ANNEX 3 
UGANDA  EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-211 
 
 
 CONTENTS 
Page 
I. ECONOMIC ENVIRONMENT 215 
(1) M AIN FEATURES OF THE ECONOMY  215 
(2) R ECENT ECONOMIC DEVELOPMENTS  216 
(3) T RADE AND INVESTMENT PERFORMANCE  218 
(i) Trade in goods and services 220 (ii) Investment 223 
(4) O
UTLOOK  223 
II. TRADE AND INVESTMENT REGIMES 225 
 (1) G ENERAL FRAMEWORK  225 
 (2) P OLICY OBJECTIVES  227 
 (3) T RADE AGREEMENTS  228 
 (4) I NVESTMENT FRAMEWORK  229 
III. TRADE POLICIES AND PRACTICES BY MEASURE 232 
(1) I NTRODUCTION  232 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  232 
(i) Business registration, customs procedures, and valuation 232 
(ii) Tariffs 233 
(iii) Other duties and charges 234 
(iv) Import prohibitions, restrictions, and licensing 235 (v) Contingency trade remedies 235 
(vi) Standards and other technical requirements 235 
(vii) Other measures 238 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  238 
(i) Procedures 238 
(ii) Export taxes and charges 238 (iii) Export prohibitions, rest rictions, and licensing 239 
(iv) Export subsidies and incentives 239 
(v) Export finance, insurance, and guarantees 239 (vi) Export promotion and marketing assistance 240 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  241 
(i) Incentives 241 (ii) Government procurement 242 
(iii) State-trading enterprises, stat e ownership, and privatization 244 
(iv) Competition policy and price controls 244 (v) Intellectual property rights  245 
IV. TRADE POLICIES BY SECTOR 248 
 (1) I
NTRODUCTION  248 
(2) A GRICULTURE  248 
 (i) Overview 248  (ii) Subsectors 250 WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
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 Page 
(3) M INING AND ENERGY  256 
(i) Mining 256 
(ii) Energy 257 
(4) M ANUFACTURING  258 
(5) S ERVICES  260 
 (i) Financial services 260  (ii) Communication services 262 
 (iii) Transport 264 
 (iv) Tourism 267 
REFERENCES   269 
APPENDIX TABLES  271 
 EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
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 CHARTS 
Page 
I. ECONOMIC ENVIRONMENT 
I.1 Structure of merchandise trade, 1999-04 221 
I.2 Direction of merchandise trade, 1999-05 222 
TABLES 
I. ECONOMIC ENVIRONMENT 
I.1 Economic indicators, 1999-05 217 
I.2 Balance of payments, 1999-04 219 
I.3 Investment, 1999-04 223 
II. TRADE AND INVESTMENT REGIMES 
II.1 Main trade-related legislation, May 2006 226 
II.2 Uganda's notifications to the WTO, June 2006 228 II.3 Requirements for business operations, May 2006 230 
II.4 Investment and double taxation treaties, May 2006 231 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
III.1 Main excise duties, 2006 234 
III.2 Labelling standards 238 III.3 Investment capital allowances, 2006 241 
III.4 Thresholds for procurement methods, 2006 243 
III.5 Overview of IPR protection, 2006 245 
IV. TRADE POLICIES BY SECTOR IV.1 Coffee exports, 1999-05 250 
IV.2 Cotton production and exports, 1998-06 252 
IV.3 Livestock, 1999-03 254 IV.4 Mineral production and exports, 2000-04 256 
IV.5 Sales of petroleum products by type, 2000-04 257 
IV.6 Annual changes in industrial production, 1999-03 259 IV.7 Structure of the financial system, 1999-04 260 
IV.8 Insurance services indicators, 2000-04 262 
IV.9 Telecommunication services, 2001-05 263 IV.10 Commercial traffic at Entebbe International Airport, 2000-04 265 
IV.11 Tourist arrivals, 1999-04 267 
APPENDIX TABLES 
I. ECONOMIC ENVIRONMENT 
AI.1 Structure of exports, 1998-04 273 
AI.2 Structure of imports, 1998-04 274 
AI.3 Destination of exports, 1998-05 275 AI.4 Origin of imports, 1998-05 276  
 EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
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 I. ECONOMIC ENVIRONMENT 
(1) MAIN FEATURES OF THE ECONOMY  
1. The Republic of Uganda is la ndlocked and covers 241,551 s quare kilometres (of which 25% 
is arable land):  some 46,669 km2 are covered by bodies of fresh water and swamps.1  In 2005, 85% of 
Uganda's estimated population of 27.2 million lived in rural areas;  Kampala, the capital and main 
centre of non-agricultural economic activities, is the most densely populated area and the biggest city 
(1.2 million people).2  During 1991-02, Uganda's population grew  at an annual average of 3.4%, one 
of the fastest rates in the world.  Internal problems remain a stumbling-block to economic development as the civil strife in the North con tinues to limit the scope of poverty alleviation 
assistance.
3  Uganda's population is relatively young;  at the time of the last census, in 2002, 78.5% 
were 30 years old or younger (56.1% of the population was 18 or younger).4   
2. Uganda has made noticeable achievements in  poverty reduction, although since 2000 some 
indicators have worsened slightly.  The proportion of people living below the poverty line fell from 44.4% in 1997/98 to 33.4% in 1999/00 but increased to 37.7% in 2002/03 (63.6% of the population in 
the Northern region).
5  However, Uganda remains one of the poo rest countries in the world with a life 
expectancy of 47.3 years in 2003.  During 1999-03, Uganda's income per capita contracted at an 
annual average rate (a.a.r.) of 4.5%, to reach US$250 in 20036;  however, real GDP per capita 
expanded albeit at relatively low rates, to reach  US$243 in 2004/05.  In 2003, Uganda was ranked 
144th in the UNDP Human Development Index, better than both Kenya and Tanzania.7  T h e  G i n i  
coefficient on income distribution increased slightly during 1999/00-2002/03 to 0.42. 
3. During 1999-04, the composition of Uganda's GDP changed:  the share of agriculture 
(including forestry and fishing) decreased, while  that of services increased steadily.  In 2004, 
Uganda's main sectors, measured by their contri bution to GDP, were services (57%), agriculture 
(formal and informal) (32%), and manufacturing (8%).  During 2000-04, the ratio of foreign trade (exports plus imports of goods and services) to GD P remained low, although it increased to 30.0%.
8  
The non-monetary sector (mainly agriculture), as a proportion of GDP, contracted from 20% to 16% 
during 1999-04.9 
4. Uganda accepted the obligations of Article V III of the IMF Agreement in 1997.  Monetary 
policy aims to maintain internal pr ice stability and external asset reserves.10  During 1999-05, Uganda 
maintained an independently floating exchange ra te regime.  Since 1999, the national currency, the 
Ugandan Shilling (U Sh), has depreciated to r each 1,835 per U.S. dollar in February 2006.11  T h e  
exchange rate system is free of restrictions on payments and transfers for current international 
transactions (June 2006 ). 
                                                      
1 Uganda Bureau of Statistics (2005c), pp. xi;  and Uganda Investment Authority online information.  
Available at:  http://www.ugandainvest.com/guide.htm.  For further geographical information concerning 
Uganda, see WTO (2001). 
2 Uganda Bureau of Statistics (2004), pp. 5 and 85. 
3 Ministry of Finance, Planning, and Economic Development (2004), p. 100. 
4 Uganda Bureau of Statistics (2005a), p. 9. 
5 Ministry of Finance, Planning, and Economic Development (2004), p. 13. 
6 African Development Bank (2005), pp. 119-120. 
7 UNDP (2005). 
8 Information on trade available at:  http://www.ubos.org. 
9 Bank of Uganda (2005b), p. 45. 
10 The Bank of Uganda Statute, 1993 of 14 May 1993, Article 5. 
11 Bank of Uganda (2006b), p. 28. WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
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 5. Donor assistance has been instrumental in Uganda's economic recovery and implementation 
of poverty alleviation policies.  Around half of the public budget is financed through donations.12  
During 1999/00-2003/04, donor assistance (grant s or balance-of-payments support) totalled 
US$2,376.5 million.13  In 2004/05, donors pledged to disburse US$531.8 million to support the 
Government's budget, of whic h US$190.3 million was in loans and the rest in grants.14  In 2004, the 
Uganda Joint Assistance Strategy (UJAS) repl aced the existing CAS programme to tailor policy 
implementation outlined in Uganda's Poverty Eradic ation Action Plan (2004 revised version).  The 
projected base-case financial support from the UJAS  is approximately US$800 million a year during 
2006/07-2008/09.15  Uganda has also been participating in the Poverty Reduction and Growth 
Facilitation (PRGF) programme with the IMF si nce 2003, under a three-year arrangement for 
US$19.5 million.  In November 2005, when the fina l disbursement was approved, the performance 
under the PRGF was assessed to ha ve been mixed.  A 2004 study found that the large inflows of 
official development assistance had not creat ed Dutch-disease type of effects in Uganda.16 
(2) RECENT ECONOMIC DEVELOPMENTS  
6. Uganda's economy has continued to perform solidly during the period under review although 
some challenges remain.  Amongst these are:  lo w productivity, management of high population 
growth, low domestic savings levels, underdeveloped transport infrastructure, inefficiencies in the 
financial sector, low human capital developm ent, and weak institutions and corruption.17  
Productivity, as measured by the long-term contribu tion of total factor productivity to real GDP 
growth, was low (0.1% on average during 1986-03).18   
7. During 1999-04, real GDP growth was irregular, va rying between 4.4% and 6.8% (Table I.1).  
This somewhat slacker performan ce, compared with the late 1990s , was influenced by exogenous 
shocks, i.e. droughts, a severe deterioration of the terms of trade (due to low international coffee 
prices), and an EU ban on fish imports that last ed 15 months until 2000.  In terms of sectors, 
agriculture (including forestry and fishing) was th e main contributor to real GDP growth during the 
period, followed by community services (particularly educational services).  Services subsectors 
recorded the fastest growth during 1999-04:  tel ecommunications by 41%, hotels and restaurants by 
13%, and construction by 10%.  The lowest annual average growth was in non-monetary food crops, 
at 1.1%.  As a result, during this period, the service sector's value-added, as a proportion of GDP, 
expanded at an annual average rate of 3.4%, whils t agriculture (including the non-monetary subsector) 
contracted at an annual average rate of 3.5%.   
8. According to official data, the unemployment rate was 3.2% in 2002, with a marked 
difference between rural and urban ar eas, at 12% and 1.7% respectively.19  Agricultural activities 
provided, by far, the highest proportion of total em ployment (68.7%), followed by sales, maintenance, 
repair of motor vehicles, and personal households  (11.6%).  Informal employment in 2002, as 
measured by own-account workers, represented 54%  of total employment.  The privatization 
                                                      
12 African Development Bank (2003), p. 12. 
13 Bank of Uganda (2005a), p. 118. 
14 Bank of Uganda (2006a), p. 92. 
15 IMF (2005a), p. 10. 
16 IMF (2004). 
17 IMF (2005a), p. 7;  and African Development Bank (2003), pp. ii-iii. 
18 IMF (2005b), p. 8. 
19 Uganda Bureau of Statistics (2005b).  EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-217 
 
 
 programme initiated in 1996, has failed to create the expected number of new jobs, which have 
stagnated at around 20,000 (as at 2005).20 
Table I.1  
Economic indicators, 1999-05  
  1999 2000 2001 2002 2003 2004a 2005a 
Miscellaneous               
Nominal GDP at factor costs (U Sh billion) 7,998.5 8,650.3 9,319.0 9,901.0 11,667.1 12,951.9 .. 
Nominal GDP at market prices (U Sh billion) 8, 750.9 9,448.7 10,173.5 10, 852.3 12,739.8 14,164.8 .. 
        
Private consumption 7,018.5 7,603.2 8,172.2 8,644.5 9,984.4 10,751.2 .. 
Government consumption 1,134.5 1,289.2 1,447.9 1,651.3 1,828.3 2,028.6 .. 
Fixed capital formation 1,731.0 1,745.2 1,960.4 2,183.0 2,737.8 3,307.1 .. 
Net change in stock 15.8 40.9 38.1 40.9 51.6 51.5 .. 
Exports of goods and services 1,005.1 1,009.8 1,210.4 1,259.5 1,645.9 1,831.0 .. 
Imports of goods and services 2,050.9 2,224.7 2,596.7 2,863.6 3,464.6 4,024.0 .. 
GDP per capita (current market prices in US$) 266.4 245.9 239.8 241.5 250.8 292.5 .. 
  (per cent) 
Real GDP at market prices, annual change 6.8 4.4 6.4 4.7 6.7 5.6 .. 
Non-monetary GDP/Nominal GDP 19.6 19.7 18.0 16.3 17.1 16.3 .. 
Net domestic credit, annual changeb 51.9 116.5 9.3 2.6 9.7 -11.1 -0.3.. 
Composite CPI, end of period, change 5.8 3.4 1.9 -0.3 8.7 3.7 8.5.. 
Exchange rate (U Sh/US$, period average)c 1,455.6 1,644.5 1,755.7 1,796.6 1,963.2 1,810.4 1,775.6 
Current account balance (% of GDP at market prices) -6.0 -5.7 -5.4 -5.4 -5.3 -2.1 .. 
Monetary sector (percentage change) 
Broad money (M3) 13.8 16.1 17.6 21.6 23.3 10.0 17.2 
Gross official reserves (US$ million, end of J une) 748.1 719.4 738.7 872. 9 964.2 1,13 3.3 1,325.6 
Gross official reserves (months of imports of goods and 
non-factor services) 6 6 6 7 7 6 6 
Share of market prices GDP (per cent) 
Agriculture, forestry, and fishing (monetary and non-
monetary) 38.3 36.8 33.6 31.1 33.3 32.0 38.3 
Mining and quarrying 0.7 0.7 0.8 0.8 0.7 0.8 0.7 
Manufacturing 9.5 9.3 9.9 9.7 8.8 9.1 9.5 
Electricity, gas, and water supply 1.3 1.3 1.4 1.4 1.3 1.3 1.3 
Services 50.2 51.8 54.3 57.0 55.8 56.7 50.2 
   Construction (monetary and non-monetary)d 12.1 12.4 13.1 14.0 13.8 14.1 12.1 
   Wholesale and retail trade 11.3 11.2 11.5 11.2 11.2 11.3 11.3 
   Hotels and restaurants 2.2 2.5 2.7 2.9 3.0 2.9 2.2 
   Transport and communications 5.0 5.4 5.7 6.3 6.8 7.7 5.0 
   Public administration 19.6 20.2 21.3 22.6 21.0 20.7 19.6 
Government finance         
Overall balance to GDP (end of June)        
   Including grants -1.2 -3 -2.3 -5.4 -4.4 -1.5 -3.9 
   Excluding grants -6.1 -9.3 -10.2 -12.8 -11.3 -11.1 -10.5 
Outstanding foreign public debt (US$ billio n, end June) 3.5 3. 6 3.4 3.8 4.2 4.5 .. 
Memorandum         
Grants to GDP 5.0 6.3 7.9 7.4 7.0 9.6 6.6 
External debt stock (per cent of GDP) 59.7 59.4 63.3 65.7 69.1 .. .. 
External debt service (per cent of exports) 51.7 51.2 46.4 44.5 40.7 .. .. 
Ratio of debt stock to exports (%) 737.0 740.2 768.4 824.1 796.7 .. .. 
Terms of tradeb 126.5 100.0 95.4 88.6 91.2 98.8 .. 
.. Not available. 
a Preliminary, except for 2005 exchange rate data. 
b Fiscal year, ending on 30 June. 
c The exchange rate corresponding to 2005 refers to June 2005. 
d Includes owner occupied dwellings.  
Source:  Bank of Uganda online information.  Available at:  http ://www.bou.or.ug;  Uganda Bureau of Statistics online 
information.  Available at:  http://www.ubos.org ;  and terms of trade data from IMF (2005), Uganda –  Selected 
Issues and Statistical Appendix , p. 72. 
                                                      
