 (i) Procedures A5-519 
 (ii) Export taxes, charges and levies A5-519  (iii) Export prohibitions, restrictions and licensing A5-520 
 (iv) Export subsidies and incentives A5-520 
 (v) Export finance, insurance, and guarantees A5-520  (vi) Export promotion and marketing assistance A5-520 
 (4) M
EASURES AFFECTING PRODUCTION AND TRADE  A5-521 
 (i) Incentives A5-521  (ii) Government procurement A5-521 
 (iii) Intellectual property rights A5-522 
 (iv) State-trading enterprises, state ownership, and privatization A5-524  (v) Competition policy and regulatory issues A5-525 
IV. TRADE POLICIES BY SECTOR A5-527 
 (1) I
NTRODUCTION  A5-527 
 (2) A GRICULTURE  A5-527 
 (i) Overview A5-527 WT/TPR/S/271/UGA Trade Policy Review 
Page A5-488 
  
 Page 
 
 (ii) Agricultural policy A5-529 
 (iii) Policy by subsector A5-532  (iv) Forestry A5-536 
 (v) Livestock A5-537 
 (vi) Fisheries A5-538 
 (3) M
INING AND ENERGY  A5-539 
 (i) Mining A5-539 
 (ii) Petroleum A5-540  (iii) Electricity A5-543 
 (4) M
ANUFACTURING  A5-545 
 (5) S ERVICES  A5-547 
 (i) Financial services A5-547 
 (ii) Communications services A5-551 
 (iii) Transport A5-555  (iv) Tourism A5-559 
REFERENCES   A5-561 
APPENDIX TABLES  A5-567 
 EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-489 
 
 
 CHARTS 
Page 
I. ECONOMIC ENVIRONMENT 
I.1 Main sectors of the economy, 2006/07-2010/11 A5-492 
I.2 Composition of merchandise trade, 2005 and 2010 A5-499 
I.3 Direction of merchandise trade, 2005 and 2010 A5-500 
TABLES 
I. ECONOMIC ENVIRONMENT 
I.1 Basic economic and social indicators, 2005-11 A5-493 
I.2 Distribution of working population by industry, 2005/06-2009/10 A5-494 
I.3 Balance of payments, 2005-10 A5-497 I.4 Investment, 2005-10 A5-501 
I.5 Stock of FDI by major source and sector, 2005-10 A5-501 
II. TRADE AND INVESTMENT REGIMES 
II.1 Selected trade and trade-related legislation, June 2012 A5-505 
II.2 Investment incentives, June 2012 A5-509 II.3 Doing business ranking A5-510 
III. TRADE POLICIES AND PRACTICES BY MEASURE III.1 Main excise duties, FY 2010/11 A5-514 
III.2 Labelling and packaging standards, 2012 A5-519 
III.3 Proposed thresholds for procurement methods under the PPDA Amendment Act  A5-522  
III.4 State-owned companies and statutory corporations A5-525 
IV. TRADE POLICIES BY SECTOR 
IV.1 Sectoral GDP, 2006-10 A5-528 
IV.2 National land-cover statistics, 1990, 2000 and 2005 A5-528 IV.3 Cultivated land by region, 2008 A5-529 
IV.4 Coffee exports, 2006-10 A5-532 
IV.5 Cotton production and exports, 2005/06-2010/11 A5-534 IV.6 Cotton production targets and average yield, 2011/12-2014/15 A5-535 
IV.7 Cocoa exports and earnings, 2005/06-2010/11 A5-535 
IV.8 Livestock, 2008-10 A5-538 IV.9 Mineral production and exports, 2006-10 A5-539 
IV.10 Annual changes in industrial production, 2006-10 A5-546 
IV.11 Structure of the financial system, 2006-11 A5-548 IV.12 Insurance services indicators, 2006-10 A5-550 
IV.13 Telecommunication services, 2006-11 A5-552 
IV.14 Commercial traffic at Entebbe International Airport, 2006-10 A5-556 IV.15 Air transport performance at Entebbe International Airport, 2008-11 A5-556 
IV.16 Tourist arrivals, 2006-10 A5-559 
 
 
 WT/TPR/S/271/UGA Trade Policy Review 
Page A3-490 
  
 APPENDIX TABLES 
Page 
I. ECONOMIC ENVIRONMENT 
AI.1 Structure of exports, including re-exports, 2005-10 A5-569 
AI.2 Structure of imports, 2005-10 A5-570 
AI.3 Destination of exports, including re-exports, 2005-10 A5-571 
AI.4 Origins of imports, 2005-10 A5-572  EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-491 
 
 
 I. ECONOMIC ENVIRONMENT 
(1) MAIN FEATURES OF THE ECONOMY  
1. Uganda is a landlocked country  covering an area of 242,000 km2, with a population of 
32.9 million as of mid-2011.  Uganda's position ast ride the equator means it enjoys two annual 
growing seasons and usually abundant rain fall.  In 2011, Uganda was ranked 161st in the UNDP 
Human Development Index, behind Kenya and Tanzan ia and ahead of Rwanda  and Burundi, its EAC 
partners.  Uganda remains one of the world's poor est countries with a per capita GDP of US$526 and 
life expectancy of 54.1 years.   
2. Over the past two decades, Uganda has pursu ed export-led growth coupled with prudent 
macroeconomic policy management and structural transformation of its economy.  Inflation has 
generally remained in single digits (until its recent dramatic rise), fiscal deficits are modest and public 
debt is low, due to debt relief and a cautious bo rrowing policy.  Uganda operates a flexible exchange 
rate regime with interventions primarily to da mpen short-term volatility in exchange rates. 
3. Although agriculture continues to dominate Ug anda's economy, accounting for 46% of total 
export earnings in 2010, its contribution to GDP and employment continues to decline (Chart I.1).  
The contribution of services to GDP is growing and accounts for about half of Uganda's GDP.  
Transport, communications, and financial services re gistered the strongest growth during the period 
under review.  Manufacturing and services (in part icular transport and communications, wholesale 
and retail trade, and financial services) account for a growing percentage of economic activity.  The 
share of exports to GDP rose over the period, led by non-traditional exports (fish, petroleum products, 
cement, cellular phones, and animal/vegetable fats a nd oils) and tourism, rather than the traditional 
exports of coffee, tea, and cotton. 
4. Uganda's strengths include its tourism industry, which is one of its largest foreign exchange 
earners.  Improvements in infrastructure and investme nt in this sector could unlock its potential and 
increase earnings.  Uganda's recent discovery of co mmercially viable petroleum deposits brings both 
development opportunities and challenges.  Increas ed government revenue from petroleum will offer 
Uganda a unique opportunity to transform its econom y if an institutional framework is in place to 
properly manage resource rents and address economic, social, and environmental issues.  The return 
of peace and stability in Northern Uganda after de cades of unrest offers an opportunity for its re-
integration and the potential for economic growth  given the region's agricultural and mineral 
resources and its proximity to the markets of DR Congo and South Sudan.   
5. Uganda faces a number of challenges.  Infrast ructure bottlenecks, particularly energy and 
transport, have been identified as major binding cons traints to economic growth.  Electricity shortages 
need to be addressed through improvement in electricity generation capacity, reduction of 
transmission losses, and adjustment of electricity tariffs  to cost-reflective levels.  Only a quarter of its 
national road network is paved.  Uganda's populatio n growth rate of 3.2% per annum is one of the 
highest in the world, and half the population is  below the age of 15, creating pressure on social 
services provision and leading to youth unemployment and underemployment.  Uganda has a low tax 
revenue base;  its huge, predominantly agricultural,  informal sector generates non-cash transactions 
that are hard to tax.  Small- and medium-size traders do not keep proper accounts, are difficult to monitor and have a low tax compliance level.  Uganda's narrow export base leaves it vulnerable to 
commodity price swings.  Low agricultural produc tivity, impediments to value addition, regulatory 
constraints, and trade taxes (import tariffs and export taxes) that promote non-competitive industries 
impede exports.  Exogenous risks include the securi ty situation in neighbour ing countries, which has WT/TPR/S/271/UGA Trade Policy Review 
Page A5-492 
  
 an impact on regional trade and remittances, and w eather and drought conditio ns, which have a strong 
influence on agriculture sector performance. 
0204060
2006/07 2010/110.02.04.06.08.010.012.014.016.018.020.0
2006/07 2007/08  2008/09 2009/10 2010/11EducationManufacturing Chart I.1
Main sectors of the economy, 2006/07-2010/11
Agriculture, hunting and fishing
Services
Mining and quarryingManufacturing
ConstructionAgriculture, hunting and fishing
Construction
Wholesale & retail trade; repairs 
Real estate activities Transport & communications 
Public administration & defence 
Financial services
Source : Uganda Bureau of Statistics, Statistical Abstract 2011.Per cent of GDP at constant prices
 
6. Uganda's landlocked position a nd poor infrastructure add to its cost of doing business.  
According to the World Bank, Uganda ranks 123rd out of 183 economies (behind Rwanda and Kenya, 
and ahead of Tanzania and Burundi).1  Regulatory reform and investment in infrastructure and social 
services are essential to promote economic growth and support development objectives, particularly if 
Uganda is to achieve its stated objective of tran sforming the country from an LDC to middle income 
status in the medium term.   
(2) RECENT ECONOMIC DEVELOPMENTS  
7. Real GDP growth was irregular during 2005-10 , varying between 4.1% and 10.4%, while 
averaging 7.7% annually, above the average in sub-Saharan Africa, despite the global economic 
downturn (Table I.1).  
8. Although the total labour force in Uganda increased by almost a quarter from 2005/06 to 
2009/10, the numbers engaged in agriculture fell fro m 72% to 66% (Table I.2).  According to the 
2008/09 Uganda Census of Agriculture (UCA), an estimated 3.95 million households, i.e. 19.3 million 
persons, are engaged in agriculture.  The next ge neral population census is due to take place in 2012. 
                                                      
1 World Bank (2012). EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-493 
 
 
 Table I.1 
Basic economic and social indicators, 2005-11 
2005 2006 2007 2008 2009 2010 2011 
Nominal GDP (USH billion) 17,878 20,166 23,351 28,176 33,596 38,577 .. 
Nominal GDP (US$ billion) 10.0 11.0 13.5 16.4 16.5 17.7 .. 
Real GDP growth rate (%) 10.0 7.1 8.1 10.4 4.1 6.2 .. 
GDP per capita (at current US$) 369 392 466 544 529 526 .. 
Total debt stock (end of period) as a % of GDP 43.3 14.7 11.7 11.1 13.5 13.4 .. 
Debt service (maturities including IMF) as % of exports 
of goods and services 11.7 14.2 4.3 3.0 2.9 2.7 .. 
GDP by economic activities at constant 2002 prices (% of GDP) 
Agriculture and forestry 19.2 17.6 16.6 15.3 15.1 14.5 .. 
Mining and quarrying 0.3 0.4 0.3 0.3 0.3 0.4 .. 
Manufacturing 7.1 6.9 6.8 6.6 7.1 7.0 .. 
Electricity and water supply 3.3 3.0 2.9 2.7 2.9 2.9 .. 
Construction 14.0 14.4 14.5 15.9 14.5 15.2 .. 
Services 48.4 49.9 49.7 49.7 50.6 51.5 .. 
     Wholesale & retail trade; repairs  12.7 13.0 13.6 14.0 13.5 13.0 .. 
     Hotels & restaurants  4.5 4.5 4.6 4.7 4.9 4.6 .. 
     Transport & communications  5.2 5.9 6.1 6.8 7.2 7.6 .. 
     Financial services  2.2 2.4 2.2 2.2 2.8 3.6 .. 
     Real estate activitie s  7.6 7.5 7.4 7.0 7.2 7.2 .. 
     Other business services  1.5 1.6 1.6 1.6 1.7 1.8 .. 
     Public administration & defence  3.9 3.7 3.6 3.5 3.6 3.7 .. 
     Education  7.1 7.3 6.9 6.2 6.0 5.9 .. 
     Health  1.7 1.7 1.6 1.4 1.4 1.5 .. 
     Other personal & community services  2.0 2.2 2.3 2.3 2.5 2.6 .. 
Adjustments  7.7 8.0 9.2 9.3 9.5 8.5 .. 
     FISIM  -1.0 -1.2 -0.9 -1.0 -1.4 -2.3 .. 
     Taxes on products  8.7 9.2 10.1 10.3 10.9 10.8 .. 
National accounts (% of GDP) 
Total GDP at market prices 100.0 100.0 100.0 100.0 100.0 100.0 .. 
Final consumption expenditure 88.5 93.4 88.1 91.3 86.2 91.4 .. 
Household final cons umption expenditure 74.9 80.0 77.0 81.3 76.4 81.3 .. 
Government final consumption expenditure 13.7 13.4 11.2 10.0 9.8 10.1 .. 
Gross capital formation  21.6 20.7 23.0 20.4 22.1 23.5 .. 
Fixed capital formation  21.3 20.5 22.7 20.1 21.8 23.2 .. 
Changes in inventories 0.2 0.3 0.3 0.3 0.3 0.3 .. 
Trade balance -10.1 -14.1 -11.1 -11.7 -8.3 -14.9 .. 
Goods exports, f.o.b. 10.1 10.8 14.9 16.5 17.4 14.1 .. 
Services exports 5.1 4.1 4.0 3.5 5.8 6.9 .. 
Goods imports, f.o.b. -17.4 -20.1 -22.0 -24.3 -22.9 -25.1 .. 
Services imports -7.9 -8.9 -8.0 -7.3 -8.6 -10.8 .. 
Prices and interest rates 
Inflation (CPI, % change) 8.6 7.2 6.1 12.0 13.0 4.0 18.7 
Deposit rate-% per annum 8.8 9.1 9.3 10.7 9.8 7.7 13.0 
Lending rate--% per annum 19.6 18.7 19.1 20.5 21.0 20.2 21.8 
Government finance statistics (% of GDP) 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11a ..
Revenues excluding grants .. 12.9 13.2 12.7 12.4 15.8 ..
Tax revenue .. 12.4 12.9 12.2 13.1 15.6 ..
     Table I.1 (cont'd) WT/TPR/S/271/UGA Trade Policy Review 
Page A5-494 
  
 2005 2006 2007 2008 2009 2010 2011 
Non-tax revenue .. 0.5 0.3 0.5 0.3 0.2 ..
Grants .. 5.1 3.0 2.9 2.5 3.1 ..
Total expenditure .. 19.8 18.1 17.2 19.6 23.7 ..
Overall fiscal balance (excluding grants)  .. -7.0 -4.9 -4.6 -7.2 -10.6 ..
Overall fiscal balance (including grants) .. -1.9 -1.9 -1.7 -4.7 -2.1 ..
Total external reserves (US$ million)  1,407 2,160 2,685 2,442 2,490 2,220 ..
Reserve cover (months of imports of goods and 
services) 6.3 7.8 7.0 5.4 5.2 4.0 ..
Memorandum 2005 2006 2007 2008 2009 2010 2011 
Exchange rate (USH/US$, period average) 1,781 1,831 1,723 1,720 2,030 2,178 2,523 
Inward FDI stock (% of GDP) 20 24 26 25 29 32 .. 
Real effective exchange rate (index 2005=100) 100.0 100.0 103.0 106.3 105.3 111.4 107.2 
.. Not available  
a Projection.  
Source:  Bank of Uganda online information. Viewed at: http://www.bou.or .ug; Uganda Bureau of Statistics' Statistical 
 Abstract reports 2010 and 2011. Viewed at: www.ubos.org;  IMF IFS database.  Viewed at:  http://elibrary-
 data.imf.org/; and UNCTAD statistics online information. Viewed at: http://unctadstat.unctad.org/. 
Table I.2 
Distribution of working populat ion by industry, 2005/06-2009/10 
Industry 2005/06 
(%) 2009/10 
(%) 
Agriculture, forestry and fishing 71.6 65.6 
Sale, maintenance, repair of ve hicles and personal goods  9.1 9.8 
Manufacturing 4.5 6.0 
Education 3.0 3.5 
Transport storage and communications 2.2 2.7 
Hotels and restaurants 2.8 2.3 
Others 6.8 10.1 
Total 100 100 
Source:  Uganda Bureau of Statistics, 201 1.  Viewed at:  http://www.country stat.org/country/uga/documents/docs/2011 
 %20Statistical%20A bastract.pdf. 
9. The impact of the global financial crisis on Uganda  has been less severe than expected.  After 
suffering a downturn in 2009, the economy bounced back in 2010 due to increased regional demand, particularly for food (Table I.1).  Uganda's financ ial system proved to be r esilient, due to its sound 
banking system and limited exposure to assets whose prices fell during the crisis.
2   
10. Since 2006, Uganda's macroeconomic manageme nt has been guided by the Policy Support 
Instrument (PSI) approved by the IMF.  The Gove rnment's primary macroeconomic objective is to 
promote rapid, broad-based, and sustainable ec onomic growth through maintaining annual CPI 
inflation (which incorporates some food products, primarily processed foods, such as flour, sugar, rice and oils) at less than 5%;  promoting increased pr ivate-sector investment;  rebuilding foreign reserves 
equivalent to five months of im ports;  maintaining a flexible real exchange rate;  ensuring that 
medium-term fiscal strategy is conducive to investments that boost productive capacity and 
employment creation;  and introducing a transparen t system of petroleum revenue management to 
fund infrastructure investment.
3    
                                                      
2 IMF (2010). 
3 IMF (2011). EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-495 
 
 
 11. In January 2011, the BOU adopted a tight monetary policy stance (following a looser policy 
stance in 2009-10) in an effort to contain inflation and the second-round effects of food and fuel price shocks.  In July 2011, Uganda moved away from mone tary targeting to a flexible inflation targeting 
monetary policy framework (inflation targeting "lit e" - ITL) that involves varying the levels of 
commercial bank liquidity so that the 7-day interban k rate remains within the range of the announced 
Central Bank Rate (CBR).
4  The new CBR is set monthly with a corridor of two percentage points 
above and below.  The BOU supplies liquidity thro ugh reverse repo operations if the 7-day interbank 
rate is towards the upper limit, and withdraws surp lus liquidity through repo operations if rates fall 
towards the lower limit.  The goal is to maintain co re inflation (which excludes the prices of fuel and 
food crops) at an annual level of 5% over the medium-term.  
12. Headline inflation averaged 8.5% between 2006 and 2010, before accelerating from 5% in 
January 2011 to a peak of 30.5% in October 2011,  largely driven by increased food and commodity 
prices, currency depreciation, and an accommoda tive monetary policy.  The Ugandan shilling 
depreciated from USh 1,781/US$ in 2005 to USh 2,506/US$ in April 2011.  Foreign exchange reserves declined from US$2.4 billion in 2008 (5.4 months of import cover) to US$2.2 billion in 2010 
(4 months of import cover), following BOU interven tions to correct short-term volatility of the 
exchange rate. 
13. The fiscal deficit (excluding grants) contr acted to 4.6% of GDP in 2008/09  before 
rebounding to 10.6% of GDP in 2010/11 (Table I.2).  Public expenditure grew during 
2006/07-2010/11, due to increased expenditure on in frastructure investments, exceptional spending on 
security (in the run-up to the presidential electi ons in February 2011), wages and salaries for the 
lower-paid cadre of civil servants, payment of pens ion arrears, and higher thermal power subsidies 
due to rising fuel prices.  Tax revenue increased during the same period, while non-tax revenue (NTR) 
halved.  Most of the tax expansion was from impor t taxes and income taxes;  some key economic 
drivers had a more significant positive impact on ta x collections than on general GDP growth, causing 
an expansion in the tax to GDP ratio.  In terms of economic factors, import taxes were affected by the 
exchange rate and the level and ra te of growth of import demand.  Over 2010/11, the exchange rate 
depreciated by 14.5%, which had the effect of e xpanding the import value base on which taxes are 
levied, causing a higher than expected level of reve nue collections.  In FY 2010/11, new registrations 
for PAYE (nearly 800) and corporate income tax es (over 4,000), and an estimated USh 117 billion 
recovered from arrears, had an impact on income ta xes.  According to the au thorities, the enforcement 
of NTR collections is still weak and reporting of co llections by some ministries, departments, and 
agencies is not always done.  This has led to the tr ansfer of collection obligations of some NTR items 
to the Uganda Revenue Authority (URA);  impl ementation is on-going and NTR collections are 
expected to increase in coming years. 
14. Recent efforts by the authorities to improve the fiscal position include broadening the scope 
of VAT and income tax (Chapter III(2)(iii)) and increasing royalties on minerals to boost NTR 
(Chapter IV(3)(ii)).   
15. Donor support accounted for 26% of the Gove rnment's budget and 4.9% of GDP in FY 
2007/08 and for a projected 28.9% and 5.7%, respectively, for FY 2011/12.   
16. Uganda's tax-to-GDP ratio is  lower than the 20% average for sub-Saharan Africa and that of 
Tanzania and Kenya at 15% and 22%, respectively.  A narrow tax base due to, inter alia , inadequate 
                                                      
4 According to the BOU, th e transformation of the Ugandan economy over the last decade, in particular 
the rapid growth and diversification of the financial system, including innovations in electronic payments 
systems, make the accurate targe ting of money quantity untenable. WT/TPR/S/271/UGA Trade Policy Review 
Page A5-496 
  
 provision for taxation of profits from betting, billiard s, and gambling, together with low compliance 
have been identified as the major contributors to low tax collection.5  The IMF has urged the 
Government to do away with tax exemptions, par ticularly on intermediary goods such as computers, 
petroleum products, inputs to hydropower projects,  poultry and livestock feed, and machinery and 
packing materials in order to maintain stead y economic growth and increase revenue collection.6   
17. The authorities acknowledge that their join t objectives of mobilizing revenues and 
encouraging investment are not complementary;  in creased investment should generate revenue in the 
long-run, but in the short to medium term, granti ng tax incentives often erodes the tax base.  Recent 
efforts to enhance revenue include eliminatin g some tax exemptions and strengthening tax 
administration, including through the introductio n of a national identification system, and new 
guidelines on transfer pricing.   
18. Uganda has maintained a sustainable debt pos ition, thanks to sound macroeconomic policies 
and cautious public borrowing following debt relief.   Uganda benefited from the enhanced HIPC 
initiative in 2000 and from further debt relief unde r the multilateral debt relief initiative (MDRI) in 
2006, through which 100% of the debt owed to the IMF, the World Bank, and the African 
Development Bank that had reached completion point under HIPC was written off.  Over the review 
period, the total debt stock declined from 43.3% of GDP in 2005 to 13.4% in 2010.  Debt service obligations (maturities including IMF) declined from 11.7% of exports in 2005 to 2.7% in 2010.  
Uganda's current debt strategy, adopted in 2007, seek s to ensure medium- and long-term external debt 
sustainability, and consistency betw een the level of external financ ing and the wider macroeconomic 
objectives of fiscal consolidation and reduced aid de pendency, to minimize the cost of external 
financing to Government, and to rest rict borrowing to productive sectors only.
7  The emphasis is on 
grant financing rather than borrowing.  The strate gy recommends that at least 80% of new borrowing 
should be on concessional terms8, and the balance based on l ess favourable concessional terms.9  The 
strategy also recommends the enforcement of a borrowing cap with annual borrowing limits announced by the Ministry of Finance, Planning and Economic Development. 
(3) T
RADE AND INVESTMENT PERFORMANCE  
19. Following a modest surplus in 2005, Uganda c onsistently posted a deficit in its external 
current account during the period under review.  Afte r decreasing slightly in 2009, the current account 
deficit grew to reach some 9% of GDP in 2010 (Tab le I.3).  Increasing exports over the period did not 
keep pace with a sharp increase in imports, which was due to  higher global prices for foodstuffs and 
commodities.  Prior to the global financial crisis in 2008, Uganda was able to finance its current 
account deficits with large inflows of foreign capita l.  Since then, however, foreign capital flows to 
Uganda have stagnated due to the slowdown in real economic activity in developed economies and 
increasing investor caution. 
20. The deficit in services and income flows has be en steadily increasing to reach 4% of GDP.  
The financial and capital account balance, on the ot her hand, displayed a growing surplus, reaching 
US$1.8 billion in 2011, following strong inv estment inflows to the private sector.   
                                                      
5 African Development Bank (2010). 
6 "Stop tax exemptions, IMF urges Government".  Viewed at:  http://www.africa-uganda-business-
travel-guide.com/stop-tax-exemptions-imf-urges-uganda-government.html. 
7 Bank of Uganda (2010b). 
8 IDA terms or better, i.e. a 40-year maturity, 10-y ear grace period, and annual interest rate of 0.75%. 
9 I.e. 23-year maturity, six-year gr ace period, and 2% annual interest. EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-497 
 
 
 Table I.3 
Balance of payments, 2005-11 
(US$ million) 
 2005 2006 2007 2008 2009 2010 2011 
Current account balance 38 -338 -632 -1,267 -1,096 -1,562 -1,903 
Goods account (trade balance) -730 -1,028 -1,182 -1,835 -1,509 -2,212 -2,439 
Total exports (f.o.b.)  1,016 1,188 1,776 2,208 2,327 2,164 2,519 
Total Imports (f.o.b.)  -1,746 -2,216 -2,958 -4,043 -3,835 -4,376 -4,958 
Services account (services net) -84 -245 -384 -458 -404 -421 -748 
Inflows(credit) 525 526 593 799 984 1,376 1,430 
     Transportation 11 12 17 53 53 53 111 
     Travel 380 346 398 498 667 784 959 
     Other 134 168 178 247 264 538 360 
Outflows(debit) -609 -770 -977 -1,257 -1,388 -1,797 -2,178 
     Transportation -353 -468 -620 -885 -884 -1,051 -1,171 
     Travel -124 -123 -132 -156 -192 -320 -393 
     Other -131 -179 -226 -216 -312 -425 -613 
Income account (income net) -249 -239 -243 -261 -376 -291 -332 
Inflows(credit) 50 72 97 130 42 21 28 
Outflows(debit) -299 -311 -340 -391 -418 -313 -360 
Current transfers (net) 1,101 1,173 1,176 1,287 1,192 1,362 1,616 
Inflows (credit) 1,246 1,359 1,380 1,611 1,586 1,612 1,895 
          General government infl ows (credits) 663 616 391 379 403 627 668 
Grant disbursements 598 558 323 333 358 456 289 
      Budget support 308 435 206 174 234 253 112 
      Project aid 291 123 116 159 124 204 177 
HIPC assistance 64 58 69 47 45 49 51 
Other transfers      121 328 
          Other Sectors 583 743 988 1,231 1,183 985 1,227 
Workers remittances 322 411 452 724 778 768 949 
Other through BOU 0 0 0 0 0 0 0 
Other (NGOs, IAA etc) 261 332 537 508 405 217 278 
Outflows (debits) -145 -185 -203 -324 -394 -250 -279 
Capital & financia l account balance 554 880 1,393 1,169 1,721 1,052 1,770 
Capital account 0 3,555 0 0 0 0 6 
Financial account; excl uding financing items 554 -2,675 1,393 1,169 1,721 1,052 1,765 
          Direct investment 380 644 792 729 842 547 792 
          Portfolio investment -13 22 45 18 29 -111 257 
          Financial derivatives, net 0 0 1 7 -6 -1 5 
          Other investment 187 -3,341 554 416 856 616 710 
Errors and omissions      -430 14 7 115 -259 348 42 
Overall balance 162 556 767 17 365 -163 -90 
Reserves and related items -162 -556 -767 -17 -365 163 90 
Indicators (%)        
     Balance of goods / GDP -7.3 -9.3 -8.7 -11.2 -9.1 -12.5 .. 
     Current account balance / GDP 0.4 -3.1 -4.7 -7.7 -6.6 -8.8 .. 
     Overall balance / GDP 1.6 5.1 5.7 0.1 2.2 -0.9 .. 
.. Not available. 
Source:  Bank of Uganda, Balance of Pa yments Statistics.  Viewed at:  www.bou.or.ug/bou/home.html. 
21. Despite some diversification, coffee, fish, tea,  and other food items continue to dominate 
Uganda's merchandise exports, accounting for over 50%  of total merchandise  exports in both 2005 WT/TPR/S/271/UGA Trade Policy Review 
Page A5-498 
  
 and 2010 (Chart I.2 and Table AI.1). The shares of semi-manufactures and office machines and other 
telecommunication equipment rose during the pe riod under review.  Ug anda's main export 
destinations in 2006-10 were the EU, Sudan, Kenya,  and DR Congo.  Despite a considerable decline, 
the EU remains Uganda's largest export market;  the shares of Uganda's exports destined for Sudan, 
Kenya, DR Congo, and Rwanda have increased.  The share of Uganda's exports to Europe as a whole 
declined over the review period, while that of Afri can countries increased (Chart I.3 and Table AI.3). 
22. The structure of merchandise imports remain ed largely unchanged during the period under 
review.  Fuel accounts for a growing share, reflect ing higher prices, while the share of agricultural 
products has declined (Table AI.2).  Uganda's ma in import suppliers in 2006-10 were the EU, India, 
and Kenya.  The shares of the EU and Kenya declin ed sharply, while the shares of India and China 
rose (Chart I.3 and Table AI.4).  According to the authorities, imports of textiles and clothing, household equipment, agricultural products and pha rmaceutical items are increasingly sourced from 
Asian countries since they are cheaper. 
23. Services exports over the period 2006-10 were driven mainly by travel and other business 
services, whereas the main imported services categories were transportation, travel, other business 
services and insurance. 
24. In 2007, the BOU and the Uganda Bureau of Statistics put in place a framework for 
estimating informal cross-border trade data, based on monthly surveys at Uganda's main border posts.  
In 2010, informal exports were es timated at over US$500 million, almo st a quarter of Uganda's total 
exports.
10  South Sudan is the leading destinati on for informal exports, accounting for US$197 
million, followed by DR Congo, Kenya, Tanzania, and Rwanda.  Kenya was the highest source of 
informal imports in 2010, accounting for US$43 million, followed by DR Congo, Tanzania, South Sudan, and Rwanda.  These imports were estimated  at US$66 million in 2010, about 1.5% of total 
imports.  While informal trade is an important sour ce of foreign exchange, it also represents a revenue 
loss in terms of customs revenue forgone.   
25. During the review period, Uganda became an increasingly attractive destination for foreign 
direct investment (FDI) with inflows up from US$380 million in 2005 to US$842 million in 2009, 
before dropping to US$534 million in 2010.  In FY 2010/11, the electricity and gas subsector attracted 
the largest part of FDI, followed by financial,  insurance, real estate, and business services.  
                                                      