20 Missions économiques (2005), p. 4. WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
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 9. During 1999-02, inflation declined steadily from 5. 8% to -0.3%, then surg ed to 8.7% in 2003 
due mainly to drought and increases in energy prices (Table I.1).  In 2004, prices inflated at a slower 
pace of 3.7% (well below the 5% target) due to an expansion in food crop production, but in 2005, 
inflation again increased to 8.5%.21  In 2005, broad money and reserves were targeted to grow at 15% 
and 13% respectively, continuing the tr end of slower growth initiated in 2002.22  Large inflows of 
donations require significant sterilization operations by the BOU, typically carried through a mix of foreign exchange sales and debt issuance (e.g. Treasury bills).  Open-market type operations 
involving Treasury bills, and BOU bills and repurch ase agreements (repos) are the main monetary 
policy instruments, with the Treasu re bills the most commonly used.
23  In 2005, the BOU issued debt 
as its principal sterilization tool thus creating upward pressure on domestic interest rates.  During 
1999-04, reserves increased at an a.a.r. of 8.7% to US$1.1 billion in 2004 (US$1.3 billion in 2005) 
prompting the IMF, in 2005, to consider Uganda to  be in a position of not needing financial support 
any longer to maintain appropriate reserve levels.24 
10. During 1999-02, the fiscal deficit (excluding grants) worsened significantly (more than 
doubling) to over 12% of GDP:  public expenditure markedly outpaced revenue (24.6% and 12.2% of 
GDP in 2001/02 respectively).  Since 2003, the fiscal deficit has contracted slowly, to 10.5% of GDP in 2005.  The authorities' stated objective is to re duce fiscal deficit (excluding grants) to 6.5% of GDP 
by 2009/10 through a mix of measures:  improvement of revenue collection (b y reforming the Uganda 
Revenue Authority), and of expend iture management to avoid accumu lation of arrears and additional 
public sector reform.
25  During the period under review, donor support for the fiscal budget played a 
significant role, accounting for close to 40% of total revenues. 
11. Total public debt remained high during 1999- 04.  External debt stock, as a proportion of 
GDP, increased every year between 1999 and 2004 to reach 69.1%, whilst the ratio of debt stock to 
exports was 796.7% in 2004 (Table I.1).  Uganda benefited from the enhanced HIPC debt initiative in 
April 2000 (around US$2 billion of debt-service relief).   Subsequently, it was determined that further 
funding of US$656 million (net present value – NPV) was needed to make Uganda's external public 
debt sustainable.26  However, in 2004, the ratio of Uganda's NPV of foreign debt to exports had 
reached 305%, more than twice the threshold for debt sustainability.27  This was propelled by the high 
sensitivity of debt stocks to macroeconomic s hocks experienced during the period, and increased 
borrowing on concessional terms to finance poverty reduction projects.  In early 2005, Uganda had 
made progress in obtaining debt relief from 31 creditors.28  Public domestic debt reached 10% of GDP 
in 2004;  most of it was related to fiscal deficits , and was from commercial ba nks (64% of total debt 
in June 2004).   
(3) TRADE AND INVESTMENT PERFORMANCE  
12. During 1999-04, Uganda's overall balance of payments improved every year (except 2002) 
(Table I.2);  the balance increased from -1% to 3.8% of GDP in 2004.  Between 1999 and 2003, the 
current account deficit, as a proportion of GDP, remained  stable at 6% of GDP on average, but fell to 
just over 2% in 2004.  The financial account  surplus increased from US$267 million in 1999 to 
US$336 million in 2004.  
                                                      
21 Bank of Uganda (2004), p. 8. 
22 IMF (2005a), p. 17. 
23 Musinguzi and Katarikawe (2001), p. 15. 
24 IMF Press Release No. 05/241.  Available at:  http://www.imf.org. 
25 IMF (2005a), p. 16. 
26 Bank of Uganda (2004), pp. 62-63. 
27 Ministry of Finance, Planning, and Economic Development (2004), p. 41. 
28 IMF (2005a), p. 13. EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-219 
 
 
 Table I.2  
Balance of payments, 1999-04 
(US$ million) 
 1999 2000 2001 2002 2003 2004 
Current account  -347.3 -327.1 -312.5 -323.2 -339.7 -124.6  
Trade balance -444.8 -453.9 -4 99.9 -572.6 -678.5 -757.6 
   Total exports (f.o.b.) 485.8 460.0 475.6 480.7 563.0 708.9 
         Coffee 274.4 125.4 97.6 96.6 99.1 123.1 
   Total imports (f.o.b.) -930.5 -913.9 -975.4 -1,053.3 -1,241.5 -1,486.5 
     Government imports -188.5 -171.7 -125.3 -137.0 -165.2 -158.6 
        Project imports -139.6 -100.2 -101.5 -105.9 -128.6 -118.6 
        Non-project imports -49.0 -71.5 -23.8 -31.1 -36.6 -40.0 
     Private sector imports -528.5 -658.9 -741.5 -815.3 -1,005.0 -1,241.7 
        Oil imports -97.1 -133.1 -133.3 -121.9 -136.7 -146.0 
     Other imports -213.5 -83.3 -108.7 -101.0 -71.3 -66.3 
Services and income -379.5 -380.5  -446.3 -470.5 -407.2 -424.3 
   Services inflows 196.0 213.2 222.6 232.8 291.9 411.7 
   Services outflows -451.9 -438 .4 -503.7 -540.3 -523.9 -666.2 
   Income inflows 36.5 53.1 37.5 24.2 27.6 35.7 
   Income outflows -160.2 -208.4  -202.7 -187.2 -202.8 -205.5 
Current transfers 477.0 507.3 633.8 719.9 746.0 1,057.3 
   Inflows 646.2 754.3 938.0 1,043.7 962.0 1,263.8 
      Government inflows 417.5 526.3 480.9 489.9 544.3 744.6 
         Grant disbursements 417.5 497.7 425.8 426.3 483.4 680.8 
             BOP support 101.8 203.7 121.1 153.6 202.9 391.5 
             Project aid 315.8 294.0 304.7 272.7 280.5 289.3 
         HIPC assistance 0.0 28.6 55.2 63.6 61.0 63.8 
     Private transfers 228.7 228.0 457.0 553.9 417.6 519.1 
        Remittances 167. 2 168.7 338.2 38 4.4 278.1 348.6 
        Other (BOU) 2.7 0.0 0.0 7.9 8.9 0.0 
        Other (NGOs, IAAs, Insurance, etc.) 58.8 59.3 118.8 161.5 130.7 170.5 
   Outflows -169.3 -247.1 -304.2 -323.8 -216.0 -206.5 
Capital account  0.0 0.0 0.0 0.0 0.0 0.0  
Financial account, excluding financing items 267.1 356.2 452.0 240.4 459.2 336.1  
Direct investment 140.3 180.8 151.5 202.3 194.2 222.0 
Portfolio investment 0.0 0.0 0.4 0.4 20.8 -17.2 
Other investments 126.8 175.4 300.1 37.7 244.2 131.3 
   Assets -4.0 -37.1 29.4 -23.3 -39.9 0.2 
   Liabilities 130.8 212. 5 270.7 61.0 284.1 131.1 
Overall balance  -80.3 29.2 139.5 -82.7 119.6 211.5  
Financing items 80.3 -29.2 -139.5 82.7 -119.6 -211.5  
Monetary authorities 34.1 -29.2 -157.4 85.6 -108.3 -208.6 
   Reserve assets -23.4 -53.3 -161.6 101.2 -75.7 -166.3 
   Use of IMF credit (net) -15.1 -37.5 -29.0 -32.9 -42.5 -52.6 
     Purchases 34.9 11.6 12.1 2.0 5.8 2.9 
     Repurchases 50.1 49.1 41.0 34.9 48.3 55.6 
   Exceptional financing 72.6 61.5 33.2 17.3 9.9 10.3 
     Current maturitie s 72.6 43.0 3.9 3.6 3.7 3.7 
     Old arrears 20.4 0.0 0.0 0.0 0.0 0.0 
     Arrears settlement -20.4 -3.4 -0.7 -13.0 -7.9 -0.3 
     Other (deferred debt payment to countries not accepted HIPC terms) 0.0 21.9 30.0 26.7 14.1 7.0 
Errors and omissions 46.2 0.1 17.9 -2.8 -11.3 -2.9  
Source : Bank of Uganda (2006), Annual Report 2004/2005 . 
13. Between 1999 and 2004, the merchandise trade defic it increased at an a.a.r. of 11.2%, owing 
to imports significantly outpacing exports, i.e. 9.8% and 7.8% average annual growth rates, 
respectively (Table I.2).  This was more than comp ensated by a considerable expansion in net current 
transfers, which grew at an a.a.r. of 17.7%.  Remittances, which are a significant component of the 
current account (around 35% of current transfers on average, and 4.6% of GDP in 2004), expanded at 
an a.a.r. of 15.8% during the period under review.   
14. The deficit in services and income flows has rema ined stable at an average of 7.2% of GDP 
(annual average growth of 2.3%).  The financia l account, on the other hand, expanded throughout WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-220 
 
 
 1999-04 at an a.a.r. of 6.3%.  Reserve assets increase d more than three-fold to 1.2% of GDP in 2004, 
whilst the inflows for balance-of-payments support doubled to 3.4% of GDP. 
(i) Trade in goods and services 
15. Uganda's export base changed markedly duri ng 1999-04, with tota l exports expanding 
irregularly at an a.a.r. of 4.8% to reach US$639.5 million (Table AI.1).29  This was due to several 
years of drought and a deterioration in the interna tional price of coffee, Uganda's main export product 
(Chart I.1).  During this period, agricultural products  continued to account for by far the largest share 
of Uganda's exports (72.1% in 2004) , although in value, they contracted to US$461.2 million in 2004.  
At the same time, the share of manufactured and go ld exports expanded significantly.  Coffee exports, 
Uganda's traditional export product, contracted both in  value and as a share of total exports, settling at 
US$123.9 million in 2004.  As a proportion of tota l exports, cotton expanded the most during the 
period under review, to 4.9% in  2004 (US$31.2 million in 2004).  M achinery and transport equipment 
were the main manufactured export product;  they mo re than tripled in value, to US$25.7 million in 
2004.   
16. The structure of imports remained essentially the same during 1999-04;  from 2000, the total 
value of imports grew, to reach US$1.7 billion (a round 23.1% of GDP) (Table AI.2).  Most of 
Uganda's imports were manufactured  products (67.2% of total impor ts on average) and agricultural 
products (16.8%) (Chart I.1).  F ood imports, particularly wheat products, increased significantly, to 
US$278.8 million in 2004.  Fuel dropped significantly as a proportion of total imports from 2002 to 10%;  but the value of fuel imports increased at an average annual rate of 10.8% from 1999 to 2003, 
reflecting higher oil prices;  in 2004 fuel imports  contracted significantly to US$165.3 million.  
Within manufactured products, iron a nd steel products increased their share of total imports to 5.8%, 
and more than doubled in value (to US$95.9 million).  
17. During 1999-05, Uganda's main export markets re mained unchanged:  Europe continued to be 
its principal export market (41.2% of total expor ts in 2005) followed by Africa (35.5% in 2005) 
(Chart I.2 and Table AI.3).  Within the EC, the la rgest share of Uganda's exports has shifted from the 
United Kingdom to the Netherlands.  During this peri od, exports to America, as a proportion of total 
exports, fluctuated between 2.1% and 4.0% capturi ng US$18.7 million in 2005.  Within Africa, most 
of Uganda's exports went to Kenya;  a large share of  Uganda's exports transits  through Kenyan ports.   
18. During the period under review, Africa was the ma in supplier of Uganda's imports (36.2% of 
total imports on average) followed by Asia (36.2%) (C hart I.2 and Table AI.4).  In particular, Kenya 
was the principal supplier, with over 25% of Uga nda's imports in 2005.  The second biggest African 
supplier was South Africa with 7% of imports in 2005.  Imports from China increased sharply during 
1999-05 to 5.3% (US$102.5 million), while the sh are of imports from the United Kingdom fell 
constantly during the period under review. 
19. The services trade account has fluctuated since 1999;  a deficit of US$248 million was 
estimated in 2004.  Average annual growth was mark edly higher in service inflows than in outflows 
(10.5% and 3.8%, respectively).  The net balance of transportation ser vices worsened as freight debit 
services more than doubled.  Personal travel servi ces increased to around US$132 million in 2003 and 
US$167 million in 2004, with business travel servi ces reaching almost US$100 million in 2004.  In 
2004, financial services exports outdid imports for the first time (about US$40 million and 
US$35 million, respectively).   
 
                                                     
 
29 UNSD, Comtrade database. EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-221 
 
 
 0%20%40%60%80%100%
1999 2000 2001 2002 2003 2004
0%10%20%30%40%50%60%70%80%90%100%
1998 1999 2000 2001 2002 2003 2004Chart I.1
Structure of merchandise trade, 1999-04
(a) Exports
(b) Imports
Source: WTO Secretariat calculations, based on UNSD, Comtrade database (SITC Rev.3 data).Electrical machines Iron and steelFood Chemicals Transport equipment
Other semi-manufactures Fuels Textile and clothing
Non-electrical machinery Other primary productsCoffee , not roasted Fish fillet frozen Other primary products
Cotton, carded or combedFish fillets, fresh or chilled 
and other fish meatOther food Machinery and transport equipment
OtherBulbs, tubers, etc. Other manufactures
Tobacco, not stemmed Fuels Gold, non monetaryTea
 WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-222 
 
 
 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%1999200020012002200320042005Chart I.2
Direction of merchandise trade, 1999-05
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%1999200020012002200320042005(a) Exports
(b) Imports
Source: WTO Secretariat calculations, based on UNSD, Comtrade database (SITC Rev.3 data); and data provided by 
the Ugandan authorities.France Kenya
Kenya IndiaUnited Arab Emirates United Kingdom Other Africa
Malaysia Other EU(15) OtherUnited States China South AfricaAmerica Other EU(15) D.R. Congo
The Netherlands Switzerland Rwanda
Other Asia JapanUnited Kingdom United Arab Emirates Other Africa
Other Asia Belgium-Luxembourg Other
 EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-223 
 
 
 (ii) Investment 
20. During 1999-04, Uganda continued to attract foreign direct investment (FDI) that was 
significant to its economy, though small by internatio nal standards.  A study found that this was due 
to general political stability (apart from conflict in the North), sound macroeconomic fundamentals, 
protection of investment, protection of intellectual property rights, relaxation of capital controls, and 
continuation of the privatization process.30  Nonetheless, Uganda's landlocked position, as well as 
inadequate transport, electricity, and communicati on infrastructures, have been identified as major 
constraints to further FDI flows.31  In 2003, FDI flows to Uganda we re similar to those in Tanzania 
and more than twice of those in Kenya.   
21. During 1999-03, inward stocks of FDI increased by 31.7% whilst outward stocks decreased 
by 4.4% of GDP (Table I.3).  Inflows of FDI grew at an a.a.r. of 9.6% (around 3% of GDP in 2004).  During 1991-02, manufacturing (food preparation in pa rticular) attracted the largest proportion of FDI 
(32.1%), followed by real estate (13.6% ) and the water and energy sector (14.6%).
32  FDI to Uganda 
during 1999-02 originated principally from the United Kingdom (11.4%), followed by Kenya (8.7%), and India (7.1%).   
Table I.3  
Investment, 1999-04  
(US$ million) 
 1999 2000 2001 2002 2003 2004 
Stocks       
  Inward 1,000 1,255 1,484 1,759 .. .. 
  Outward 292 265 259 246 .. .. 
Flows       
  Inflows 140.2 160.7 151.5 184.65 202.19 222.0 
    Equity 71.9 82.4 74.2 .. .. .. 
    Reinvested earnings 16.7 19.1 17.2 .. .. .. 
    Intra company loans 51.6 59.2 53.3    
  Outflows .. .. .. .. .. .. 
    Equity .. .. .. .. .. .. 
    Other capital abroad .. .. .. .. .. .. 
.. Not available. 
Source : Stocks data from UNCTAD (2005), World Investment Directory – Country Profile .  Available at: 
http://www.unctad.org;  and flow s data from IMF, BOP CD-Rom. 
(4) OUTLOOK  
22. Real GDP is expected to rebound to around 6% per year in the medium term, subject to 
favourable weather conditions.  Monetary policy is expected to contain inflation (measured by 
changes in consumer price index) at around 4% pe r year.  The Ugandan Shilling's recent strength in 
2005 could be tempered somewhat in 2006, due to exp ected hikes in international interest rates and 
increases in government spending and import demand.  Tax collection could also improve, thus 
helping to further reduce the fiscal deficit (e xcluding grants) to 5.1% of GDP in 2007/08.33  Based on 
current assumptions for donor-financed development e xpenditures, the overall fiscal deficit, excluding 
grants, is projected at 6.6% of GDP by 2007/08 down from 8.8% in 2005/06.  The current account 
                                                      
30 Basu and Srinivasan (2002), p. 35. 
31 UNCTAD (2000), p. 15. 
32 UNCTAD and ICC (2004), p. 15. 
33 IMF (2005a), p. 29. WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-224 
 
 
 deficit (excluding grants) is forecast to reach ar ound 10.0% of GDP in 2006/07, then decrease to 9.2% 
in 2007/08.34   
23. The relationship with the donor community will re main vital for Uganda's  short- and medium-
term economic growth.  In particular, a final reso lution of the conflict in the north of the country 
should increase financial support significantly.  Refo rm of the Uganda Revenue Authority should 
yield significant increases in revenue as current re venue to GDP ratio is well below the Sub-Saharan 
African average of 18%.  Boosting productivity, partic ularly in the agricultural sector, as well as a 
deepening of the financial sector should contribut e to consolidate Uganda's longer term economic 
growth.   
                                                      
34 IMF (2006), pp. 7 and 19. EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-225 
 
 
 II. TRADE AND INVESTMENT REGIMES  
(1) GENERAL FRAMEWORK  
1. The Republic of Uganda became  independent on 9 October 1962.35  The 1995 Constitution, 
amended in 2005, provides for a parliamentary regime with separation of powers among the 
executive, legislative, and judicial  bodies.  Election of Uganda's President is by direct, universal 
suffrage for a five-year term.  In August 2005, the Parliament voted to change the Constitution to lift 
presidential term limits.  The President serves as head of State, head of Government, and 
Commander-in-Chief of the armed forc es.  The Cabinet consists of the President, the Vice-President, 
and Cabinet Ministers:  the President, with the approval of a majority of Parliament, appoints the 
Vice-President and Cabinet Ministers.  The last presidential election took place on 23 February 2006.  
2. The unicameral National Parliament has 319 memb ers, of which 215 are directly elected by 
popular vote, 104 are nominated by legally established special interest groups (69 women, 10 army, 5 disabled, 5 youth, 5 labour), and 10 are ex-officio members.  The last parliamentary election was held on 23 February 2006.  The Parliament has standing, sessional, select, and ad hoc committees, 
each with responsibility for a particular subject matte r.  The Vice-President and Ministers cannot be a 
member of a standing or sessional committee, and a member of Parliament cannot be a member of 
more than one standing committee.  The Parliame nt has a Speaker and a Deputy Speaker who are 
elected by the members of Parliament.  
3. Uganda has a four-level judiciary:  the Supreme Court, the Court of Appeal, the High Court 
and subordinate courts.  The President, with advice from the Judicial Service Commission and 
approval of Parliament, appoints the Chief Justic e (head of the Supreme Court), the Deputy Chief 
Justice (head of the Court of Appeal), and the Prin cipal Judge (head of the High Court), as well as the 
Justices of the Supreme Court, the Justices of Appeal, and the Judges of the High Court.  The 
commercial court, a department of the High C ourt, handles commercial issues, including trade 
matters.  There is also a tax appeal tribunal unde r the Ministry of Finance, Planning and Economic 
Development (MFPED). 
4. The other members of the Cabinet aid and advi se the President on the formulation of national 
policies.  New legislation is generally initiated by  the responsible ministry , which submits an outline 
of the proposal to Cabinet for approval in principle.  A bill is then drafted by the Ministry of Justice in 
collaboration with the ministry concerned, returned  to Cabinet, and after approval, published in the 
Government Gazette  and introduced in Parliament.  Parliame nt debates and adopts the bill in three 
readings, and submits it to the President for assent. 
5. The Ministry of Tourism, Trade, and Industry (MTTI) is the lead agency in trade policy 
formulation, in particular with regard to ma king recommendations to Cabinet.  Other bodies also 
involved in trade policy formulation are:  the MFPED;  the President's Office;  the Ministries of Foreign Affairs;  Justice and Constitutional Affairs;   Agriculture, Animal Industry, and Fisheries;  
Works, Housing, and Communications;  and Water,  Lands, and Environment;  as well as the Bank of 
Uganda;  and the Uganda Investment Authority.  Pr oposals for tariffs and tax changes originate in the 
MFPED.  Trade policy implementation is under the responsibility of the Customs and Excise 
                                                     
 
35 Uganda is divided into the city of Kampala and 75 administrative districts, governed by district 
councils, which are vested with legislative and executive powers in areas that are no t expressly reserved to the 
national government.  Among the powers of district councils, derived from the Local Government Act, is the 
right to levy and appropriate fees, including a trade licensing fee, which may vary from one district to another.  
Election to the district councils is by universal adult suffrage, and members serve four-year terms. WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-226 
 
 
 Department of the Uganda Revenue Authority (U RA), the MTTI, and agencies established under the 
Ministry, such as the Uganda Export Promotion Bo ard (UEBP) and the Uganda National Bureau of 
Standards (UNBS).  The Uganda Coffee Devel opment Authority and the Cotton Development 
Organization have responsibility in their specifi c areas.  The National Trade Negotiations Team, 
established in 2003 represents Uganda in trade negotia tions.  It is composed of eight representatives 
from the MTTI and two representatives each from the M FPED;  and the Ministries of Foreign Affairs;  
Justice and Constitutional Affairs;  and Agricu lture, Animal Industry, and Fisheries.   
6. The Government consults with  the private sect or and civil society on trade policy matters in 
the framework of the Inter-Institutional Trade Co mmittee (IITC), established in 2003.  The aims of 
the IITC are to advise the Government on all trade and trade-related matters;  initiate trade-related 
studies;  monitor and review the implementation of  the WTO Agreements;  provide support for trade 
negotiations;  and ensure the mainstreaming of tr ade issues into national development plans.  The 
IITC meets at least twice yearly.36  It has sub-committees on the WTO, the Cotonou Agreement, 
regional agreements, and bila teral and domestic initiatives. 
7. Periodic reviews and assessments of trade-re lated policies are carried out within the 
Government by, inter alia , the Presidential Economic Policy Forum, and the MFPED.  Outside of 
government, similar assessments are carried out by academic research centres and various private 
sector associations.  The MTTI is currently engage d in a policy review exercise with assistance from 
the European Union under the Uganda Programme for Trade Opportunities and Policy (UPTOP).  The 
programme reviews and consolidates a national trade policy aimed at enhancing the country's capacity 
in trade negotiations at the multilatera l, regional, and bilateral levels.37 
8. The Law Reform Commission of Uganda, estab lished by Article 248 of the Constitution, 
keeps under constant review the laws of Uganda with a view to making recommendations for their 
systematic improvement and simplification.  The Commission may also receive and review proposals 
for the reform of laws, provide advice to ministries,  and promote public participation in the process of 
law-making. 
9. The Constitution is the supreme law, followed in importance by statutes of Parliament and 
subsidiary legislation.  Ugandan legislation related to internationa l trade is contained in various 
statutes (Table II.1).  The main changes in trade-re lated legislation since Uganda's last TPR in 2001 
include the adoption of the EAC's Customs Union Pr otocol and Customs Management Act, as well as 
a new Copyrights Law. The President or a person he delegates, may sign international treaties.  
Treaties are not self-ratifying.  If treaties require cha nges in the Constitution, Parliament must ratify;  
if not, Cabinet can ratify.  The WTO Agreements were ratified by Cabinet.     
Table II.1 
Main trade-related legislation, May 2006 
Area Legislation Date of issuance 
Tariff EAC Customs Union Protocol 2004 
Customs EAC Customs Management Act 2004 
Levies and charges Value-added Tax Statute 1996 (amended, 2005) 
 Finance Act 1998 (amended, 2005) 
 Excise Tariff Act 2005 
Table II.1 (cont'd) 
                                                      
36 The ITTC comprises 50 representatives:  from Government (13), statutory bodies such as Uganda 
Investment Agency or Uganda Export Promotion Board (1 3), the private sector (12), civil society and academia 
(9), and parliamentarians (3). 
37 Ministry of Tourism, Trade, and Industry online information.  Available at:  http://www.mtti.go.ug/ 
trade.php. EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-227 
 
 
 Area Legislation Date of issuance 
Income tax Income Tax Act 1997 (amended, 2005) 
Foreign exchange Foreign Exchange Act 2004 
Standards and regulations Uganda Na tional Bureau of Standards Act 1983 
 Food and Drugs Act 1964 
 Drug Act 1993 
 Public Health Act 1964 
 Animal Breeding Act  2003 
 Agricultural Chemicals Regulations 1993 
 Control of Agro-chemicals Statue 1989 
Government procurement Public Procur ement and Disposal of Assets Act 2003 
 Public Procurement and Dispos al of Assets Regulations 2003 
Rules of origin Common Market for Easter n and Southern Africa (Implementation) 
Bill 1995 
Anti-dumping, countervailing, and 
safeguard measures Customs (dumping and subsidies rates) Act 1964 
 Customs (dumping and subsidies) Act 1970 
Export promotion Uganda Export Promotion Council Act 1983 
Competition policy and privatization Public En terprise Reform and Divestiture Statute 1993 
Sectoral development Uganda Coff ee Development Authority Statute 1991 
 Coffee Regulations 1994 
 National Agricultural Resear ch Organization Statute 1992 
 Cotton Development Organization Statute 1994 
Capital Markets Authority Statute No. 1 1996 
Insurance Statute No. 6 1996 
Communications Statute No. 8 1997 
Financial institutions Statute No. 4 1993 
Financial institutions Revised Statutory Instrument No. 48 1999 
Bank of Uganda Statute No. 5 1993 
Land Statute No. 6 1998 
Research and development Uganda National Council for Science and Technology Statute 1990 
Intellectual property Patents Statute 1991 
 Trade Marks Act 1964 
 Copyright and Neighbouring Rights Law 2004 
Foreign investment Investment Code 1991 
Source: Information provided by the Ugandan authorities.  
(2) POLICY OBJECTIVES  
10. Uganda's main economic policy objectives ar e economic growth and the eradication of 
poverty.  The Government aims to bo ost growth and reduce poverty through, inter alia , the removal 
of investment barriers;  improvements in the secur ity situation, transport infrastructure, and utility 
services;  increased productivity in the agriculture se ctor with emphasis on value-addition on primary 
goods;  and improvements in access to finance and SME development.38  The Government's vision is 
for Uganda to be poverty-free by 2035.39 
11. Trade policy is defined in the context of Ug anda's overall economic development strategy.  
The Government's main trade policy goals are to incr ease regional and global integration, to  expand 
and diversify exports, to promote competitiveness in domestic production, and to stimulate investment 
                                                      
38 Ministry of Finance, Planning, and Economic Development (2004). 
39 Republic of Uganda (2005). WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-228 
 
 
 in export-oriented activities.40  In order to achieve these objectives the Government intends to 
improve Uganda's trade-related cap acity.  It participates in the Integrated Framework, the Joint 
Integrated Technical Assistance Programme, and cooperates with donor countries to benefit from 
trade-related technical assistance.   
(3) TRADE AGREEMENTS  
12. Uganda is an original Member of the World Trade Organization (Common Report, 
Chapter II(1)).  It participated in the extende d negotiations on basic te lecommunications and has 
ratified the Fourth Protocol to the GATS.  Uga nda's trade-related technical assistance needs are 
broadly similar to those of the other EAC memb ers (Common Report, Chapter II(1)).  Table II.2 
shows the status of Uganda's notificati ons under the WTO Agreements since 2001.  
Table II.2 
Uganda's notifications to the WTO, June 2006 
WTO Agreement Description of 
requirement/content WTO document and date (latest if 
recurrent) 
Agreement on Agriculture   
Article 18.2 Domestic support  G/AG/N/UGA/4, 30 September  2005 
Article 10 and 18.2 Export subsidies G/AG/N/UGA/3, 30 September  2005 
Agreement on Implementation of GATT Article VI (Anti-dumping)  
Article 16.4 Anti-dumping actions G/ ADP/N/105/Add.1/Rev. 4, 26 October 2005 
Agreement on Implementation of GATT Article VII (Customs valuation)  
Article 22.2 Customs valuation G/VAL/N/1/UGA/1, 7 October 2005 
Understanding on Interpretation of GATT Article XVII (State trading enterprises)  
Paragraph 1 State trading enterpri ses G/STR/N/10/UGA, 28 September 2005 
Agreement on Import Licensing   
Article 7.3 Questionnaire on import licensing  G/LIC/N/3/UGA/1/Add.2, 7 October 2005 
Agreement on Subsidies a nd Countervailing Measures  
Article 25.1 Notification of subsidie s G/SCM/N/123/UGA, 28 September 2005 
Article 25.11 Countervailing duty actions ta ken G/SCM/N/68/Add.1/ Rev.5, 19 October 2005 
Agreement on Technical Barriers to Trade  
Article 15.2 National enqui ry point G/TBT/2/Add.23/S uppl.1, 12 April 2006 
Decision on Notification Procedures fo r Quantitative Restrictions (G/L/59)  
 Quantitative restrictions G/MA/NTM/QR/1/Add.10, 28 March 2006 
Source:  WTO documents.  
13. Uganda is a member of the East African Co mmunity (EAC), and of the Common Market for 
Eastern and Southern Africa (COMESA) (Common Repor t, Chapter II(2)).  It receives non-reciprocal 
trade preferences under the Cotonou Agreement and the Everything but Arms (EBA) initiative of the EC, the U.S. AGOA, and the Generalized System  of Preferences (GSP) schemes of Australia, 
Belarus, Bulgaria, Canada, the European Union, Iceland, Japan, New Zealand, Norway, the Russian 
Federation, Switzerland, Turkey, and the United States (Common Report, Chapter II(4)).  Uganda 
does not participate in the Agreement on the Gl obal System of Trade Preferences (GSTP) among 
developing countries.    
14. Uganda is a member of the International Co ffee Organization and the International Cotton 
Advisory Committee. 
                                                     
 
40 Ministry of Tourism, Trade, and Industry online information.  Available at:  http://www.mtti.go.ug/ 
background.php. EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-229 
 
 
 (4) INVESTMENT FRAMEWORK  
15. The key laws governing investment in Uga nda include the Companies Act of 1964, the 
Investment Code of 1991, and the Land Act of 1998.   The Income Tax Act of 1997 and the Finance 
Act of 1998, both amended in 2005, contain provi sions on tax and investment incentives.  The 
Investment Code provides that the interests of a lic ensed investor may not be expropriated, except in 
accordance with the Constitution and subject to fair and adequate compensation.  Foreign investment 
and 100% foreign ownership are allowed in all economic activities except for those relating to 
security and land ownership.  Cap ital account controls were rem oved in 1997;  investors can now 
make capital transactions freely.   
16. The 1998 Land Act prohibits fore ign investors from owning land, but allows them to lease for 
up to 99 years.  However, foreign investors may participate in joint ventures involving the outright 
purchase of agricultural land;  Ugandans must hold a majority share.  In addition, investors can 
purchase and own specific land titles for commercial, indus trial, agricultural, and residential purposes.  
This may be:  (a) land purchased by the Uganda Investment Authority (UIA) and allocated as 
leasehold or freehold tenure;  (b) land belonging to ministries and town councils under freehold (for 
Ugandans only) and leasehold;  or (c) government-held land. 
17. The UIA, a semi-autonomous "one-stop-fac ilitator" established under the 1991 Investment 
Code, has the mandate to promote and protect  domestic and foreign investment, advise the 
Government on investment policies, provide invest ment information, and license investors.  The 
licence form is purchased from the UIA for a fee of U Sh 1,500;  the licence is  issued within three 
days at no cost.  Although there is no legal requireme nt in terms of a minimum investment, in practice 
a threshold of US$100,000 has been applied to foreign investors and US$50,000 to local investors (defined as a company in which the local partner hol ds more than 50% of the shares).  Pursuant to 
Section 13 of the Investment Code, foreign inv estors may be subject to a number of performance 
obligations (not imposed on nationa l counterparts) as a condition for gr anting an investment licence.  
These include foreign exchange earnings, staff training and local employment, technological transfer, 
contribution to socio-economic development, and other obligations that the UIA may consider 
relevant for meeting the objectives of the Investme nt Code (e.g. investment size and environmental 
protection).  In practice, however, no such perfo rmance appraisal has been carried out since the 
mid 1990s.   
18. An entity must be registered as a company in Uganda before it can apply for an investment 
licence.  To register a business as a domestic compan y, the investor must submit an application to 
reserve a name with the Office of the Registrar Ge neral, together with the Articles and Memorandum 
of Association.  After the payment of stamp duties and other fees, a Certificate of Incorporation is 
issued.  The cost of registering a business consists of :  (a) a stamp duty of 0.5% of the nominal capital 
of the company;  (b) a filing and adjudication fee of U Sh 410;  and (c) a statutory stamp duty of 
U Sh 23,000.  An additional fee of U Sh 2,000 is payable for the Certificate of Registration.   
Depending on the project, a new investor may be requi red to complete a series of steps before being 
eligible to operate in Uganda (Table II.3). 
19. The procedure for registering a foreign comp any in Uganda differs from the procedure 
applicable to domestic companies.  In order to regi ster a foreign company, the applicant must submit 
an English-language certified copy of the document constituting the company;  a list of the directors 
and the secretary;  a "statement of subsisting charge s", such as mortgages;  and the name and address 
of a person in Uganda authorized to act on behalf of  the company.  The registration fee is US$470.  It WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-230 
 
 
 usually takes six weeks to form a company,  or up to six months in some cases.41  A profit tax of 30% 
is applicable to all companies;  the maximum rate  of personal income tax is  also 30%.  Management 
fees, dividends, royalties, and interest paid to no n-residents are subject to a 15% withholding tax. 
Table II.3 
Requirements for business operations, May 2006 
 Action Agency 
Step 1 Registration of company Registrar Gene ral, Uganda Registration Services Bureau 
Step 2 Investment licence Ug anda Investment Authority 
Step 3 Work permit Department of Immigr ation, Ministry of Internal Affairs 
Step 4 Secondary licences, permits, and/or clearances where 
necessary.  Required for investme nts in mining, air transport, 
fisheries, banking, forest ry, telecommunications, and 
pharmaceutical activities Relevant agency 
Step 5 Obtain land Land Development Division, UIA 
Step 6 Building plan approval Local authorities 
Step 7 Trading licence Local authorities 
Step 8 Environmental clearance Nationa l Environmental Management Authority 
Step 9 Health and safety clearance Depart ment of Occupational Safety and Health 
Step 10 Utilities: 
  Electricity 
  Water and sewer   Telecommunications  
Uganda Electricity Board 
National Water and Sewerage Corporation Uganda Telecom Limited 
Step 11 Register with Uganda Revenue Authority Uga nda Revenue Authority, Inte rnal Revenue Department 
Step 12 Product certification Uganda  National Bureau of Standards 
Source : Uganda Investment Authority, 2006.  
20. Investment incentives are generally available to both foreigners and Uga ndans;  they consist 
mainly of different types of allowance (Chapter III(4)(i)).  With the help of international donors, 
Uganda is also trying to upgrade its infrastructur e, e.g. through the development of industrial and 
business parks, in order to attract more investment .  An assessment by the World Bank of Uganda's 
investment climate concluded that the main constr aints to investment were access to and cost of 
finance, problems in electricity provision, and corruption.42 
21. Uganda is a signatory to the Convention on the Multilateral Investme nt Guarantee Agency 
(MIGA) and the International Center for Settlement of  Investment Disputes (ICSID).  It is also a party 
to the Convention on Recognition and Enforcem ent of Foreign Arbitration Awards, and the 
Convention on the Settlement of Investment Disput es between States and Nationals of Other States.  
Uganda has also signed an agreement with th e United States' Overseas Private Investment 
Corporation (OPIC).  The principles, which were embodied in the Lomé Convention between the ACP States and the European Union to protect Eu ropean investments in the ACP countries, are 
continued in the Cotonou Agreement signed in 2000 (Articles 75, 76, 77, and 78).  This offers an 
opportunity for Uganda's private sector to access tw o credit lines from the European Investment Bank 
(EIB), under risk capital resources and from EIB's own resources. 
22. Uganda has signed investment treaties and doubl e taxation treaties with a number of countries 
(Table II.4).  Since its last TPR, it has signed i nvestment treaties with Belgium and Luxemburg, 
China, Cuba, Denmark, Eritrea, Ethiopia, France, Nigeria, Peru, and Zimbabwe, and double taxation 
                                                     