10 Bank of Uganda (2011a). EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-499 
 
 
 Office machines 
& other telecom 
equipment
2.0Chart I.2
Composition of merchandise trade, 2005 and 2010
2005 2010
(a)    Exports, including re-exports (f.o.b.)
Manufactures
15.5
Total:   US$812.8 million Total:  US$1,618.6 million
(b)    Imports (c.i.f.)
Chemicals
13.1Other machinery 
& transport 
equipment  
5.3Manufactures
64.5Office machines 
& telecom 
equipment
7.6Other consumer 
goods
7.0
Other mining
1.2Fuels
17.0Food
15.0
Agricultural raw 
material
1.5
Automotive 
products
8.0
Non-electrical
machinery
7.7Food
12.4
Agricultural raw 
material
1.1
Semi-
manufactures
8.9Other 
machinery & 
transport 
equipment  
7.5Other
0.3
Office machines & 
telecom equipment
7.5 Agriculture
16.5Other consumer 
goods
5.4
Chemicals
12.3Manufactures
65.0
Total:   US$2,054.1 million Total:   US$4,664.3 millionPer cent
Manufactures
31.0Coffee, not roasted
21.2
Other 
manufactures
8.1Other
0.9Mining
6.8
Automotive
products
7.5Semi-
manufactures
7.3
Mining
6.9Agriculture
60.2
Non-electrical 
machinery
5.3
Source :  UNSD, Comtrade database (SITC Rev.3).Other 
manufactures
9.1
Mining
21.2Other 
manufactures
13.2
Semi-
manufactures
1.9
Semi-
manufactures
9.2Iron and steel
3.7Other 
manufactures
7.9
Mining
18.2Agriculture
13.5Other
9.0Other
1.9
Other mining
1.3Fuels
20.0Iron and steel
4.9
Agriculture
68.8
Other food
28.1Office machines & 
other telecom 
equipment
5.7
Other food
20.6Agricultural raw
material
10.5Coffee, not roasted
16.7
Agricultural raw
material
5.4Fish fillet and fish 
meat
12.3
Tea 4.2Fish fillet and fish 
meat
5.8
Tea 4.2
 
 WT/TPR/S/271/UGA Trade Policy Review 
Page A5-500 
  
 Chart I.3
Direction of merchandise trade, 2005 and 2010
2005 2010
(a)    Exports, including re-exports (f.o.b.)
Asia  
7.5America
1.6
Sudan
12.9
D.R. Congo 11.4Rwanda 9.2
Total:   US$812.8 million Total:  US$1,618.6 million
(b)    Imports (c.i.f.)
Japan 7.1
EU(27)
18.9
Europe  
19.7Other 
0.6
Middle 
East 10.1Other Middle 
East 3.4China 5.3
Kenya 25.3
South Africa
7.0Other Africa  
3.8EU(27)
15.6
Europe
16.6
Asia
41.4America 4.0
India 14.7Japan 6.6
Africa 
19.9
South Africa
5.4
Other Africa  
3.5Middle 
East 16.0
U.A.E. 8.4Other Middle 
East 7.6
Total:   US$2,054.1 million Total:   US$4,664.3 millionPer cent
Kenya 11.0America
2.4
Other Europe
9.3
Other Asia  
11.3Kenya 11.8
Source :  UNSD, Comtrade database (SITC Rev.3).Other Europe
1.0EU(27)
22.6
Asia
26.8
Other Europe
0.8EU(27)
31.9
Other Europe
3.9Africa 35.5Other Africa
7.3
India 6.4Other
2.1
U.A.E. 6.7Sudan
6.2
Africa 
36.2Other   
5.6Other 
2.9
Africa 52.5
Other Asia 
7.9
China 8.9America 6.7Kenya 8.9Europe
41.2U.A.E. 10.4
Europe
26.5U.A.E. 7.5Asia   
6.3
D.R. Congo 7.4Rwanda 4.4Other Africa
8.5
 EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-501 
 
 
 26. According to UNCTAD statistics, FDI inflows into Uganda increased from an annual average 
of US$184 million in the period 2000-04 to an aver age of US$653 million during 2005-10 (Table I.4).  
In 2010, Uganda's FDI inward stock amounted to US$5,853 million, or 32% of GDP, above the 
average of East African countries (24%), but ju st below the average for Africa as a whole (33%).11  
As a percentage of gross fixed capital formation, FDI inflows increased from 17. 7% in 2005 to 22.3% 
in 2009. 
Table I.4 
Investment, 2005-10  
(US$ million) 
  2000-2004 a 2005 2006 2007 2008 2009 2010 
FDI inflows 184 380 644 792 729 842 534 
FDI inflows (% of gross fixed capital formation) 14.7 17.7 28.6 25.7 22.1 22.3 .. 
FDI inward stock 1,182 2,024 2,669 3,461 4,190 5,006 5,853 
FDI inward stock (% of GDP) 16.7 20.2 24.2 25.5 25.4 29.3 31.9 
a Simple average of 2000-04. 
Source:  UNCTAD statistics (accessed in May 2012).  Viewed at:  h ttp://unctadstat.unctad.org/; and Ministry of Finance, 
 Uganda. 
 
27. According to official figures, in 2010, the United Kingdom was the main source of FDI stock 
in Uganda, followed by the Netherlands, Mauritius,  and Kenya (Table I.5).  By sector, finance, 
insurance, and business services acc ounted for 31% of FDI stock, followed by mining and quarrying, 
manufacturing, and transport and communications. 
Table I.5  
Stock of FDI by major source and sector, 2005-10  
(%) 
  2005 2006 2007 2008 2009 2010 
United Kingdom 38 38 33 34 27 24 
Bermuda 0 0 8 7 10 2 
South Africa 2 2 8 7 11 3 
Kenya 14 14 15 13 7 16 
Netherlands 5 5 3 2 2 23 
Mauritius 7 7 5 4 6 17 
Belgium 1 1 0 0 3 -8 
France 4 4 4 3 0 1 
United States 15 15 11 10 2 2 
Sweden 3 3 3 2 -3 0 
Singapore 0 0 0 0 0 0 
India 2 2 4 4 2 7 
Others 8 8 7 14 31 13 
Total 100 100 100 100 100 100 
Stock of FDI by sector       
Agriculture, hunting, forestry and fishing 3 4 4 1 10 8 
Mining and quarrying 37 4 4 -3 56 21 
Manufacturing 18 11 11 32 13 13 
Electricity, gas and water 1 6 6 3 1 3 
Construction 7 11 11 3 2 2 
Wholesale, retail and catering, acco mmodation and tourism 12 6 6 7 0 9 
    Table I.5 (cont'd) 
                                                      
11 UNCTAD (2011b). WT/TPR/S/271/UGA Trade Policy Review 
Page A5-502 
  
   2005 2006 2007 2008 2009 2010 
Transport, storage and communication 10 12 12 0 4 10 
Financing, insurance, business services 12 43 43 55 13 31 
Community, social and personal services 0 1 1 0 0 0 
Others 0 1 1 1 1 3 
 Total 100 100 100 100 100 100 
Source:  Information provided by the Bank of Uganda. 
28. In 2010, Uganda ranked 41st out of 141 economies in UNCTAD's Inward FDI Performance 
Index, up from 64th i n  2 0 0 8 .   I t  r a n k e d  1 2 0th in UNCTAD's Inward FDI Potential Index for 2009 
(125th in 2008).12 
29. Uganda is expected to attract higher FDI inflows in coming years, particularly into the 
petroleum, mining, and agricultural industries, refl ecting the imminent production of crude petroleum 
and its knock-on effects.  Since its last Review, Uganda has streamlined procedures for starting a 
business through the development of a one-stop f acilitation services centre, and procedures for 
business and tax registration have been simplifie d through the introduction of online systems. 
30. Nevertheless a number of issues need to be addressed to increase Uganda's attractiveness to 
foreign investment and fully realize FDI opport unities.  A Private Sector Investment Study13 
conducted in 2010 by the Bank of Uganda listed a num ber of constraints identified by investors.  
These include the effects of volatile exchange rates, inflation, corruption, and the cost and efficiency 
of electricity and road transport, which are major bottlenecks.  
(4) OUTLOOK 
31. The Ugandan economy has remained resilient desp ite both domestic and external shocks over 
the review period, and the authorities expect economi c growth to continue at around 5% over the next 
couple of years.  Sustained economic growth  is essential to enable Uganda to boost its 
socio-economic indicators, thereby improving per capita income and life expectancy.  Despite 
substantial and growing ur ban-rural and regional inequality, Ug anda may reach at least two of the 
eight Millennium Development Goals by 2015, as the country is close to halving poverty and 
addressing gender equality.  Progress has been ma de towards many of the other goals.   
32. Uganda's medium-term growth prospects remain solid.  Services are expected to continue to 
be the main driver of growth, underpinned by su stained growth in communications and transport once 
infrastructure improves and regional trade expands .  Increasing agricultural productivity and value 
addition, coupled with the expansion of agricultura l production in the northern region should enable 
Uganda to exploit its comparative advantage in agri culture, thus contributing to growth.  Nonetheless, 
continued structural transformation of the economy  is necessary in order to create non-agricultural 
and higher productivity jobs to absorb  Uganda's fast growing population. 
33. Uganda developed a National Export Strategy for the period 2008-12 that aimed to generate 
US$5 billion per year in revenue from the export of  goods and services, thus contributing more than 
16% to GDP, and increasing the per capita export ratio from US$82 to US$200 as from 2012.  Of the 
12 sectors highlighted for the medium-term, coffee, tea, flowers, fish, cotton, and services were 
                                                      
12 UNCTAD's Inward FDI Performan ce Index ranks host countries by the amount of FDI they receive 
relative to the size of their economy, while the Inward FDI Potential Index ranks host countries by the amount 
of FDI they receive relative to their potential, based on 12 economic and policy variables (UNCTAD, 2011b).   
13 Bank of Uganda (2011b). EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-503 
 
 
 identified as the main priorities.  In order to support export diversification, sectors with export 
potential such as textiles and garments, cereals and pulses, commercial crafts, natural ingredients, and 
dairy have also been targeted. 
34. The Government aims to raise the revenue to GDP ratio from the current level of 12.5% to 
over 14% in the medium term, to compensate for an expected decline in concessional support, through 
a combination of measures to broaden the tax base and improve tax administration.  Public 
expenditures are expected to remain at around 20% of  GDP in order to boost public infrastructure and 
address binding constraints to growth.  Inflation is  expected to abate following the tightening of 
monetary policy, and the balance of payments is expected to improve as a result of stronger capital 
and financial account inflows. 
35. Uganda's discovery of commercially viable pe troleum deposits offers a unique opportunity to 
transform its economy.  Significant increases in government revenue, if judiciously managed and 
invested, could result in increased economic growth , poverty reduction, and substantial social and 
infrastructural improvements.  Full-scale production is  not expected to begin before 2016.  However, 
massive inflows of foreign exchange have the poten tial to affect the international competitiveness of 
export sectors, particularly agriculture, which employ s the majority of the population, thus upsetting 
the country's growth strategy.  A key element in successfully managing oil re venues will be the extent 
to which Uganda's laws and policies bring tr ansparency and accountability to the oil industry.14  
Uganda will also need to manage the expectations of rural and urban popula tions, cooperate with its 
neighbour, DR Congo, to prevent the escalation of vi olence in the region, and seek ways to forestall 
environmental degradation in an area ex traordinarily rich in biodiversity.15 
                                                      
14 Veit et al.  (2011). 
15 Bategeka et al.  (undated). WT/TPR/S/271/UGA Trade Policy Review 
Page A5-504 
  
 II. TRADE AND INVESTMENT REGIMES  
(1) GENERAL FRAMEWORK  
36. Since Uganda's previous Trade Policy Review , its institutional frame work has remained 
generally unchanged.  Under the 1995 Constitution, Ug anda is a Republic with executive, legislative, 
and judicial branches.  The Constitution, as amende d in 2005, provides for Kampala as the capital city 
of Uganda and the administration and delineati on of its boundaries; and for Swahili as the second 
official language of Uganda.  It introduces a multip arty political system with a leader of the 
opposition in Parliament;  removes the limits on the tenure of office of the President; creates the offices of Prime Minister and Deputy Attorney Gene ral; provides for the independence of the Auditor 
General and for the procedure for his or her rem oval, as well as for the creation and functions of 
special courts to handle offences relating to corr uption; establishes and prescribes the functions of a 
Leadership Code Tribunal; and prov ides for the control of minerals and petroleum, and the holding of 
referenda.
16 
37. The Constitution provides for an executive president, to be elected every five years.  The 
President in power from 1986, was elected in 1996 under the 1995 Constitution, and re-elected in 
2001, 2006, and 2011.  Legislative responsibility is vest ed in the Parliament; le gislative elections are 
held every five years.  Because of re-districting, the Parliament elected in February 2011 grew from 
332 to 375 members, including 112 special seats for women, 10 special seats for military, 5 for youth, 
and 5 for persons with disabilities.  The Ugandan judici ary consists of magistra te's courts, high court, 
court of appeal, and the Supreme Court.  The Execu tive, Parliament and the Judiciary are independent 
bodies.  In practice, each ministry formulates polic ies relating to its field of activities by drafting 
bills.17   
38. Under Legal Notice No. 4 of 1996 and Instruction Circular No. 1 of 1996, the Commercial 
Court was established in 1996 as a division of th e High Court of Uganda devoted to commercial 
disputes, including company cases, bankruptcies, and intellectual property cases.  The mission of the 
Court is to deliver an efficient, expeditious, a nd cost-effective mode of adjudicating disputes that 
affect directly and significantly the economic, commerc ial, and financial life of  Uganda. To this end, 
the Court aims to make litigation faster, cheaper , fairer, and more accessible to the commercial 
community;  help attract foreign investment in Ug anda through improving investor confidence in its 
legal system;  develop and introduce commercial-fri endly rules of Court, and encourage the use of 
settlement methods including nego tiation and mediation;  improve the Court's performance through 
applying modern case management and modern t echnology such as court recording;  create an 
effective institution with clear  managerial and administrative structures run by honest, competent, 
motivated, well-trained staff, supported by good f acilities and equipment;  a nd effectively supervise 
and monitor bailiffs and all those involved in obtaining money or property owed under a court 
judgment. 
39. The Ministry of Trade, Industry and Coopera tives has the main responsibility for formulating 
and implementing trade policy.  Other ministries invol ved include the ministries of: Finance, Planning 
and Economic Development; Foreign Affairs; Justice and Constituti onal Affairs; Information and 
Communication Technology; Works and Communica tions; Agriculture, Animal Industry and 
Fisheries; and Water and Environment.  Other government agencies involved in trade policy 
                                                      
16 Constitution of Uganda 2005.  Viewed at: http://www.ldphs.org.za/resources/local-government-
database/by-country/uganda/constitution/The%2019 95%20Constitution-%20promulgated%20in%201995.pdf. 
17 See WTO (2006), for details of the legislative procedures in Uganda. EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-505 
 
 
 formulation include the Uganda Revenue Authority,  Uganda Export Promotion Board, the Uganda 
Investment Authority, and Uganda  National Bureau of Standards. 
40. To coordinate the formulation and implementation of trade policy, the Ministry in charge of 
trade established the Inter-Institutional Trade Comm ittee (IITC), which also provides a platform for 
analysing trade issues, and coordinating and formul ating positions relating to  multilateral and regional 
trade negotiations.  Initially the IITC was set up to coordinate the formulati on and implementation of 
multilateral trade issues at the national level. 
41. The composition of the IITC is broad based, drawing from the public and government 
institutions, private-sector institutions, academics a nd researchers, and civil society representatives, 
such as Advocates Coalition for Development a nd Environment (ACODE-Uganda), Southern and 
Eastern African Trade Information and Negotiations  Institute (Seatini), Ac tionaid-Uganda, and the 
Consumer Protection Association.  The civil so ciety representatives have served the function of 
advocacy for concerns relating to specific issues such as food security and food rights, access to 
medicine, and technology transfer;  they also represent specific sector interests, including 
manufacturers, farmers, exporters of fish and services, as well as academic institutions.  
42. The constitution supersedes all legal instrume nts, including treaties and international 
agreements, including the WTO Agreements.18   
43. The main changes in trade-rela ted legislation since Uganda's previous TPR, in 2006, include 
the adoption of the EAC Common Market Protoc ol, the EAC Competition regulations, the Trade 
Marks Act, and the Public Procurement and Disposal  of Assets Act (Table II.1).  Several other laws 
are under review, such as Uganda National Bureau of Standards Act, Food and Drugs Act, Uganda 
Export Promotion Board Act, and the Investment Code. 
Table II.1 
Selected trade and trade-relat ed legislation, June 2012  
Investment laws 
The Land Regulations, 2004 
The Land  Act 2004 Cap 227 
The Collective Investment Schemes Act (Commencement) Instrument, 2003 
The Collective Investment Schemes (Unit Trusts) Regulations 2003 
The Collective Investment Schemes (Finan cial And Accounting) Regulations, 2003 
The Collective Investment Schemes (Fees) Instrument, 2003 
The Collective Investment Schemes (Open-Ende d Investment Companies) Regulations, 2003 
The Collective Investment Schemes (Licensing) Regulations, 2003 
Legislation on financial services 
Financial Institutions Act No. 2 of 2004 
Micro Finance and Deposit Taking Institutions Act 2003 
Foreign Exchange Control Act No. 5 of  2004 
Financial Institutions Licensing Regulations 2005 
Foreign Exchange (Forex Bureaux an d Money Remittances) Regulations 2006 
Financial Institutions (Revision of Minimum Cap ital Requirements) Instrument No. 43 of 2010 
Financial Institutions Credit Reference Regulations 2005 
Uganda Securities Exchange Limited (amendment) Listing Rules 2010 
The Financial Institutions (Forei gn Exchange Business) Rules (2010) 
The Insurance (Amendment) Act (2011) 
Table II.1 (cont'd) 
                                                      
18 Article 123 of the Constitution states that: "The Constitution is the Supreme Law in Uganda and any 
law or custom that is in conflict with it is nul l and void to the extent of the inconsistency". WT/TPR/S/271/UGA Trade Policy Review 
Page A5-506 
  
 Intellectual property 
Trademarks Act (2010) 
The Copyright and Neighbouring Rights Act (2006) 
The Trade Secrets Protection Act (2009) 
The Patents Statute of 1999 
Taxation 
The VAT (Amendment) Act, 2011 
The Income Tax (Amendment) Act, 2010 
The Excise Tariff (Amendment) Act 2011 
Government procurement 
The Public Procurement and Dis posal of Assets Act of 2003 
The Public Financial and Accountability Act, 2003 
The Local Government Act of 2006 
Privatization 
The Public Enterprises Reform and Divestiture Act of 2000 
Agriculture, Forestry and Fisheries 
The Land (Amendment) Act, 2010 
The Food and Drugs Act (1964) 
The Public Health Act (1964) 
The Plant Protection Act (1964) 
The Drugs Act (1993) 
The Seeds and Plants Act (2006) 
The Agricultural Chemicals (Control) Act (2006) 
National Forestry and Tree Planting Act (2003) 
The Fish Rules 2010 
Mining and energy 
Petroleum Supply Act (PSA), 2003 
The Petroleum (Exploration and Production) Act 
The Atomic Energy Act 2008 
Communications services 
The Uganda Communications Act (UCA) 1997 
The Communications (Fair Competition) Regulations of 2005 
The Communications (Universal Service) Regulations, 2005 
Telecommunication services 
The Telecommunications (Interconnection) Regulations, 2005 
The Telecommunications (Tariffs and Accounting) Regulations, 2005 
Electronic Signature Act, Computer Misuse  Act, and Electronic Transaction Act), 201 
Transport 
The Ferries Act, 1994  
The Vessels (Registration) Act, 1994  
The Inland Water Transport (Control) Act, 1994   
The Lake Victoria Transport Act (2007) 
Tourism 
The Tourism Act (2008) 
Source:  The Ugandan authorities. 
(2) TRADE POLICY OBJECTIVES  
44. The National Development Plan (2010/2011-201 4/2015) replaced the Poverty Eradication 
Action Plan as Uganda's main economic development strategy document.19  It sets out the country's 
medium-term strategic direction, development prior ities, and implementation strategies.  The theme of 
the National Development Plan is "Growth, Em ployment and Socio-Economic Transformation for 
Prosperity".  The thrust is to accelerate socio-ec onomic transformation to achieve the national vision 
                                                      
19 National Development Plan.  Viewed  at:  http://www.npa.ug/NDP2.pdf. EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-507 
 
 
 of a transformed Ugandan society from a peasant to a modern and prosperous country within 30 years. 
This is to be realized through the implementati on of three ten-year national development plans, 
sub-divided into six five-year national development plans, sector master plan s, and annual plans and 
budgets.  
45. Eight objectives were identified as being stra tegic: (i) increasing household incomes and 
promoting equity;  (ii) enhancing the availability  and quality of gainful employment; (iii) improving 
stock and quality of economic infrastructure;  (i v) increasing access to quality social services;  (v) 
promoting science, technology, innovation and IC T to enhance competitiveness;  (vi) enhancing 
human capital development;  (vii) strengthening go od governance, defence, and security;  and (viii) 
promoting sustainable population and use of  the environment and natural resources. 
46. The National Trade Policy is premised on the vision "To transform Uganda into a dynamic 
and competitive economy in which the trade sector stimulates the productive sectors; and to trade the 
country out of poverty, into wealth and prosperity".   The overall goal of the policy is "to develop and 
nurture private sector competitiveness, and to support the productive sectors of the economy to trade at both domestic and international levels, with the ultimate objective of creating wealth, employment, 
enhancing social welfare and transforming Uganda  from a poor peasant society into a modern and 
prosperous society".
20 
47. Under the National Trade Policy, the following priorities were identified: (i) enhancing 
competitiveness in the domestic, regional, and interna tional markets by developing capacity to exploit 
existing and future market opportunities; (ii) ensuring that trade conforms to national and international 
laws and regulations; (iii) devel oping domestic trade as a foundation for Uganda's  capacity to produce 
and engage in international trade competitively; (iv) strengthening institutions dealing with trade 
policy, standards, trade facilitation, and provision of trade information; (v ) securing and maintaining 
better market access at regional and international leve ls; (vi) providing market information to enable 
participants to reach prudent and optimal investme nt decisions; and (vii) ensuring that the gains from 
growth in trade are equitably shared, mainly through involvement of as many persons as possible.  
48. In addition, the National Trade Policy envi sages implementation through five-year rolling 
national trade sector development plans (NTSDPs)21.  The first NTSDP (2008/9–2012/13) gives more 
detail on the actions contained in the National Trad e Policy and a schedule of implementation, plus 
the requisite financial resource envelope.  The NTSDP identified thirteen thematic areas for 
intervention:  (i) institutional and legisla tive reform;  (ii) competitiveness enhancement; 
(iii) value-chain management and value addition; (iv) private-sector development;  (v) enhancement 
of trade negotiations capacity;  (vi) pursuance of  regionalism and bilateralism with a view to 
enhancing trade and investment flows;  (vii) pursu ance of multilateralism with a view to influencing 
international trade rules so that they are suppor tive of Uganda's trade and development agenda;  
(viii) trade facilitation;  (ix) development of en trepreneurial skills;  (x) promotion of electronic 
commerce; (xi) promotion and institutionalization of  public-private partnership approach in trade 
policy;  (xii) protection of intellectual prope rty rights and promotion of innovation; and 
(xiii) promotion of technology transfer. 
                                                      
20 Ministry of Tourism (2008). 
21 Ministry of Tourism (2007). WT/TPR/S/271/UGA Trade Policy Review 
Page A5-508 
  
 (3) TRADE AGREEMENTS  
(i) World Trade Organization (WTO) 
49. Uganda has been active in the negotiations under the Doha Development Agenda (DDA) 
where it shares the position of th e African Group, the ACP Group, and the LDC Group.  Uganda's 
main interests in the deliverab les of the DDA include: granting of duty-free and quota-free market 
access by developed and emerging countries to products  of interest to Uganda and other LDCs;  
simplified and transparent preferential rules of origin ; elimination of non-tariff barriers; an agreement 
on cotton to achieve an ambitious, expeditious, and specific outcome for cotton trade-related aspects, 
in particular the elimination of domestic support measures and export subsidies and a lasting solution 
to tariff escalation and other market-access issues, and special treatment in case of preferential tariffs 
erosion.  Uganda has also called for additional financial and technical assistance to meet the 
implementation obligations and build capacity to  meet sanitary, phytosanitary, and technical 
requirements and related infrastructure.   
50. Uganda has not made any notifications to the WTO since 2006, except under Article 2.9 of 
the Agreement on Technical Barriers to Trade (TBT), where it submitted over 200 notifications 
relating to food standards, animal feed , environmental protection and safety.  
(ii) Regional and bilateral trade agreements 
51. Uganda signed the EAC Treaty on 30 November  1999 (Common Report, Chapter II). It is 
also a member of the Common Market for Eastern and Southern Africa (COMESA), and initialled an 
interim Economic Partnership Ag reement with the EU under the East African Community in 
November 2007.  Uganda is eligible for non-recipr ocal preferential treatment under the Generalized 
System of Preferences (GSP), and the United States  African Growth and Opportunity Act (AGOA).  
As a least developed country, Uganda is eligible for the Everything-but-Arms (EBA) initiative of the 
European Union (Common Report, Chapter II).  Uga nda is not a signatory to the Agreement on the 
Global System of Trade Preferences among Developing Countries (GSTP). 
(4) INVESTMENT REGIME  
52. The investment regime in Uganda is governed by the Investment Code of 1991, which was 
revised in 2000.  Foreign investors require a minimum of US$100,000 in planned investment in order to secure an investment licence from the Uganda In vestment Authority, whereas for local investors, 
the minimum planned investment requirement is  US$50,000.  Foreign investors who meet the 
requirements stipulated in the Investment Code, ma y benefit from tax and other investment incentives 
(Table II.2) which include VAT refunds on materi als for industrial and commercial buildings; duty-
and tax-free imports of plant and machinery; and duty exemptions on personal effects and motor 
vehicles (previously owned for at least 12 months) for all investors and expa triates entering Uganda. 
53. Activities not open to foreign investors include:  wholesale and retail commerce; personal 
services; public relations business; car hire services a nd operation of taxis; bakeries, confectioneries, 
and food processing for the Ugandan market only;  and professional services.  Moreover, activities 
under state monopoly or exclusive rights are not open to private investment (Ugandan or foreign).  
These include reserved courrier services, electricity, and water (see Chapter IV).   
54. The Investment Code established the Uganda I nvestment Authority (UIA) with a mandate to 
attract, promote, and facilitate investment.  The UIA is a semi-autonomous government agency operating in partnership with the private sector and Government of Uganda.  Its objectives are to EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-509 
 
 
 attract value-adding investment that brings tec hnology, skills and jobs; contribute to the image of 
Uganda as a leading African Investment destin ation; provide serviced sites, buildings, and 
competitive infrastructure to meet the needs of gr owing Ugandan-based busin esses; stimulate and lead 
key stakeholders in creating a competitive busin ess environment; setup and develop industrial and 
business parks; and offer support to SMEs.  
Table II.2 
Investment incentives, June 2012 
Type of allowance Rate Condition 
Initial allowance granted in 1st year of  production 50% Granted on cost base of plant & machinery for Industries located 
in Kampala, Entebbe, Namanve, Jinja & Njeru  
Initial allowance granted in 1st year of  production 75% Granted on the cost base of plant and machinery for industries 
located elsewhere in Uganda 
 