 
41 UNCTAD and ICC (2004), p. 55. 
42 World Bank (2004). EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-231 
 
 
 treaties with India and Mauritius.  Uganda is ne gotiating new agreements with Malawi, Mozambique, 
Sudan, and Sweden.  
Table II.4 
Investment and double taxation treaties, May 2006 
Investment treaties Date signed Do uble taxation treaties Date signed 
Belgium and Luxemburg 1 February 2005 Denmark 22 December 1954 
China 24 May 2004 India 30 April 2004 
Cuba 1 January 2002 Italy 6 October 2000 
Denmark 26 November 2001 Kenya 14 April 1999 
Egypt 4 November 1995 Mauritius 19 September 2003 
Eritrea 30 June 2001 Netherlands 3 May 2000 
Ethiopia 2 July 2003 Norway 7 September 1999 
France 1 January 2002 South Africa 22 May 1997 
Germany 29 November 1966 Tanzania 14 April 1999 
Italy 12 December 1997 United Kingdom 23 December 1959 
Netherlands 30 May 2000 Zambia 16 April 1970 
Nigeria 15 Jan 2003   
Peru 27 February 2003   
South Africa 8 May 2000   
Switzerland  23 August 1971   
United Kingdom 24 April 1998   
Zimbabwe 1 July 2003   
Source: UNCTAD investment data base;  and information provide d by the Ugandan authorities.  
 WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-232 
 
 
 III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
1. Since January 2005, the EAC common external tariff (CET) has been Uganda's main trade 
policy instrument.  The move from Uganda's nationa l tariff to the EAC CET resulted in an overall 
increase in average import duties, despite the aboliti on of the import licence commission of 2%.  All 
goods, imported and domestic, are subj ect to a value-added tax of 18%.  Goods subject to excise 
duties include tobacco products, alcoholic beverages,  and petroleum;  these duties on beer and wine 
produced using local sorghum are lower than on similar imported products.   
2. Uganda maintains export duties on raw hides and skins, coffee, and cotton.  The major 
incentive programmes are a Duty Drawback Scheme and a Manufact uring Under Bond Scheme.  An 
export finance and an export guarantee scheme, bot h operated by the Bank of Uganda, aim to ensure 
that sufficient finance is available for exporters of non-traditional goods. 
3. New legislation on public procurement, establishing a decentralized procurement system, 
entered into force in 2003.  A competition law is under preparation.  Privatization of state-owned 
enterprises has been continued.  Uganda adopted a new Copyright Act in 2004.   
(2) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Business registration, customs procedures, and valuation 
4. All traders in Uganda, whether engaged in domestic  or international trade, must be registered 
with the Ministry of Justice and licensed by th e competent local authorities.  Applicants for 
registration and licensing must produce a taxpaye r identification number (TIN) from the Uganda 
Revenue Authority (URA).  No special registration or  licence is required to import.  The preshipment 
inspection requirement on goods imported into  Uganda was abolished in June 2001. 
5. Since July 2000, customs valuation has been based on the transaction value as provided for by 
the WTO Agreement on Implementation of Article VII of GATT 1994.  The authorities indicate a 
number of problems in implementing the Agreement, including:  difficulties in obtaining information 
(for valuation purposes) from forei gn sources, falsification of documents, and issuance of dual or 
blank invoices by suppliers.  No minimum prices  are used, but a valuation database has been 
established for purposes of reference and application of alternative valuation methods.  The Customs 
and Excise Department of the URA is in charge of  collecting all duties on imports.  According to the 
URA, average clearance time for imports is between two and three days. 
6. There is a specific procedure for valuation appeal s.  The importer/agent appeals to the head of 
station where the value was set.  The head discusses the issue with the valuation officer, and, if the 
decision does not satisfy the importer/agent, he can app eal to the officer in charge of the region, at the 
level of Assistant Commissioner.  There is still a ri ght to appeal to Headquarters valuation section.  
The final stage is the Tax Appeals Tribunal.  A similar process applies to classification and interpretation appeals. EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-233 
 
 
 (ii) Tariffs 
(a) MFN applied tariff structure 
7. The move from the national tariff to the EAC co mmon external tariff in January 2005 resulted 
in an overall increase of average duties on impor ts into Uganda.  In December 2004, Uganda's 
average MFN tariff rate was 9% (11% including the import licence commission), while the EAC's 
average MFN tariff rate is 12.9% (Common Re port, Chapter III(3)(i)).  The import licence 
commission has been abolished (section (2)(iv)).  Transport and insurance from entry points in Kenya 
and Tanzania to the Ugandan border are no longer dutiable (as was the case until December 2004); the 
dutiable value is now the c.i.f. price of the imported good at the point of entry to the customs union.  
Given the large share of goods transhipped thro ugh the port of Mombasa and the length of the 
journey, the importance of this change is considerable, mainly in the case of Uganda. 
8. The authorities indicate that fiscal revenue from import duties has increased since the 
adoption of the CET.  
(b) MFN tariff bindings 
9. 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% and 80% on non-agri cultural products, including fisheries products, 
photographic goods, rubber, and certain machinery.   
10. Other duties and charges are bound at between 10% and 30%. 
(c) Tariff preferences 
11. Uganda grants tariff preferences (on a recipro cal basis) to Kenya and Tanzania under the 
Protocol on the Establishment of the EAC Custom s Union (Common Report, Chapter II(3)(ii)), and to 
members of the COMESA (Common Report, Chapter II(2)).  The preferential bands applied by Uganda under COMESA are 0%, 4%, and 6% fo r inputs, intermediate  goods, and final goods, 
respectively.  Uganda is considering full membership of the COMESA free-trade area. 
(d) Duty and tax exemptions and concessions 
12. Uganda grants tariff concessions on 134 tariff lines (as at September 2005), including:  
fertilizers, insecticides, fungicides, certain products  of the printing industry, pharmaceutical products, 
herbicides, disinfectants, fuels for specific uses , specific electrical machinery and equipment, 
locomotives, specified aircraft parts, certain ship s and boats, medical equipment, and electricity.  
13. Two schemes, the fixed Duty Drawback Sche me and the Manufacturi ng Under Bond Scheme, 
are in place to allow exporters access to VAT refunds and duty drawback (section (3)(iv)). 
14. Goods in transit are exempt from customs duti es.  Bonds must be held until the goods leave 
the country.  Goods shipped through Uganda on their way to, inter alia,  eastern Congo and Rwanda 
may remain in Uganda for a maximum of seven days. WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-234 
 
 
 (iii) Other duties and charges 
15. A value-added tax is levied at a standard rate  of 18% (17% until June 2005) on the sale price 
of locally produced goods and services, and on the customs-duty inclusive c.i.f. value of imports.  
VAT is zero-rated for international transport service s;  drugs and medicines;  educational material;  
seeds, fertilizers, pesticides, and hoes; locally pro duced cereals;  and agricultural equipment.  VAT 
exemptions apply to unprocessed food and other ag ricultural products;  petr oleum products;  animal 
feed;  and medical, dental, nursing, social welfare, educational, and funeral services.  Companies with a turnover of under U Sh 50 million are exempt from registration requirements for VAT purposes.  Fiscal revenue from VAT was U Sh 573.62 billion  in 2003/04, of which U Sh 332.59 billion (57.9%) 
came from imported goods.  
16. The Excise Tariff Act of 2005 lays down the items subject to excise taxes and the respective 
rates.  Excise duties are payable on tobacco produc ts, alcoholic beverages, petroleum, mobile phone 
calls, and sugar (Table III.1).  The excise taxes are lower on domestically produced beer and wine 
than on similar imports.  The excise tax applies to the customs-duty-inclusive c.i.f. value of imports 
and to the sale price of locally produced goods.  Ex cise duties on local beer and wine produced using 
domestic sorghum are considerably lower than on similar imported products .  In 2003/04, revenue 
from excise duties was U Sh 177.39 billion of whic h U Sh 48.84 billion (27.5%) came from imports.  
Table III.1 
Main excise duties, 2006  
Duty Rate  
Cigars, cheroots, and cigarillos containing tobacco 150% 
Soft cup 
  Safari, Super Match, Crescent, and Star (Kali) 
  Sportsman, Sweet menthol, and Boss  
U Sh 21,000/1,000 sticks 
U Sh 27,000/1,000 sticks 
Hinge lid: B&H, Embassy, Rex, and Amber U Sh 48,000/1,000 sticks 
Other cigarette brands U Sh 48,000/1,000 sticks 
Other  150% 
Smoking tobacco, whether or not containing tobacco substitutes in any proportion  150% 
Homogenized or reconstituted tobacco 150% 
Other 150% 
Beer 
  Made from malt 
  Whose local raw-material content, excluding water, is at least 75% by weight of its constituents   
60% 
20% 
Spirits 60% 
Wine 
  Made from locally produced raw materials 
  Other  
20% 
70% 
Water, including mineral waters an d aerated waters, contai ning sweetening matt er or flavoured 13% 
Airtime 12% 
Fuel 
  Motor spirit (gasoline)   Gas oil (automotive, light, a nd amber for high speed engine) 
  Other gas oils 
  Illuminating kerosene  
U Sh 720/litre U Sh 450/litre 
U Sh 450/litre  
U Sh 200/litre 
Cane or beet sugar and chemically pure  sucrose in solid form  U Sh 50/kg 
Sacks and bags of polymers of ethylene and other plastics falling under tariff heading 3923.21.00 and 
3923.29.00 of the EAC Customs Union Common External Tariff  50% 
Source:  Information provided by the Ugandan authorities.   
17. Uganda abolished the import licence commission of 2% collected on the c.i.f. value of all 
imports upon the entry into force of the EAC common external tariff on 1 January 2005.   EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-235 
 
 
 18. A withholding tax of 4% on the c.i.f. value of imports is collected from companies that have 
not submitted income tax declarations.  This is a deposit on income tax and is taken into account at 
the end of the fiscal year. 
19. There are indications that corruption, smugg ling, falsification of  documents, and under-
declaring of goods and income have undermined growth in tax revenue.43  Efforts by the Government 
to address these problems include the restructuring of URA, integrating the anti-smuggling function 
into the customs department, and increased cooperation with the customs administration of Kenya. 
(iv) Import prohibitions, restrictions, and licensing 
20. Approval must be sought from the Agrochemic als Board (ACB) for agri-chemicals and from 
the National Drug Authority (NDA) for pharmaceuticals.  Importers of agricultural chemicals must 
register with and be certified by the ACB, unde r the Agricultural Chemi cals (Regulations and 
Control) Regulations 1993.  Similarly, importers of pharmaceutical products must apply to the NDA 
for registration and certification, under the National Drug Policy and Authority Statute of 1993. 
21. The Uganda Revenue Authority may require suppl ementary documents at the entry point for 
certain import.  For human and animal drugs/med ications, "verified" pro-forma invoices from the 
NDA are needed.  A firearms certificate is required for imports of firearms;  and a health certificate is 
required for live animals (domestic and wild).  For endangered species, pe rmission of the national 
Management Authority for the Convention on Inte rnational Trade in Endangered Species of Wild 
Fauna and Flora (CITES) must be obtained.  A fumigation certificate is necessary for second-hand 
clothing.  For explosives, permission of an approva l authority is required.  For seeds and plants, a 
phytosanitary health certificate is required.  A cer tificate of the Uganda National Bureau of Standards 
(UNBS) may be required to import food products, ag ricultural chemicals, plants, pharmaceuticals, 
firearms, explosives, and items restri cted under international conventions. 
(v) Contingency trade remedies 
22. 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(4))  Uganda has not taken any contingency 
measures since its last TPR in 2001.   
(vi) Standards and other technical requirements 
(a) Standards 
23. The Uganda National Bureau of Standards (UNB S) is responsible for the overall management 
and coordination of standardization activities in Uga nda;  it is also Uganda's enquiry point under the 
WTO Agreement on Technical Barriers to Trade.44  UNBS represents Uganda in the African Regional 
Organisation for Standardization (ARSO) and, as an  observer, in the International Organization for 
Standardization (ISO).  UNBS also chairs the National TBT/SPS Committee, an institutional, multi-
sector committee consisting of regulatory and priv ate sector organizations responsible for the 
implementation of the TBT and SPS Agreements at the national level.45   
                                                      
43 Ayoki et al (2005).  
44 WTO document G/TBT/ENQ/26, 7 March 2005.  
45 WTO document G/TBT/M/34, 5 January 2005.  WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-236 
 
 
 24. Uganda has not submitted any notifications under the WTO Agreement on Technical Barriers 
to Trade since its last TPR.  It has accepted the WTO Code of Good Practice for the Preparation, 
Adoption and Application of Standards.46 
25. UNBS publishes a catalogue of standards annuall y.  The 2004 edition contains 45 pages of 
summaries of current standards, both compulsory and voluntary, as well as lists of withdrawn and 
draft standards.  Uganda's standards do not di stinguish between importe d and nationally produced 
goods.  UNBS is also Uganda's coordinating agency  for the harmonization of standards at the EAC 
level.   
26. UNBS' main role in the standardization process is that of a secretariat:  it prepares a 
discussion document, convenes technical committee (TC) meetings, prepares draft standards for 
public comment, and publishes standards.  Draft sta ndards are elaborated by TCs, composed of all 
relevant interest groups, e.g. academia, researchers , manufacturers, exporters, and consumers.  UNBS 
had ten operational TCs (October 2005):  basic and general standards;  food and agricultural products;  
building and construction;  mechanical engineerin g and metallurgy;  chemicals and environment;  
electrical technology;  textiles;  transport and communications;  metrology;  and management 
systems. 
27. Draft standards are circulated for wider public comment, including by trading partners:  a    
60-day period is provided for such comments.  Th e TC convenes after comments have been received 
to ensure that the relevant concer ns are considered.  Draft standard s are then submitted for approval to 
the National Standards Council (NSC), the governing body of UNBS.47  The TC may make 
recommendations to the NSC for compulsory applica tion of the standard if it is likely to affect, inter 
alia, the health and safety of consumers.  After a standard has been approved, the NSC may also 
recommend that the Minister responsible for Tr ade declare its application compulsory.  The 
authorities indicate that internationa l standards are generally followed. 
28. Approved standards are published in na tional newspapers as well as in the Government 
Gazette .  The intention to declare a standard compulsory  is first published by the Minister responsible 
for Trade in newspapers as well as in the Government Gazette,  and a period of 60 days is given for 
comments from the parties that may be affected.  After 60 days, if no comments are received, the standard is declared compulsory  by a statutory instrument.  
29. Product testing is undertaken to address consum er complaints, for market surveillance, for 
standards formulation, and for compliance with sp ecifications.  UNBS has set up laboratories in the 
fields of electrical testing, chemical testing,  microbiology, building materials, and metrology.  
Compliance testing is undertaken by UNBS inspect ors during routine market surveillance and factory 
inspections.  Imports subject to a compulsory st andard must be accompanied by a test certificate 
indicating compliance with the Ugandan standard.  
30. Uganda has not concluded any mutual recognitio n agreements.  No accreditation system is yet 
in place. 
(b) Sanitary and phytosanitary regulations 
31. The Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF) is the national enquiry 
point for all SPS-related issues.  The Food and Drugs Act of 1964, the Public Health Act of 1964, the 
                                                     
 
46 WTO document G/TBT/CS/2/Rev.12, 17 February 2006. 
47 The NSC consists of representatives from various public institutions and the private sector. EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-237 
 
 
 Plant Protection Act of 1964, the Drugs Act of 1993,  and the Seed Act of 1994 constitute Uganda's 
main SPS-related legislation.  The Government h as noted that the enforcement of food safety in 
Uganda is cumbersome and that legislation needs to be revamped.48  A draft food safety bill has been 
under consideration since 2001, but has not been adopted (October 2005). 
32. The MAAIF is responsible for three regulatory areas:  phytosanitary controls, matters relating 
to seeds, and agricultural chemicals and pesticides.  The same corps of inspectors is empowered to 
enforce regulations for all three areas.  To prev ent the introduction of infectious diseases, the MAAIF 
may restrict the entry of any person, animal, plan t or plant part under the Public Health Act, and 
impose requirements or conditions (medical examina tion, detention, quarantine, disinfection, or 
isolation).  The MAAIF is empowered to make re gulations or orders regarding the manufacture, 
importation, storage and sale of foods, including prohibitions on products that are not clean, 
wholesome, and free of diseases.  No plant or part of a plant can be imported without a permit from the MAAIF;  imports of fresh fruit require an additional certificate signed by an appropriate 
government official in the exporting country.  Soil imports are prohibited.  All imports of live 
animals, plants and seeds are subject to quarantin e regulations and may enter only through one of the 
22 designated ports. 
33. The Ministry of Health is responsible for issu es related to drugs and food safety.  The Food 
and Drugs Act empowers the Minister of Health to  constitute a Food Hygiene Advisory Committee.  
The Committee is composed of technical experts dr awn from key stakeholders in the food industry.  
Its mandate is to advise the Minister on any matters of food hygiene and safety in Uganda.   Imports of 
drugs require a licence issued by the National Dr ug Authority, a semi-aut onomous institution under 
the Ministry of Health. 
34. The Food and Drugs Act prohibits, inter alia , the sale and possession of any food unfit for 
human consumption, and any false or misleading la belling and advertisement of  food and drugs.  To 
this effect, an authorized officer may, "at all reasonable times", examine food sold or stored, as well as any vehicle or container used.  Where necessary, th e officer may prohibit or restrict transport of 
imported food for up to 48 hours.   
35. To date, Uganda has taken no action against imports on SPS grounds.  It has not submitted 
any notification to the WTO's SPS Committee since its last TPR.  
(c) Labelling, marking, and packaging requirements 
36. The following information must be clearly ma rked on imports and exports:  importer/exporter 
names;  consignee;  flight/vehicle details;  pl ace of discharge;  number of packages;  container 
identity;  description of goods;  airway bill number/b ill of lading;  and country of origin/destination.  
All marks must correspond exactly with those on the invoice and bill of lading. 
37. The UNBS has developed, and issues under licence, a standards quality mark known as the 
Uganda Standards Certification Mark.  The mark indicates that the manufacturer is capable of 
manufacturing consistently a safe and quality produc t in accordance with Ugandan or internationally 
accepted standards.  As at June 2006, 113 prod ucts have been certified and 50 companies have 
benefited from this scheme. 
38. Uganda's standards on labelling apply mainly  to food, textile products, and cosmetics 
(Table III.2).  No standards related to packaging are in place in Uganda. 
                                                     
 
48 National Planning Authority (2005). WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-238 
 
 
 Table III.2 
Labelling standards  
Standard number Contents 
US 93 (1999)/ISO 14024 Environmental labels and declarations – type 1:  auditing;  environmental labelling;  principles;  and p rocedures 
US 134 (1999)/ISO 14021 Environmental labels and declarations – self-declared environmental claims (type II environmental label ling) 
US 7 (2002) General standard for labelling of pre-packaged foods 
US 277 (2002) General standard for labelling of food additives sold as such 
US 372 (2002) Specification for care labelling of textiles 
US 426 (2002) Code of practice for fibre content labelling of textiles and textile products 
US 484 (2003) Labelling of cosmetic products – general requirements 
US 500 (2003) Guidelines for nutritional labelling of foods 
Source:  Uganda National Bureau of Standards. 
(vii) Other measures 
39. Countertrade is not practised in Uganda;  th ere are no offsetting requirements in force.  
Uganda does not maintain strategic reserve-stock s.  It has no schemes requiring local content. 
40. Domestic breweries that use local  sorghum to make their beer a nd wine are eligible for lower 
excise duties (section (iv) above).  
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Procedures 
41. Export enterprises must have a certificate of registration and a tax identification number 
(TIN).  On presentation of these documents to the M TTI, the exporter is issued with an application 
form for a non-compulsory export permit.  The cost of the form is U Sh 1,500;  the export permit is 
issued within 24 hours. 
42. An exporter may, depending on the export prod uct and destination, also require other 
documents, such as a phytosanitary certificate, certif icate of origin, veterinary health certificate, 
certificate of analysis (by a government chemis t), packing list, and commercial invoice.  The 
authorities indicate that, on average, clearance of exports through customs takes one day, unless there 
is need to verify the information provided.  
43. Under the Coffee Regulations of 1994, all buyers,  processors, and exporters of coffee must be 
registered with, and certified by, the Uga nda Coffee Development Authority (UCDA) 
(Chapter IV(2)(ii)(a)).  To qualify for a coffee exporte r's certificate – valid for one "coffee year", i.e. 
October-September, and renewable but not transferable – an applicant must have assets that include a coffee processing factory, provide a performance  bond of US$25,000 (not in cash), and pay the 
annual registration fee of U Sh 1.5 million.  In add ition, individual consignments are subject to quality 
certification by the UCDA. 
(ii) Export taxes and charges 
44. Uganda maintains a cess of 1% on exports of coffee (collected by the UCDA), 2% on cotton 
(collected by the Cotton Development Organisation), and 20% on raw hides and skins (Chapter IV(2)).  While the taxes on cotton and co ffee are in place to finance promotional activities, 
the tax on raw hides and skins was introduced  to encourage local processing of these goods. EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-239 
 
 
 (iii) Export prohibitions, restrictions, and licensing 
45. Exports of items that appear on Uganda's nega tive list are not allowed, and certain exports 
require authorization from regulatory bodies.  The negative list of exports includes timber, charcoal, and whole fresh fish.  For items covered by interna tional conventions to which Uganda is a signatory, 
such as some wild animals and their trophies, prio r authorization must be obtained from the Uganda 
Wildlife Authority;  this is granted only if the ex porter can satisfy the authorities that the export is 
sustainable without endangering the species.   
46. Uganda applies no voluntary export restraints. 
(iv) Export subsidies and incentives  
47. The authorities indicate that Uganda does not provide export subsidies.  Nonetheless, in 
July 2000, Uganda introduced the fixed Duty Drawback Scheme and the Manufacturing Under Bond 
Scheme.  The importance of these schemes has decr eased following the introduction of the CET, with 
its zero tariff on most inputs. 
48. The fixed Duty Drawback Scheme operates w ith input/output coefficients calculated in 
advance or estimated on the basis of information prov ided by the exporter.  Under this scheme, duties 
paid on inputs (including packaging material) for th e production of exports are refunded, so that the 
export is not rendered uncompetitive as a result of th e duties.  Exporters of agricultural and fishery 
products and manufactured goods who do not rely on  a large quantity of imported inputs, especially 
packaging material, are eligible for the scheme.  The scheme is based on documentary requirements;  
various forms must be completed.  An interested  exporter must register with the Duty Drawback 
Division in the Customs Department of the Uganda Revenue Authority.   
49. The Manufacturing Under Bond Scheme is open to companies producing only for export.  
Under Section 42(1)(b) of the Customs Management  Act, the Commissioner General of Customs may 
permit the assembly or manufacture of any article  in the warehouse.  For this purpose, the 
Commissioner General may permit the receipt into a warehouse of duty-free imports or local products 
required as components of the article to be assembled or manufactured therein.
49  To qualify for the 
scheme, the manufacturer must be VAT registered  and conform to conditions laid down by the 
Uganda National Bureau of Standards.  
50. Exports are zero-rated for VAT refund purposes.   Furthermore, a law on export processing 
zones (EPZs) has been in preparation since 2000.  However, no legislation related to EPZs has been 
adopted (June 2006).  
(v) Export finance, insurance, and guarantees 
51. The Bank of Uganda finances and administers the Export Refinance Scheme (ERS), which 
provides export finance support for non-traditional products.50  Credits are channelled through 
commercial banks.  The main export commodities f unded include fruit and vegetables, maize, fish, 
fish maws, simsim, groundnuts, hides and skins, vanill a, flowers, and minerals.  Financing is available 
for preshipment credit facilities, against an expor t order or contract, to meet working capital 
                                                      
49 For purposes of manufacturing under bond, "raw material" (input) means any product, processed or 
not, and "output" implies substantial transfor mation leading to a change in the HS code. 
50 Non-traditional exports are all commodities excluding coffee, cotton, tea, and tobacco in their raw 
form.   WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-240 
 
 
 requirements;  post-shipment credit facilities, agai nst shipping documents, export bills, letters of 
credit, to replenish exporter's working capital need s during the period between the shipment of goods 
and realization of the proceeds;  and medium-term lo ans to exporters for investment in infrastructure, 
such as cold storage, warehousing, cleaning, drying, and packaging facilities. In 2005, the 
Government decided to convert the scheme into  an Export Finance Fund and to transfer its 
management to the Uganda Development Bank. 
52. Under the ERS, the loan coverage for pre- a nd post-shipment may not exceed 80% of the cost 
of the project with a maximum loan period for wo rking capital loans of 180 days;  the maximum loan 
coverage for medium-term loans may not exceed 75% , and the maximum loan period is five years, 
including a grace period depending on the nature of the project, but not exceeding two years.  The 
interest rate is negotiable between the lending in stitution and the borrower.  To qualify, a borrower 
must be a bona fide, licensed exporter or trader dealing in non-traditional export commodities; be creditworthy and not in default on any credit scheme or to any financial authority or the tax authority;  
and have firm export order(s) or letters of credit in their favour for an export consignment and be 
capable of fulfilling their commitments. 
53. The Bank of Uganda Export Credit Guarantee Scheme (BOU/ECGS), established in 2001, 
has as an objective to ensure that sufficient credit facilities are available to exporters of non-traditional 
goods and services.  Under this scheme, the BOU partially guarantees loans extended by Ugandan 
banks known as participating financial institutions (PFI).  Only institutions accredited by the BOU 
may operate as PFIs;  nine commercial banks have  been accredited (as at June 2006).  Any company 
that has been in the export business for one year and has a confirmed order is eligible.  The guarantees 
cover 75% of the loan amount plus related interes t;  the rates are negotiated between the borrower and 
its PFI.  BOU charges a guarantee fee of 1.25% on the loan amount to the PFI.  Loans guaranteed under the ECGS are based on "commercially  reasonable" terms and conditions.  
(vi) Export promotion and marketing assistance 
54. The main promotion agency is the Uganda Export Promotion Board (UEPB), established in 
1996 as a semi-autonomous institution under the Minist ry of Tourism, Trade, and Industry.  The 
UEBP Board of Directors is composed of six representatives of the private and public sectors 
respectively.  Its annual work plans and budgets are approved, monitored, and evaluated by the MTTI. 
55. The UEPB's statutory mandate is "to facilitate the development, diversification, promotion 
and co-ordination of all export-related activities that l ead to export growth on a sustainable basis".  In 
addition to UEB's activities, traditional exports (cof fee, tea, cotton, tobacco) are also promoted by 
their respective producers' associations (Uganda  Coffee Development Authority, Uganda Tea 
Association, Cotton Development Organisa tion, and Uganda Tobacco Growers).   
56. The five main pillars of the UEPB's interven tions are:  policy initiation and advocacy, trade 
information generation and delivery,  exporters' skill development, mark et research and development, 
and trade promotion services.  The UEPB mainta ins a trade information centre, which provides 
pricing and marketing information, offers market research assistance, organizes participation in trade 
fairs, provides training (usually in collaborati on with international donors), and has a small 
commercial library.   
57. An Export Promotion Fund (EPF) was launched within the Bank of Uganda in 1995, under 
the European Investment Bank-Uganda Apex Expor t Loan Scheme for export enterprises;  the aim 
was to help exporters carry out export promotion ac tivities.  The fund intended to be a revolving fund, EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-241 
 
 
 provides interest-free loans of up to U Sh 5 million (f or up to one year) for export marketing studies, 
management and staff training, hire of sales agents or representatives abroad, and production of 
publicity/promotional materials for exporting companies.   
(4) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 
58. The Government of Uganda operates various incentive schem es to promote investment, 
research and development, regional development, and sectoral activities.  The Investment Code of 
1991 encourages investors to use locally sourced material s, invest in rural regions, and to earn or save 
foreign exchange (Chapter II(4)).  This encouragement,  however, is voluntary rather than mandatory.   
59. The Income Tax Act of 1997, as amended, and the Finance Act of 1998, as amended, provide 
for various allowances on investment capital.  Th e allowances are administered and assessed by the 
Uganda Revenue Authority.  The schemes, which have remained largely unchanged since Uganda's 
last TPR in 2002, can be summarized in three categor ies:  capital allowances and expenses, deductible 
annual allowances, and other annua l depreciation allowances (Table III.3).  For regional development 
purposes, some incentives are higher for i nvestments outside the larger cities. 
Table III.3 
Investment capita l allowances, 2006 
 Percentage 
Category 1:  Capital allowances/expenses de ductible once from a company's income  
Initial allowances on plant and machinery  
  Located in Kampala, Entebbe, Namanve, Jinja, and Njeru 50 
  Outside Kampala, Entebbe, Namanve, Jinja, and Njeru 75 
Start-up costs spread over the first four years (per year) 25 
Scientific research expenditure 100 
Training expenditure 100 
Mineral exploration and e xploitation expenditure 100 
Initial allowance on new industrial buildings (inc luding tourism facilities:   hotels and lodges) 20 
Category 2:  Deductible annual allowances  
Depreciable assets specified in four classes (s ixth schedule) under declining balance method:  
  Class 1 - Computers and data handling equipment 40 
  Class 2 - Automobiles (up to 7 tonnes) , construction and earth moving equipment 35 
  Class 3 - Buses, goods vehicles, tractors, trailers, pl ant and machinery for farming, manufacturing, and mining 30 
  Class 4 - Railroad cars, locomotives, ve ssels, office furniture, fixtures, etc. 20 
Category 3:  Other annual depreciation allowances  
Industrial buildings, hotels and hospitals (using the straight-line method) 5 
New commercial buildings constructed after 1 July 2000 (using the straight-line method) 5 
Farming – general farm works (d eclining balance depreciation) 20 
Horticulture (horticultural plant and constructi on of green houses) (straight-line depreciation) 20 
Source : UNCTAD and ICC (2004), An Investment Guide to Uganda:  Opportunities and Conditions , page 60.  
60. Licensed investors can enjoy a deferred VAT payment facility on plant and machinery, 
seedlings, greenhouse equipment, plastic sleeves, a nd tea clones.  The facility is granted on a 
consignment-by-consignment basis, as approved by the VAT Commissioner.  In addition, VAT 
exemption is extended to producers of agricultura l products and unprocessed food, and some services 
(e.g. supply of financial, educational,  medical, and social welfare services). 
61. A newly licensed investor (referred to as an "inv estment trader"), investing in Uganda for the 
first time, can claim a refund of VAT paid on all purchases (both local and imported) for purposes of WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-242 
 
 
 the licensed project.  This applies to all sectors,  except trade, and for a period of two years from 
establishment. 
62. Investment incentives are not available for several  types of businesses:  wholesale and retail 
commerce, personal services, public relations business, car hire services and operation of taxis, 
bakeries confectioneries and food processing (for th e Uganda market only), postal services, and 
professional services.51 
63. The National Council of Science and Technolog y (NCST) is responsible for coordinating 
Uganda's national research and development programmes.  There are a few R&D programmes run by the National Agriculture Research Organization (NAR O) and by the newly created Uganda Industrial 
Research Institute (UIRI).  
64. The 2005/06 state budget provides for the establishment of an Innovations and 
Industrialization Fund.  The Fund is to be coordinated by the UIRI and has as an objective to increase value-creation in the coffee, banana, and cotton s ubsectors.  R&D allocations in the 2005/06 budget 
totalled U Sh 2.75 billion.
52  
65. The Development Finance Departme nt of the Bank of Uganda administers a number of credit 
programmes to promote economic development.  The Development Finance Fund, established in 
1986, aims to increase the flow of institutional cr edit to the production sectors of the economy by 
making available funds to finance short- to medium -term projects.  The Investment Term Refinance 
Fund has as an objective to support economic refo rms undertaken by the Government under the 
Economic Recovery and Structural Adjustment Programme.  This scheme also provides financing for 
investment by private entrepreneurs in privatized public enterprises.  The European Investment Bank-
Uganda Apex Loan Scheme is meant to support the development of start-up ventures in productive 
sectors.  Eligible activities include agri-industry, manufacturing, mining and quarrying, fishing/fish 
processing, horticulture, and tourism.  Investment s financed under the scheme relate to new projects 
or expansion, modernization, restructuring, and diversification of existing activities.   
(ii) Government procurement 
66. The Public Procurement and Disposal of Asset s Act of 2003 and regulations and guidelines 
issued by the Public Procurement and Disposal of  Public Assets Authority (PPDA) represent the main 
legal framework governing public procurement in  Uganda.  The Local Governments (Amendment) 
Act of 2006 extended the national procuremen t system to local governments.   
67. The PPDA, established by the Act,  is the central rules-setting authority for the procurement 
and disposal of public assets.  It manages th e regulatory framework, and monitors and evaluates 
compliance by all procurement entities.  The PPDA is run by a Board of Directors and by four departments responsible for training and capacity building, legal matters and compliance assessment, 
procurement audits and the investig ation of complaints, and internal administration.  Under the Act, 
the Government decentralized the procurement syst em and transferred all procurement responsibility 
directly to the concerned bodies or procuring and disposing entities (PDEs).   
68. The PDEs' Chief Executive Officer s are responsible for all procurement matters in their 
entities, but can delegate decision-making to procur ement contract committees.  The secretariats of 
these committees prepare documentation and manage th e day-to-day procurement process.  The Act 
                                                     