Start-up costs 25% Granted on actual cost over the first four years in four equal 
instalments  
Scientific research capital expenditure 100% Granted on act ual cost of scientific research in the year the 
expenditure is incurred.  Also deductible once from the company's income.  
Training expenditure 100% Granted on actual co st of training incurred during a year of 
income for the training or tertia ry education of a citizen or 
permanent resident of Uganda em ployed in the business by the 
employer (not exceeding 5 years in total)  
Mineral exploration expenditure 100% Granted on actual cost incurred in mineral exploration. 
Expenditure of a capital nature incurred in searching for, 
discovering and testing, winning acce ss to deposit of minerals in 
Uganda  
Initial allowance granted in 1st ye ar of use of an industrial 
building 20% Granted on the cost base of an industrial building, used for 
approved - hotel business, hospital, commercial building, mining 
and manufacturing operations; and capital expenditure incurred on the extension of an existing industrial building but excluding commercial building.  
Repairs and minor capital equipment 100% Gr anted on actual cost incurred in a year 
Expenditure on repair of property occupied or used for the business 
Source:  Uganda Investment Authority online inform ation.  Viewed at:  www.ungandainvest.go.ug. 
55. The UIA offers investors: information on i nvestment opportunities in Uganda; investment 
licences; assistance in securing other licences and sec ondary approvals; help in locating relevant 
project support services; assistance in the acquisitio n of industrial land; help to obtain work permits 
and special passes; arrangement of contracts for pot ential investors and organization of itineraries for 
visiting foreign missions in the country; and assistan ce in seeking joint-venture partners and funding. 
56. It provides a one-stop facilitation services centre where investors can register their business 
with the Uganda Registration Services Bureau;  deal  with tax and other registration issues with the 
Uganda Revenue Authority (URA); and organize  work permits and residency issues with the 
Directorate of Citizenship and Immigration Control.  
57. The one-stop facilitation services centre has made it easier to start a business in Uganda by 
streamlining procedures and making them simpler a nd faster, and introducing modern technological 
and communication tools.  As part of the reforms undertaken in the area of business registration the 
Uganda Registration Services Bureau was grante d autonomy from the Ministry of Justice and 
Constitutional Affairs in July 2010.  The Uganda Revenue Authority has also simplified registration WT/TPR/S/271/UGA Trade Policy Review 
Page A5-510 
  
 for the tax identification number and for value-adde d tax by introducing an online system, which has 
led to more registered businesses in the country. 
58. Despite the number of business reforms undertaken, Uganda ranked 123rd out of 183 countries 
in terms of ease of doing business.  Over the last tw o years, Uganda's ranking fell in almost all of the 
ten business regulation areas (Table II.3).  
Table II.3 
Doing business ranking 
Topic rankings  2012 2011 Change in Rank 
Starting a business  143 136 -7 
Dealing with construction permits  109 108 -1 
Getting electricity  129 128 -1 
Registering property  127 155 28 
Getting credit  48 45 -3 
Protecting investors  133 131 -2 
Paying taxes  93 68 -25 
Trading across borders  158 157 -1 
Enforcing contracts  116 113 -3 
Resolving insolvency  63 58 -5 
Source : World Bank (2012), Doing Business 2012: Doing busine ss in a more transparent world . Economy Profile: 
 Uganda. Viewed at:  http://www.doingbus iness.org/~/media/f pdkm/doing%20business/ 
 documents/profiles/country/UGA.pdf. 
59. The Uganda Investment Authority is benefiti ng from various capacity-building and training 
programmes sponsored by developm ent partners such as the World Bank, UNIDO, and UNCTAD, to 
strengthen investment promotion. 
60. Uganda is a signatory to major international investment-related arrangements or institutions, 
such as the Multilateral Investment Guarantee Ag ency (MIGA), the Oversea s Private Investment 
Corporations (OPIC), the Convention on the Recogn ition and Enforcement of Foreign Arbitral Award 
(CREFAA), the Islamic Corporation for the Insuran ce of Investment and Export Credit (ICIEC), and 
the International Centre for the Settlement of I nvestment Disputes (ICSID).  Since its last TPR, 
Uganda has signed a double-taxation tr eaty with Belgium (on 26 July 2007). EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-511 
 
 
 III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
61. Since January 2005, the EAC common external tariff (CET) has been Uganda's main trade 
policy instrument (Common Report, Section III(1)(iv)).   Uganda maintains export duties on raw hides 
and skins and a cess on coffee and cotton.  The major incentive programmes are a duty drawback 
scheme and a manufacturing under bond scheme.   
62. Uganda has adjusted certain tr ade policy instruments through a reform of its SPS regime;  
new legislation since 2005 incl udes the Seeds and Plant Act 2006 and the Agricultural Chemicals 
(Control) Act 2006.  New legislation updating Uga nda's intellectual property regime includes the 
Trademarks Act 2010, the Copyright and Nei ghbouring Rights Act No. 19 of 2006 and the Trade 
Secrets Protection Act 2009.  Laws on competition,  consumer protection, geographical indications 
and industrial property are under preparation.    
(2) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Registration, customs procedures and valuation 
63. All legal entities and persons ope rating under trading names engaged in international trade 
must be registered with the Uganda Registra tion Services Bureau (URSB) and licensed by the 
relevant local authorities.  A tax identification number (TIN) is issued by the Uganda Revenue 
Authority to all taxpayers after registration.  Ther e is no requirement for pre-shipment inspection of 
goods imported into Uganda.   
64. For customs clearance, Uganda uses the AS YCUDA++ system.  A single administrative 
document (SAD) signed by the importer is required together with other documents, which include a 
customs bill of entry, commercial invoice, freight  invoice, certificate of origin where necessary, 
permits and bill of lading, airway  bill or railway consignment note.22  Additional documents are 
required for imports such as bee products;  anim als, plants, and their products; drugs;  and 
second-hand clothing.  It is compulsory to use a customs agent for declarations.23  Agency fees are set 
by customs agents.  Self-clearance for importers is granted after the compliance level, the capacity, 
and the nature of business of the applicant has been assessed.  Self-clearance is limited to bulk 
importers or sensitive im ports or exports.   
65. Criteria for risk assessment are largely based on WCO Risk Management Standards.  Under 
the ASYCUDA++ computerized risk -management system, imports are channelled into one of four 
lines:  a green line (goods released without examin ation of documents and inspection of goods); a 
blue line (goods released without inspection and examination of documents, but subject to post 
clearance audit); a yellow line (goods released after examination of documents);  and a red line (goods 
released after inspection of goods and examinati on of documents).  According to the URA, from 
January to March 2012, 34% of imports into Ug anda were channelled through the red line, 43% 
through the yellow line, 7% through the blue line, and 16% through the green line.   
                                                      
22 For details of documents required for entry see Uganda Revenue Authority online information.  
Viewed at:  http://www.ura.go.ug; for step-by-step pr ocedures that apply to imports to Uganda through 
Mombasa see EAC online information,  OSBP Source Book, Appendix 4. Viewed at:  h ttp://www.eac.int. 
23 Requirements for clearing agents are stipulated in Part XI (Sections 145-148) of the East African 
Community Customs Management Act (EACCMA), 2005 and Part XII (Regulations 149-152) of the East 
African Community Customs Management Regulations, 2010.   WT/TPR/S/271/UGA Trade Policy Review 
Page A5-512 
  
 66. A valuation database is used for purposes of refe rence and application of  alternative valuation 
methods where a declaration is found unsatisfactory during the vetting process.  No minimum prices are used.  According to the URA,  the average clearance time for imports is between two and three 
days.  The authorities indicate a number of problems relating to customs valuation, including:  
difficulties in obtaining information (for valuation pu rposes) from foreign sources;  falsification of 
documents (particularly in the case of used cars), a nd issuance of dual or blank invoices by suppliers.  
The authorities indicate that Uganda has fully impl emented the EAC Customs Valuation Procedures.  
67. Uganda has implemented an internet-based Temporary Motor Vehicles Import and Export 
System (TEVIES) in order to facilitate the im portation (and subsequent  re-export) of foreign 
registered vehicles for temporary use.     
68. The procedure for settlement of disputes on cust oms-related issues has not changed since the 
last TPR of Uganda.  The authorities have indicated that a response should be received at every stage within eight hours.   
69. In FY 2010/11, international trade taxes accounted for 47.7% of gross tax collections, 
representing a growth rate of 27% from the previous year.  Most of the increase was due to an 
increase in the value of dutiable items, owing to a recovery in import demand, exchange rate 
depreciation, improved valua tion controls over the period, and staff recruitment.
24 
(ii) Tariffs  
(a) MFN applied tariff structure 
70. Uganda applies the EAC CET (Common Report, Chapter III(1)(iv)).  As of July 2011, 
Uganda was permitted to stay application of the C ET for a number of goods for one year, extended for 
an additional year until 2013 (Common Report, Table III.5). 
(b) MFN tariff bindings 
71. Uganda's tariff bindings cover 15.9% of all its tariff lines, i.e. all tariff lines for agricultural 
products (WTO definition), and 2.9% of total lines fo r non-agricultural products.  The bindings are at 
ceiling rates of 80% on most agricultural products, except for 75 tariff lines with bound rates between 
40% and 70%;  and between 40% a nd 80% on non-agricultural products. 
(c) Tariff preferences 
72. Uganda is a member of COMESA and applies a preferential tariff on imports from COMESA 
member states of 0% for raw materials and plant and machinery, 4% for intermediate goods, and 6% 
for finished goods.   
(d) Duty and tax exemptions and concessions 
73. Under the Duty Remission Scheme of the East African Community Customs Management 
Act (EACCMA), Uganda was granted permission to  import specified raw materials and industrial 
inputs free of duty for five years with effect from 1 January 2005, which was extended for one year as of 1 July 2011.  A total of 94 companies bene fit under the Scheme.  Specified imports include 
                                                      
24 Ministry of Finance, Planning and Economic Development (2011b). EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-513 
 
 
 packaging, paper and newsprint, malt, yarn, and iron.25  Duty remission from 100% to 10% applies to 
industrial sugar used by manufacturers, subject to  the following conditions:  the application for duty 
remission is to be submitted annually;  the app licant must be a producer using industrial sugar as a 
raw material;  only specific quantities bene fit from remission, depending on the request; 
post-clearance audit is conducted;  and registrati on with Uganda Manufacturer's Association is an 
added advantage (as it provides further evidence that  the applicant is recognized as a manufacturer). 
74. Two schemes, the fixed Duty Drawback Sche me and the Manufacturing under Bond Scheme, 
are in place to allow exporters access to VAT refunds and duty drawback.26     
75. Goods in transit are exempt from customs duti es.  A bond must be held until the goods leave 
the country.  Goods shipped through Uganda may re main in Uganda for a maximum of seven days.  
In 2009, Uganda put in place a secure system of seals for transit goods.  Seals placed at the point of entry are removed only at the exit point, reducing the need for inspection at different stages of transit 
and saving time and money.
27 
(iii) Other duties and charges  
76. A value-added tax of 18% is payable on the sal e price of locally produced goods and services, 
and on the customs-duty inclusive c.i.f. value of imports.  All goods that are exempt under the Fifth 
Schedule of the EACCMA are exempt from VAT.  Supplies exempt from VAT are listed in the Second Schedule of the VAT Act, and include fi nancial services; insuranc e services; education 
services; veterinary, medical, dental, and nursing services; new computers, printers, and parts; and liquefied petroleum gas.  Zero-rated supplies liste d in the Third Schedule of the VAT Act Cap 349 
include drugs and medicines; educational material s; seeds; fertilizers; and machinery used only in 
agriculture.  Companies with a turnover of USh 50 million or less are exempt from registration requirements for VAT purposes.  Fiscal revenue from VAT amounted to USh 1.7 trillion in 2010/11, of which USh 987 billion was from imported goods.   
77. Second-hand cars of eight years or older are subject to 25% import duty, 18% VAT, 
6% withholding tax, and an environmental levy at 20%.   
78. The VAT (Amendment) Act, 2011, subjects bus inesses in Uganda that import services from 
consultants and service providers based outside Uganda to VAT of 18% (such services were 
previously exempt).  Thus, licence fees, royalties, management fees, consultancy services, technical and advisory fees, advertising services, engineers, lawyers, accountants, data processing and 
information technology services, and any other such  services provided by non-residents to businesses 
in Uganda are now subject to VAT. 
79. The Income Tax (Amendment) Act, 2010, seeks to  enlarge the scope of taxation of revenue 
from petroleum operations by providing for the assess ment, collection and valuation of petroleum 
revenues.  The law also provides for the transfer of  interest as well as penalties for non-compliance.   
80. The Excise Tariff (Amendment) Act 2011 lays down the items subject to excise taxes and the 
respective rates.  Excise taxes are payable on t obacco products, alcoholic beverages, fuel, mobile 
phone calls, sugar, and sacks (Table III.1).  The excise  tax applies to the customs-duty-inclusive c.i.f. 
value of imports and to the sale price of locally produced goods.  Excise duties on local beer, spirits, 
                                                      
25 For a full list see Legal Notice No. EAC/10/2007, East African Community Gazette . 
26 East African Community Customs Management Act, 2005, Sections 138-144. 
27 World Bank (2011). WT/TPR/S/271/UGA Trade Policy Review 
Page A5-514 
  
 and soft cup, manufactured using locally produced  raw materials are considerably lower than on 
similar imported products.  According to the authorit ies, efforts have been made by the Government 
to rectify this.  As of 1 July 2012, spirits made from locally produced raw materials attract an excise 
duty of 60%, up from 45%.  Other instances are still under study.  In 2010/11, revenue from excise 
duties was USh 456.6 billion of which USh 141 billion  from imports.  
Table III.1 
Main excise duties, FY 2010/11  
Duty Rate  
Extracts, essences and concentrates 
Cigars, cheroots, and cigarillos containing tobacco 10% 
160% 
Soft cup (whose local content is more than 70% of its constituents)  Other soft cup USh 22,000 
USh 25,000/1,000 sticks 
Hinge lid USh 55,000/1,000 sticks 
Other  160% 
Smoking tobacco, whether or not containing tobacco substitutes in any proportion  160% 
Homogenized or reconstituted tobacco 160% 
Other 160% 
Beer 
  Made from malt 
  Beer produced from barley grown and malted in Uganda 
  Whose local raw-material content, excluding water, is at least 75% by weight of its constituents   
60% 
40% 
20% 
Spirits   Made from locally produced raw materials 
  Other  
45% 
70% 
Other 
  Made from locally produced raw materials 
  Other  
20% 
70% 
Water, including mineral waters and aerated waters, containing sw eetening matter or flavoured 
Mineral water, bottled water and ot her water purposely for drinking 13% 
10% 
Airtime 
Landlines and public payphones 12% 
5% 
Fuel 
  Motor spirit (gasoline) 
  Gas oil (automotive, light, a nd amber for high speed engine) 
  Other gas oils  
USh 850/litre 
USh 530/litre 
USh 530/litre 
Cane or beet sugar and chemically pu re sucrose in solid form  USh 25/kg 
Sacks and bags of polymers of ethylene and other plastics falling under tariff heading 3923.21.00 and 
3923.29.00  120% 
Source:  Information provided by the Ugandan authorities.   
81. A withholding tax of 6% on the c.i.f. value of imports is collected from all companies unless 
they are exempted.  Withholding tax also applies to  local purchases.  This is a deposit on income tax 
and is taken into account at the end of the fiscal year.   
(iv) Import prohibitions, restrictions and licensing 
82. Importers of agri-chemicals must  be registered with and obtain approval from the Agricultural 
Chemicals Board (ACB), set up by the Agricultural Chemicals (Control) Act (2006).  Approval must 
be sought from the National Drug Authority (NDA) for imports of pharmaceuticals;  importers must apply to the NDA for registration and certifica tion under the National Drug Policy and Authority 
Statute of 1993.   
83. The URA may require supplementary documents at the entry point for certain imports.  A 
licence and Quality Clearance Certificate issued by the NDA are required for human and animal EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-515 
 
 
 medicine.  Fees for the import of drugs include USh 300,000 for an annual import permit (or USh 
100,000 for a provisional import/export permit valid for a month) plus 2% of the f.o.b. price for 
verification of commercial consignments.  A phyto- sanitary certificate is required for flowers, fruits, 
vegetables, and plants, and a health certificate is required for animal im ports, certifying that the 
animal is free from infectious or contagious diseases.  Bees and bee products require an import 
permit.  A fumigation certificate is required for second-hand clothing.  
84. A number of goods are prohibited from importa tion into Uganda, as listed in the Second 
Schedule to the EACCMA and other domestic laws.  In 2006, the Finance Act was amended to ban 
the importation, manufacture, sale, and use of plastic bags .   
(v) Contingency measures 
85. Uganda does not have anti-dumping, countervailing or safeguard legislation;  the legal basis 
for contingency measures is the COMESA Treaty and the Protocol on the Establishment of the East 
African Customs Union (Common Report, Chapter III(v i)).  Uganda has not taken any contingency 
measures since its last TPR in 2006. 
(vi) Standards and other technical requirements 
86. Under the UNBS Act 1983 Cap 327, the Uganda Na tional Bureau of Standards (UNBS) is the 
sole statutory organization responsible for the form ulation, promotion, and enforcement of standards 
and technical regulations.  UNBS has been operational since 1989.  UNBS performs market 
surveillance to detect substandard or counte rfeit products, carries out shipment inspection and 
conformity assessment for exports, imports, and tend er supplies, and liaises with national, regional, 
and international standardization and related bodies.  UNBS is Uganda's national enquiry point under 
the WTO Agreement on Technical Barriers to Trade.28  UNBS represents Uganda in the African 
Regional Organization for Standardization (ARS O), in the International Organization for 
Standardization (ISO), as a correspondent member, and at the EAC and COMESA for the harmonization of regional standards. 
87. The imposition of technical regula tions and standards may be initia ted by the public or private 
sector.  Between 2006 and June 2012, Uganda submitte d 256 notifications under the TBT Agreement.  
The bulk of these concern food standards, animal  feed, environmental protection, and safety.
29 
88. An amendment of the UNBS Act 1983 was presen ted to Parliament in 2010 and is under 
discussion.  Amendments include harmonization of laws  to take account of Uganda's ratification of a 
number of international and regional instruments th at have a bearing on standards of products and 
processes in Uganda;  changes to  the membership and tenure of the National Standards Council to 
facilitate decision-making;  introduction of a fra mework for the evaluation of performance of 
commodities, processes or systems (fitness for purpo se criteria);  and deterrent penalties in the 
enforcement of standards.  
89. UNBS publishes an annual catalogue of standards.  A list of compulsory standards (technical 
regulations) is maintained on the UNBS website.30  As of July 2012, a total of 1,429 standards had 
been published, covering food products, chemic al, engineering, and other products, metrology, 
                                                      
28 WTO document G/TBT/ENQ/38/Rev.1, 8 July 2011. 
29 WTO document series G/TBT/N/UGA/… 
30 UNBS online information.  Viewed at:  http ://www.unbs.go.ug/resources/Compulsory%20Uganda% 
20Standards.pdf. WT/TPR/S/271/UGA Trade Policy Review 
Page A5-516 
  
 electrotechnology,  and information and communica tions technology products.  Of these, 1,228 are 
based on international standards.  Standards and t echnical regulations are also developed at the EAC 
level (Common Report, Chapter III(viii)).    
90. Standards are prepared by Technical Committees (TCs) composed of consumers, traders, 
academicians, manufacturers, Government, and other st akeholders.  As of January 2012, there were 
15 TCs dealing with food and agricultural products ;  building and civil engineering;  mechanical 
engineering and metallurgy;  chemicals and environm ent;  electrotechnology;  textiles, apparel, and 
leather products;  transport and communications;  metrology;  management systems and services;  
furniture;  energy management;  medical devices;  hala l integrity;  petroleum;  and applied statistics.  
Draft standards adopted by the TCs are circulat ed to stakeholders a nd the general public for 
comments; these are reviewed before recommendations  are sent to the National Standards Council for 
declaration as national standards.  The preparation of technical regulations follows the same process. 
After approval by the National Standards Council and recommendation to the Minister of Trade for 
declaration as technical regulations, the Minister notifies and requests the public to submit any objections and comments within 60 days. Standards become technical regulations when the Minister 
of Trade declares them as such.   
91. Domestic and imported products are tested for conformity to Uganda technical regulations 
and other specifications;  the tests are carried out by the appropriate UNBS laboratories in the fields of chemistry, microbiology, mechanical, building mate rials, and electrical equipment.  The UNBS has 
put in place an Import Inspection and Clearance Sche me that requires all imported products subject to 
technical regulations to be inspected for conformity  to the relevant Ugandan Standard before release 
onto the Ugandan market.  Quality inspection is done by the UNBS at the entry point during the 
customs verification exercise.  Imports subject to a technical regulation must be accompanied by a test certificate indicating compliance with the Ugandan st andard or EAC partner state mark. For locally 
produced products, industrial inspection visits are scheduled to ensure safety and conformity to 
mandatory standards.  Surprise inspection visits are also conducted and produc ts are sampled from the 
market for laboratory analysis. 
92. Only imports covered by mandatory standards ar e inspected at entry points.  Inspection of 
imports is primarily conducted to ensure consumer safety and protect consumer health.  According to 
the authorities no study has been conducted specifi cally to measure the average waiting time for 
inspection.  However, a time-rel ease study by URA Customs in 2008 sh owed that the average time to 
clear goods is just under three days.    
93. Where necessary, the UNBS draws samples of  the product for laboratory testing. If the 
product does not meet the critical minimum require ments for health, safety, and performance as set 
out in the relevant Ugandan Standard, the product is prohibited entry on those grounds and seized for 
destruction or re-exportation at the importer's expens e.  No inspection fees are charged for destination 
inspection under the Imports Inspection and Clearance Scheme.  However, testing charges are 
imposed when samples have been drawn for laboratory analysis.   
94. The UNBS has adopted the following ISO standards as Ugandan Standards:  ISO 9000 for 
Quality Management and Quality Assurance,  IS O 14000 for environmental management systems, 
ISO 22000 for food safety, ISO 17025 for laborator y accreditation, ISO 31000 for risk management, 
ISO 26000 for social responsibility, and ISO 28000 for security management systems for the supply 
chain.  EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-517 
 
 
 95. Uganda has not concluded any mutual recogniti on agreements.  According to the authorities, 
an accreditation system and policy are in preparation but are not yet in place.  As provided for under the SQMT Act 2006, Uganda provides mutual re cognition to products fro m EAC partner states 
bearing their respective quality marks.   
96. About half of UNBS operating expenses are met by Government, with the rest coming from 
fees for verification and laboratory analys is, and fuel marking income.     
(a) Sanitary and phytosanitary regulations 97. The Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF) is the national enquiry 
point for all SPS-related issues.  Uganda's main SPS-related legislation includes the Food and Drugs 
Act (1964), the Public Health Act (1964), the Plan t Protection Act (1964), the Drugs Act (1993), the 
Seeds and Plant Act No. 3 of 2007, and the Agricu ltural Chemicals (Control) Act No. 1 of 2007.  
Other food-related legislation pending and in variou s stages of development includes:  regulations for 
the Agricultural Chemicals (Control) Act, which would separate the regulation of pesticides from 
fertilizers to address food-safety concerns about pesticide residues along the food chain;  the draft Biosafety Act and Regulations, pertaining to GMOs ;  the Plant Protection and Health Act, which 
seeks to adjust Ugandan legislation to the Interna tional Plant Protection Convention (IPPC);  and the 
draft Fisheries Act, which would modify present re gulations concerning fish and fisheries.  A Food 
and Nutrition Bill, whose main goal is to ensure  food security and adequate nutrition, has been 
forwarded to Cabinet for approval.  
98. Various institutions share responsibility for the implementation of food safety controls.  The 
Ministry of Health is responsible for issues related to drugs and food safety.  Imports of drugs require 
a valid import permit issued by the National Drug Authority (NDA).
31  The drugs are inspected by an 
NDA inspector at the port of entry, to ensure that they comply with  the approved specifications and 
regulations.  Each batch must be accompanied by a re levant certificate of analysis.  The inspector may 
carry out sampling or pick samples for further inv estigation.  Chemical analysis normally takes two 
weeks from the time a consignment is sampled to wh en the results are released.  The charge for 
chemical analysis depends on the pa rameters to be tested.  As of June 2012, the highest charge does 
not exceed USh 150,000. 
99. The MAAIF is responsible for initiating the fo rmulation and review of laws, regulations, 
standards, strategies, and plans related to SPS  measures and for the regulation of livestock and 
livestock products, and fish and fish products.  The Crop Protection Department of MAAIF is 
responsible for all matters relate d to plant health, including the control of SPS permits on imports, the 
issuance of export phytosanitary certificates for liv e plant material and horticultural crops, and the 
deployment of staff at all border posts to en force agricultural import and export regulation and 
certification against crop pests and diseases.  The department is also responsible for enforcing 
regulations on registration and use of pesticides a nd other agri-chemicals. Imports of flowers, fruits, 
vegetables, plants, and seeds require a phytosanita ry certificate.  Seed importers are subject to 
licensing requirements.  Soil imports are prohibited.   
100. The Department of Fisheries Resources is res ponsible for the certification of fish and fish 
products intended for export.  It enforces fisheries regulation, including the inspection of factory premises, processing lines, landing sites, fish transpor t, and export points for adherence to safety and 
quality requirements, as well as maintaining a nationa l fish inspection and quality control system.  
Standards for organic produce are controlled by the private-sector agency, UGACERT, while 
                                                      
31 For import procedures see NDA online information.  Viewed at:  http://www.nda.or.ug. WT/TPR/S/271/UGA Trade Policy Review 
Page A5-518 
  
 technical regulations relating to food products and SPS are enforced by the UNBS and MAAIF, 
respectively.   
101. Uganda has developed a National Food Safety St rategic Plan (2007-2016).  The plan aims at 
guiding the implementation of food safety laws, pr ogrammes, activities, and other food safety control 
systems;  translates the food laws into a tool for an effective food-safety control system;  and 
identifies roles and responsibilities of key stakeh olders, through addressing institutional linkages, 
collaboration, and harmonization of activities aimed at promoting and improving the status of food 
hygiene and safety in Uganda. 
102. A draft National Sanitary and Phytosanitary  Policy (2011) addresses the weaknesses in the 
current management of SPS issues, which include lack of institutional coordination mechanisms, 
resulting in overlap and duplication of efforts;  weak enforcement;  inadequate production, processing, 
and marketing infrastructure;  low capacity of SPS la boratories;  limited skille d personnel;  inadequate 
and inappropriate allocation of financial resources;   and weak SPS extension services.  The objective 
is to create a conducive environment for the productio n, trade and consumption of safe, quality animal 
and plant products.  Actions to be undertaken include strengthening the legal and regulatory 
framework for SPS measures;  supporting the privat e sector to meet SPS requirements;  harmonizing 
national SPS measures to regional and internatio nal requirements;  promoting awareness on SPS 
measures;  and developing and improving SPS manage ment mechanisms along the value chain.   
103. Uganda's SPS standards are developed in accord ance with international standards.  Uganda 
has not submitted any notifications to the WTO's SPS Committee.   
104. There have been several cases wh ere Uganda's agricultural expor ts have been rejected in 
foreign markets due to failure to meet SPS requireme nts.  For instance, consignments of fruits and 
vegetables have been refused entry to the EU mark et due to presence of medfly and high levels of 
pesticides, and flowers due to presence of caterpilla rs.  Likewise, bananas were refused entry to the 
United States and South Africa due to the bactrocera invadens fly, and coffee to India due to the need to use methylbromide for fumigation purposes. 
105. Products prohibited from importation into Uganda  on SPS grounds include beef (due to mad 
cow disease);  dressed chicken and poultry (due to bird  flu);  soil;  banana leaves;  rice straw;  wheat 
straw;  leaf;  leaf mold;  and chaff.  Imports of parent stock poultry are permitted from countries listed 
by the OIE.   
(b) Labelling, marking, and packaging requirements 
106. The following information must be clearly ma rked on imports and exports:  importer/exporter 
name, consignee, flight/vehicles details, place of di scharge, number of packages, container identity, 
description of goods, airway bill number/bill of ladi ng, and country of origin/destination. Additional 
labelling requirements have been adopted for used clothing.  
107. The UNBS operates a Product Quality Certifi cation Scheme under which it certifies the 
quality of a product and grants the manufacturer a permit to affix the UNBS Quality Mark, on the 
product itself or on the packaging. This mark giv es an assurance to the cust omer that the product 
conforms to Ugandan Standards and is of good quality.  As of June  2012, 595 products have been 
certified and 236 companies have benefited from this scheme.
32   
                                                      
32 UNBS Product Certification Regi ster online information.  View ed at:  http://www.unbs.go.ug. EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-519 
 
 
 108. Uganda's standards on labelling and packaging apply to, inter alia , food, textile products, and 
cosmetics (Table III.2).   
Table III.2 
Labelling and packaging standards, 2012 
Standard number Contents 
US 7 (2002) General standard for labelling of pre-packaged foods 
US 277 (2002) General standard for labelli ng of food additives sold as such 
US 426 (2002) Code of practice for fibre-content labelling of textiles and textile products 
US 484 (2007) Labelling of cosmetic  products – general requirements 
US 500 (2003) Guidelines for nutritional labelling of foods 
US 569 (2005) Labelling of fres h fruits and vegetables 
US 819 (2008) General labelling of electrical appliances – instructions for use 
US 1028 (2006) Labelling requirement s for pre-packaged products 
US 372 (2002) Specification fo r care labelling of textiles 
US 841 (2009) Requirements for packagi ng and labelling of tobacco products 
US 134/ISO 14021 Environmental labels and declaratio n – self-declared environmental claims (type II 
environmental labelling) 
US 568 Packaging for international transport of fresh fruits or refrigerated fruits and vegetables – 
recommendations 
US 569 General guidelines for labelling of fresh fruits and vegetables 
US 1030 (2006) Quantity of products in pre-packages 
Source:  Uganda National Bureau of Standards. 
(vii) Other measures  
109. Countertrade is not practised in Uganda;  th ere are no offsetting requirements in force.  
Uganda does not maintain strategic reserve stocks.   
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Procedures  
110. The requirement for the registration of export enterprises was removed during the review 
period but is currently subject to review on the ba sis of traceability.  Export permits or licences are 
required for flowers, fruits, vegetables, plants, b ees and bee products, coffee, cotton, and game and 
trophies.  Export certificates are required for precious metals, fish, and hides and skins.  For other 
products, export permits are only necessary if required by the importing country.  The authorities indicate that, on average, clearance of exports throug h customs takes less than one day, unless there is 
a need to verify the information provided.  The expor t of coffee is subject to the Coffee Regulations of 
1994.
33   
(ii) Export taxes, charges and levies 
111. Uganda maintains a cess of 1% on exports of  coffee (collected by  the Uganda Coffee 
Development Authority), which is used for coffee development activities, 2% on cotton (collected by 
the Cotton Development Organization); and US$0. 8/kg on raw hides and skins (changed from 20% 
ad valorem  in the Finance Amendment Act, 2011, Amendment No. 2/2011). The authorities indicate 
that the rationale for these char ges is to encourage value addition and promote local industry. 
                                                      
33 See WTO document WT/TPR/S/171/UGA/Rev.1.  WT/TPR/S/271/UGA Trade Policy Review 
Page A5-520 
  
 (iii) Export prohibitions, restrictions and licensing  
112. Export prohibitions are governed by Part A of the Third Schedule of the EAC Customs 
Management Act.34  Uganda applies no voluntary export restraints. 
(iv) Export subsidies and incentives 
113. The authorities indicate that Uganda does not provide export subsidies.  The fixed Duty 
Drawback Scheme and the Manufacturing under B ond Scheme have been in existence since 2000.35  
114. Under the Income Tax (Tax Incentives for Expor ters of Finished C onsumer and Capital 
Goods) Regulations 2009, in force since July 2007, income tax exemptions are provided for 
companies exporting at least 80% of finished consumer and capital goods36, whether or not the raw 
materials are Ugandan in origin .  According to the authorities, such  measures are used to promote 
local industries.  Exemptions are valid for ten years, subject to annual fulfilment of conditions.  
115. Uganda has gazetted over 1,000 hectares of prime industrial land to be developed into fully 
serviced industrial estates and export processing zon es. The Uganda Investment Authority holds the 
government interest in the proposed project.  A Fr ee Zones Bill (2010) is still before Parliament. 
(v) Export finance, insurance, and guarantees 
116. An export finance scheme and an export guar antee scheme were discontinued in 2006, 
following the decision of the Ministry of Finance to transfer all development funds to Uganda 
Development Bank Ltd. 
(vi) Export promotion and marketing assistance 
117. The Uganda Export Promotion Board (UEPB) is the main promotion agency.37  According to 
the authorities, the Export Promotion Fund (EPF) la unched within the Bank of Uganda in 1995 is no 
longer operational.  Funds for export promotion are now available through commercial banks.   
118. From 2005 to 2010, the Private Sector Foun dation Uganda under the Business Uganda 
Development Scheme (BUDS) provi ded support to over 700 companies, with a cumulative grant of 
over US$5 million.  Activities included company diagnostic and planning; training; management 
systems; production-related domestic and interna tional marketing; sales and production; feasibility; 
and market research and trade promotion.  Anothe r scheme, funded by DFID, will help 1,000 small 
businesses in northern Uganda to expand operations and create new employment opportunities.  The 
project, amounting to GBP 13 million over four years, was launched in 2011 and covers over 
60 districts.  The objective is to stimulate pro-poor  economic growth in north ern Uganda and to better 
retain the economic benefits of agri culture in post-conflict regions.    
                                                      
34 For more details, see the Common Report, Chapter III(2)(ii). 
35 Conditions for the operation of these schemes are laid down under Sections 138-144 and 160-166 of 
the EACCMA, respectively, and are described in detail in WTO document WT/TPR/S/171/UGA/Rev.1. 
36 According to the Regulations, "finished consumer goods" means finished consumer products ready 
for consumption without the need for further processing;  potted plants and chrysanthemum cuttings are considered finished consumer goods. 
37 The mandate and policy objectives of the UEPB are described in detail in WTO document 
WT/TPR/S/171/UGA/Rev.1. EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-521 
 
 
 (4) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives  
119. Uganda provides myriad incentives to businesses, including tax exemptions and holidays;  tax 
rebates, deductions and capital allowances (Chapter II(4)).   
120. The Income Tax Act of 1997, Cap 340, as am ended, and the Finance Act of 1998, as 
amended, provide for various allowances on investment capital, which are administered and assessed by the Uganda Revenue Authority.  The authorities indicated that no changes were made to investment capital allowances and expenses, deductible annual allowa nces, and other annual 
depreciation allowances during the review period. 
121. According to the authorities, the deferred VAT  payment facility on plant and machinery, 
seedlings, greenhouse equipment, plastic sleev es, and tea clones is no longer operational 
(Chapter III(2)(iii)).  Refunds of VAT on all purchases for newly licensed, first-time investors in Uganda are no longer available. 
122. In 2009, Uganda adopted a National Scien ce, Technology and Innovation Policy which 
provides for a Science, Technology and Innovation Fund (STIF) capitalized with USh 50 billion over 
the short-term.  The goal is to finance cutting-ed ge scientific research and innovation of strategic 
national importance;  acquisition of intellectual prope rty rights by local innovators;  and recognition 
of scientific excellence among local scientists. 
(ii) Government procurement 
123. Uganda's legal framework for government procurement is provided by the Public 
Procurement and Disposal of Pub lic Assets Act of 2003; the Public  Financial and Accountability Act, 
2003; and the Local Government Act of 2006, Cap 342.  The Public Procurement and Disposal of 
Public Assets Authority (PPDA), an autonomous re gulatory body established in 2003, is responsible 
for setting standards, monitoring compliance, reviewing procurement decisions, auditing and 
investigating complaints, and building capacity in procuring entities.  Public procurement operations 
are decentralized with responsibility assigned to pr ocuring and disposing entities (PDEs) at central 
and local government levels.
38 
124. A number of changes have been made under the PPDA (Amendment) Act No. 11 of 2011.  
The role of the PPDA has been strengthened w ith new powers, which include:  review of 
administrative review decisions of accounting officers;  power of entry into PDE premises when conducting audits;  power to grant accreditation to a PDE on its own initiative a nd to require a PDE to 
take corrective measures;  and the right to su spend a provider on its own initiative.  The PPDA 
Amendment Act does not allow for negotiations, except where only one bid is received under a 
competitive method or under direct procurement or for consultancy services, and only where the bid exceeds the budget.  Bidders aggrieved by PPDA deci sions may appeal to a tribunal, which has ten 
working days to issue a decision.  The revised law re quires that all bidders should be informed of the 
results.
39 
                                                      
38 For more details on the procurement process see WTO document WT/TPR/S/171/UGA/Rev.1. 
39 According to the authorities, tribunal regulations ar e yet to be drafted and procedural matters cannot, 
therefore, be ascertained.  Curr ently, under administrative reviews carried out by the PPDE, only the 
complainant and the PDE are info rmed of the PPDA's decision. WT/TPR/S/271/UGA Trade Policy Review 
Page A5-522 
  
 125. The PPDA Amendment Act gives the accounting officer the mandate, prior to the 
commencement of a procurement process, to assess the market price of the supplies or services or of 
the unit costs of the works.  An accounting officer must not sign a contract where the price quoted by 
the best evaluated bidder is higher than the estab lished market price, subject to the provision on 
negotiations.  The amended Act provides for conf identiality by strengthening disclosure rules in 
relation to solicitation documents a nd bids, and provides that a PDE shall not enter into contract with 
members of the Contracts Committee, employees of the PDE or those who politically or administratively control the PDE.  The amended Act also makes provision for enactment of regulations for an alternative system for the procurement of medicines and other medical supplies, as 
well as the implementation of a force account mechanism. 
126. The amended Act provides for preference schem es to be applied in respect of goods, works 
and services, where the open domestic or open international bidding methods are used.  Margins of preference are:  for goods manufactured, mined, ex tracted or grown in Uganda (15%);  works by 
Ugandan contractors or services provided by Ug andan consultants (7%).  Goods qualify for 
preference as domestically manufactured where the la bour or value addition is more than 30% and  
the production facility in which the goods are manufactur ed, assembled or processed is in Uganda.  A 
contractor or consultant qualifies for preference if in corporated or registered in Uganda;  if a Ugandan 
citizen;  if more than 50% of the capital of a co mpany registered in Uganda is owned by Ugandan 
citizens;  or if more than 50% of the capital of the legal entity is owned by the Government or by a PDE. 
127. Thresholds for procurement methods have cha nged under the amended Act, and provided for 
in guidelines under the amended PPDA Regulations (Table III.3). 
Table III.3  
Proposed thresholds for procurement methods under the PPDA Amendment Act 
 Works Supplies and non-consultancy services 
Open bidding For works exceeding USh 500,000,000  For supplies exceeding USh 200,000,000  
Restricted bidding USh 200,000,000 to USh 500,000000 USh 100,000,000 to USh 200,000,000 
Quotations procurement USh 5,000,000 to USh 200,000,000 USh 5,000,000 to USh 100,000,000 
Micro procurement USh 5,000,000 and below USh 5,000,000 and below 
Source: Information provided by the Public Procuremen t and Disposal of Public Assets Authority. 
128. In 2010/11, the percentage of procurement by value per method was:  open domestic (23.4%), 
restricted domestic (4.6%), open international (60. 5%), direct procurement (8.3%), and request for 
quotation (2.1%).   
129. Uganda is neither a signatory nor an observe r to the Plurilateral Agreement on Government 
Procurement, nor to any bilateral agreements.   
(iii) Intellectual property rights 
130. Uganda is a member of the Paris Convention for the Protection of Industrial Property, the 
Convention establishing the World Intellectual Property Organization (WIPO), the Patent 
Co-operation Treaty, and the Nairobi Treaty.  It is also a member of the African Regional Intellectual Property Organization (ARIPO).  Regional c ooperation initiatives on IPR under the EAC Common 
Market Protocol are described in  the Common Report, Chapter III(3). EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-523 
 
 
 131. Trade-marks are covered under the Trademarks Ac t No. 12 of 2010, which replaced the Trade 
Marks Act of 1964.  Copyrights are protected under the Copyright and Neighbouring Rights Act No. 19 of 2006, and patents are covered by th e Patents Act, Cap 216 of 1993.  All three are 
administered by the Ugandan Regist ration Services Bureau (URSB).   
132. The United Kingdom Design (Protection) Act of 1937, as amended in 1962, provides that UK 
design registration extends automatically to Uga nda.  There is no registration requirement and no 
provision in Uganda for independent design regist ration.  Ugandan law does not provide for any 
design registration mechanism, nor any protection for unregistered designs.  The Industrial Property 
Bill, No. 5 of 2009, currently before Parliament, would provide, inter alia,  for the granting and 
regulation of patents, industrial designs, utility models, and "technovations", and for the designation 
of a registrar.   
133. A Geographical Indications Bill, No. 3 of 200 8, presented to Parliament in April 2012, 
provides for the protection and registration of geogra phical indications;  duration of protection;  the 
appointment of a registrar;  remedies for ge ographical indications;  and related matters. 
(a) Trade-marks 
134. The Trademarks Act provides for the registration of trade-marks that meet the requirements of 
distinctiveness for goods or services.  Trademarks are valid for seven years, renewable thereafter 
every ten years upon payment of a fee.  A registered  trade-mark may be transferred.  The Act also 
permits the registration of certification marks.  Trade-marks of goods and services registered in another country are protected provided that the c ountry accords the same treatment to Uganda.  A 
trade-mark may be removed from the register upon pr oof of prior registration in another country, and 
upon application in writing within seven years of registration in Uganda.   
135. The Act makes provision for penalties for o ffences such as forging or counterfeiting 
trade-marks, falsification of entries in the register , and falsifying or unlawful removal of a registered 
trade-mark.  These range from fines of 48 to 120 currency points
40 or imprisonment for two to five 
years, or both.  A person whose rights are infringed may also seek civil remedies.  The new Act also 
provides for appointment of inspectors who will assi st in enforcement, in collaboration with the 
police.  
(b) Copyrights 
136. The Copyright and Neighbouring Rights Act 2006  protects literary, scientific, and artistic 
intellectual works, which include audio-visual work s, computer programs, electronic data banks, and 
derivative works such as translations.  The Act appli es to any work created by a citizen of Uganda or 
a person resident in Uganda;  first published in Ug anda, irrespective of the nationality or residence of 
the author;  or created by a person who is a national of, or resident in, a country that is a member of 
WIPO, ARIPO, UNESCO or the WTO.  The moral rights of an author are protected.  Literary, musical, and artistic works are protected for the duration of the author's life plus 50 years.  
Neighbouring rights, which apply to performers, pr oducers of sound recordings, and audio-visual and 
broadcasting companies, are protected for 50 years from the date of the performance or broadcast.   
137. Infringements of copyright or neighbouring rights are subject to a fine not exceeding 
100 currency points or imprisonment not exceeding four years or both.  The Act provides for the creation of collective management organizations, re gistered by the Registrar of Companies.  The 
                                                      
40 One currency point is equivalent to USh 20,000. WT/TPR/S/271/UGA Trade Policy Review 
Page A5-524 
  
 Registrar may register as a collecting society any society or body that has as its main objective 
promotion of the economic and social interest of  its members through defending their copyright and 
neighbouring interest.  The Registrar has powers to  cancel the registration certificate of any society 
that does not conform to the provisions of the Act. 
(c) Patents 
138. Since its previous Review in 2005, Uganda has made no changes to its legislation on patents, 
which are protected under the Patents Act Cap 216 of 1993.  Inventions, whether products or 
processes that are applicable to industrial activitie s may be protected.  A public-interest provision 
allows for the exclusion of certain kinds of produc t or process inventions from patentability for up to 
two years.  Patents are granted for 15 years (with possible extension for 5 years), subject to payment 
of annual fees.  In the event of infringement, the patent holder may initiate proceedings in the High 
Court for damages, an injunction (including border measu res), and other remedies.  The Act also 
provides for two types of compulsory licence.41   
(d) Trade secrets 
139. The Trade Secrets Protection Act No. 2 of 2009 provides for the protection of undisclosed 
information in commercial transactions and other re lated matters.  Trade secrets include information 
relating to a formula, pattern, compilation, program, method, technique, or process, or information contained or embodied in a product, device or m echanism that has economic  value from not being 
generally known.  Such rights are not exclusive and shall not prejudice rights in other forms of 
intellectual property.  In the event of improper di sclosure, acquisition or use of a trade secret, the 
Ugandan High Court may order an injunction, an aw ard of damages, an account of profits or an 
adjustment order.   
(iv) State-trading enterprises, state ownership, and privatization 
140. Uganda has notified the WTO that it does not ha ve any state-trading enterprises within the 
meaning of Article XVII:4(a) of GATT 1994.
42   
141. In terms of state-ownership, Uganda continu es to hold shares in a number of enterprises 
(Table III.4).   
                                                      
41 These are described in detail in WTO document WT/TPR/S/171/UGA/Rev.1.  The authorities 
indicate that, as of June 2012, no compulsory licences have been granted. 
42 WTO document G/STR/N/10/UGA, 28 September 2005. EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-525 
 
 
 Table III.4 
State-owned companies and statutory corporations 
Name Activity State holding 
(%) 
Amber House Ltd 
Diary Corporation Ltd 
Housing Finance Bank Ltd Kilembe Mines Ltd 
Kinyara Sugar Ltd 
Mandela National Stadium Ltd Munyonyo Commonwealth Resort Ltd 
National Housing & Construction Company Ltd 
New Vision Group Nile Hotel International Ltd 
Phenix Logistics Ltd 
Post Bank Uganda Ltd Uganda Development Bank Ltd 
Uganda Development Corporation Ltd 
Uganda Livestock Industries Ltd Uganda Seeds Ltd 
Uganda Telecom Ltd (UTL) Assets ownership and mana gement (Amber House) 
Diary products (assets leased to Sameer Agriculture)  
Commercial Banking Copper mining 
Sugar production (due for sale) 
Stadium management Hotel  
Housing estates and constructions services 
Newspaper printing & publishing/TV/radio services Hotel services concessioned to TPS Ltd t/a Serena Hotel 
Textiles 
Commercial banking Development banking 
Government investment 
Government ranches (all ranches leased out) Agriculture & seed promotion 
Telecommunication 100 
100 
49.2 99.6 
30 
100 
49 
51 
53 
100 
96 
100 100 
100 
100 100 
31 
Uganda Prison Industries Ltd 
Uganda Post Ltd (Posta Uganda) Government prison welfare services 
National postal services 100 
100 
Uganda Property Holdings Ltd Uganda Electricity Generation Company Ltd (UEGCL) Government assets management 
Electricity generation (concessioned to Eskom Ltd) 100 
100 
Uganda Electricity Transmission Company Ltd 
(UETCL) Electricity transmission 100 
Uganda Electricity Distribution Company Ltd (UEDCL) 
Corporations established by Law 
National Enterprise Corporation 
National Medical Stores Ltd 
National Water & Sewerage Corporation Electricity distribution (concessioned to Umeme Ltd) 
  100 
Source:  Information provided by the Privatization Unit, Mi nistry of Finance, Planni ng & Economic Development - 
 Uganda. 
142. The Public Enterprises Reform and Divestiture Act, Chapter 98 (the PERD Act) sets out the 
legal framework for privatization and the operatio n of state-owned enterprises in Uganda.  The 
Privatization and Utility Sector Reform Programme  in the Ministry of Finance, Planning and 
Economic Development is responsible for m onitoring state-owned enterprises and conducting 
privatization;  its Privatization Unit has formulat ed guidelines for divestiture  in accordance with the 
statute.43    
143. Divestiture proceeds are used to support the priv atization process.  There are no provisions for 
a golden share.  The use of divestiture proceeds is provided for under Sec tion 26 of the PERD Act 
which indicates the priority for using proceeds as meeting the costs and expenses associated with 
termination of contracts of employment between the public enterprise whose employees are affected as a result of divestiture;  liabilities of the public enterprise under divestiture ;  costs and expenses 
incurred in the process of preparing a public enterp rise for divestiture;  and costs and expenses of 
divestiture. 
(v) Competition policy and regulatory issues  
144. Uganda has no national legislation to regulat e competition or anti-trust cases.  However, 
provisions on competitive practices are embodied in va rious sectoral laws and regulations such as the 
                                                      
43 For a description of the guidelines, see WTO do cument WT/TPR/S/171/UGA/Rev.1.  According to 
the authorities, no changes have been made to these guidelines since the last Review of Uganda. WT/TPR/S/271/UGA Trade Policy Review 
Page A5-526 
  
 Uganda Communications Act (1997), the Uganda Electricity Regulatory Act, and the Uganda 
Insurance Regulatory Act.   
145. Bills for a competition law and a consumer protec tion law were drafted in 2004, but have still 
not been enacted.  Uganda is currently formula ting a National Competition and Consumer Protection 
Policy.   
146. In 2011, the Bank of Uganda issued its Financial Consumer Protection Guidelines.44 These 
apply to all regulated financial entities and their agents and cover disclosur e, suitability, consumer 
recourse, and other key consumer protection me asures.  Although provider-level complaint and 
consumer recourse mechanisms are part of th e 2011 Guidelines, there are no third-party or 
government dispute resolution mechanisms for aggrie ved consumers, despite the proposal in the draft 
Consumer Protection Act for a small-claims c ourt and mediation and arbitration systems. 
  
                                                      
44 Financial Consumer Protection Guidelines, 2011.  Viewed At:  http://www.bou.or.ug/ 
export/sites/default/bou/bou-downloads/Financia l_Literacy/Guidelines/2011/Jun/Consumer_ 
Protection_Guidelines_June_2011.pdf. EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-527 
 
 
 IV. TRADE POLICIES BY SECTOR 
(1) INTRODUCTION  
147. Agriculture's contribution to GDP and to tota l export earnings has declined since Uganda's 
last TPR.  Traditional crops, such as coffee, t ea, and tobacco are leading export products, while 
non-traditional exports such as fish, maize, cut fl owers, and cocoa beans are becoming increasingly 
important.  Agriculture (ISIC Rev. 2 definition) is  the most tariff protected sector (Common Report, 
Chapter III). 
148. The contribution of mining to GDP is still limited.  Uganda's recent discovery of 
commercially viable oil deposits, with reserves es timated at 2.5 billion barrels, offers Uganda a 
unique opportunity to transform its economy.  Most  of the deposits are located in the Albertine 
Graben region in western Uganda on its border with DR Congo.  Mining and quarrying, including 
petroleum products, constitute the least tariff protected sector (Common Report, Chapter III). 
149. Uganda's manufacturing sector is small.  Pro cessing is focused on agricultural raw materials 
and the production of consumer goods.  Capital goo ds industries are few and the capacity utilization 
of manufacturing industries is low.  The mixed st ructure of the CET is not favourable for semi-
processing activities and export-oriented industries. 
150. The services sector is growing rapidly.  Touris m, telecommunications, financial services, and 
transport have all grown significantly in recent years.  A number of reforms were made in telecommunications services over the review period with the establishment of the Ministry of Information and Communication Technology (ICT) in 2008. 
(2) A
GRICULTURE  
(i) Overview 
151. Agriculture provides the livelihood for a majority  of Ugandans, particularly women, and has 
long been of fundamental importa nce to Uganda's economy in term s of its contribution to GDP, 
export revenue and employment.  Over the peri od 2006-10, the agriculture sector averaged 1.2% 
annual growth, compared with 7.8% for i ndustry, and 8.3% for services (Table IV.1).45  This is well 
below the annual growth target of  5.6% laid down under the Nationa l Development Plan and the 5.9% 
growth rate that is required for effective poverty reduction.46  Given the importance of employment in 
this sector, particularly of the rural population,  and Uganda's high popul ation growth, declining 
performance in the agriculture sector has implica tions for poverty reduction and economic growth.  
152. In 2010/11, food crops accounted for 58% of tota l agricultural output, followed by forestry 
(17%), fishing (14%), livestock (8%), and cash crops 4%).47  Since Uganda's last TPR, exports of 
non-traditional products (animal/vegetable fats and o ils, sugar, cocoa, and rice) have grown, while 
traditional exports (coffee, tea, and cotton) have declined.  On the domestic front, cash crops were 
affected by drought and landslides in the coffee growing areas, while internationally, the global 
financial crisis and volcanic eruption in Iceland had an impact on exports. 
                                                      
45 MAAIF (2011). 
46 Government of Uganda (2010). 
47 MAAIF (2011). WT/TPR/S/271/UGA Trade Policy Review 
Page A5-528 
  
 Table IV.1 
Sectoral GDP, 2006-10 
Growth rates (GDP, 2002 prices) 2006 2007 2008 2009 2010 
Total GDP 7.0 8.1 10.4 3.9 5.6 
Agriculture -1.8 1.7 2.3 2.4 1.3 
  Cash crops -2.4 8.2 11.6 5.2 -14.7 
  Livestock 3.0 3.0 3.0 3.0 3.0 
  Forestry 4.2 2.2 4.2 5.9 1.9 
  Fisheries -3.0 -5.9 -9.6 -7.3 5.9 
Industry 6.4 8.0 15.4 0.5 8.9 
Services 10.3 7.7 10.5 5.8 7.4 
Sector share in total GDP at current prices       
Agriculture 22.6 20.7 21.6 23.6 21.1 
Industry 22.3 23.9 24.0 23.8 24.9 
Services 49.1 49.0 48.0 46.2 47.7 
Source:  Uganda Bureau of Statistics (2011) .  Viewed at:  http://www.countrys tat.org/country/ug a/documents/docs/2011 
 %20Statistical%20A bastract.pdf. 
153. Uganda has a total area of 241,551 km2 (of which 83% is land area and 17% open water and 
swamps), and contains nearly half the arable land in east Africa.  Cultivated land accounts for 41% of 
total land at 99,018 km2 in 2005 (Table IV.2).   
Table IV.2 
National land-cover statistics, 1990, 2000 and 2005 
(km2) 
 1990 2000 2005 
Built-up areas  365.7 365.7  365.7 
Bush-lands  14,223.9 12,624.5  11,893.6 
Commercial farmlands  684.5 684.5  684.5 
Cultivated lands  84, 010.0 94,526.7  99,018.4 
Grasslands  51,152.7 51,152.7  51,152.7 
Impediments  37.1 37.1  37.1 
Plantations - hardwoods  186.8 153.3  138.8 
Plantations - softwoods  163.8 80.0  192.0 
Tropical high forest-depleted 2,740.6 2,248.2 3  2,036.3 
Tropical high forest-normal 6,501.5 5,333.5 4,830.7 
Water bodies 36,902.8 36,902.8 36,902.8 
Wetlands  4,840.4 4,840.4  4,840.4 
Woodlands  39,740.9 32,601.4  29,528.1 
Total  241,550.7 241,550.7  241,550.7 
Source : Uganda Bureau of Statistics (2011).  Viewed at:  http://www.countrystat.org/c ountry/uga/documents/docs/2011 
 %20Statistical%20A bastract.pdf. 
154. Although 75% of Uganda's land is arable, onl y slightly more than half is cultivated 
(Table IV.3):  more cultivable land is under crops  in the first season than in the second.  Farm 
productivity is one of the lowest in Africa, due to  limited extension services, low use of agricultural 
inputs and technologies, insufficient infrastructure, weak market linkages, lim ited access to finance, 
and inadequate soil management practices.48 
155. Smallholders with average farm sizes of 2.5 ha  account for 75% of total agricultural output in 
Uganda.  According to a recent study, targeted reforms in the smallholder subsector, such as 
improving access to input and output markets, increasing farmers' access to credit, and infrastructure improvements, could produce sustained agricultu ral growth provided that governments create an 
                                                      