 
51 UNCTAD and ICC (2004), p. 67. 
52 Ministry of Finance, Planning, and Economic Development (2005).  EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-243 
 
 
 separates powers within each PDE between:  user departments, which initiate the procurement process 
and evaluate bids;  procurement and disposal units , which manage the procurement process;  contract 
committees, which decide on the contract award;  and the accounting officer, a senior official 
responsible for the proper functioning of the procur ement process.  The Act also allows dissatisfied 
bidders to seek administrative review and provid es for suspension of prov iders for offences, and 
disciplinary measures for against malpractices by public officers.  PDEs must provide quarterly reports to the PPDA on all procurements. 
69. The PPDA has issued guidelines on thresholds fo r procurement methods (Table III.4).  The 
widely used procurement procedure is the open bi dding system, especially for large amounts of public 
purchases.  The tender is advertised in the national, and in some cases international, print media, and 
displayed on noticeboards.  Bids are opened, regist ered, and evaluated by the procurement contract 
committee.  Local and regional authorities and pub lic enterprises follow the same procedure.  
Procurement audits are carried out by PPDA staff or contracted to approved external companies. 
Table III.4  
Thresholds for procurement methods, 2006 
 Works Services Supplies 
Open bidding For works exceeding 
U Sh 100,000,000 or US$50,000 
whichever is greater For services exceeding 
U Sh 50,000,000 or US$25,000 
whichever is greater For supplies exceeding 
U Sh 70,000,000 or US$35,000 
whichever is greater 
Restricted bidding For works not exceeding 
U Sh 100,000,000 or US$50,000 whichever is greater For services not exceeding 
U Sh 50,000,000 or US$25,000 whichever is greater For supplies not exceeding 
U Sh 70,000,000 or US$35,000 whichever is greater 
Quotations procurement For works not exceeding 
U Sh 80,000,000 or US$40,000 whichever is greater For services not exceeding 
U Sh 30,000,000 or US$15,000 whichever is greater For supplies not exceeding 
U Sh 30,000,000 or US$15,000 whichever is greater 
Micro procurement For works not exceeding 
100 currency points For services not exceeding 100 
currency points For supplies not exceeding 
100 currency points 
Note: 1 currency point is defined in the First Schedule of th e Act as U Sh 20,000, making 100 currency points U Sh 2,000,000. 
Source: Public Procurement and Disposal of  Public Assets Guidelines, 2003.  
70. The other authorized procedures, each with specific conditions, are:  restricted tendering, 
direct procurement, procurement by requests for proposals, and request for quotations.  Restricted 
tendering may be authorized when the goods, works or services are available only from a limited number of suppliers or when the time and cost required to examin e and evaluate a large number of 
tenders would be disproportionate to the time availa ble in an emergency situation or to the value of 
the expected procurement (up to U Sh 100 million or US$60,000).  Direct procurement may be used 
in various situations, including:  due to absen ce of competition for technical reasons, the goods, 
works, or services can be supplied only by one prospec tive tenderer;  when there is an urgent need for 
the items;  when there is need for additional items  from an original supplier;  in cases of new works 
consisting of repetition of previous works from a supp lier;  for purchase of perishable items on market 
terms;  or when the contract price does not ex ceed U Sh 100,000 or US$60.  A procuring entity may 
engage in procurement by means of requests for proposals when it seeks to obtain consulting services 
or combinations of goods or services for which open or restricted tendering is not suitable because of the difficulty in defining the services.  Procuremen t by means of request for quotations applies to the 
purchase of readily available goods or for the procurem ent of works or services for which there is an 
established market, and within a threshold of U Sh  5 million or US$3,000.  No preferential margins 
are accorded to local suppliers, but this is unde r consideration.  Procurement bodies must provide 
annual reports to the PPDA on use of procedures other than open tendering. WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-244 
 
 
 71. No data are available on public procurement in  Uganda.  However, the authorities indicate 
that the PPDA is in the process of developing a database. 
72. Uganda is neither a signatory nor an observe r to the Plurilateral Agreement on Government 
Procurement. 
(iii) State-trading enterprises, state ownership, and privatization 
73. 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 1994.53 
74. The Public Enterprises Reform and Divestiture Ac t of 2000 is the legal basis for privatization 
and the operation of state-owned enterprises in Uganda .   The Privatization and Utility Sector Reform 
Programme in the Ministry of Finance, Planni ng and Economic Developmen t is responsible for 
monitoring state-owned enterprises and conducting privatization;  its Privatization Unit has 
formulated guidelines for divestiture in accordance with the statute.   
75. Evaluation of bids relating to privatization takes place in a two-step process.  Technical 
statements are opened first and are matched against the terms of reference.  An evaluation committee 
reviews the business development plans of bidders who submitted adequate technical statements and 
agree whether each plan is of a satisfactory standa rd.  The financial bids from bidders who submitted 
acceptable technical statements and satisfactory bu siness development plans are opened in the second 
step.  The opening of technical statements and fina ncial bids takes place publicly;  the highest price 
bid wins.  For more important divestiture, there may be a pre-qualification process prior to final bidding;  only pre-qualified bidders may participate in  the tender process.  Bids must remain valid for 
six calendar months after the closing date.  Fore igners can own 100% of privatized companies. 
76. As at June 2005, 224 companies had been div ested, leaving 24 to be sold.  Divestiture 
proceeds are used to support the privatization pro cess.  There are no provisions for a golden share.  
With the exception of the Post Office, which en joys certain monopoly rights, the remaining state-
owned enterprises do not enjoy any specific privile ges and have to compete in the market.   
(iv) Competition policy and price controls 
77. Uganda does not have national legislation on competition.  The authorities indicate that 
national legislation, to be based on the envisaged  EAC Law, and legislation on consumer protection 
were under preparation.   
78. The Sale of Goods Act, the Customs Manageme nt Act, the Limitations Act, and the Penal 
Code contain general prov isions on competitive practices.  There have been no recent legal cases on 
competition issues.  However, the authorities indi cate that anti-competitive practices have been 
noticed in a number of activities, such as petrol distribution and sugar production.  There are no official bodies dealing with competition issues,  but according to the authorities the law under 
preparation will provide for the establishment of a competition authority.   
79. Uganda has no large companies functioning as cartels.  Fixed telephone services are subject to 
price controls.  
                                                     
 
53 WTO document G/STR/N/10//UGA, 28 September 2005. EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-245 
 
 
 (v) Intellectual property rights 
(a) Legal and institutional framework 
80. Uganda is a member of various international tr eaties on intellectual property.  It joined the 
Paris Convention for the Protection of Industrial Pr operty in June 1965;  the Convention establishing 
the World Intellectual Property Organization in October 1973;  the Patent Cooperation Treaty in 
February 1995;  and the Patent La w Treaty in June 2000.  It is also  member of the African Regional 
Industrial Property Organization (ARIPO).  Pursuant to the Protocol on the Establishment of the EAC 
Customs Union, its members states will c onclude a protocol on IPR protection. 
81. Uganda's notified IPR contact point is the Cu stoms and Excise Department of the Uganda 
Revenue Authority.54  Its main dedicated domestic statutes for the protection of intellectual property 
rights are:  the Patents Statute of 1991, the Pate nt Rules of 1993, the Trade Marks Act of 1933 as 
amended, the Trade Mark Rules of 1982 as amended,  the United Kingdom Design (Protection) Act of 
1937, and the Copyright and Neighbouring Rights Law of 2004. 
82. Under Uganda's current IPR legislation, no pr otection is provided for lay-out design of 
integrated circuits, undisclosed information, geograp hical indications, and industrial design.  Uganda's 
IPR legislation does not contain any provis ions on parallel imports (Table III.5).  
Table III.5 
Overview of IPR protection, 2006 
Subject  Coverage  Duration  Selected exclusions and limitations  
Patents and 
utility models Any product or process that is new, involves 
an inventive step and is susceptible to industrial application 15 years from the date 
of granting, extendable for 
5 years; 7 years for 
utility models No patent can be granted for:  (1) discoveries, or 
scientific and mathematical theories; (2) plant or animal varieties or essentially biological processes 
for the production of plants or animals, other than 
biological processes and the products of such processes; (3) schemes, rules or methods for doing 
business, performing purely mental acts or 
playing games; (4) methods for treatment of the human or animal body by surgery or therapy as well as diagnostic methods, except for products 
for use in any of these methods; and (5) mere 
presentation of information. The following acts are not considered an infringement:  (1) non-industrial or non-
commercial acts of scientific research; (2) articles 
put on Ugandan market by the patent owner or with his/her express consent; (3) use of articles temporarily or accidentally entering Uganda's 
airspace, territory or waters; and (4) use in good 
faith prior to filing of application. 
Copyright and neighbouring rights  Literary, scientific and artistic works including: 
(1) articles, books, and lectures;  (2) dramatic, and musical works;  (3) audio-visual works and sound recordings;  (4) choreographic works 
and pantomimes;  (5) computer programs and 
electronic data bases;  (6) works of drawing, painting, photography, and sculpture;  
(7) works of applied arts and designing;  
(8) illustrations, maps, plans, sketches, and three dimensional works relative to geography, topography, architecture or science;  
(9) derivative works, which, by selection and 
arrangement of their content, constitute original work;  and (10) any other work in the field of literature, science, and art Authors, performers 
and their successors: infinite moral rights;  economic rights:  the 
live of the author plus 
50 years;  for authors of joint 
works:  life of last 
surviving author plus 50 years;  neighbouring rights:  
50 years from the date 
of making, performing or broadcasting Ideas, concepts, procedures, methods or other 
things of similar nature as well as public works are precluded from copyright protection.  Fair use is not considered an infringement in the 
following cases:  personal use, teaching, reporting 
of current events, or quotations in the form of short excerpts. 
Table III.5 (cont'd) 
                                                      
54 WTO document IP/N/3/Rev.8, 20 October 2004.  WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-246 
 
 
 Subject  Coverage  Duration  Selected exclusions and limitations  
Trade marks Marks that distinguish a product from others 7 years, renewable for 
14-year periods Service marks cannot be registered as trade mark. 
Source:  The Copyright and Neighbouring Rights Law of 2004, the Pa tents Statute of 1991;  and information provided by
 the Ugandan authorities.  
(b) Copyrights 
83. The protection of copyrights in Uganda is  governed by the Copyright and Neighbouring 
Rights Law of 2004, which repealed the Copyri ght Act of 1964.  The new law covers literary, 
musical, and artistic works, cinematograph films, gramophone records, broadcasts, computer programs, and electronic data compilations.   
84. Protection for published works is granted for 50 years from the year of the first publication or 
public performance.  Infringements are subject to penalties of up to 100 currency points
55, or 
imprisonment of up to four years. 
(c) Patents 
85. Under the Patents Statute of 1991, protection is  granted for any invention, whether products 
or processes, that is "new, involves an inventive step and is industrially applicable".  A public interest 
provision allows for a statutory decision, valid for up to two years, which excludes certain kinds of product or process inventions from patentability.  The exclusion is to be applied on a case-by-case 
basis, but has not been used to date.  The patent period is 15 years from the date of granting and may 
be extended for five years.  An a nnual maintenance fee must be paid.
56  The patent owner has the 
exclusive right to exploit the invention and, in th e event of infringement, may initiate proceedings in 
the High Court for damages, an injunction (incl uding border measures), and other remedies.  The 
provisions for patents also apply to utility models. 
86. The statute provides for two types of compulso ry licence. First, on the grounds of "vital 
public interest", government agencies or designated persons may at any time obtain authorization to 
exploit a patented invention, provided that the pa tent owner or licensee has been given an opportunity 
to comment and that adequate rem uneration is paid.  Sec ond, Ugandan courts may grant a compulsory 
licence after specified periods if the patented invent ion has not been worked in Uganda;  the existing 
degree of working does not meet domestic demand;  working is hindered or prevented by the 
importation of the patented product;  or the owner has refused to grant licences on reasonable terms, 
thus unfairly and substantially prejudicing domest ic industrial or commercial activities or export 
possibilities.57  To date, no compulsory licences have been granted. 
87. Patent owners are bound under the Patent Stat ute not to impose on any licensee "unjustified 
restrictions" that are "harmful to the economic inte rests of Uganda".  The statute lists 18 prohibited 
restrictions, including certain exclusive deali ngs, limitations on produc tion and exportation of 
patented products, and sale or resal e price maintenance requirements. 
                                                      
55 One currency point is equivalent to U Sh 20,000. 
56 U Sh 48,000 for the first year, and U Sh 12,000 th ereafter.  The fees are in addition to the original 
application fee of U Sh 180,000 and the application fee of U Sh 60,000 for the five-year extension.  
57 Compulsory licensing is not possible within four y ears of the filing of a patent application or three 
years of granting the patent. EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-247 
 
 
 (d) Trade marks 
88. Under the Trade Marks Act of 1964, any mark (i ncluding names, signatures or words) may be 
registered with the Registrar of Trade Marks.58  Initial registration is valid for seven years and may be 
renewed for 14-year periods.  Registration may be cancelled if the mark was registered without any 
intention to use it and it has not been used, or if it has not been used for a c ontinuous period of at least 
five years.  The Trade Marks Act does not specify remedies against infringements.   
(e) Enforcement 
89. The authorities indicate that a proposal for the establishment of IPR enforcement institutions 
is before Cabinet.  
                                                      
58 Application fees vary between US$150 and US$250 for foreign applicants and U Sh 2,000 and 
U Sh 4,000 for Ugandan applicants, depending on the scope of protection.  An additional US$250 and 
U Sh 4,000, respectively, must be paid on registration.  WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-248 
 