48 USAID (undated). EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-529 
 
 
 enabling environment conducive to agriculture in ge neral, and smallholders specifically, and increase 
budgetary allocations to agriculture in line with the Maputo declaration.49   
Table IV.3 
Cultivated land by region, 2008  
Region Total 
cultivable land (Ha) First season 
total cultivable land (Ha)  
Percentage Second season 
total cultivable land (Ha)  
Percentage 
Central 1,116,000 650,000 58.2 556,000 49.9 
Eastern 1,222,000 47,000 61.1 605,000 49.5 
Northern 894,000 401,000 44.9 444,000 49.7 
Western 1,186,000 764,000 64.4 573,000 48.3 
Total 4,420,000 2,563,000 58.0 2,180,000 49.3 
Source : National Development Plan (2010/11-2014/15).  Viewed at: http:// www.unpei.org/PDF/uganda-
 NDP_April_2010.pdf. 
156. Research has shown that at full production, Ug anda could feed seven times its population or 
nearly twice the population of East Africa.50  The recent peace in northern Uganda following two 
decades of conflict presents challenges and opportuni ties, particularly for the agriculture sector. 
157. In accordance with the 1995 Constitution and the 1998 Land Act, land in Uganda is managed 
under four land tenure systems:  customary, mailo , freehold, and leasehold.  These regimes confer 
different land rights to their owners, with different implications for security of tenure.  A fifth tenure 
system applies to public land.  Customary tenure, under which landholders do not have a formal title 
to the land they use, but may acquire certificates of  ownership, is the most common:  over 80% of 
land in Uganda is held under unregistered customar y tenure.  Leaseholders are not required to be 
Ugandan citizens;  other forms of tenur e are available only to Ugandan citizens.51  The Land 
(Amendment) Act, 2010, redresses the landlord/tenant  relationship and strengthens tenants' rights 
through the provision of a jail sentence and/or a heav y fine in case of eviction without a court order.  
158. The Government may convert public land to private use to encourage investment and 
economic growth.  This process, known as degazetti ng, has at times become a source of conflict 
between the Government and local comm unities over ownership and land-use rights.52 
(ii) Agricultural policy  
159. The Ministry of Agriculture, Animal Industry and fisheries (MAAIF) is responsible for the 
formulation and implementation of agriculture policy.  The Ministry has two commodity-based, 
technical directorates dealing with crop resources, and animal resources and fisheries.  As of 2012/13, 
once a funding shortfall on the  non-wage recurre nt medium-term expenditu re framework (MTEF) has 
been resolved, two new directorates for agricultu ral support services and fisheries resources and six 
new departments will be created.     
160. In addition, eight semi-autonomous agen cies operate under MAAIF:  the National 
Agricultural Research Organization (NARO) fo r the generation and dissemination of research 
technologies;  the National Agricultural Advisory  Services (NAADS) for delivery of advisory 
services;  the National Animal Genetic Resource Centre and Data Bank (NAGRC&DB) for animal genetic development;  the Coordinating Office fo r the Control of Trypanasomiasis in Uganda 
                                                      
49 African Development Bank (2010a). 
50 USAID (undated). 
51 IFPRI (2011b). 
52 IFPRI (2011b). WT/TPR/S/271/UGA Trade Policy Review 
Page A5-530 
  
 (COCTU);  the Dairy Development Authority ( DDA) for promotion of dairy development;  the 
Uganda Coffee Development Authority (UCDA) fo r promotion of coffee development;  the Cotton 
Development Organization (CDO) for promotion of cotton development;  and the Plan for 
Modernization of Agriculture Secretariat (rename d the National Agriculture Sector Secretariat 
(NASSEC)) for implementing the Government's  Prosperity for All (PFA) Strategy.  
161. Since 2000, Uganda's policy environment for the agriculture sector has been shaped by the 
Plan for the Modernization of Agriculture (PMA), a multi-sectoral approach for agricultural and rural 
development, which aims to accelerate poverty redu ction through agricultural growth.  The PMA is 
situated within the country's PFA vision (which de rives from the ruling party's election manifesto in 
2005) and is supported by the broa der Rural Development Strategy.  Implementation of the PMA has 
been more difficult than anticipated due to the need to coordinate activities with a number of 
ministries, and lack of progress on the provision of rural financial services and value addition.53  A 
new national agriculture policy is being formulated  and is expected to be completed in 2012/13. 
162. In 2006, MAAIF developed a Development Strate gy and Investment Plan (DSIP) that was 
intended to translate national goals and priorities co ntained in the PMA into a plan for public sector 
interventions in the agriculture sector.  Although no  comprehensive review of its performance was 
conducted, internal assessment coupled with a comp rehensive public sector re view in 2007 showed 
that the first DSIP was not properly implemente d due to weaknesses in internal coordination and 
failure to align spending with DSIP priorities.54  A second DSIP (2010/11-2014/15), completed in 
March 2010, accords renewed recognition of the fundam ental importance of agriculture to Uganda's 
economy and of its role in development, economic gr owth, and poverty reduction, despite the sector's 
unimpressive performance in recent years.   
163. The DSIP's vision is to create "a competitive, profitable and sustainable agricultural sector" 
which will "transform subsistence farming to comme rcial agriculture".  Its development objectives are 
to increase rural incomes and livelihoods, and im prove household food and nutrition security.  
Investment in agriculture under the DSIP has been  packaged under four programmes representing the 
key areas of opportunity:  enhancing production and productivity;  improving access to markets and 
value addition;  creating an enabling environment;   and institutional strengthening to improve the 
productivity of sector personnel.55  
164. In March 2010, Uganda signed the Comprehe nsive Africa Agriculture Development 
Programme (CAADP), which commits the Government to  the principle of agriculture-led growth as a 
key strategy with a target of 6% annual growth a nd a budget allocation of 10%, in sharp contrast to 
the last 20 years when agriculture rarely receive d more than 4%.  In 201 0/11, USh 342.2 billion was 
allocated for agriculture (4.6% of the national budge t), with allocations projected to rise 10% annually 
until 2014/15.56  In addition, donor funds (both on- a nd off-budget) have historically made a 
considerable contribution to funding Uganda's ag riculture sector expenditure.  NGOs have become 
significant players through the provision of finance and agricultural inputs.  
165. A recent study conducted by the International F ood Policy Research Institute (IFPRI), using a 
dynamic CGE model of Uganda's economy, indicated th at a 6% annual growth rate in agriculture is 
                                                      
53 MAAIF (2010a). 
54 Final Draft of the National Agriculture Policy.  Viewed at:  
http://api.ning.com/files/0VOAVvS LVtS7O4Urlhj*VJtRxZz*lvvTkTTrg QWKDENJSEo4aI6ZTwogTj8fsWeiV
rE5jJEYCgh6EwxcMAus*7Dzi1ZRnA/NationalAgriculturePolicy_Finaldraftupdatedto2011Sept1.docx. 
55 MAAIF (2010a). 
56 Budget allocations are USh 432 billion for 2011/12 and USh 406.9 billion for 2012/13. EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-531 
 
 
 achievable, but would be a challenge.  Farm house holds growing higher valu e export-oriented crops 
would gain most, and poverty, both rural and urban, would fall.  However, in order to achieve this 
goal government spending on agriculture would need to increase by over 25% a year, such that agriculture accounts for at least 14%  of Uganda's total budget by 2015.
57 
166. The National Agricultural Advisory Services was put in place in 2001 to develop a 
demand-driven, farmer-led agricultural service deliv ery system, targeting poor subsistence farmers 
with emphasis on women, youth, and people with di sabilities.  Its development goal is to enhance 
rural livelihoods by increasing agricultural productivit y and profitability in a sustainable manner.  A 
performance evaluation of Phase I of NAADS in 2008 concluded that the programme had been 
successful, adding 11 new districts each year and achieving national coverage of 112 districts (and 
about 80% of all sub-counties) by 2012.  The ev aluators concluded that Phase II of the programme 
should be supported and funded, subject to certain modifications to its design and improvements to its 
operational efficiency.58  As of 2011, NAADS is implementing the Agricultural Technology and 
Agribusiness Advisory Services (ATAAS), a five -year project that places greater emphasis on 
marketing, post-production activ ities, and value addition.   
167. The National Agricultural Research System, established by the National Agricultural 
Research Act 2005, has developed a ten-year stra tegic plan (2008-18) with the goal of improving 
agricultural research service delivery through d ecentralizing research services, mainstreaming 
integrated research and development, enhancing of the quality of service provision, and developing 
and maintaining a strategic programme of advanced science.59  Since 2005, increased government and 
private-sector funding has resulted in higher staffi ng levels at NARO, which in 2008, accounted for 
73% of Uganda's public and private research spending.  
168. Uganda faces a number of challenges in its agriculture sector:  a rapidly expanding 
population;  unsustainable farming practices, leading to environmental degradation and soil erosion;  
declining crop yields, in part attributable to low u se of fertilizer;  inadequate pest and disease control;   
lack of service providers and limited technical capacity in promoting marketing and value chain 
addition;  poorly functioning regulatory services;  lack of value addition (the proportion of processed 
agricultural commodities and products is less than 5% ); and inadequate infrastructure such as roads, 
communication facilities, and a reliable, competitivel y-priced electricity supply.  In addition, a 
climate change scenario, in which average temperat ures in Uganda are likely to increase by 1.5°C in 
the next 20 years, will have significant implicati ons for the production of agricultural goods, with 
negative effects on Uganda's growth rate and the potential to divert its development goals.60   
169. Uganda has notified the WTO that it does not grant export subsidies.   
170. At the regional level, improving food security  has been identified as one of the key priorities 
of the EAC Agriculture and Rural Development Policy .  Trade policy instruments in support of this 
goal are described in the Common Report, Chapter III.   The absence of a harmonized system for SPS 
measures among EAC members will have an impact on Uganda's exports a nd on domestic food 
safety. 
                                                      
57 IFPRI (2008). 
58 ITAD (2008). 
59 MAAIF (2010a). 
60 MAAIF (2010a). WT/TPR/S/271/UGA Trade Policy Review 
Page A5-532 
  
 (iii) Policy by subsector 
(a) Cash crops 
171. Uganda's traditional cash crops are coffe e, cotton, tea, cocoa, and tobacco. 
Coffee 
 
172. Uganda is the second largest coffee producer in  Africa, after Ethiopia.  Annual production is 
made up, on average, of 20% Arabica, grown at high altitudes, and 80% Robusta, grown at lower 
altitudes around the Lake Victoria basin.  Unlike R obusta, which is a native plant, Arabica coffee is 
an introduced crop originating in Ethiopia.  Uganda's  Robusta coffee is considered one of the best in 
the world and commands a considerable premium.  Coffee is Uganda's leading foreign exchange 
earner in merchandise trade, accounting for US$285 million or 17.5% of total receipts in 2010.  
Despite a 12% decline in the quantity exported in 2010 compared to the previous year, coffee export 
earnings increased slightly due to higher pri ces on the international market (Table IV.4).61   
173. The total area under coffee was estimated to be 182,875 hectares in 2010, an increase of 3% 
on the previous year;  it was projected to increase a further 2.4% in 2011.62 Key markets for Uganda's 
coffee exports include the European Union, Sudan,  Switzerland, and the United States.  Uganda has 
ratified the International Coffee Agreement (ICA) 2007. 
Table IV.4 
Coffee exports, 2006-10 
(US$ million and million tonnes, unless otherwise indicated) 
 Total quantity Total value Arabica Robusta 
  Quantity Value Quantity Value 
2006          130.4           190.3            36.2       67.9                94.0        122.3  
2007          161.6           266.2            30.0       59.9              131.6        206.3  
2008          198.7           399.0            30.6       73.7              168.1        325.3  
2009          180.9           279.3            41.5       86.3              139.4        193.0  
2010          159.4           284.9            44.0     115.8              115.4        169.2  
Source : Uganda Coffee Development Authority 
174. Although large-scale coffee producers are gradually emerging, the subsector is almost entirely 
dependent on about 500,000 low input-intensity sma llholder farmers, with an average farm size of 
0.2 hectares.  The coffee industry employs over 3.5 million families through coffee-related activities.   
175. The Uganda Coffee Development Authority (UC DA) has the mandate to promote and oversee 
the coffee subsector through support to research, propagation of clean planting materials, quality 
assurance, value addition, and timely provision of market information to stakeholders.  The UCDA 
publishes indicative prices on its website and in daily market reports but does not set reference prices.  
Marketing and transportation of coffee are pr ivate-sector led with the UCDA playing only a 
regulatory role. 
176. All processors and exporters of coffee must be registered with, and certified by the UCDA.  
In 2009/10, 42 companies were registered exporters.63  The UCDA funds coffee development 
                                                      
61 MAAIF (2011). 
62 MAAIF (2011). 
63 UCDA online information.  Viewed  at:  http//www.ugandacoffee.org. EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-533 
 
 
 activities from the cess, levied at 1% of the expor t value, which is paid to UCDA directly by 
exporters.  This is supplemented by  funding from the consolidated fund, which forms about 1% of the 
total budget.  NAADS is responsible for agricultura l advisory and extension services in the coffee 
subsector.  Funding for coffee seedlings for FY 2010 /11 amounted to over USh 1.5 billion.  Many of 
the coffee seedlings are distributed outside the NAADS structure using local leaders, extension 
officers, and private nursery operators.     
177. The coffee industry in Uganda faces a nu mber of challenges:  low production and 
productivity due to ageing tree stock, soil erosion and low yields (farm yields are slightly more than 
10% that produced on research stations64);  coffee wilt disease (CWD);   inadequate management 
capacity;  and volatile world market coffee prices have discouraged investment and good agricultural 
practices.65  The drop in export volumes in 2010 is attributed to adverse weather, pests and diseases,  
and low yields due to ageing trees and inadequate husbandry.66  CWD, which affects only Robusta 
varieties, has destroyed around 200 million plants in Uganda, costing US$27 million annually.  Seven 
elite CWD-resistant Robusta varieties have been de veloped by the Coffee Rese arch Institute (CORI) 
but Parliament had not, as of  end 2011, approved budget propo sals for a mass multiplication and 
dissemination of the new varieties.67   
178. The UCDA is promoting domestic coffee cons umption, including through institutional 
development, training in roasting and brewing prac tices, and brand development and market research.  
Production of organic coffee is increasing, with produ ction of 3.2 million bags  expected in 2011.  A 
National Coffee Policy is currently being develo ped in order to improve quality and increase 
production.  Its main focus is to increase co ffee production and productivity, strengthen the coffee 
research system, and encourage value addition an d promote entry and penetration in new and 
emerging markets.    
179. The import tariff is the same for raw and pro cessed coffee at 25%.  Uganda maintains a 1% 
export cess on coffee, collected by the UCDA. 
Cotton 
 
180. Uganda's climate is well suited to the cultiva tion of cotton, most of which is grown by 
small-scale farmers on plots averaging 0.5-10 acres.  Cotton produced is of premium grade and rain fed. Over 90% of Uganda's cotton is exported as ra w lint. Uganda considers cotton a strategic crop 
due to its backward and forward linkages as well as its value-chain potential in industrialization. 
181. Cotton output has fluctuated cons iderably over the past few year s, with dramatic declines in 
production in 2007/08 and in 2009/10 and rebounds in 2008/09 and 2010/11 (Table IV.5).  Increased production is attributed to the provision of plan ting seed;  price support for pesticides and spray 
pumps (provided by the Government and Gi nners' Support Production Programme, which was 
revived in 2010);  extension services;  relativel y good weather conditions;  and buoyant farm-gate 
prices.  The decline in production in 2009/10 is attr ibuted to lower prices;  a shift of production to 
                                                      
64 MAAIF (2010a). 
65 UCDA online information.  Viewed  at:  http//www.ugandacoffee.org.. 
66 MAAIF (2011). 
67 Science and Development Network online information.  Viewed at:  
http://www.scidev.net/en/news/disease-resist ant-coffee-stuck-in-ugandan-labs.html. WT/TPR/S/271/UGA Trade Policy Review 
Page A5-534 
  
 food crops due to high prices;  a nd severe drought and dry spells, which affected crop establishment 
followed by heavy rains, which caused boll rots.68 
182. Exports totalled 147,000 bales in 2010, amoun ting to US$106 million.  The main export 
destinations are the United Kingdom, Switzerland, Singapore, and Kenya. 
Table IV.5 
Cotton production and exports, 2005/06-2010/11 
Year Production  
(bales at 185 kg) Export earnings 
(US$ million) Earnings by farmers 
Average farm gate price 
(U sh/kg) Value 
(USh billion)  
2005/06 102,600 20.9 450 24.7 
2006/07 134,000 27.3 470 32.5 
2007/08 66,500 19.7 750 25.7 
2008/09 125,310 24.6 650 48.5 
2009/10 70,000 20.1 900 27.9 
2010/11 147,000 106.0 2,300 179.2 
Source:  Cotton Development Organization.  Viewed at:  http://cdouga.org.  
183. The Cotton Development Organization (CDO), a statutory and regulatory body, provides 
cotton planting seed and other inputs, and cotton extension services, and establishes demonstration 
gardens for farmer training.  The Ginners' Co tton Production Support Programme, a private-sector 
initiative implemented in 2003-06 under a zoning syst em, collapsed in 2007, following disagreements 
between ginners.  Cotton extension services are now  provided by the CDO:  66 field extension 
workers operated in 2010/11 and 300 in 2011/12.  Demonstration gardens increased from 1,102 in 2009/10 to 1,606 in 2010/11.  The target for 2011/12 is 2,500 gardens.
69  Production increased by 
101% from 147,000 bales in 2010/11 to 255,312 bales  in 2011/12, due to an increase in the world 
price, which translated into increased farm-gate pr ices, and improved agronomic practices, due to an 
increase in extension services provided. 
184. In the 2008/09 season, 27 ginneries were operati ng in Uganda.  All but one used roller 
ginning technology;  the other used high speed saw ginning technology. 
185. Exporters require a quality certificate and proof of the payment of the export cess.  At the 
start of each marketing season (end-November  or beginning-December), the CDO announces 
indicative farm-gate, ginnery-buying, and export  prices (based on prices from international bodies 
such as Cotlook A index).   
186. Medium-term priorities, up to 2014/15 are to increase the quantity and quality of cotton 
produced and to increase productivity (Table IV.6).  Other priorities are making available production inputs like pesticides, spray pumps, and fertilizers;   developing segregated areas for planting-seed 
multiplication and establishing improved infrastructur e for seed processing;  and institutional capacity 
building.
70  T h e  Government support for increasing production is through provision of inputs and 
extension services.  Marketing and transport are private-sector driven.  There is no government intervention in cotton by-products. 
                                                      
68 MAAIF (2010b). 
69 Cotton Development Organization online information.  Viewed at: cdouga.org. 
70 Cotton Development Organization online information.  Viewed at: cdouga.org. EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-535 
 
 
 Table IV.6 
Cotton production targets and average yield, 2011/12-2014/15 
Year Production target 
(bales at 185 kg) Average yield 
(kg/acre) 
2011/12 280,000 600 
2012/13 350,000 700 
2013/14 450,000 800 
2014/15 500,000 850 
Source:  MAAIF (2010), Agriculture for Food and Income Security:  Ag riculture Sector Development Strategy and 
 Investment Plan:  2010/11 - 2014-15 .  Viewed at:  ftp://ftp.fao.org/TC/TCA/ 
 CAADP%20TT/CAADP%20Implementation/C AADP%20Pre-compact/N ational%20documents/ 
 Uganda/Agriculture%20and%20Food%20Security %20Strategy%20and%20Investment%20Plan.pdf..  
187. Challenges remain for the cotton industry.  The key constraints include low domestic lint 
consumption with resulting dependen ce on fluctuations in world market prices, low use of pesticide 
and fertilizers, low levels of funding in the sector, a nd the high cost of credit.  Weather variations due 
to global warming also have an impact.  
188. The import tariff on raw cotton is 0%, while the average tariff for cotton products 
(HS52.04-12) is 20.9%, with rates ranging from 10% to 50%.  Uganda maintains a 2% export cess on 
cotton, collected by the CDO. 
Cocoa 
 189. In Uganda, cocoa is regarded as a high-value, environmentally friendly export crop. It grows 
well in areas planted with Robusta coffee. Th e Government is promoting production for poverty 
alleviation, diversification in areas affected by CWD, and to increase export earnings.  A total area of 
92,000 hectares is suitable for cocoa growing, of whic h about a quarter is planted.  Average farm size 
is between 0.2 and 3 hectares.  Production has more than doubled since 2005/06, though export 
earnings have fluctuated in response to world prices (Table IV.7).  Exports of cocoa beans represented 
2.2% of the value of agricultural exports in 2010. 
Table IV.7 
Cocoa exports and earnings, 2005/06-2010/11 
Year Exports in tonnes Price per tonne US$  Amount in US$ 
million 
2005/06 7,205 1,578 11.4 
2006/07 10,006 2,000 20.0 
2008/09 13,000 2,000 26.0 
2009/10 15,000 3,000 45.0 
2010/11 16,478 2,100 35.1 
Source:  MAAIF (2010), MAAIF Statistical Abstract 2010 .  Viewed at:  http://www.agriculture.go.ug/ 
 userfiles/Statisti cal%20Abstract%202010.pdf.;  and MAAIF (2011), MAAIF Statistical  Abstract 2011 . Viewed at: 
 http://www.agriculture.go.ug/userf iles/ Statistical%20Abstract%202011.pdf. 
190. Production, marketing, and transportation of cocoa are private-sector led.  Government 
intervention is limited to provision of planting ma terials, technical backstopping, and training and 
demonstrations. 
191. Cocoa is subject to an import tariff of 10%. WT/TPR/S/271/UGA Trade Policy Review 
Page A5-536 
  
 Other cash crops 
192. Uganda is Africa's third-largest producer and e xporter of tea, after Kenya and Malawi.  Tea is 
produced on 26,000 hectares of land, 40% under est ate and 60% under smallholders.  Tea exports 
continued to increase during 2006-10, almost doub ling in volume to 54,555 tonnes, accounting for 
US$68.3 million in export revenue, or 4.2% of tota l export earnings.  Increased production is due to 
tea's steady market price, favourable weat her conditions, and bette r farm management.71  A Tea 
Industry Expansion Strategy, approved by M AAIF, is to be presented to Cabinet. 
193. Tobacco exports more than doubled in volum e in 2006-10, to 32,373 tonnes, accounting for 
US$68.7 million in export receipts, or  4.2% of total export revenue.  
194. Maize is an important primary staple food that has also become a cash crop.  Output has 
remained steady since 2006, averaging 1.2 m illion tonnes per annum.  Roughly 10% is exported, 
accounting for 2.4% of the value of formal agricultural exports in 2010. 
195. Production of roses and cut flowers averaged 4,628 tonnes during 2006-10 after peaking at 
over 6,000 tonnes in 2005.  The total value of fl ower exports was US$28.2 million in 2010, of which 
90% was from direct sales and 10% from auctions.  Currently 220 hectares are under production with 
a target of 400 hectares.  There is no go vernment intervention in the subsector.  
(b) Food crops 
196. The food crop subsector is responsible for more th an half of agriculture's total contribution to 
GDP, accounting for 12.1% in 2010, down from 14.3% in 2009.  Plaintains, maize, cassava, and 
sweet potatoes are the major food crops.     
197. Rice production is growing steadily.  About 70% of the country is suitable for the double 
cropping of rain-fed rice.  The Uganda National Rice  Development Strategy (NRDS) seeks to increase 
rice production in order to increase household food security and reduce household poverty.  The goal is to triple rice production from about 165,000 tonnes to 334,250 tonnes in 2013 and 499,200 tonnes in 2018, to cover growing domestic  consumption and increase exports .  Uganda exported more than 
30,000 tonnes of rice in 2010 (about 15% of tota l production), earning US$16.4 million in foreign 
exchange.  Rice trading is performed by the private sector.   
(iv) Forestry 
198. Forests cover some 18% of Uganda's land area.  Over 15% is in central forest reserves 
(CFRs), and over 15% in national pa rks and wildlife reserves manned by Uganda Wildlife Authority;  
while around 64% is in private forests including community, cultural, and private forest owners.  The 
decline in forest cover is estimated at 88,000 ha pe r annum, with a higher rate in private forests (34%) 
than in protected areas (12%).  Deforestation is ma inly due to the conversion of forest land to other 
land use, such as agriculture.   
199. Forestry management is the responsibility of a number of institutions, including the Forestry 
Sector Support Department (part of the Directorate of Environment Affairs), the National Forestry 
Authority (NFA), Uganda Wildlife Authority, and th e district forestry services of local governments.  
In addition, the private sector plays an important role in terms of commercial tree plantation development and promotion of wo od-based industries and trade.  However, natural forests and 
                                                      
71 MAAIF (2011). EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-537 
 
 
 woodlands are declining as a result of change in land-use to agriculture and grazing, high demand for 
timber (furniture and construction) and fuel wood (firewood and charcoal), and other uses.72 
200. The NFA, a semi-autonomous agency set up in 2003, is responsible for managing 506 central 
forest reserves on a sustainable basis, and supplying high quality forestry-related products and 
services to government, local communities, and the priv ate sector.  The district forestry services are 
responsible for implementing intern ational and national policies on forests, and for permits, licence 
fees, and tax collection, while the Forestry Sector Support Department is charged with the formulation 
and oversight of policies, standard s, and legislation for the forestry sector including the monitoring of 
the NFA using a performance contract.   
201. The National Development Plan lists four objec tives for forest management:  restore forest 
cover from 3.6 million hectares (18%) to 4.9 million hectares by 2015 with the ultimate goal of 30%  
overall forest cover;  restore degraded natural for ests;  reduce pressure on forest cover as a source of 
wood fuel and construction materials;  and promote forestry-based industries and trade. 
202. The 2002 National Forest Plan (NFP) and the For estry Sector Investment Plan were reviewed 
and updated in 2010/11 and are awaiting approval.  The major shortfall identified with the 2002 Plan 
was uneven implementation of polic ies in different forestry institutions.  The NFP 2011 emphasizes 
sustainable development through th e preservation of natural resources such as forests and wetlands.   
203. Regulations provided for in the National Forest ry and Tree Planting Act (2003) are still in 
draft form with the Solicitor General.  Other pr ovisions of the Act such as the establishment of 
forestry committees and establishment of a Tree Fund have not yet been operationalized.73  T h e  
authorities indicate that forestry committees will begin on a pilot basis from 2012/13. 
204. Imports of wood charcoal, wood, and articles of  wood are subject to an average tariff of 
16.2%, with rates ranging from 0% to 25%. 
(v) Livestock 
205. A national livestock census was carried out by MAAIF and UBOS in February 2008 
(Table IV.8).  Livestock accounted for 6.6% of agricultural output and about 1.5% of GDP in 2010.  
Previous estimates of total cattle were based on the Agricultural Module of the Uganda National 
Household Survey (UNHS) 2005/06, which estimated  the national herd at 7.5 million cattle.  The 
growth of more than a third between 2005/06 and 2008 is attributed to in creased export opportunities 
within the region, more precise estimates of due to th e larger sample size, use of a more appropriate 
sampling frame, and restocking and other initia tives aimed at increasing the cattle population.74  
Increases in livestock in 2008-10 are attributed to efforts to control animal diseases and improvement 
in livestock production systems as a result of routine livestock extension interventions.75 
                                                      
72 Ministry of Water and Environment (2011). 
73 Ministry of Water and Environment (2011). 
74 MAAIF (2010b). 
75 MAAIF (2011). WT/TPR/S/271/UGA Trade Policy Review 
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 Table IV.8 
Livestock, 2008-10 
('000) 
Livestock 2008 2009 2010 
Cattle 11,409 11,751 12,104 
Sheep 3,413 3,516 3,621 
Goats 12,450 12,823 13,208 
Pigs 3,184 3,280 3,378 
Chickens 37,444 38,557 39,714 
Source:  MAAIF. 
206. Current production of livestock meets only half of domestic and regional demand.  Exports of 
livestock products are limited to raw and semi-p rocessed hides and skins, with rapidly growing 
exports of live animals (cattle a nd goats) to South Sudan.  Inadequate disease control and the absence 
of appropriate quality and processing infrastructur e are among the constraints impeding exports of 
beef and dairy products.76  A recent study, based on the 2008 livestock data, demonstrates that, 
significant increases in livestock population are possible in many regions, particularly in northern Uganda, and this would strengthen the subsector for the economy as a whole.
77 
207. Imports of live animals are subject to an averag e tariff of 18.3%, while a rate of 25% applies 
to meat and edible offal. 
(vi) Fisheries 
208. The fisheries subsector is the second-highest foreign exchange earner in merchandise trade 
for Uganda, contributing US$127.7 million or 7.9% to  total export earnings in 2010, up from 6.6% in 
2009.  It employs over 700,000 people, and investment  in the sector is estimated at US$200 million.  
The leading destinations for Uganda's fish exports  are France, Belgium, and the Netherlands.  The 
regional market for fish is growing;  Kenya, Suda n, DR Congo, and Rwanda are the leading importers 
of Uganda's products.  Nile perch prod ucts represent over 90%  of total exports. 
209. The subsector comprises both capture and culture fisheries, with the former contributing most 
of the total national catch.  Capture fisheries ar e mostly artisanal while aquaculture is slowly 
transforming from traditional, small- scale subsistence to medium-scale commercial farming.  Lake 
Victoria, the largest water body, which is shared between Uganda (45%), Kenya (6%), and Tanzania 
(49%), accounts for 60% of Uganda's total catch.  Fish for regional and domestic trade is mainly 
composed of whole fresh fish and artisanally pro cessed fish (mainly sun-dried, smoked, and salted), 
while international trade is domin ated by fresh and frozen fillets.78 
210. Although export revenues have increased, the to tal quantity of fish exported annually 
continues to decline, due to dwindling catch.  Op en access policies have encouraged the number of 
fishermen and boats operating to increase, while th e use of illegal fishing gear and methods, which 
catch immature fish, has exacerbated the problem .  According to the Department of Fisheries 
Resources, over 17,000 kg of immature fish were detected during 2009-10.  
211. In 2009, the EAC launched a US$1.8 million ca mpaign (to be funded equally by Kenya, 
Tanzania, and Uganda) to recover the perch populat ion in Lake Victoria, depleted from 1.2 million 
tonnes in 2000 to about 331,000 in 2009.  The camp aign was to target illegal fishing gear blamed for 
                                                      
76 Government of Uganda (2010). 
77 IFPRI (2010). 
78 ICEIDA (2009). EAC-Uganda WT/TPR/S/271/UGA 
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 the harvesting of immature Nile perch and the destru ction of breeding sites.  However, lack of donor 
support, particularly by Tanzania a nd Uganda, has hampered this effort. 
212. In order to deter illegal fishing and trade in i mmature fish, in 2010 Ug anda supplemented the 
Fish Act (1951) with the Fish Rules, which took e ffect in January 2011.  The Fish Rules contain 
provisions on prohibited nets and fishing methods, the landing and disposal of fish, and licences, 
permits, and fees.  A draft national policy on fisher ies management and development of small fishes is 
currently being developed. 
213. Imports of fish and fish products are subject to an average tariff of 24.5%. 
(3) MINING AND ENERGY  
214. The Ministry of Energy and Mineral Develo pment (MEMD) is mandated to "establish, 
promote the development, strategi cally manage and safeguard the ra tional and sustainable exploitation 
and utilization of energy and mineral resources fo r social and economic development".  The MEMD 
is currently being restructured to take account of recent developments, not least the discovery of large 
reserves of petroleum in western Uganda.  A proposal has been made to create two new directorates for petroleum and minerals.
79  Under the Constitution, ownership a nd control of all minerals, oil, and 
natural gas is vested in the Government.    
215. The MEMD's priorities over the medium-term ar e to:  increase electricity generation capacity 
and transmission network;  increase access to mode rn energy services through rural electrification and 
renewable energy development;  promote and mon itor petroleum exploration and development to 
achieve local production;  streamline petroleum supply and distribution; and  promote mineral 
investment through acquisition of geo-scientific data and capacity building.  In line with these 
priorities, MEMD is focusing on the implementation of four projects:  development of the Karuma 
hydropower project;  development of an oil refine ry;  promotion of investment in phosphates from the 
Sukuru region;  and development of an iron and steel industry. 
(i) Mining 
216. In the mining sector, Uganda's efforts to improve performance through a Comprehensive 
Mineral Sector Reform Programme in place since its last TPR have increased production volumes, 
though exports have declined steadily since 2006 (Table IV.9).  The number of licensed investors in the sector has increased. 
Table IV.9 
Mineral production and exports, 2006-10   
 2006 2007 2008 2009 2010 
Production (US$) 52,253,987  55,318,047  51,327,431  49,000,000  63,000,000  
  Gold (%) 0.9 1.0 0.1 0.3 0.0 
  Cobalt (%) 36.4 34.7 50.3 17.3 26.9 
  Vermiculite (%) 1.3 1.2 0.0 0.0 0.5 
  Wolfram (%) 0.1 0.1 2.1 0.2 1.5 
  Others (%) 61.3 63.0 47.5 82.2 71.1 
Export (US$) 125,496,131  88,160,995 52,707,737 13,269,224  18,894,088  
  Gold (%) 95.0 85.8 66.9 97.3 89.4 
  Cobalt (%) 4.2 13.8 29.2 0.0 0.0 
Table IV.9 (cont'd) 
                                                      
79 According to the authorities these have not b een created due to a fr eeze on recruitment. WT/TPR/S/271/UGA Trade Policy Review 
Page A5-540 
  
  2006 2007 2008 2009 2010 
  Vermiculite (%) 0.7 0.2 0.0 0.0 0.0 
  Wolfram (%) 0.0 0.0 2.8 0.7 9.5 
  Others (%) 0.1 0.2 1.1 2.0 1.1 
Source:  Information provided by the MEMD. 
217. In the context of its first Review80, the MEMD conducted surveys in:  airborne geophysical, 
geological mapping, laboratory infrastructure, mine ral resources, geothermal energy, geochemical,  
and ground geophysical.  Mineral exploration activiti es continue to be dominated by artisanal and 
small-scale mining practices.  As of end 2011, 692 licen ces were in use, of which 138 for prospecting, 
429 for exploration, and two for retention licences.   The remainder were for mining location (47), 
mining leases (24), and mineral dealers (52).   
218. In 2010/11, the Government realized revenue of USh 3.631 billion from royalties and mineral 
license fees. It has increased efforts to collect a larg er portion of revenues from the minerals sector in 
the form of non-tax revenue (NTR) by levying appli cation, issuing, registration, and mineral rental 
fees, and collecting unit- and value-based royalties on mineral projects within Uganda.  As a result of 
new rates put in place in October 2011, the Government expects to increase NTRs, which have averaged USh 3 billion annually since 2008, to USh 6 billion.
81  As of October 2011, the formula for 
royalty sharing changed:  district local gove rnments receive 10% (down from 17%), and town 
councils receive 7%;  the shares of government (80%) and owners or lawful occupiers of land subject 
to mineral rights (3%) remain unchanged. 
219. In an effort to evaluate Uganda's enormous but unexploited rock resources, 20 representative 
samples from numerous regions have been sent to  Kenya for cutting and polishing.  Results have 
shown that the quality is good and several are su itable for processing into dimension stones.  
Investment in the sector and infrastructure improvements are required in order to exploit this resource 
and expand the revenues earned fro m traditional mineral resources. 
220. An average tariff of 4.8% is applied to imports of mining and quarrying products. 
(ii) Petroleum 
221. Since the first discovery of oil in Uganda in 2006, 58 fields have been discovered which may 
produce an estimated 2.5 billion barrels of oil e quivalent, of which abou t 1 billion barrels are 
recoverable.  This is in line with the oil reser ves of countries such as Chad, the Republic of Congo, 
and Equatorial Guinea, but well behind Angola and Ni geria.  With only 40% of the total prospective 
area explored, a further increase in established reserves is expected.  It is estimated that the discoveries to date can support production of over 100, 000 barrels of oil per day (bbl/d) for 25 years, 
and are sufficient to implement large-scale refining in  the country.  An appraisal of discovered oil and 
gas fields is still in progress with a view to establishing the optimal methods for development.
82 
222. The source of Uganda's oil is the Albertine Ri ft in western Uganda on its border with South 
Sudan and DR Congo.  This area is rich in biodi versity, the home of more endemic species than any 
other area in Africa, including the rare mountain go rilla.  The Albertine Rift has a large number of 
                                                      
80 Energy and Mineral Development Joint Sector.  Viewed at:  www.energyprogramme.or.ug/wp-
content/files/JSRREPORT.pdf. 
81 MEMD (2011). 
82 MEMD (2011). EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-541 
 
 
 protected areas, including national parks, forest reserves, and wildlife sanctuaries.  A number of parks 
are partly or wholly inside the oil blocks and ma ny others that lie outside blocks are likely to be 
affected by oil development.   
223. Petroleum exploration has thus far attracted inv estment of US$1.5 billion, and this is expected 
to increase once the development and production ph ases commence.  No oil revenues are expected 
until 2013.  According to the MEMD, discovered gas resources together with the test crude produced 
during appraisal will be used to generate electricity  in the short term.  In the medium to long term, 
Uganda intends to develop a medium- to large-scal e refinery to produce oil products for domestic and 
regional use. Subsequently, as more discoveries ar e made, consideration fo r export will be made.  
Petroleum products, mainly imported from Mombasa, a distance of 1,300 kms, constitute over 15% of 
Uganda's total import bill. 
224. Uganda currently imports about 90% of its petroleum needs through Kenya and 10% through 
Tanzania.  Most products destined for Uganda through Kenya are delivered from Mombasa to western 
Kenya terminals by pipeline and then by road and ra il to Uganda.  At present there are 85 private oil-
marketing companies established in Uganda involv ed in supply, transportation, distribution, and 
marketing of petroleum products.  
225. The Petroleum Supply Department under the ME MD is mandated to regulate the supply of 
petroleum products in Uganda.  The department de rives its authority from the Petroleum Supply Act 
(PSA), 2003, enacted to operationalize the Energy Policy of 2002.  Under the Act, any company involved in petroleum supply must obtain an ope rating licence or construction permit from the 
Commissioner of the Petroleum Supply Department .  The operating licence covers importation and 
exportation, pipeline transportation, surface transp ortation on land or water, storage, including 
industrial consumers, wholesale and retail distribu tion and sales, and processing or other operations 
involving the construction of physical plants.
83  According to the authorities, pricing of petroleum 
products is entirely market driven.  
226. The Petroleum Supply Regulations (General),  2009 operationalize the Petroleum Supply Act 
(2003).  The main objectives of the Regulations include streamlining the licensing of petroleum 
operators and related facilities/in stallations, and quality control of  petroleum products and related 
supply monitoring operations.  With a view to st reamlining the downstream petroleum subsector, the 
Ministry has embarked on re-licensing all industry players.  As of March 2012, 108 companies had 
been issued with new petroleum operating licences and 15 with construction permits.  
227. In an effort to improve the supply of petroleum products, in September 2011 Cabinet 
approved at tax rebate of USh 150 per litre on products entering Uganda through Tanzania.  The 
directive is currently being implemented by the Ministry of Finance and Economic Development.  
Uganda is analysing the possibility of petroleum supplies through South Sudan. 
228. Oil storage is managed on a public/private part nership basis.  During 2010, the procurement 
process commenced for a private partner to operate the Jinja national strategic storage facilities under 
private/public partnership;  it is expected to be  completed by FY 2011/12.  The private operator is 
expected to refurbish, stock, and operate th e depot, which will remain the property of the 
                                                      
83 The fee for the initial licence (in currency points) is:  importation (150);  exportation (50);  pipeline 
transportation (500);  other surface transportation on land or water (75 for each unit not exceeding 100 per 
licence);  storage (150);  wholesale distribution (75);  retail sales each unit (50);  industrial consumers who buy 
directly from licensed importers or wholesalers (25);  processing and transformation of petroleum products or 
other operations involving physical plants (not available).  One currency point is equivalent to USh 20,000. WT/TPR/S/271/UGA Trade Policy Review 
Page A5-542 
  
 Government; the latter is supposed to contribute 12 million litres (i.e. 40% of the storage capacity) of 
the total stock of the tanks.  The MEMD is c onducting a feasibility study (funded by the Norwegian 
Government) on the development of distribution and st orage facilities in view of the proposed inland 
refinery, to determine optimal storage a nd distribution infrastructure in Uganda. 
229. The legal and regulatory framework governing pe troleum exploration and production includes 
the Petroleum (Exploration and Production) Act, Chapter 150 of the Laws of Uganda 2000;  the 
Petroleum (Exploration and Production) (Conduct of  Exploration Operations) Regulations, 1993;  
production sharing agreements (PSAs);  and vari ous environment, wildlife, water statutes and 
guidelines.  Downstream aspects of the industry, i.e.  distribution, marketing, and sale of petroleum 
products are governed by the Petroleum Supplies Act of 2003.   
230. In 2008, the Government published the Nationa l Oil and Gas Policy (NOGP), whose goal is 
"to use the country's oil and gas resources to contribute to early achievement of poverty eradication and create lasting value to society".  The NOGP ai ms to address the entire spectrum of exploration, 
development, and production of Uganda's oil a nd gas resources more comprehensively than the 
Energy Policy of 2002, which provided for regulation of the downstream subsector.  In particular, the 
NOGP supersedes the Energy Policy with regard to matters pertaining to upstream petroleum 
activities, and provides a basis for regulation and investment in midstream activities.   
231. The objectives of the NOGP include ensuring effi ciency in licensing areas;  establishing and 
managing the country's oil and gas resource poten tial;  promoting the development of suitable 
transport and storage solutions;  en suring the collection of revenues to  create lasting value;  ensuring 
optimum national participation in oil and gas activiti es;  conserving the environment and biodiversity;  
and ensuring beneficial relationships between a ll stakeholders.  The NOGP takes into account the 
challenges associated with natural resource wealth , including the need to offset the potential for 
negative economic and fiscal effects (the "resource cu rse") that arise from sudden inflows of foreign 
currency.  It outlines mechanisms for managing these effects in a manner that facilitates development, 
by prioritizing spending that supports productivity and competitiveness with the aim of turning oil 
revenue into a sustainable development outcome.  It  also highlights the need for a long-term national 
strategy to maximize benefits from oil and g as exploitation along the industry value chain.
84 
232. The Petroleum (Exploration, Development, Production and Value Addition) Bills were 
drafted in 2010 and tabled before Parliament in February 2012.  The Petroleum Bills, once enacted, 
will provide the legal framework for exploration and development of oil resources;  define the 
oversight roles of MEMD (which is currently responsible for issuing, renewing and revoking 
petroleum exploration and production licences);  set up the Petroleum Authority of Uganda (PAU) which will handle regulatory functions;   and establish the National Oil Company responsible for 
business and commercial aspects.  Funding of this in stitutional arrangement is expected to cost USh 
35 billion, which is yet to be secured .  Licensing procedures will also be outlined.  The Government is 
drafting two new laws to deal with resource ma nagement, and revenue management which will 
provide for the sharing of royalties, provision of goods and services by Ugandans, training and 
employment of Ugandans, and technology tran sfer.  A Petroleum Bill for refining, gas 
processing/conversion, and transportation and storage has been drafted and is before parliament.   
233. Government policy in managing the country's oil resources is to add value locally. A 
feasibility study on refining in Uganda concluded in 2010 has been approved.  Plans are afoot to 
develop the refinery on a public/private partnership basis at an estimated cost of US$1.5 billion, for 
                                                      
84 MEMD (2008b). EAC-Uganda WT/TPR/S/271/UGA 
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 which funding has not yet been secured.  The refinery  is expected to take 5 to 10 years to complete 
and will commence with 20,000 bbl/d in the short term. This will be expande d to 60,000 bbl/d in the 
medium term and then to a range between 12 0,000 and 180,000 bbl/day in the long term. 
234. Currently four oil companies hold exploration licences for 4 of 13 exploration areas 
demarcated in the Rift Valley.  These are:  Tu llow Oil;  Total E&P Uganda;  and CNOOC, which hold 
a 33.3% joint venture in exploration areas (EA) 1, 2 and 3A following the pa rtial sale of Tullow Oil's 
interest; and Dominion Petroleum, which holds an exploration licence in EA 4B. 
235. Section 89F of the Income Tax Act of 1997,  as amended in 2009, provides for allowable 
expenditures for exploration and development activities. 
236. Concerns have been expressed about Uganda's commitment to transparency in the oil sector.  
Critics have charged that the PSAs, which form the basis of contractual arrangements between Uganda and oil companies, have not been pub lished and do not strike a good deal for Uganda.
85  In 
addition, the Petroleum Bill includes several provi sions that allow the Government to classify 
important oil sector information as confid ential and withhold it from the public domain.86  
Accusations of corruption, a frail regulatory structur e, volatile domestic politics, and tense relations 
with DR Congo have cast doubts on Uganda's ability  to successfully manage the challenges in the 
sector.87 
237. Uganda has applied to join the Extractives Industries Transparency Initiatives, a global 
standards-setter to institute transparency in the sector. 
238. The construction of an oil pipeline between Ug anda and Kenya, which commenced in 2004, 
was revised in 2010 in order to take account of the reverse flow concept so that refined products can 
be pumped back to western Kenya.  The project is  being implemented as a public/private partnership 
arrangement with the private partner owning 75% and Uganda and Kenya each having 12.5%.  The 
land for the pipeline corridor was surveyed, evaluate d, and gazetted in December 2009, but funds of 
USh 35 billion have not yet been secured to enab le acquisition of way leaves on Uganda's side.88  
Authorities expect the way leaves to be acquired in the next fiscal year.  This will bring down the 
current transport costs from western Kenya by US$20 per m3.  An oil pipeline extension between 
Uganda and Rwanda is also being developed. 
(iii) Electricity 
239. Uganda's per capita electricity consumption rates is one of the world's lowest; estimated at 
69.5 kWh, it is significantly lower than Africa's average of 578 kWh per capita.  Low levels of access 
to modern forms of energy, particularly electricity , is one of the major infrastructure bottlenecks to 
socio-economic growth in Uganda.  Biomass (wood,  charcoal, and agricultural residue) accounts for 
over 90% of Uganda's energy supply, while hydr opower and imported petrol eum products constitute 
1% and 6%, respectively.  Access to the grid rema ins low, but increased power generation capacity is 
foreseen through investment in hydro and thermal power plants, new transmission lines, increased 
rural electrification, and energy efficiency-measures.   
                                                      
85 International Alert (2011) and Platform (2010). 
86 World Resources Institute (2011). 
87 Platform (2010), and Bategeka et al. (undated). 
88 MEMD (2011). WT/TPR/S/271/UGA Trade Policy Review 
Page A5-544 
  
 240. Uganda has an installed capacity of 595 MW, which includes hydropower, co-generation, and 
fossil-based thermal generation.  Peak demand is in the order of 528 MW.  Because of the low water level in Lake Victoria, Uganda experiences daily electricity shortages in the order of 130-190 MW.  
The total grid electricity supply increased by 8.45% from 2,264 GWh in 2009 to 2,456 GWh in 
2010.
89  Domestic generation accounts for more than 98% of Uganda's elec tricity.  In 2010, imports of 
electricity were 1.3%, of which 1.2% from Keny a and 0.1% from Rwanda, while exports to these 
countries were 1.8% and 0.08%, respectively. 
241. About half Uganda's electricity is genera ted by the state-owned Uganda Electricity 
Generation Company Ltd (UEGCL), which has two power stations currently operated by Eskom (U) 
Ltd under a 20-year concession agreement valid until 2023.  The rest is ge nerated by independent 
power producers (IPPs) that entered the market following the drought in 2006.  As of 2010, 10 generation licences were in use, with 4 licensed pr ojects under construction, 2 licensed but not yet in 
the construction phase, and 23 permits issued for feasibility studies.  Electricity transmission is 
provided by the state-owned Uganda Electricity Transmission Company Limited (UETCL), the sole licensee, while the state-owned distribution comp any builds and owns the distribution network 
operated by UMEME under a concession agreement.  Five licensed distribution projects are currently 
in operation. 
242. The Government's Power sub-Sector Reform  Programme, which began in 2001 unbundled 
Uganda Electricity Board (UEB) into a number of successor companies and  implemented significant structural changes within the sector .  The Reform Programme is aimed at providing adequate, reliable, 
and least-cost power supply to meet demand, promo ting the efficient operation of the power sector 
and scaling-up access to maximize the impact on pove rty reduction.  Despite these reforms, Uganda 
continues to experience significant power-supply shorta ges, low rates of access to electricity, and high 
levels of power losses, all of whic h negatively affect economic growth.
90  
243. In 2007, Uganda formulated a Renewable Energy Policy aimed at increasing the use of 
modern renewable energy to 61% of total ener gy consumption by 2017.  Key policy objectives 
include maintaining and improving the responsiveness of the legal and institutional framework to 
promote renewable energy investments;  establis hing an appropriate financing and fiscal policy 
framework for investments in renewable energy;  pr omoting research and development, international 
cooperation, technology transfer, a nd adoption of standards in renewa ble energy technology;  utilizing 
biomass energy efficiently so as to contribute to the sustainable management of the resource;  
promoting the sustainable production and utilization of biofuels; and promoting the conversion of 
municipal and industrial waste to energy.  
244. The Electricity Regulatory Authority (ERA), established as an independent regulator in 1999, 
is responsible for issuing generation, transmissi on, and distribution licences, regulating electricity 
tariffs (which are set by producers and subject  to ERA approval), developing and enforcing 
performance standards within the sector, and enforc ing adherence to the National Grid Code.  The 
ERA conducts quarterly and annual tariff reviews.91  
245. Since 2005, the Government has provided subsid ies totalling USh 1,135 trillion to the power 
sector, without which consumers would pay about USh 800 per unit.  The current domestic electricity tariff (July 2012) is USh 524.5 per kWh.  Financia l sustainability in the power sector can only be 
achieved if transmission losses are reduced (in 2010/11, losses totalled 28.5%, the highest in the 
                                                      
89 MEMD (2011). 
90 MEMD (2011). 
91 ERA online information.  Viewed at: http://era.or.ug. EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-545 
 
 
 region) and if electricity tariffs are increased.92  ERA recommendations to address the sector's 
financial problems include waiving or converting in to government equity public debts that were 
transferred to UEB successor companies; adjusti ng tariffs to cost-reflective levels after new 
commissioning comes online; putting in place a comprehensive and transparent sensitization 
programme; and introducing a tariff-determination fram ework that allows for monthly adjustments in 
line with fluctuations in the ex change rate and fuel prices. 
246. The Rural Electrification Board, established in  2001, manages the Rural Electrification Fund 
(REF) with the goal of achieving universal coverage  by 2035. At the end of 2010/11, coverage was 
estimated at 12% and a number of target areas were still not electrified.  To achieve universal 
coverage by 2035, an estimated annual investment  of US$50 million is required in distribution 
infrastructure alone.  The REF is funded by governme nt budget allocations;  surplus funds from ERA;  
a levy of 5% on transmission bulk purchases; and donations, gifts, grants, and loans.   
247. A pilot project for prepaid metering for 10,000 cu stomers is under way in Kitintale district.  
Once the project, valued at US$3.4 million, is complete d, prepaid metering will be rolled out for all of 
UMEME's customers to improve service quality.  
248. The Atomic Energy Act 2008, which repealed the Atomic Energy Decree 1972, provides for 
the regulation of atomic energy through the establis hment of the Atomic Energy Council.  The Act 
also established the Nuclear Energy Unit, mandated to  provide for the production and use of radiation 
sources and the management of radioactive waste, and to provide for a framework for the promotion 
and development of nuclear energy for use in pow er generation and other peaceful purposes.  Atomic 
energy regulations are currently in preparation. 
249. A number of challenges in this sector need  to be addressed. Uganda's current power 
generation mix is dominated by thermal power, wh ich is expensive and ac counts for high power 
tariffs.  A programme to develop cheaper, more reli able power is being undertaken using the newly 
created Energy Fund.  Uganda suffers high power  system losses at both technical and commercial 
levels:  technical losses are being addressed thr ough rehabilitation and refurbishment of the power 
distribution network;  commercial losses, primarily caused by power thefts, will be addressed through 
more accurate measuring equipment.  Investments in energy require large amounts of capital and have 
long gestation periods, which increases perceived i nvestment risk.  Long transaction times and the 
need for sovereign guarantees increase the cost of private capital thus resulting in high tariffs.  Most 
investment costs are in U.S. dollars and thus subj ect to the impact of the depreciating shilling.  The 
establishment of the Uganda Energy Credit Cap italization Company (UECCC) is expected to 
facilitate capital investment goals for private-sector driven electrification projects. 
250. Imports of electricity are subject to a tariff rate of 10%. 
(4) MANUFACTURING  
251. Most manufacturing in Uganda is centred r ound the processing of agricultural commodities, 
such as food processing, textiles, beverages, and toba cco (Table IV.10).  Food processing, drinks and 
tobacco, and paper products and printing all re gistered strong growth during 2006-10.   
252. Manufactured exports include metal products, to bacco, paper products, soap, vegetable oil, 
confectionery, beer, cement, garm ents, nets and twines, and plas tics.  Key manufactured imports 
include petroleum products, road vehicles, iron a nd steel, and pharmaceuticals.  Most imports of 
                                                      
92 MEMD (2011). WT/TPR/S/271/UGA Trade Policy Review 
Page A5-546 
  
 manufactured goods are from Asian countries and Kenya, while the main export destinations are 
Rwanda, DR Congo, Kenya, Republic of  Congo, Tanzania, and South Sudan. 
Table IV.10 
Annual changes in industrial production, 2006-10 
(%) 
 2006 2007 2008 2009 2010 
Food processing 14.2 8.5 22.5 11.0  10.4 
Drinks and tobacco 0. 0 1.0 16.2 33.6  14.8 
Textiles, clothing and foot wear 42 7.3 4. 9 5.9  7.0 
Paper products and printing 15.4 12.5 3.5 8.6  11.5 
Chemicals, paint, soap and foam products 4.0 11.7 34.5 4.5  -2.4 
Bricks and cement 4.7 14.3 19.4 10.0  -3.6 
Metal products 19.0 8.4 33.7 6.9  5.6 
Miscellaneous 17.0 15.3 4.1 3.4  4.6 
Source:  Uganda Bureau of Statistics (2011), Statistical Abstract 2011 , Kampala.  Viewed at:  
 http.//www.countrystat.org/ country/uga/documents/docs/2011% 20statistical%20A bstract.pdf. 
253. A recent study by UNIDO on economic development in Africa ranks Uganda's growth rate of 
in manufacturing value addition among the highest in the period 1990-10, despite its manufacturing 
value addition rate per capita being one of the lowest in Africa.93  Manufacturing is one of the 12 key 
sectors identified in Uganda's National Export Strategy as being strategic for growth. 
254. The Department of Industry and Technology in  the Ministry of Trade and Cooperatives is 
responsible for formulating industrial policy.  In 2008, a National Industrial Policy with its vision to 
"build the industrial sector into a modern, compe titive and dynamic sector fully integrated into the 
domestic, regional and global economies", was form ulated and approved by Cabinet.  The policy 
objectives are:  exploiting and de veloping natural domestic resource-based industries, such as 
petroleum, cement, and fertilizer industries, and promoting competitive industries that use local raw 
materials;  agri-processing, i.e. food processing, le ather and leather products, textiles and garments, 
sugar, dairy products, and value addition in niche exports;  knowledge-based industries, such as ICT, 
call centres, and pharmaceuticals;  and engin eering for capital goods, agricultural implements, 
construction materials, and fabrication.94  Target indicators set by the policy for 2018 include 25% 
contribution of manufactured products to total GDP ;  30% contribution of manufactured exports to 
total exports;  30% value added in industry (as a pe rcentage of GDP);  and a 4.2 score in the Global 
Competitiveness Index.   
255. Other programmes in place to increase productiv ity in manufacturing include One Village 
One Product, a community-based approach aimed at reducing poverty in rural populations by identifying a distinctive product and adding value (p rocessing), quality control, and marketing.  Three 
pilot districts have been identified with more to follow.  The Millennium Science Initiative, a World 
Bank funded programme administered by the Uganda  National Council for Science and Technology is 
aimed at boosting the country's capacity to use sci ence and technology in agriculture and industry to 
meet its development needs.  The Integrated Programme (IP) aims to enhance competitiveness and 
sustainability of industrial development in Uganda  with particular emphasis on agri-industries and 
micro and SMEs.   
256. Uganda is also implementing a cross-border market project along the main border points with 
neighbouring countries;  18 border posts have been identified for this purpose.  The project, which is 
                                                      
93 UNIDO (2011). 
94 MTI (2008a). EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-547 
 
 
 based on border market construction, enterprise de velopment, and value addition to locally produced 
products, aims at creating jobs, adding value, and enhancing regional trade. 
257. Uganda suffers a number of supply-side c onstraints that impede value addition in 
agri-business.  Inadequate transport and storage in frastructure, poorly maintained roads, lack of 
railway, air transport, and shipping facilities translat e into high transport costs which, coupled with its 
landlocked position, cause Uganda n exports to lose competitiveness.  The land tenure system of 
community ownership in some rural areas and la nd fragmentation discourages larger scale cultivation 
and soil improvement, thus constraining the modern ization of agriculture.  Limited use of land as 
collateral and high lending interest ra tes lead to poor access to finance.   An additional constraint is the 
non-availability of inputs, including raw materials,  machinery, and equipment. Prices for imports are 
high and local inputs, if available, are of low quality.  Packaging material is not commonly available.  Another problem is the lack of access to edu cation and information, ranging from academic and 
scientific schooling to extension services and res earch and development, as well as market and 
product information.
95 
258. According to the authorities, constraints in  this sector include difficulty in meeting 
international quality, standards and certification re gulations, and lack of borrowing capacity by SMEs, 
which dominate the sector.  The Government a nd the BOU have designed programmes to support 
SMEs and encourage the growth of micro financing. 
259. The average MFN tariff on manufacturing imports (ISIC Rev.3) is 12.5%. 
(5) SERVICES  
260. Services constitute a major and growing sector of  Uganda's economy in terms of contribution 
to GDP, employment, and exports.  The services sector grew by 7.4% in 2010 up from 5.8% in 2009.  The leading subsectors were wholesale and retail tr ade, which accounted for 13.2% of GDP, followed 
by transport (9.2%) and ICT (6.2%).  Services exports grew from US$1,207 million in 2009/10 to US$1,358 million in 2010/11, while imports in creased from US$1,719 million to US$2,024 million.
96  
The service sector employs about a quarter of th e working population a nd is responsible for 
considerable job creation.   
261. The Service Sector Export Strategy, adopted in 2005, identified five priority subsectors:  
higher education, migrant labour, health services, niche tourism, and ICT.  The National Export 
Strategy, adopted in 2008 focuses on tourism and hi gher education services.  In tourism services, the 
objective is to maximize the sector's contribution to employment and poverty reduction, increase 
facilities, upgrade human resource capacity, and improve  infrastructure.  In higher education services, 
the objective is to build upon the historical f oundation of Uganda's education system through 
developing curricula, including online courses, improving infrastructure, and easing processing of 
university entrance documents in order to brand and position Uganda as the leading provider of 
education services in the Great Lakes Region.97 
(i) Financial services 
262. A Financial Sector Development and Regionaliza tion Project under the EAC and financed by 
the World Bank was launched in the first half of 2010 .  Its objective is to support the development and 
                                                      