 
 IV. TRADE POLICIES BY SECTOR 
(1) INTRODUCTION  
1. Agriculture provides the livelihood and employment for the majority of Uganda's population, 
although its contribution to GDP has decreased subs tantially since Uganda's last TPR.  Food crops 
constitute the leading subsector, but fishing and cut flowers have become increasingly important 
foreign exchange earners.  Agricultural policy h as been guided by market liberalization and the 
objective of diversifying exports towards non-tradit ional products.  The Plan for Modernization of 
Agriculture (PMA) aims to raise incomes of poor  subsistence farmers and promote a competitive, 
diversified, and export-oriented agriculture sector .  The simple average MFN tariff in agriculture 
(ISIC Rev.2 definition) is 17.3%, with the highest  rates applied to dairy products and cereals. 
2. The contribution of mining and energy to GDP is still limited.  The mining industry has 
recovered from a downturn between 2001 and 2003, caused mainly by low international prices.  An 
average tariff of 5.8% is applied to imports of mining and quarrying products.  Reforms in the energy 
sector, including privatization of generation and distri bution, have led to increasing electrification.  
Petroleum imports are duty free, while imports of elec tricity are subject to a tariff rate of 10%.    
3. Uganda's manufacturing sector is relatively small and based mainly on the processing of 
agricultural goods.  Various programmes are in place  to promote industrial de velopment and exports.  
Manufactured imports face an average tariff of 12.8%. 
4. Services have emerged as the backbone of the economy;  they contribute nearly one half to 
Uganda's GDP.  Growth in the services sector has be en particularly high since the last TPR in 2001.  
The telecommunications and transport subsectors ha ve undergone deregulation and privatization.  
Telecommunications and tourism services are the most dynamic subsectors;  they are the only services covered by Uganda's commitments under the GATS.  A new Financial Institutions Act 
entered into force in 2004.   
(2) A
GRICULTURE  
(i) Overview 
5. Agriculture is a dominant sector of the economy in terms of contribution to GDP, exports, and 
employment, providing the livelihood for the majority  of Ugandans.  Around 77% of the rural labour 
force is involved in agricultural activities.59  Subsistence farming caters for the bulk of the rural 
economy, where an estimated 42% of agricultural GDP is non-monetized.60  The annual growth rate 
of the agriculture sector averaged 4.9% over the 1999/00-2003/04 period.  Cropped areas cover about 
29% of arable land.  In 2004/05, food crops constituted the leading subsector, accounting for 64.5% of 
total agricultural output, followed by livestock (13. 4%), cash crops (11.1%), fishing (6.0%), and 
forestry (4.8%).61  Since Uganda's last TPR, exports of non-traditional agricultural goods (fish, maize, 
cut flowers) have grown strongly, while traditional exports (coffee, tea, tobacco, and cotton) have 
stagnated or increased only slightly.  Key agricult ural import items include wheat, palm oil, and 
maize.   
                                                      
59 Ministry of Agriculture, Animal Industry, and Fisheries (2005). 
60 Uganda Bureau of Statistics (2005c). 
61 Uganda Bureau of Statistics (2005c). EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-249 
 
 
 6. The Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) is responsible for  
formulating policies in the agriculture sector.  The Ministry has two technical directorates, dealing 
with crop resources, and with animal resources an d fisheries.  Several semi-autonomous agencies 
operate under the MAAIF:  the Cotton Developm ent Organization (CDO), the Dairy Development 
Authority (DDA), the National Agricultural Adviso ry Services (NAADS), the National Agricultural 
Research Organization (NARO), the  National Anim al Genetic Resource Centre and Data Bank, the 
Uganda Coffee Development Authority (UCDA).  
7. The Government attaches great importance to th e agriculture sector in order to attain its 
poverty eradiation objectives.  The Plan for Modern ization of Agriculture (PMA), developed in 2000 
and reviewed last in November 2005, is a poverty-fo cused framework with the aim of raising incomes 
and well-being of poor subsistence farmers and im proving household food security.  It envisions an 
agriculture sector that is competitive, productive, diversified, export-oriented, and private-sector 
driven.  For this purpose, the PMA identified seven areas for Government intervention:  research and 
technology development, agricultural advisory services, agricultural education, access to rural 
finance, agri-processing and marketing, natural r esources utilization and management, and supportive 
infrastructure.  
8. Diversification of exports towards non-traditi onal products and market liberalization have 
become main policy objectives.  Export taxes are in place for raw hides and skins, coffee, and cotton.  
The role of the MAAIF has shifted from direct serv ice provision to a facilitating role in creating a 
conducive policy environment.  The MAAIF aims to develop agriculture by expanding advisory 
services, implementing development programmes bot h for specific commodities under the Strategic 
Exports Intervention Programme and for livest ock disease control, and designing the National 
Agricultural Research System.62  The Ministry has tried to strengthen the capacity of producers to 
meet the requirements of principal export markets.  It has also drafted policies for a number of 
subsectors, including coffee, cotton, tea, hides and skins, apiculture, seeds, livestock, fisheries, and 
forestry.    
9. In financial year 2005/06, the Government a llocated U Sh 148.9 billion for the agriculture 
sector.  The priority interventions focus on:  integrated support to farmer groups, micro finance, irrigation, extension services, land registration, environment and natural resources, and community 
and information services.
63   
10. The National Agricultural Research System, with its specialized and regional research 
centres, has as an objective to provide research servi ces that address the needs and opportunities of the 
poor.  Research is to be demand-driven, and farmers are encouraged to participate actively in research 
activities.   
11. Cabinet approved a Zoning of Agricultural Pr oduction Programme in 2004 to intensify 
agricultural production.64   The programme has mapped out ten zones according to agri-ecological 
criteria.  To encourage specialization by other farm ers, "lead farmers" are selected for the production 
of livestock and crops well adapted for each zone.  
12. Extension services by the NAADS are aimed at  providing integrated support to farmer 
groups.  The NAADS has planned to expand services to a total of 37 districts and 330 sub-counties.  A rural reporting system or community information sy stem at the Parish level has been proposed to 
measure food stocks, cultivated areas, and outputs.  The Parish Chief would make a regular report on 
                                                     
 
62 Ministry of Agriculture, Animal Industry, and Fisheries (2005) .  
63 Ministry of Finance, Planning, and Economic Development (2005) .  
64 Uganda Export Promotion Board (2004) .  WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-250 
 
 
 the welfare parameters of househol ds, land holding, outputs of various  crops, disease occurrences, and  
food stocks.  
13. The average MFN tariff in agriculture (ISIC, Rev. 2, definition) is 17.3% , with rates ranging 
from zero to 100%.  Tariffs are particularly high on dairy products (42.5%), grains (28.3%), and 
tobacco products (28.0%).  Certificates are require d for imports of live animals, food products, seeds 
and plants, and agri-chemicals (Chapter III(2)(v)).  Uganda prohibits the export of timber, charcoal, 
and whole fresh fish.  
14. Uganda does not maintain strategic reserve-stocks ;  the requirement to maintain such stocks 
was abolished in 1991.  
15. Uganda has notified the WTO that it does not grant export subsidies.65  In the DDA, Uganda 
supports the phasing out of export subsidies, impr ovements in market access, reduction in trade 
distorting domestic support programme s, and improved S&D treatment.   
(ii) Subsectors 
(a) Coffee 
16. With more than 3.5 million Ugandans estimated to be employed in coffee-related activities, 
the subsector has substantial social implications.66  Uganda is the second-largest coffee producer in 
Africa, and coffee is one of Uganda's leading ag ricultural export goods.  Exports mostly consist of 
unprocessed coffee.  Key markets for Uganda's co ffee exports include Switzerland, Sudan, and 
Singapore.  Exports fell from US$275 million in 19 99 to US$212 million in 2005 (Table IV.1). 
Table IV.1 
Coffee exports, 1999-05 
(US$ million and tonnes, unless otherwise indicated)  
Robusta Arabica  Total value Total quantity 
Quantity Value Quantity Value 
1999 274.4 230,467 205,714 238.6 27,753 35.8 
2000 125.3 150,807 123,879 89.5 26,928 35.8 
2001 97.7 183,160 153,989 72.3 29,171 25.0 
2002 96.6 202,251 175,320 76.2 26,931 20.3 
2003 98.5 141,964 113,915 73.6 28,050 24.8 
2004 123.1 157,739 126,364 87.1 31,376 36.0 
2005 212.0 143,053 110,314 149.8 32,739 62.2 
Source: Uganda Coffee Development Authority.   
17. The Uganda Coffee Development Authority (U CDA), established in 1991, is mandated to 
promote and develop the coffee subsector through research, quality controls, and improving market 
conditions.  All buyers, processors, and exporters of coffee must be registered with, and certified by, 
the UCDA.  In 2004/05, 26 companies were register ed as coffee exporters, most of them based in 
Kampala.  A few other associations play an active role in the coffee industry:  the National Union of 
Coffee Agribusiness and Farm Enterprises (NUCAFE) provides support services and training to smallholder coffee farmers, to improve marketing sk ills, coffee quality, and productivity;  the Uganda 
Coffee Trade Federation (UCTF) promotes the inter ests of coffee growers, processors, brokers, and 
                                                     
 
65 WTO documents G/AG/N/UGA/3 and G/AG/N/UGA/4, 30 September 2005. 
66 Ministry of Agriculture, Animal Industry, and Fisheries (2005) . EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-251 
 
 
 exporters;  and the Uganda Coffee Roasters Associ ation (UCRA) represents coffee roasters and allied 
industries.   
18. Problems faced by the coffee industry include th e coffee wilt disease (CWD), over-aged trees, 
and lack of value addition.  CWD affects mainly the native and lowland Robusta variety.  Since 1993, it has affected some 45% of all coffee trees.  In addition, a large share of trees exceed the economic 
production age of 40 years, and are too old to yield quality coffee.
67   
19. Uganda tries to support coffee production and exports by increasing plantations, moving up 
the processing line, and improving marketing strategi es.  The ultimate goal is to raise incomes for 
coffee growers by increasing coffee prices, competitiv eness, and exports.  The Government also aims 
to increase organic coffee exports and create sp ecific brand names for Ugandan coffee.   
20. Coffee has been chosen as one the products for strategic intervention under the Uganda 
Strategic Export Programme.  The programme's obj ectives on coffee include:  replacing old trees and 
combatting CWD;  consolidating the industry's nurser y capacity to a sustainable output of seedlings;  
upgrading quality through improved processing tec hniques;  adding value through roasting and 
manufacturing of instant coffee;  and promoting dom estic and international consumption of Ugandan 
coffee.   
21. The UCDA, in collaboration with the Private Sector Foundation, adopted the Coffee Strategy 
2002, which supports the design and implementati on of a framework for market-oriented coffee 
development.   It identifies various areas for inte rvention to boost coffee pr oduction, including R&D 
and capacity building;  support to the post-harvest  chain (processing, transport and storage);  and 
marketing.  
22. A tariff of 25% is imposed on imports of coffee and coffee products .  Coffee exports are 
subject to a 1% export tax, payable to the UCDA.  Prior authorization is required from the MTTI for 
exports of coffee husks. 
(b) Cotton 
23. Uganda has an excellent climate and soil for the cultivation of cotton, and produces a high-
grade fibre of medium staple.  Cotton production is  rain-fed and dominated by small-holder farmers 
with very small acreage;  some plant as little as one acre.   
24. Cotton output was estimated at around 100,000 bales in 2005/06 (Table IV.2).  Cotton has 
traditionally been one of Uganda's most important export commodities;  it is exported mostly in raw 
form.  The price of cotton has fluctuated strongly in  recent years.  Exports totalled 3.2 million tonnes 
in 2004, amounting to US$46.7 million.  The main  export destinations are Kenya, Switzerland, 
Malaysia, and the Netherlands.   
25. The Cotton Development Organization (CDO), a statutory and regulatory body, was 
established in 1994 to promote and monitor the produc tion and marketing of cotton.  It has exclusive 
rights in dealing with cotton seeds, which it distribut es to farmers free of charge.  Extension services 
are provided mostly by the private sector, in par ticular by ginners.  Cotton ginning is subject to a 
licence, issued by the CDO.  Exporters require a quality certificate and proof of the payment of export 
cess.  Prices are determined by the market.  If it deems appropriate, the CDO announces indicative farm gate, ginnery buying, and export prices.  There are 28 ginners in Uganda, operating in 
                                                     
 
67 Ministry of Agriculture, Animal Industry, and Fisheries (2005) . WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
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 38 ginneries;  20 of the ginneries are foreign-owned.  There are no state-owned enterprises in the 
cotton subsector. 
Table IV.2 
Cotton production and exports, 1998-06 
Earnings by farmers Year Production  
(bales at 185 kg) Export earnings 
(US$ million) Average farm gate price 
(U Sh/kg) Value 
(U Sh billion)  
1998/99 82,000 25.5 400 18.4 
1999/00 117,000 29.0 300 19.7 
2000/01 100,000 27.8 420 23.5 
2001/02 120,000 17.8 270 18.1 
2002/03 110,000 24.4 500 30.8 
2003/04 160,000 44.4 650 58.2 
2004/05 254,000 37.6 350 49.8 
2005/06 102,000 20.8 450 25.7 
Source:  Cotton Development Organisation.  
26. Cotton is one of the target commodities of the Strategic Government Intervention for 
Promoting Production, Processing and Marketing of selected Export Commodities, approved by Cabinet in 2001.  The programme's main obj ective on cotton is to increase production to 
700,000 bales by 2006.
68  The CDO is implementing six programme components:  procurement of 
seed for planting;  procurement of seed delinting an d grading machines;  research and seed breeding;  
facilitation of field extension works;  mobilization an d sensitization of farmers and other stakeholders;  
and research study on relevant irriga tion systems for cotton production.   
27. The Government aims to revive cotton produc tion and exports through increased competition 
in cotton processing and marketing, and improved support services to cotton farmers.   The specific objectives are improved performance in the cotton gi nning industry through liberalization within an 
efficient regulatory framework, improved support ser vices through support for a national research and 
extension programme, and improved credit and se ed delivery.  In its 2005/06 budget speech, the 
Government allocated U Sh 5 billion to enhanc e productivity in the cotton subsector and raise 
production to 300,000 bales annually.  A budget tota lling U Sh 4.5 billion was also allocated for the 
settlement of ginners' debts related to the supply of cotton seed for planting during 2001 to 2004.  
With the collapse of world price of lint, Uganda h as had to intervene to stabilize the domestic farm-
gate price at U Sh 350 per kg of cotton.  As a precaution against cotton price collapse, the 
Government has made a provision of U Sh  3.5 billion for cotton subsidy in 2005/06.
69   
28. The import tariff on raw cotton is at of 0%, while the average tariff for cotton products 
(HS 52.04-12) is 21.1%, with rates ranging from 10% to 50%.  Since 1994, cotton exports have been subject to a cess of 2%, payable to the CDO.  
(c) Floriculture  
29. Floriculture exports have been increasing steadily  since Uganda's last TPR;  they amounted to 
US$30.2 million in 2004.  The industry's main product is cut flowers, although some cut foliage and potted plants are also produced.  The flowers are grown mostly in open fields, and include roses, 
chrysanthemums, and gerberas.  At end 2004, th ere were 180 hectares under flower cultivation.  
Flower farms are located close to Kampala, near La ke Victoria and Entebbe Airport.  The expansion 
                                                     
 
68 This target was revised in 2004, down from a previous objective of 1 million bales. 
69 Ministry of Agriculture, Animal Industry, and Fisheries (2005) . EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
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 of cold storage facilities at Entebbe Airport has helped to maintain the high quality of exported 
flowers.  Most of the flowers are sold to inte rmediaries (e.g. Dutch auction centres), although some 
exporters have managed to establish direct contact s with overseas customers.  There are no state-
owned floriculture enterprises;  the MAAIF's main objective is to create an enabling environment for 
private companies.  
30. The Uganda Floriculture Association (UFA) is  a non-governmental organization founded to 
promote and encourage floricultural production and exports.  The Uganda Flower Exporters 
Association, consisting of 20 flower farms, was es tablished in 1995; services to its members include 
R&D, marketing support, and training pr ogrammes for managers of flower farms. 
31. Cut flowers are subject to an import tariff of 25%.   
(d) Other products  
32. Tea exports amounted to US$37.3 million in 2004.  Production has been affected by low 
yields, lack of tea research, un-rehabilitated tea ga rdens, and uneven distribution of tea processing 
facilities.  A National Tea Development Policy is befo re Cabinet (June 2006);  its main objective is to 
encourage the regional expansion of tea production .   
33. Around 98% of tobacco output is exported.  Exports of tobacco leaves amounted to 
US$40.7 million in 2004, well above the 2000-03 period average of US$31.5 million.  
34. Fruit and vegetable exports fluctuated strongl y over the period under review.  In 2004, 
exports of edible fruits and nuts amounted to US$1. 8 million, and exports of edible vegetables and 
roots to US$10.2 million.  Fruit exports include ba nanas, apple bananas, plantains, pineapples, and 
avocados.  Vegetables include okra, dudhi, onion, mu shrooms, beans, egg plants, tomatoes, asparagus, 
potatoes, and Asian vegetables. 
35. Maize,  a primary staple food, has also become an important cash crop.  Output has increased 
with the adoption of more advanced technologies su ch as improved seeds, incre ased use of fertilizers, 
timely planting and harvesting, and proper spacing.  Maize production is estimated at 600,000 tonnes 
per annum.  Exports in 2004 amounted to US$17.8 million. 
36. Vanilla growing, curing, and exports have in creased significantly since 1995.  Exports rose 
from 5 tonnes in 1995 to over 120 tonnes in 2003;  the value of exports was US$6.1 million in 2004.  Vanilla production requires intensive crop manageme nt throughout the growth cycle, particularly 
during pollination.  Vanilla is one of the few high- value crops produced by smallholder farmers.  A 
policy to promote this subsector is under formulati on (June 2006).  In this context, the authorities 
indicate that strong fluctuations in world market pr ices might inhibit the further expansion of vanilla 
production. 
37. Honey  production amounts to some 560 tonnes annua lly, whereas the estimated potential is 
8,000-9,000 tonnes.  Until 2004, Uganda was not allowed to export honey to the EC due to lack of compliance with product standards.  The Ugan da Export Promotion Board has formulated an 
Apiculture Export Strategy to increase honey production and exports.
70 
38. The import tariff on tea, tobacco leaves, edible vegetables, edible fruits and nuts, vanilla, and 
honey is 25%.  The average tariff for maize imports is 37.5%.  
                                                      