95 HTW (2011). 
96 Uganda Bureau of Statistics (2011). 
97 MTI (2007a). WT/TPR/S/271/UGA Trade Policy Review 
Page A5-548 
  
 integration of the financial sector within the EAC stat es.  The project is structured around five pillars:  
financial inclusion and strengthening market part icipants;  harmonization of financial laws and 
regulations against common standards; mutual recogn ition of supervisors;  in tegration of financial 
market infrastructures; and development of the regional bond market.   
(a) Banking 
263. There is a high degree of foreign ownership in Uganda's financial sector.  Of the 
25 commercial banks licensed in 2012, 18 are foreign- owned.  Other financial institutions include:  
three credit institutions, 23 insura nce companies, a social security  fund, the stock exchange, and 
numerous foreign exchange bureaux and micro-fi nance deposit-taking institutions (MDIs).   
Table IV.11 
Structure of the financial system, 2006-11 
Types of institutions 2006 2007 2008 2009 2010 2011 
Depository institutions 26 24 27 28 29 29 
  Commercial banks 16 16 21 21 23 23 
  Credit institutions 6 5 3 4 3 3 
  Micro-finance institutions 4 3 3 3 3 3 
Non-depository intermediaries 27 28 30 30 32 32 
  Securities firms 7 7 8 8 8 8 
  Finance companies 0 0 0 0 0 0 
  Insurance companies 19 20 21 21 23 23 
    Pension funds 1 1 1 1 1 1 
Forms of ownership       
  State-owned banksa 0 0 0 0 0 0 
  Foreign-owned banks 11 12 16 17 18 18 
a The Government holds a minimum share in one bank. 
Source:  Bank of Uganda. 
264. The assets of commercial banks totalled USh 12,9 82.4 billion in December 2011, an increase 
of 14.8 %, compared with 2010.  The share of non-pe rforming loans to total gross loans deteriorated 
marginally from 2.1% to 2.2% in the same period.   
265. The capital adequacy ratio, measured by the propor tion of total capital to risk-weighted assets 
averaged 20.3% in 2011, far above the regulatory minimum of 8%. Interest rates are market-determined, with an average spread of 15%.  Sin ce 2006, lending rates have fluctuated between 18% 
and 22%.  Total assets of MDIs gr ew by 37.1% in 2010/11 up fro m 25.1% growth in 2009/10.   
266. The Bank of Uganda has the authority to li cense banks in accordance with the Financial 
Institutions (Licensing) Regulations, 2005, which set out in detail the licensing requirements and 
application procedure.  Within six months of receipt  of an application, the Bank of Uganda prepares a 
detailed report indicating its decision to grant or refuse the licence.  The Bank of Uganda regulates 
and supervises all commercial banks, credit ins titutions, foreign excha nge bureaux, and MDIs, 
conducting onsite and offsite surveillance.  In or der to test the capital ad equacy of supervised 
financial institutions, the Bank of Ug anda performs regular stress testing to determine the effects of 
specific shocks on banks' soundness.  All supervised institutions, whet her foreign or locally owned, 
are subject to the same regulatory and supervisor y procedures, though the authorities indicate that 
consolidated supervision has been adopted fo r banks that are in a group or subsidiaries. 
267. In order to align Uganda's minimum capital re quirements with those in the EAC, and to 
strengthen financial soundness, Uganda raised th e required minimum paid-up capital of commercial EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-549 
 
 
 banks to USh 25 billion in October 2010 from USh 4 billion.  The new requirement applies to new 
commercial banks;  existing banks are to raise thei r paid-up capital to USh 10 billion by March 2011 
and to USh 25 billion by March 2013.  The minimu m capital requirement for credit institutions and 
micro-finance institutions remains at USh 1 billion and USh 500 million, respectively.  Revisions are 
being made to the Financial Institutions Act (FIA  2004) to allow commercial banks to broaden their 
scope of commercial banking activities to include "Bancassurance" and Islamic banking.   
268. Anti-money-laundering regulations, in force sinc e November 2010, apply to all financial 
institutions in Uganda and require them to establis h and maintain specific policies and procedures to 
guard against the use of the financial system for the purpose of money laundering.   
269. Under the Foreign Exchange (Forex Bureaus and Money Remittance) Regulations 2006, the 
Bank of Uganda is responsible for the licensing a nd supervision of foreign exchange bureaux.  The 
Financial Institutions (Foreign Exchange Busin ess) Rules 2010 prevent financial institutions from 
taking excessive foreign currency positions by lim iting the daily foreign exchange open position to 
within 25% of a financial institution's core capita l as of the preceding quarter.  The Bank of Uganda 
grants letters of no objection/clearance to financial institutions to engage with mobile money service 
providers.  Letters of no objection have been ame nded to give the BOU some oversight powers over 
the provision of these services.  During 2011, the number of registered users of mobile money services increased from 1,683,713 to 2,879,968. The amount transferred rose from USh 963 billion in 
2010 to USh 3,753 billion in 2011. 
270. A review of the MDI Act 2003, aimed at st rengthening regulation of institutions and 
encouraging new micro-finance institutions to come  under the regulatory umbrella, has been initiated 
and is ongoing.  
(b) Insurance 
271. Insurance penetration in Uganda is about 0.65% , the lowest in the region (2.9 % in Kenya, 
1% in Tanzania and Rwanda).  Ne vertheless, growth has been strong in recent years and is attributed 
to Uganda's solid economic performance and grow th in the group life, micro-insurance, and 
loan-protection businesses.  Accord ing to the authorities, comprehe nsive public awareness campaigns 
have been rolled out, targeti ng the development of an insurance-conscious culture, and a 
complaint-handling bureau has been set up.  Penetr ation levels are expected to more than double 
by 2017.  
272. In 2010, gross premiums amounted to USh 240 billion, up 19% from 2009;  life insurance 
accounted for around 10% (Table IV.12).  Employment in the industry is low, accounting for 
1,645 employees in 2010.   
273. The Insurance (Amendment) Act (2011) provides fo r the renaming of the insurance regulator;  
the Insurance Regulatory Authority (IRA) (form erly the Uganda Insurance Commission), is 
responsible for regulating and ove rseeing Uganda's insurance industry.  The amended Act also 
provides for the regulation of micro-insurance;  th e regulation of Health Membership Organizations 
(HMOs) and Health Insurance Organizations (HIOs)
98; the establishment of a national reinsurance 
organization;  and allows for the involvement of banks in the selling of insurance products.  
Supervision of the IRA, previously under the Bank of Uganda, is now under the Ministry of Finance.   
                                                      
98 Development of a health insurance scheme is ongoing.   WT/TPR/S/271/UGA Trade Policy Review 
Page A5-550 
  
 274. In view of Uganda's changing risk profile , the IRA has made a proposal to increase the 
minimum paid-up capital for insura nce companies to USh 4 billion for non-life insurance, USh 3 
billion for life insurance, USh 75 million for brokerage firms, and USh 10 billion for reinsurers, to be 
implemented by October 2014.99 No new firm will be licensed if  it does not meet the new minimum 
paid-up capital requirements, except National Re, th e national re-insurance company (to be licensed), 
which is required to attain a capital of USh 5 billio n, to be increased to USh 10 billion capital within 
three years.  National Re is expected to commence operations in FY 2012/13.   
Table IV.12 
Insurance services indicators, 2006-10 
 2006 2007 2008 2009 2010 
Number of companies      
Local 9 9 9 8 7 
Foreign 10 11 12 13 15 
Type of operators      
Insurers 19 20 21 21 22 
Reinsurance brokers .. .. 1 1 1 
Brokers 23 21 19 22 28 
Loss assessors/adjusters 11 11 9 12 11 
Agents 436 515 555 637 610 
 (USh billion) 
Total gross premium income 102 129 167 202 240 
Non-life (share of business) 96 118 151 182 216 
Life (share of business) 6 11 16 20 24 
.. Not available. 
Source:  Information provided by the Insurance Regulatory Authority . 
275. In 2007, the IRA issued a circular to insure rs regarding a Certificate of Proficiency in 
Insurance as a mandatory requirement for all in surance agents, with the aim of increasing the 
professional level of insurance services.100   
276. Motorists' third-party liability and workers' compensation are mandatory, but their 
enforcement is weak due to lack of awareness, lack of regulations to operationalize the respective 
Acts, lack of incentives on the part of enforcem ent agencies, low compensation limits in the case of 
motor third-party insurance, and high limits for workers' compensation.101  Ugandan residents may not 
be insured by foreign insurance companies not registered in Uganda, but Ugandan companies may insure non-residents.  The minimum premiums are set by the Uganda Insurers Association (an umbrella association for insurance companies) and subject to IRA approval.   
277. The Government's 40% interest in the Nati onal Insurance Corporation Ltd was divested 
through a public offering in 2010.   
(c) Capital markets 
278. The Uganda Securities Exchange (USE) was licensed to operate as an approved Stock 
Exchange in 1997 by the Capital Markets Authorit y of Uganda.  In 2010, turnover in the equities 
                                                      
99 At present, a company may offer both life and non-life insurance.  Under the new proposal a 
company may offer life or non-life insu rance, but not both.  A subsidiary is treated as a new company with 
separate capital requirements. 
100 Information on the number of agents passing the exam is not readily available. 
101 UNCTAD (2011b). EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-551 
 
 
 market was modest, registering USh 42 billion, up 100% from the previous year.  The products listed 
on the USE are government and corporate bonds and 14 equities, 7 of which are cross-listings (East 
African Breweries Ltd, Kenya Airways, Jubilee Ho ldings Ltd, Kenya Commercial Bank, Equity Bank 
Ltd, Nation Media Group, and Centum Investment Lt d).  According to the authorities, the USE fee 
structure is being amended and the new fees will enter into effect upon approval by the Capital 
Markets Authority.  Different fee structures are propo sed with respect to cro ss-listings from within the 
EAC and outside.  
279. In April 2010, the USE implemented a pa perless clearing and settlement regime, the 
Securities Central Depository (SCD), under the SCD Act 2009. 
280. Regional initiatives include the East African Stock Exchanges Association whose objectives 
are to develop guidelines for handling regional initial public offers (IP Os), develop regional 
infrastructure bonds, and integrate regional trading and clearing systems.   
(ii) Communications services 
281. Growth in communication services averaged  26% during 2006-10, with the subsector 
contributing 6.2% to GDP in 2010, double the previ ous year.  This growth was driven by increasing 
employment, attracting foreign direct investment , as well as higher tax contribution arising from 
increased consumption and acce ss to information and communications technology (ICT). 
282. The Uganda Communications Act (UCA) 1997 est ablished an independe nt regulatory body, 
the Uganda Communication Commission (UCC) in 1998, whose vision is to provide access to reliable, cost effective, and affordable communica tions services, largely delivered through an enabled 
private sector.  The National Information Technology  Authority, Uganda (NITA-U), established in 
2009 under the NITA-U Act, has the mandate to c oordinate, promote, and monitor IT development 
within the context of national social and ec onomic development. The Uganda Communications 
Tribunal, provided for under the Uganda Communica tions Act 1997, has not yet been established.  
Additional legislation includes the Telecommunica tions (Interconnection) Regulations, 2005, the 
Communications (Universal Service) Regulations, 2005, and the Telecommunications (Tariffs and 
Accounting) Regulations, 2005.   
283. In 2006, following the liberalization of the telecommunications market, Uganda established 
the Ministry of Information and Communications Technology (MoICT) with the mandate to provide 
strategic and technical leadership;  overall coordina tion;  and support and advocacy on all matters of 
policy, laws, regulations, and strategy for the ICT sector.  The Ministry has two Directorates:  
Communications and Broadcasting Infrastructure;  and Information Technology and Information 
Management Services.   
284. In 2011, UCC and the Broadcasting Council (BC) were merged into a single regulatory body 
that will oversee both communication and broadcas ting matters with an interim governing board 
appointed by the MoICT.
102  It has the sole mandate to licence and regulate all telecommunications, 
post and courier service providers with advice fro m the MoICT.  The principles for drafting the 
Harmonization Act (Uganda Communications Regulato ry Authority Bill) have been approved by 
Cabinet with the Bill targeted to be presented to Parliament for enactment by September 2012.  
                                                      
102 The term of the interim board expired at end 2011.  The proposed name of the merged institution is 
the Uganda Communications Commission.   WT/TPR/S/271/UGA Trade Policy Review 
Page A5-552 
  
 285. The operational level is composed of telecomm unications, postal, information technology and 
broadcasting operators, with Uganda Posts Limited (UPL) and Uganda Institute of Communications 
Technology (UICT) as affiliated bodies to the MOICT.   
(a) Telecommunications services 
286. The telecommunications subsector has expanded ra pidly in the last few years, particularly 
with respect to the number of mobile subscriptions  and public pay phones (Table IV.13).  Increased 
competition has brought down tariffs, increasing affo rdability and usage, while the emergence of 
non-voice services such as mobile money has contribut ed to growth.  Teledensity of mobile lines 
increased from 9.9% in 2006 to 50.7% in 2011.  The r ecent growth in subscriptions after slow growth 
in 2009 is due to intense price competition, pr oliferation of multiple sim handsets, and new 
subscription demand created by new services like mob ile money transfers and utility payment options.  
The number of operators in the mobile sector has doubled since 2006;  and telephone traffic has 
increased more than five fold.  In 2010, domestic  call rates dropped to an average of USh 180 per 
minute (from USh 392 in 2009), while international rates dropped to USh 250 (from USh 400).  Internet usage has grown rapidly, and now accounts for more than 10% of the population.  
287. Nonetheless, industry revenues fell 1.4% (in U. S. dollar terms) from 2009/10 to 2010/11 due 
to rapid local currency devaluation, which presents  a challenge to domestic operators as certain 
operational and capital expenses such as bandwidth, in ternational termination settlements, and some 
financing costs are met in foreign currency.  Direct employment in the sector grew from around 1,000 employees in 2006 to nearly 20,000 in 2010, while  indirect employment is close to 1.2 million.  
Cumulative planned investment in the sector  was approaching US$200 million in 2010. 
288. Three operators, MTN, Uganda Telecom (UTL), and Smile Communications provide 
fixed-line services, with the latter using voice WIMAX.  UTL, the dominant provider of fixed lines, is 
still operating despite the freezing of LAP Green (par t of the Libyan African Investment Portfolio) 
assets following the issuance of UN Resolutio n 1970 (2011) by the Security Council.
103  MTN, Warid, 
Airtel (formerly Celtel), Orange, Smile Telecom, and I-tel are the main operators in the mobile 
market.104   
Table IV.13 
Telecommunication services, 2006-11 
 2006 2007 2008 2009 2010 2011 
Operators       
National telephone operators 2 2 2 2 2 2 
Mobile cellular operators 3 3 4 6 6  6 
Internet service providers 17 n.a n.a n.a n.a  n.a 
Public infrastructure provider .. .. .. 23 26 24 
Public service provider (voice & data) .. .. .. 32 36 34 
Public service provider (capacity 
resale) .. .. ..3 8 8 
Services provided       
Fixed telephone subscribers 129,863 165,788 168,481 233,533 327,114  464,849 
Mobile cellular subscriptions  2,697,616 5,163,414 8,554,864 9,383,734 12,828,264  16,696,992 
Pay phones 12,889 27,999 52,515 94,896 104,385   n.a. 
Telephone traffic ('000 minutes) 2,307,391 3,004,738 4,268,705 7,146,567 10,037,722  13,192,302 
Table IV.13 (cont'd) 
                                                      
103 LAP Green is the majority shareholder in UTL;  the Ugandan Government holds a 31% stake.   
104 Sure Telecom is still in the process of operationalizing its licence. EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-553 
 
 
  2006 2007 2008 2009 2010 2011 
Teledensity  
Fixed lines 0.47 0.59 0.57 0.76 1.03 1.41 
Mobile lines 9.86 18.28 28.74 30.60 40.36 50.69 
Investment (US$ million)   73,499,693 367,809,156 326,563,198 270,751,740 140,400,616 .. 
.. Not available. 
Source:  Uganda Communications Commission, 2011. 
289. Until 2009, Uganda depended entirely on satellites fo r international internet connectivity.  In 
October 2011, it inaugurated the long-awaited phase tw o of its national fibre- optic internet backbone 
infrastructure.  A third phase, to be rolled out in early 2012, will result in 307 km of fibre-optic laid 
from Kampala to the Rwandan border to complete a link from Mombasa.  Total bandwidth in Uganda 
increased from 2,050 mbps in December 2009  to 15,739 mbps in June 2011.     
290. In 2007, Uganda implemented a technology- neutral horizontal licensing framework that 
allows the licensee to select the technology of its choice to deliver ICT services.  Under the regime, 
there are three categories of licences:  Public Serv ice Provider (PSP) licence;  Public Infrastructure 
Provider (PIP) licence (US$100,000 one-time entry fee plus US$10,000 per annum); and General 
Licence (no fee).  There are two sub-categories of PSP licence.  Public Voice and Data Provider 
licences (US$10,000 per annum) allow the licensee to offer telephony and data services of any kind 
using any technology, based on the capacity or infrast ructure of a PIP licensee;  services that may be 
provided include fixed voice services, mobile servi ces and internet access, including VoIP.  The 
second PSP Licence sub-category, the Capacity Resal e Licence (US$3,000 per annum), permits the 
resale of leased telecommunications services or cap acity;  services include calling cards and capacity 
resale to Public Voice and Data Provider Licensees.105     
291. PIP licences authorize licensees to establish, operate, and maintain infrastructure for the 
provision of communications services to the public a nd/or to offer infrastructure commercially for use 
by PSP licensees.  A PIP licensee must also hold a PSP licence to provide communications services to 
the public.  PIP licensees providing both retail and wholesale services must price wholesale at 20% 
less than the retail price.  PIP licensees require separate authorization to use spectrum resources or 
other essential resources and access faciliti es, including international gateways106, numbering 
resources, and VSAT services.  General licences apply to public pay communications networks such as payphone kiosks, fax bureau services, internet cafés, and cyber cafés.  Licensees may provide 
payphone services using VoIP technology.  However,  licensees are not permitted to provide prepaid 
services, such as calling cards, unless they obtain the appropriate authorization.  Uganda also issues 
authorizations for essential resour ces and facilities, which apply to the use of spectrum, numbering 
resources, international gateways, and VSAT.
107 
292. Under the Telecommunications (Interconnection)  Regulations, all network operators are 
obliged to interconnect with other operators and provide for number portability.  The UCC sets 
interconnection rates and monitors compliance among  operators.  Interconnection rates were revised 
in June 2012 to USh 112 (US$0.04) per minute (reduced from USh 131 (US$0.06), established in 2011). 
                                                      
105 ITU online information.  Viewed at:  http://www .ictregulationtoolkit.org/en/Section.3326.html, 
January 2012. 
106 A gateway may also be used for private use. 
107 ITU online information.  Viewed at:  http://www .ictregulationtoolkit.org/en/Section.3326.html, 
January 2012. WT/TPR/S/271/UGA Trade Policy Review 
Page A5-554 
  
 293. Following the detection of predatory pricing pr actices, evidence of cross-subsidization, and 
other abuses, the UCC issued a directive in June 2010 under whic h operators are not allowed to 
charge on-net rates lower than 70% of interconnection rates.  Failure to comply with the regulations 
could result in penalties of up to 10% of annual turn over.  The guidelines will be effective as soon as 
they are gazetted.108  According to the authorities, consultations are ongoing following the completion 
of the interconnection review exercise.   
294. Other than wholesale interconnection rates, pric es for other voice services are determined by 
service providers, who file notifications or seek UC C "no objection" before a tariff becomes effective 
in the market.   
295. The UCC is responsible for approval of tel ecommunications equipment.  Where equipment 
has already been certified by peer organizations in other jurisdictions with accepted conformity 
assessment frameworks, the equipment is type-accepted by UCC. 
296. Competition in the telecoms sector is regulated by sector-specific rules, in particular, the 
Communications (Fair Competition) Regulations of  2005, which contain rules on anti-competitive 
agreements between operators, abuse of dominant po sition, and anti-competitive mergers, take-overs, 
consolidations or agreements.  Despite these rules,  the dominance of certain players and the existence 
of cross-subsidization by the vertically integrat ed incumbent (ITL) have prompted the question of 
whether existing provisions are sufficient to guar antee fair competition, or whether a dedicated 
authority based on competition law is necessary.109   
297. The Communications (Universal Service) Regulations, 2005, set out the universal service 
obligation imposed on holders of a facility-based licence.  Universal service is defined as connection 
to a fixed communication network able to support voice telephony, fax, and data transmission, but 
does not include mobile services.110  The UCC designates operators w ho have an obligation to provide 
universal service, and defines the supply-time and quality-of-service indicators.  The performance of operators required to meet the service targets are published;  in case of failure to meet the service 
targets compensation is payable.  Currently, all licensed providers have an obligation to remit 1% of 
gross revenues to the Universal Access Fund.  On a competitive basis, any licensed operator may 
receive subsidy financing to extend services to under-served areas.   The Fund has had total annual 
receipts of up to US$3 million, utilisation of which is around 85%.   
298. Uganda has approved a Digital Migration Policy ahead of the switch from analogue to digital 
broadcasting in December 2012.  The purpose of this policy is to provide a framework to facilitate a 
smooth transition from analogue to digital terrestrial  broadcasting in order to provide efficient and 
effective utilization of the radio spectrum in line wi th internationally agreed guidelines.  The Uganda 
Broadcasting Corporation is designated as the sole si gnal distributor for the first five years, after 
which the Government will determine whether add itional signal distributors will be allowed in the 
market.  According to the authorities, national and local providers are required to broadcast a 
"substantial" quota of local content. 
299. In July 2011, Cabinet approved the national E-government Policy Fram ework with the overall 
objective of improving public service delivery th rough systematic transformation from manual to 
                                                      
108 Online information.  Viewed at:  http://www .telecompaper.com/news/uganda-puts-limits-on-
promotional-tariffs, 23 January 2012 
109 Alemu (2011). 
110 The target for universal access to voice telephony  was initially one per 5,000 persons, revised to 
2,500 persons, and further revise d to include internet access.   EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-555 
 
 
 electronic-based systems and practices.  Three cyber laws were passed in 2011, the Electronic 
Signature Act, Computer Misuse Act, and Electronic Transaction Act.  
300. A number of other policies and strategies are currently being formulated.  These include a 
Telecommunications Policy, a Broadcasting Policy, an E-Waste Management Policy, an Information 
Management Services Policy, a national ICT Po licy, an IPv6 Transition Policy, a National 
Information Security Strategy, a Country Code Top Level Domain Strategy, and a Uganda Communications Regulatory Authority Bill. 
301. Uganda has undertaken specific GATS commit ments on telecommunications and has signed 
the Telecommunications Reference Paper, but is no t a signatory to the WTO Information Technology 
Agreement. 
(b) Postal services 
302. Uganda has over 300 post offices in more than 30 major towns.  Postal  services declined by 
26% in 2010 compared with 2009, due to increased  internet and telephone  penetration, which 
continues to squeeze traditional mail volumes.  Cour ier services increased thr ee-fold over the same 
period.  The proliferation of mobile money ser vices has provided complementary demand in the 
courier market.     
303. The Uganda Communications Act 1997 provid es the mandate for the UCC to license, 
monitor, inspect, regulate, and ensure genera l improvement and equitable distribution of 
communications services.  Licences to operate in the pos tal subsector are granted by the UCC.  As of 
June 2011, one major postal operator, Uganda Post  Limited (trading as Posta Uganda), which is a 
state-owned company, has exclusive rights to provide and issue postage  stamps, pre-stamped 
envelopes, aerogrammes, and international repl y coupons;  rent and lease post office boxes;  and 
deliver letters weighing up to 350 g (with a few exce ptions).  UPL has universal service obligations.  
Its five-year operating licence is valid until 2016.  
304. The UCC has granted minor licences to 30 private courier companies, which offer domestic, 
regional and international courier services.  In July 2010, a pilot for a national post code and 
addressing system was rolled out in Entebbe and is expected to achieve national coverage within 
seven years;  this project is expected to revolutionize traditional post. 
(iii) Transport 
305. Transport and communications contributed 13.9%  to GDP in 2010/11.  Road, rail, and water 
transport averaged 6.4% annual growth in 2006-10 , while air transport and support services averaged 
6.9%.  The Ministry of Works and Transport (MOWT), with a Directorate for Transport, and a 
Directorate for Engineering and Works, is responsib le for formulating policies in this sector.     
306. Uganda's National Transport Master Plan sets out a framework for the development of the 
transport sector over the period 200 8-23, and covers all transport modes (including inland water 
transport, urban transport in Kampala, pipelines, a nd non-motorized transport).  Uganda intends to set 
up a new Multi-Sectoral Transport Regulatory Authority (MTRA), which will absorb the Transport 
Licensing Board (responsible for licensing public ser vice vehicles and commercial trucks) and extend 
its activities to all modes except air transport.  The responsibilities of MTRA will include improving 
safety, enhancing the quality of services, preventing market failures, protecting the sector from abuse 
of market power, protecting the environment, and fostering sustainable growth of the sector. WT/TPR/S/271/UGA Trade Policy Review 
Page A5-556 
  
 (a) Air transport 
307. Annual growth in air transport and related support services averaged 6.2% between 2006/07 
and 2010/11;  the number of passe ngers travelling by air almost doubled (Table IV.14).  Annual 
commercial aircraft movements at Entebbe In ternational Airport (EIA) average around 22,000 
between 2009/10 and 2010/11;  and air cargo around 55,000 tonnes. 
Table IV.14 
Commercial traffic at Entebbe International Airport, 2006-10 
 2006 2007 2008 2009 2010 
Passenger flights 19,200  22,000 23,847 21,619  23,320 
Passengers 578,880  850,661 997,937 996,395  1,110,876 
  International      
    Landed 252,432  396,079 470,397 468,899  518,791 
    Embarked 254,606  392,695 465,787 460,153  504,646 
    In transit 35,692  35,988 38,681 49,434  75,560 
  Domestic      
    Landed 18,458  13,703 12,205 9,188  6,004 
    Embarked 17,692  12,196 10,867 8,721  5,875 
Freight (tonnes) 48,887  64,339 59,679 53,278  49,683 
Source:  Uganda Bureau of Statistics (2011), Statistical Abstract 2011 , Kampala.  Viewed at:  
 http.//www.countrystat.org/country/uga/docu ments/docs/2011%20statistical %20Abstract.pdf.   
308. Access to the Ugandan aviation market is governed  by the Civil Aviation Authority Statute of 
1994.  The Civil Aviation Authority (CAA), whic h reports to the MOWT, is responsible for 
regulating the aviation industry in accordance with the statute and with providing both air traffic and 
aerodrome services .  Uganda has 46 airports, of which the CAA manages 14, including EIA, Uganda's 
major international airport.  Improvements have b een made to the EIA passenger terminal and a new 
privately funded cargo centre is under construction.  There are about 30 up-country airports, of which 
19 have regular services.  Five other airports ar e designated as international:  Arua, Gulu, Kasese, 
Kidepo, and Pakuba;  only Gulu has a paved runway .  In 2011, 21 international airlines were 
operating at EIA.   Eight airlines offer domestic flights.  Following the liquidation of the state-owned 
Uganda Airlines Corporation in 2001, the designate d national airline is Air Uganda, which is 100% 
owned by the Aga Khan Fund for Economic Development. 
309. The Government has decided to  put under concession eight up-co untry airports which are not 
gazetted as entry-exit points.  There are no plans to open-up EIA for concession, given that the passenger service charge is the largest source of CAA revenue.  Air traffic performance statistics at EIA are shown in Table IV.15. 
Table IV.15 
Air transport performance at Ente bbe International Airport, 2008-11 
 Actual (2008-10) Target (2010/11) Actual (2010/11) 
International passengers  968,348 1,045,816 1,048,507 
Domestic passengers 14,544 14,980 10,927 
Imports (tonnes) 21,185 21,821 20,221 
Exports (tonnes) 29,937 32,931 26,444 
Commercial aircraft movements 21,781 22,434 24,051 
Overflights 8,825 9,090 10,625 
Source:  Information provided by CAA.   EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-557 
 
 
 310. Traffic rights are allocated in accordance with relevant international conventions, e.g. the 
Chicago Convention and the Civil Aviation Authority Statute No. 3, 1994.  Traffic rights belong to the State.  Air transport operators are free to exercise the first and second freedoms provided they request clearance.  Third and fourth freedom tr affic rights are exchanged on a reciprocal basis 
provided a bilateral air services agreement (BASA) ha s been concluded.  Uganda has signed a number 
of BASAs;  most liberalize air transport up to the fifth freedom.
111  Three BASAs will be reviewed  in 
2012/13 (Burundi, Egypt, and DR Congo) and two nego tiated (Spain and Eritrea).   Fifth freedom 
traffic rights are granted on a reciprocal basis.     
311. In order to encourage FDI and develop its ai r transport market, Uganda has developed an 
open skies policy opening up its air service market th rough agreements that have no restrictions in 
terms of access, capacity, or frequency, and conform fully to the Yamoussoukro Decision.112  Uganda  
has open sky agreements with the United States and the United Arab Emirates.   
312. In 2006, Uganda adopted regulations governing many operational aspects of air transportation 
including personnel licensing; approved training orga nizations; aircraft registration and marking; 
airworthiness;  approved maintenan ce organizations, instruments and equipment; operation of aircraft; 
air operator certification and administration; comme rcial air transport operations by foreign air 
operators in and out of Uganda; aerial work, includi ng operations of aircraft for specialized services 
such as agriculture, surveying, or search and rescu e; rules of the air and air traffic control; and 
parachute operations.   
313. Under the National Transport Master Plan, an investment of US$235 million is proposed for 
the air transport sector during 2008-23.  This woul d provide funds for improvements at EIA and at 
other airports for runways, aprons, navigational aids , terminal buildings, and other infrastructure.   
314. The CAA works closely with the EAC in its efforts to harmonize aviation policies.  New 
navigation systems are planned on a regional basis, and the East African Civil Aviation Safety and 
Security Oversight Agency (CASSOA) seeks to enforce safety standards throughout the region. 
(b) Road, rail, and water transport 
315. Uganda's road network comprises national road s (20,000 km), district roads (22,500 km), 
urban roads (4,800 km), and community roads (35,000 km) based on 2011 figures.  The strong growth in vehicle numbers (from 552,653 in 2009 to 635,6 56 in 2010) is due to poor railway and public 
transport systems, and easily accessible car loans.  Roughly a third of the road network is paved.  
Road transport is dominant with about 95% of goo ds and 99% of passenger traffic using roads.  
316. In the last five years there have been a num ber of reforms in the roads subsector;  in 
particular, a separation of roles and responsibiliti es with respect to policy formulation, road 
development and maintenance, regulation, and fi nancing.  The Uganda National Roads Authority 
(UNRA), established in 2008, has the mandate to de velop and maintain the national roads network, 
advise Government on general roads policy, and a ddress transport concerns.  Road maintenance is 
carried out by the UNRA on national roads, and by local councils on other roads, with assistance from 
the MOWT.  Road safety is a serious and growi ng concern, with the fatality rate per vehicle 
                                                      
111 Uganda has concluded BASAs with Tanzania, Sudan, Ethiopia, the United Kingdom, Belgium, DR 
Congo, Zimbabwe, Rwanda, Libya, Kenya,  Bahrain, Oman, South Africa, Indi a, Qatar, Nigeria, United Arab 
Emirates, the Netherlands, the Un ited States, Ghana, and Turkey. 
112 Schlumberger (2010). WT/TPR/S/271/UGA Trade Policy Review 
Page A5-558 
  
 (61 deaths per 10,000 vehicles) some 50 times highe r than in some developed countries.  A major 
study of road safety is being planned. 
317. Under the NTMP, the length of paved national ro ads is expected to increase to 7,100 km by 
2023.  The Uganda Road Fund (URF) was established in  2008.  Its purpose is to facilitate the delivery 
of road maintenance services, create an environmen t conducive to efficient a nd effective maintenance 
of public roads, and continuously im prove services offered by the Fund.   
318. Cabotage is not permitted in the road trans port sector, but may be once the EAC Common 
Market Protocol is fully implemented and the laws in Uganda have been amended. 
319. Only 330km of Uganda's former rail network of 1,266 km was in operation in 2006, when a 
25-year concession was granted to Rift Valley Railway s (RVR) to operate Uganda's railway.  Since 
then, the concession has been dogged by poor manageme nt and inadequate capitalization, leading to 
the exit of Sheltam, the South African consortium.   Egypt's Citadel Capital is now the majority 
shareholder with a 51% stake.  In August 201 1, RVR secured a five-year US$164 million loan, 
largely funded by the International Finance Corpor ation, to provide much-needed investment for re-
opening or new construction of lines.   
320. Regulation and coordination of railway development projects are currently the responsibility 
of the Uganda Railways Corporation (URC), on be half of the MOWT, but will pass to the Multi-
Sector Transport Regulation Authority (MTRA) once established.  The Uganda Railway Asset 
Holdings Co. Ltd (URAC) is to be formed to  manage all railway assets not subject to RVR's 
concession, and presently retained by the URC.  This  will formally separate railway infrastructure and 
operations.   
321. East African countries currently use a 1.000 metre gauge, while much of the world uses a 
standard gauge of 1.435 metres.  EAC countries recently announced a decision to adopt standard 
gauge across the EAC region.  Significant inv estment will be required in order to upgrade 
infrastructure to the standard gauge.    
322. Freight volumes carried on the railways increased modestly in 2011, while passenger numbers 
were down.  The volume of goods transported by RV R is expected to more than double to 3.3 million 
tonnes a year by 2015, while marginal costs are e xpected to drop by up to 30%.  The recent discovery 
of oil deposits in western Uganda has underlined th e need for viable bulk freight transportation.   
323. With one sixth of Uganda's surface area cove red by water, inland water transportation 
historically provided transport for passengers and fre ight.  Uganda's inland water transport system has 
three main components:  wagon ferry services on Lake Victoria;  short-distance road-vehicle ferries 
acting as 'road bridges';  and informal-sector opera tions by individually owned canoes.  The three 
Ugandan wagon ferries operating on La ke Victoria between ports in Uganda, Kenya and Tanzania 
ceased operations after one ferry sank in 2005 and others were grounded for rehabilitation to enable 
them to be properly insured.  Provision of US$2. 4 million has been made to rehabilitate the wagon 
ferries.  Seven 'road bridge' crossings are operated on Lakes Victoria and Albert and on the Nile. One 
is operated by the Uganda Wildlife Authority, and the others have been transferred from MOWT to 
UNRA, which plans to install two new crossings .  According to the authorities, a regulatory 
framework for licensing of vessels and operators is being planned. 
324. According to the authorities, the law is silent on the issue of cabotage in the water transport 
subsector and there has been no foreign interest in carrying merchandise or pe ople in Ugandan waters.  
Licensing in the inland waterways sector, under the Inland Water Transport Act of 1939 as amended EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-559 
 
 
 in 1964, is the responsibility of the Transpor t Licensing Board (TLB).  Vessels and canoes are 
inspected at landing sites and the licence issued at  TLB offices.  The authorities indicate that some 
vessel owners do not pay the fee to obtain their licence after inspection.   
325. The legal instruments for inland water transport, which date b ack to 1994, are the Ferries Act, 
the Vessels (Registration) Act, and the Inland Wate r Transport (Control) Act.  The Lake Victoria 
Transport Act (2007) has provisions covering regi stration and licensing of all vessels used on Lake 
Victoria, ensuring the safety of passengers and cargo, standards for competency of crew, carriage of bulk cargoes and dangerous goods, and compulsory insurance.
113   
(iv) Tourism 
326. Tourism earnings amounted to US$662 million in 2010, making the industry Uganda's 
leading foreign exchange earner.  Growth in the sect or is attributed to the increase in the number of 
visitors and the growing urban population.  In 20 10, there were 120 tour operators in Uganda and 
about 12,000 accommodation establishments.  According to the authorities, grading and classification 
of hotels has not yet been undertaken.  However, the Ministry of Tourism is currently carrying out an inventory survey. 
327. Uganda, has many tourist attractions, from east  African savannah to west African jungle, 
including Lake Victoria, Murchison Falls, and the Mountains of the Moon, along with a number of 
national parks and wildlife reserves,  hosting half of the world's mountain gorilla population.  Uganda 
is also host to over 1,000 bird species, some of which are endemic to the country and found mainly in the western region.  Despite the large potential for growth in the sector, Uganda faces a number of 
challenges, including poor transport and accomm odation infrastructure, insufficient training of 
personnel, and the high cost of domestic flights. 
328. Tourist arrivals increased from 538,586 in 2006 to 945,899 in 2010 (Table IV.16).  Some 
70% of all tourist arrivals were from Africa, par ticularly neighbouring countries.  Tourists from 
Europe accounted for 12% of total arrivals, followed by visitors from Ameri ca and Asia.  Visits to 
national parks were up 20% in 2010, compared with the previous year. 
Table IV.16 
Tourist arrivals, 2006-10 
Origin 2006 2007 2008 2009 2010 
Africa 398,052 480,553 624,354 631,258 677,774 
America 35,749 42,388 53,950 47,065 65,175 
Asia 21,873 25,106 33,532 29,656 41,200 
Europe 71,131 77,391 106,020 79,710 112,870 
Middle East 3,090 4,023 7,995 7,698 13,695 
Oceania 4,469 4,163 6,264 4,638  5,861 
Others 4,222 7,922 11,751 5,387 29,324 
Total 538,586 641,743 843,864 806,655 945,899 
Source:   Uganda Bureau of Statistics (2011), Statistical Abstract 2011 , Kampala.  Viewed at:  
 http.//www.countrystat.org/ country/uga/documents/docs/2011% 20statistical%20A bstract.pdf. 
329. The newly established Ministry of Tourism, Wildlife and Heritage, has been split from the 
Ministry of Trade and Cooperatives.  The Tourism Act (2008) brings together the hotels laws, the 
tourists' agents licensing law, and the Uganda T ourism Board (UTB) in a major reform aimed at 
                                                      
113 The authorities indicate that this Act is not in operation as it has not yet been domesticated;  it does 
not specify an enforcement agency or which court will handle offenders. WT/TPR/S/271/UGA Trade Policy Review 
Page A5-560 
  
 boosting and developing the tourism industry.  The Act includes the introduction of a tourism 
development levy, to be imposed on both visitors and tour operators, and a tourism development fund 
to further develop the sector.  Tourist accommodation, travel agents, tour operators, and tour guides must be licensed.  Tour guides must register with  the UTB, pass an appropriate exam, possess tourist 
guide qualifications deemed to be relevant, and possess an identity document issued by the UTB.  
Foreigners may not be licensed as tour guides.  A proposal is under consideration to operationalize a 
tourism development levy of 2% to be placed on accommodation in order to boost the marketing and 
promotion of Uganda tourism.   
330. Investment in the travel and tourism sector was estimated at US$240.5 million or 6.7% of 
total investment in 2010.  This is expected to reach  7% of total investment by 2020.  Foreign investors 
must invest a minimum of US$100,000 to secure an investment licence from the UIA. For domestic investors, the minimum requirement is US$50,000 (but no licence from UIA is required).  Foreign investors who have invested more than US$500,000 may repatriate their investments and dividends, 
and receive foreign exchange to pay debts incurred in the business.  Foreign investors in car hire 
services are not eligible for investment incentives.
114  
331. Under Uganda's Incentive Allo wance Scheme, investment incentives for the tourism sector 
include:  an initial depreciation allowance of 20% on  the cost of an industrial building (including a 
hotel) during the first year of use, with an annua l rate thereafter of 5%;  materials for hotel 
construction or renovation not locally produced may be imported duty free, subject to prior approval 
by the Ministry of Tourism;  hotel equipment impor ted by a licensed hotel for its own use is exempt 
from duty;  and tax-free diesel is provided for thermal power generation for business operations by 
hotels.115  
332. The EAC Standards Criteria for Classification of Accommodation and Restaurant 
Establishments, first published in 2006, include sch edules for the star-rating classification of lodges, 
tented camps, town hotels, vacation hotels, villas, cottages and serviced apartments, and restaurants.  
Between November 2011 and February 2012 , 20 hotel assessors were trained. 
333. Under the GATS, Uganda made commitments in hotels and restaurants, and travel agencies 
and tour operators.  Government a pproval is required for investment in these subsectors, while cross-
border supply and consumption ab road are without restriction.116 
                                                      
114 UNCTAD (2008). 
115 UNCTAD (2008). 
116 WTO document GATS/SC/80, 15 April 1994. EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-561 
 
 
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English/DB12-FullReport.pdf. 
 
  
APPENDIX TABLES EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-569 
 
 
 Table AI.1 
Structure of exports, including re-exports, 2005-10 
(US$ million and %) 
 2005 2006 2007 2008 2009 2010 
Total (US$ million) 812.8 962. 2 1,336.7 1,724.3 1,567.6 1,618.6 
 (%)  
Total primary products 75.6 68.6 67.2 63.7 65.9 67.1 
   Agriculture 68.8 62.1 61.7 58.3 56.7 60.2 
      Food 58.2 54.4 55.3 53.5 51.1 54.8 
         0711 Coffee, not roasted 21.2 19.6 19.1 21.3 17.1 16.7 
         0345 Fish fillets and fish meat, fresh or chilled; fish meat fro zen 12.3 9.9 6. 0 6.0 5.1 5.8 
         0741 Tea 4.2 5.3 3.6 2.7 3.8 4.2 
         1212 Tobacco, wholly or par tly stemmed/stripped 1. 8 2.3 4.9 3. 8 3.5 3.7 
         0611 Sugars, beet/cane, raw, solid , no added flavour/colour 0.5 0.7 1.6 1.3 2.0 2.9 
         4312 Fats/oils, partly or wholly  hydrogenated, etc. 0.9 1.2 3.4 1.7 2.3 2.2 
         0721 Cocoa beans, whole or broken, raw or roasted 1.2 1.0 1.2 1.3 1.8 2.2 
         1123 Beer made from malt (includi ng ale, stout and porter) 0.7 0.9 1.7 2.3 1.9 1.3 
         0441 Maize seed 1.1 1.2 0.8 0.3 1.0 1.2 
      Agricultural raw material 10.5 7.8 6.4 4.8 5.6 5.4 
         2926 Bulbs, tubers, cuttings, slip s, live plants, etc. 4. 0 3.3 2.7 2. 5 3.1 2.9 
         2634 Cotton, carded or combed 3.4 2.1 1.5 0.7 1.4 1.2 
   Mining 6.8 6.5 5.5 5.4 9.2 6.9 
      Ores and other minerals 2.1 2.1 1.7 1.5 0.9 0.5 
      Non-ferrous metals 0.0 0.0 0.1 0.2 0.9 0.9 
      Fuels 4.7 4.4 3.7 3.6 7.4 5.5 
       
Manufactures 15.5 18.6 27.9 33.6 33.0 31.0 
   Iron and steel 3.7 3.3 4.7 5.9 5.5 4.9 
         6762 Bars/rods (not 676.1) iron/s teel, hot-rolled, etc. 0.0 0.0 0.0 1.5 1.6 1.4 
         6794 Other tubes, pipes, and ho llow profiles, iron/steel 0.6 1.0 1.7 2.2 1.8 1.4 
         6741 Flat-rolled products, iron/ steel, zinc plated 1.6 1.4 1.6 1.8 1.5 1.2 
   Chemicals 2.4 1.6 3.0 3.4 3.9 3.3 
         5541 Soap 0.9 0.7 1.3 1.2 1.1 1.2 
   Other semi-manufactures 1.9 2.2 4.4 7.0 7.2 7.3 
         6612 Portland cement and similar hydraulic cements 0.4 0.6 1.5 4.5 5.3 4.5 
   Machinery and transport equipment 5.2 9.3 12.7 10.9 13.1 12.2 
      Power generating machines 0.1 0.1 0.2 0.4 0.2 0.3 
      Other non-electrical machinery 1.0 0.9 2.2 2.5 3.7 2.5 
         Agricultural machinery and tractors 0.1 0.0 0.0 0.1 0.1 0.1 
      Office machines & telecommuni cation equipment 2.0 5.7 6.8 4.5 4.2 5.7 
         7643 Radio or television tran smission apparatus 0.8 5.5 6.5 4.0 3.9 4.9 
      Other electrical machines 0.2 0.1 0.3 0.6 0.4 0.2 
      Automotive products 1.5 1.9 2.5 2.3 2.7 2.7 
         7812 Motor vehicles for the transport of persons, n.e.s. 0.9 0.8 1.1 1.1 1.5 1.5 
      Other transport equipment 0.4 0.5 0.7 0.5 1.9 0.8 
   Textiles 0.6 0. 5 0.8 0.9 0.7 0.7 
   Clothing 0.6 0.2 0.2 0.1 0.1 0.2 
   Other consumer goods 1.1 1.5 2.1 5.5 2.6 2.4 
Other 9.0 12.8 4.9 2.7 1.1 1.9 
   Gold 9.0 12.7 4.9 2.5 0.8 1.9 
         9710 Gold, non-monetary (excl. gold ores and concentrates) 9.0 12.7 4.9 2.5 0.8 1.9 
Source:  WTO Secretariat estimate, based on UNSD, Comtrade database SITC Rev.3 data. WT/TPR/S/271/UGA Trade Policy Review 
Page A5-570 
  
 Table AI.2 
Structure of imports, 2005-10 
(US$ million and %) 
 2005 2006 2007 2008 2009 2010 
Total (US$ million) 2,054.1 2, 557.3 3,493.4 4,525. 9 4,247.4 4,664.3 
 (%)  
Total primary products 34.7 37.2 33.4 34.3 32.2 34.7 
   Agriculture 16.5 15.0 13.5 14.0 13.5 13.5 
      Food 15.0 13.6 12.5 13.0 12.4 12.4 
         4222 Palm oil, fractions 2.0 2.6 2.9 4.2 2.9 3.8 
         0412 Other wheat (including spelt)  and meslin, unmilled 3.9 4.1 3.1 2.4 3.4 2.7 
         0611 Sugars, beet/cane, raw, solid , no added flavour/colour 0.2 0.4 0.7 0.5 0.6 0.9 
         0612 Other beet, cane and chemically pure sucrose, solid form 1.0 1.0 1.1 0.8 0.9 0.8 
      Agricultural raw material 1.5 1.4 1.0 1.0 1.0 1.1 
         2690 Worn clothing and other worn textile articles, rags 1.2 1.0 0.7 0.7 0.7 0.8 
   Mining 18.2 22.2 19.9 20.3 18.7 21.2 
      Ores and other minerals 0.6 0.5 0.5 0.6 0.7 0.8 
      Non-ferrous metals 0.6 0.6 0.7 0.6 0.5 0.5 
      Fuels 17.0 21.1 18.7 19.1 17.5 20.0 
       
Manufactures 64.5 62.5 62.9 65.5 67.7 65.0 
   Iron and steel 5.8 5.5 5.0 6.8 5.2 4.9 
         6741 Flat-rolled products, iron/ steel, zinc plated 0.9 1.4 0.8 1.1 0.8 0.8 
         6743 Flat-rolled iron/steel products, painted/varnished, etc. 0.8 0.7 0.8 0.9 0.6 0.7 
   Chemicals 13.1 13.2 12.7 14.1 13.1 12.3 
         5429 Medicaments, n.e.s. 2.5 2.9 3.6 3.9 3.4 3.1 
         5711 Polyethylene 1.4 1.3 1.3 1.3 0.9 0.9 
   Other semi-manufactures 9.2 8.6 8.6 8.9 10.7 8.9 
         6612 Portland cement and similar hydraulic cements 2.1 1.9 1.9 2.2 2.7 2.2 
         6911 Iron or steel structures, tubes and the like, for use in 
structures 0.3 0.3 0.6 0.9 1.9 1.0 
   Machinery and transport equipment 26.2 25.9 27.3 27.7 30.0 30.2 
      Power generating machines 0.8 2.0 1.3 2.4 2.0 1.8 
         7181 Hydraulic turbines and water wheels, and parts 0.0 0.0 0.0 0.1 0.9 0.9 
      Other non-electrical machinery 5.3 4.7 5.1 5.7 7.5 7.7 
         Agricultural machinery and tractors 0.3 0.3 0.4 0.3 0.5 0.4 
      Office machines & telecommuni cation equipment 7.6 7.5 9.3 9.0 7.6 7.5 
         7643 Radio or television tran smission apparatus 2.6 4.2 5.4 2.6 2.2 2.6 
      Other electrical machines 2.5 2.7 2.9 2.5 3.7 2.8 
      Automotive products 8.0 7.1 7.2 6.1 7.2 7.5 
         7812 Motor vehicles for the transport of persons, n.e.s. 4.0 3.4 3.5 2.7 3.3 4.0 
         7821 Goods vehicles 2.3 2.1 2.2 1.9 2.1 2.2 
      Other transport equipment 2.0 1.8 1.6 1.9 2.1 2.9 
         7851 Motorcycles and side-cars, etc. 0.6 0.5 0.7 0.8 1.0 1.0 
         7929 Parts, n.e.s., (excl. tyres, engi nes, electrical parts) of 792 0.2 0.1 0.1 0.2 0.3 0.8 
   Textiles 2.1 2. 1 2.1 1.6 1.6 2.2 
         6585 Curtains and other textile  furnishing, n.e.s. 0. 3 0.4 0.5 0. 2 0.2 0.8 
   Clothing 1.3 1.3 1.4 1.3 1.1 1.0 
   Other consumer goods 7.0 5.9 5.8 5.1 6.0 5.4 
         8928 Printed matter, n.e.s. 1.3 1.0 0.5 0.7 1.4 0.9 
Other 0.9 0.3 3.7 0.2 0.1 0.3 
Source:  WTO Secretariat estimate, based on UNSD, Comtrade database SITC Rev.3 data. EAC-Uganda WT/TPR/S/271/UGA 
 Page A5-571 
 
 
 Table AI.3 
Destinations of exports, including re-exports, 2005-10 
(US$ million and %) 
 2005 2006 2007 2008 2009 2010 
Total (US$ million) 812.8 962. 2 1,336.7 1,724.3 1,567.6 1,618.6 
 (%)  
       
  America 2.4 1.8 2.0 1.2 2.5 1.6 
    United States 2.0 1.5 1.5 0.9 2.4 1.3 
    Other America 0.4 0.3 0.5 0.3 0.1 0.3 
       
  Europe 41.2 32.5 31.1 35.8 27.8 26.5 
    EU(27) 31.9 27.6 24.3 26.7 22.0 22.6 
      The Netherlands 10.5 6.4 5.0 4.7 5.0 5.6 
      Germany 4.2 4.4 4.9 4.4 4.0 4.5 
      Belgium 4.1 4.1 3.9 3.7 2.7 2.6 
      United Kingdom 3.3 3.1 4.0 6.9 3.3 2.3 
      Spain 2.2 2.0 2.0 1.6 1.7 2.2 
      Italy 0.7 1.5 1.0 1.9 2.0 1.9 
      Poland 0.6 0.5 0.2 0.3 0.5 0.8 
      France 4.9 4.0 2.4 2.0 1.4 0.8 
    EFTA 9.3 4.8 6.5 9.1 5.6 3.6 
      Switzerland 9.2 4.7 6.5 9.0 5.5 3.6 
    Other Europe 0.1 0.1 0.3 0.1 0.2 0.3 
       
  Commonwealth of Independent Stat es (CIS) 0.2 0.2 0.2 0.2 0.8 0.5 
       
  Africa 35.5 33.4 44.5 46.3 50.1 52.5 
      Sudan 6.2 9.5 11.8 14.3 11.8 12.9 
      Kenya 8.9 9.1 8.8 9.5 11.1 11.8 
      D.R. Congo 7.4 4.7 7.5 7.2 10.0 11.4 
      Rwanda 4.4 3.2 6.2 7.9 8.6 9.2 
      Burundi 2.6 2.1 3.2 2.6 3.6 3.2 
      United Republic of Tanzania 1.9 1.4 2.3 1.8 2.2 2.3 
       
  Middle East 10.8 20.6 14.3 8.1 6.1 8.1 
      United Arab Emirates 10.4 19.4 13.3 7.4 5.5 7.5 
       
  Asia 7.5 7.7 5.2 5.7 6.3 6.3 
    China 0.7 0.7 1.1 0.7 1.1 1.4 
    Japan 0.6 0.4 0.4 0.5 0.4 0.1 
    Six East Asian Traders 5.3 5.0 2.6 2.7 2.8 2.9 
      Singapore 3.6 3.6 1.7 1.5 1.5 1.5 
      Hong Kong, China 1.7 1.3 0.8 0.9 1.0 1.2 
    Other Asia 0.9 1.5 1.2 1.7 2.0 1.8 
      India 0.1 0.2 0.3 1.1 1.3 0.9 
       
  Other 2.3 3.8 2.8 2.8 6.3 4.5 
      Areas n.e.s 2.3 3.8 2.8 2.8 6.3 4.5 
Source:  WTO Secretariat estimate, based on UNSD, Comtrade database SITC Rev.3 data. WT/TPR/S/271/UGA Trade Policy Review 
Page A5-572 
  
 Table AI.4 
Origins of imports, 2005-10 
(US$ million and %) 
 2005 2006 2007 2008 2009 2010 
Total (US$ million) 2,054.1 2, 557.3 3,493.4 4,525. 9 4,247.4 4,664.3 
 (%)  
       
  America 6.7 4.3 4.6 4.4 4.9 4.0 
    United States 3.8 3.5 2.9 2.6 2.0 2.3 
    Other America 2.9 0.8 1.7 1.8 2.8 1.7 
      Brazil 0.3 0.4 0.2 0.1 1.2 1.1 
       
  Europe 19.7 21.0 22.2 22.2 19.5 16.6 
    EU(27) 18.9 19.2 20.6 19.4 17.7 15.6 
      United Kingdom 4.8 4.8 3.4 3.0 3.3 2.9 
      The Netherlands 2.1 2.0 1.6 1.7 2.1 2.9 
      Germany 2.4 2.9 2.3 2.0 2.3 2.8 
      Italy 2.4 1.3 1.3 1.9 1.3 1.5 
      France 1.7 1.5 2.9 4.0 3.7 1.4 
    EFTA 0.5 1.2 1.0 1.6 0.6 0.5 
    Other Europe 0.3 0.6 0.6 1.2 1.2 0.5 
       
  Commonwealth of Independent States 
(CIS) 0.6 2.0 1.7 1.5 1.6 2.1 
      Russian Federation 0.3 1.2 1.3 0.8 0.9 1.1 
      Ukraine 0.3 0.8 0.4 0.7 0.7 1.0 
       
  Africa 36.2 25.0 22.2 21.5 20.6 19.9 
      Kenya 25.3 15.7 13.5 11.3 11.8 11.0 
      South Africa 7.0 6.1 5.9 6.7 5.8 5.4 
      United Republic of Tanzania 1.5 1.1 0.8 1.2 1.0 1.2 
       
  Middle East 10.1 19.1 16.6 16.4 16.2 16.0 
      United Arab Emirates 6.7 12.7 12.0 11.4 9.8 8.4 
      Saudi Arabia 1.1 2.0 1.4 2.6 4.0 5.1 
      Kuwait 0.2 0.3 0.7 0.6 0.8 1.3 
       
  Asia 26.8 28.6 32.6 34.1 37.2 41.4 
    China 5.3 5.4 7.9 8.1 8.9 8.9 
    Japan 7.1 6.8 6.7 5.9 6.4 6.6 
    Six East Asian Traders 5.3 6.1 6.8 8.2 7.5 7.8 
      Malaysia 2.3 1.9 1.8 3.2 1.8 2.2 
      Singapore 0.5 1.5 1.7 2.1 2.1 1.9 
      Korea, Rep. of 0.8 1.0 0.8 1.1 1.5 1.7 
      Thailand 0.7 0.7 0.8 0.6 0.9 1.1 
    Other Asia 9.1 10.3 11.4 11.8 14.5 18.2 
      India 6.4 8.2 9.9 10.4 12.3 14.7 
      Indonesia 0.5 0.5 0.4 0.6 1.0 2.4 
       
  Other 0.0 0.0 0.0 0.0 0.0 0.0 
Source:  WTO Secretariat estimate, based on UNSD, Comtrade database SITC Rev.3 data. 
 
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