70 Uganda Export Promotion Board (2005).   WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
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 (e) Forestry 
39. The forestry subsector accounts for around 1.7% of  Uganda's GDP.  In 2005, forests covered 
some 18% of Uganda's land area, a steep decline from 26.6% in 2000.  Population growth is expected to further increase the conversion of forests into agricultural land.   
40. About 70% of the forest area is pr ivately owned.  The remainder is  state-owned:  about half of 
it is managed by the National Forest Authority (NFA ) and the other half (national parks and wildlife 
reserves) by Uganda Wildlife Authority (UWA).  Districts also manage a small area of local forest reserves (5,000 ha).   
41. The forestry subsector is of high economic impor tance to Uganda due to its household uses.  
Bio-mass is the dominant energy resource for households and small-scale industries (lime, brick and 
tile making), and a number of agri-based industries (t ea, tobacco, and fishing).  Total wood production 
has increased steadily over the last five years.  Household fuel wood consumption constitutes the 
highest percentage of all the wood used.  The prop ortion of alternative uses for wood other than for 
fuel is increasing steadily.  Uganda also has a high potential for establishing commercial forest 
plantations. 
42. Cabinet adopted a Forestry Policy in March 2001.  Its objective, along with that of the 2002 
National Forest Plan, is to create a favourable envi ronment for private and public investment in the 
subsector.  It paved the way for the National Forestry and Tree Planting Act (2003), which seeks to address the rapidly decreasing cover, depletion of green belts, and indiscriminate tree felling.  It established the National Forestry Authority, the For est Inspection Division, and the District Forest 
Services, replacing the Forestry Department.  Other legislation governing the forestry subsector 
include the National Environment Statute (1995), the Uganda Wildlife Statute (1996), the Land Act 
(1998), and the Local Governments Act (1997).  
43. Imports of wood charcoal, wood, and articles of  wood are subject to an average tariff of 
17.4%, with rates ranging from 0% to 25%.   
(f) Livestock  
44. Livestock accounted for 13.6% of agricultural output and about 4.5% of GDP in 2004.  
Between 2001 and 2004, average a nnual growth of the subsector was 4.7%.  Small holders and 
pastoralists own over 90% of the cattle herd and nearly all of the small ruminants and non-ruminant 
stock.  Cattle constitutes the most important of all livestock (Table IV.3). 
Table IV.3 
Livestock, 1999-03 
('000) 
Livestock 1999 2000 2001 2002 2003 
Cattle 5,820 5,966 6,144 6,328 6,558 
Sheep 1,044 1,081 1,108 1,141 1,603 
Goats 6,180 6,396 6,620 6,852 7,821 
Pigs 1,520 1,573 1,644 1,710 1,226 
Poultry 24,622 26,974 29,671 32,639 23,031 
Source:  Uganda Bureau of Statistics, Statistical Abstract 2004.    
45. The MAAIF has formulated a National Liv estock Production and Marketing Development 
Strategy (2004-08), aimed at increasing livest ock production by providing various investment EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-255 
 
 
 incentives.  In addition, the livestock subsector is governed by various sectoral policies, including the 
National Policy on the Delivery of Veterinary Se rvices (2002), the Animal Breeding Policy (2001), 
and the National Meat Policy (2003).  Other polic ies under preparation include the Hides, Skins and 
Leather Development Policy;  the Pasture and Ra ngelands Policy;  and the Animal Feeds Policy. 
46. Imports of live animals are subject to an averag e tariff of 18.5%, while a rate of 25% applies 
to meat and edible offal.   
(g) Fisheries 
47. The fisheries subsector has emerged as a major contributor to exports, economic growth, and 
development.  The subsector provides livelihoods for a substantial number of  rural Ugandans, with 
more than 250,000 employed in fishing and at least 5,000 in fish processing and distribution.  Fish 
exports have grown considerably  since 2000, and amounted to US$99.6 million in 2004.  Leading 
destinations for fish exports from Uganda are Belg ium, the Netherlands, and France.  The authorities 
indicate that since 2003, Uganda's fish exports have faced strong competition in the EU market from Vietnamese catfish.   
48. Uganda is well endowed with fishery resources;  Lake Victoria accounts for some 75% of the 
catche.  The annual capacity of Uganda's  fisheries is estimated at 330,000 tonnes.
71  Aquaculture 
production is presently limited;  however, some si gnificant investments are under way.  The number 
of fish farmers is estimated at 8,000, with some 20,000 ponds averaging 600 m2 each.  Annual 
production from these ponds is over 2,000 tonnes.72  
49. From March 1999 to September 2000, Uganda's fish exports to the EC were subject to a ban.  
Since August 2001, Uganda has been allowed to export capture fisheries to the EC, based on 
Commission Decision 2001/633/EC.  However, Uganda  may still not export aquaculture fisheries to 
the EC as it does not comply with the EC's requi rements for residue controls and monitoring in 
aquaculture products.   
50. Policies for the fisheries subsector are formulat ed by the Department of Fisheries Resources 
(DFR) of the MAAIF.  The Department is also in ch arge of enforcing hygiene standards.  A Fisheries 
Act, adopted in 2005 provides for the establishment of  an autonomous Uganda Fisheries Authority.  
The authority, which has not been established yet (June 2006), would be responsible for the 
management of landing sites and the enforcement of hygiene standards. 
51. The National Fisheries Policy, approved by Ca binet in 2003, aims to ensure increased and 
sustainable fish production by properly managing capture fisheries, promoting aquaculture, and reducing post-harvest losses.  To this end, a provisi onal Fisheries Sector Strategic Plan was adopted 
by the MAAIF in 2004.  It prioritizes actions in eight areas:  sustainable management and 
development of capture fisheries;  sustaina ble development of aqua culture;  post-harvest 
development;  investment, promotion, and marketi ng;  information;  human  resource development;  
institutions, processes and funding mechanisms;  and planning and policy making.   The total cost in 
implementing the FSSP over ten years is estimated at U Sh 53.4 billion, of which U Sh 24.4 billion is to be allocated to the proposed Uganda Fisheries Authority, and U Sh 19.5 billion for the set-up and maintenance of a monitoring, control, and surveillance system.
73 
                                                      
71 Megapesca Lda (2005).  
72 FAO (2003) .  
73 Ministry of Agriculture, Animal Industry, and Fisheries (2004) .  WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
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 52. Imports of fish and fish products are s ubject to an average tariff of 24.5%.   
(3) MINING AND ENERGY  
(i) Mining 
53. The contribution of mining and quarrying to GDP  is marginal (Chapter I(2)).  The mining 
industry has recovered from a downturn in 2002 afte r the temporary closure of cobalt production due 
to low international prices.  Mineral production am ounted to U Sh 89.9 billion in 2004, of which 
limestone accounted for 38%, gold for 34%, and cobalt for 24%;  the rest was pozzolanic materials, 
tin, kaolin, wolfram, vermiculite and gypsum.74   
54. In 2004, mineral exports amounted to U Sh  156.7 billion, an in crease of 78% over the 
previous year:  gold accounted for 96.9%;  and e xports of cobalt and vermiculite accounted for 1.8% 
and 1.3%, respectively (Table IV.4). 
Table IV.4 
Mineral production and exports, 2000-04 
 2000 2001 2002 2003 2004 
Production (U Sh million) 63,813 43,080 11,877 21,198 89,988 
  Gold (%) 1.2 0.0 0.4 3.99 34.02 
  Cobalt (%) 33.8 59.4 0.0 0.00 23.62 
  Limestone (%) 31.7 32.3 94.3 85.45 38.11 
  Vermicolite (%) 0.0 0.0 1.9 2.77 1.02 
  Others (%) 33.3 8.3 3.4 7.80 3.23 
Export (U Sh million) 120,149 125,975 131,920 89,445 156,723 
  Gold (%) 82.4 83.8 99.7 98.49 96.91 
  Cobalt (%) 17.2 16.0 0.0 0.0 1.76 
  Vermicolite (%) 0.0 0.1 0.2 0.87 1.30 
  Others (%) 0.4 0.3 0.1 0.64 0.04 
Source: Ministry of Energy and Mining Department, Annual Report  (various issues).   
55. The Department of Geological Survey and Mines (DGSM) under the Ministry of Energy and 
Mining Department (MEMD) is responsible for regulating the mining and quarrying sector.  Its 
responsibilities cover monitoring operations, enforcing policies, and collecting data on geoscience.    
The National Environment Management Author ity (NEMA) is responsible for approving 
environmental impact assessments for mining projects. 
56. The MEMD released a Mining Policy in April 2001 with the main objective of creating a 
conducive environment for private sector participa tion.  Based on the Mining Policy, a new Mining 
Act was adopted in 2003.  Since then, the MEMD has developed a number of regulations to give 
effect to the Act, including application pro cedures for prospecting and mineral concessions;  
conditions and procedures for granting mineral con cessions;  survey, erection, and maintenance of 
beacons and boundaries of mineral concessions;  work ing obligations of mineral concession holders;  
amalgamation of mining or location leases;  repres entation and maintenance of records by licence 
holders;  environmental protection;  and manage ment of fees, mineral rents, and royalties. 
57. At end 2004, 221 licences had been granted, of  which 53 were for prospecting, 80 for 
exclusive prospecting, and 4 for special exclusiv e prospecting.  The remainder were for mining 
                                                      
74 Ministry of Energy and Mining Department (2005) . EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-257 
 
 
 location (37), mining leases (17) and mineral dealers (30).75  Mining and quarrying activities are 
undertaken largely by private operations.  Small-s cale miners account for most mining production in 
Uganda;  there are a few large processi ng companies and public enterprises.  
58. An average tariff rate of 5.8% is a pplied to mining and quarrying imports.  
(ii) Energy 
59. Energy consumption in Uganda was 0.3 tonnes of oil equivalent per capita in 2004, one of the 
lowest rates in the world.  Biomass (wood, charco al, and agricultural residue) accounted for 93.2% of 
total energy production.  Around 6% of national ener gy consumption was met by petroleum, all of 
which was imported.76  
60. Cabinet approved an Energy Policy in August 2002 with the overall goal of meeting the 
energy needs of Uganda in an environmentally  sustainable manner.  The National Environment 
Management Authority approved the Environmenta l Impact Assessment Guidelines for the energy 
subsector in October 2004 to provide the basis fo r the MEMD, private developers, EIA practitioners, 
and other stakeholders in mainstreaming environmen tal issues into energy development activities.   
61. The Petroleum Supply Act of 2003, which repealed the Petroleum Act 1964, provides the 
framework for licensing, supervision, and monito ring of activities related to the import, export, 
transport, processing, storage, distribution, and mark eting of petroleum in Uganda.  Its objective is to 
promote and ensure fair competition in the petr oleum market.  Under the Act, the MEMD has 
developed licensing guidelines that lay down appli cation requirements and procedures for petroleum 
construction permits and operating licences.   
62. In 2004, there were 42 licensed oil-marketing co mpanies, with three companies (Shell, Total 
and Caltex) controlling about two thirds of the ma rket.  Around 85% of Uganda's petroleum imports 
are routed through Kenya, and the rest through Tanzania.77  Total sales of petroleum products in 2004 
amounted to 633,547 m3 (Table IV.5). 
Table IV.5 
Sales of petroleum products by type, 2000-04 
(Cubic metres) 
Year Petrol Aviation fuel Dies el Fuel oil Kerosene LPG Total 
2000  190,462 40,212 187,276 36,087 56,163 3,082 513,282 
2001  200,021 43,915 207,236 38,591 55,539 2,892 548,194 
2002  203,533 40,270 195,366 32,394 91,027 3,116 565,706 
2003  199,014 80,010 244,074 47,494 46,174 3,461 620,227 
2004  186,285 79,131 260,978 53,313 49,340 4,500 633,547 
Source:  Ministry of Energy and Mining Department, Annual Report 2004.  
63. The MEMD has planned an oil pipeline be tween Uganda and Kenya.  The process 
commenced in 2004 with the identification of privat e investment partners to cooperate with the two 
                                                      
75 Ministry of Energy and Mining Department (2005) .  
76 Ministry of Energy and Mining Department (2005) . 
77 Ministry of Energy and Mining Department (2005) . WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
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 Governments.  Twelve consortia were short-liste d in the pre-qualification process.  The bidding was 
expected to be carried out in 2005.78 
64. Uganda's total installed electricity genera tion capacity is some 303 MW, of which 300 MW 
are from hydroelectric power installations at Nalubaale and Kiira.  Uganda's potential for 
hydroelectric power generation is estimated at  2,000 MW.  Total electricity generation was 
1,894 million kWh in 2004. 
65. Policies in the electricity subsector are gui ded by the Power Sector Restructuring and 
Privatization Strategy of 1999 under the general fr amework of the 1999 Electricity Act.  The objective 
of the strategy is to promote an efficient and fi nancially viable power subsector.  The Electricity 
Regulatory Authority (ERA) was established as an independent regulator in 1999.   
66. In 2001, the state-owned Uganda Electricity Board (UEB) was unbundled into three separate 
companies:  Uganda Electricity Generation Co., Uganda Electricity Transmission Co. and Uganda 
Electricity Distribution Co.  In its Energy Po licy 2002, the Government decided to lease out 
generation and distribution to private operators, while  the State would retain control over transmission 
in the medium term.   Uganda Electricity Generation Co. was concessioned to Eskom of South Africa 
in 2002.  In 2004, an agreement was signed betw een the Government and a consortium (CDC Globleq 
and Eskom) for a 20-year concession of Ug anda Electricity Distribution Co.   
67. In 2003, the ERA adopted a number of electric ity regulations on installation permits, licence 
fees, primary grid code, quality of service code, saf ety code, and tariff code.  A review of the 1999 
Electricity Act is under way (June 2006).  
68. Cabinet approved a Rural Electrification Strategy an d Plan in 2001.  Its target is to increase 
rural electrification from 1% in 2000 to 10% by 2012, i.e. at least 480,000 rural households have to be 
connected.  As of 2004, the overall national electri fication rate was 9%, while the rate for rural 
electrification was 4%.79  The contribution of renewable energy sources is estimated at less than 1% 
of total energy production.  A National Biom ass Energy Strategy is under formulation.   
69. Imports of petroleum oils and crude oils obt ained from bituminous minerals are duty free, 
while electricity imports are subject to a tariff of  10%.  In 2004, Uganda exported electricity for 
US$12 million, to Kenya and Tanzania.  
(4) MANUFACTURING  
70. The manufacturing sector's contribution Uga nda's GDP, exports, and employment remains 
low.80  Most manufacturing in Uganda is concen trated around the processing of agricultural 
commodities, such as cotton, coffee, sugar cane, and food crops.  A number of large-scale plants 
produce tobacco, beverages, wood a nd paper products, construction mate rials, and chemicals.  Small-
scale manufacturing dominates the clothing industry.  There are also sugar and maize processing units 
(Table IV.6). 
71. Manufactured exports include metal products , paper products, soap, vegetable oil, 
confectionary, beer, spirits, cement, garments, pe rsonal care products, nets and twines, wood and 
wood products, plastics, cigarettes, animal feeds, pa ckaging bags and tents, fruit and vegetable juices, 
                                                      
78 Ministry of Energy and Mining Department (2005) .  
79 Ministry of Energy and Mining Department (2005) .  
80 Uganda Bureau of Statistics (2005c) .  EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
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 and hand tools.  Key manufactured imports include machinery and transport equipment, followed by 
chemicals, and other semi-manufactures.  Most imports are from Kenya, Japan, South Africa, and India, while the main export destinations  are DR Congo, Rwanda, Kenya, Congo, the 
United Kingdom, Burundi, and Tanzania. 
Table IV.6 
Annual changes in industrial production, 1999-03 
(Per cent) 
 1999/00 2000/01 2001/02 2002/03 
Food processing -3.4 6.0 6.4 5.6 
Drinks and tobacco 4.1 7.1 -3.2 12.7 
Textiles, clothing, and foot wear 14.4 -13.7 -1.3 14.0 
Paper and printing 22.4 14.2 -10.5 22.4 
Chemical paint and soap 5.5 7.5 0.0 4.4 
Bricks and cement 7.9 12.1 12.8 1.7 
Metal products 14.8 27.0 25.0 -21.0 
Others -3.5 -8.0 41.8 17.7 
All manufacturing 4.0 7.5 7.2 4.4 
Source: Uganda Bureau of Statistics (2004), Statistical Abstract 2004.   
72. The Department of Industry and Technology in the MTTI is responsible for formulating 
industrial policies.  The Strategic Framework fo r Industrialisation (2004-2009), developed by the 
MTTI, is the main policy document for Uganda's ma nufacturing sector.  It aims to strengthen human 
capacity, thereby focusing on research and deve lopment, human resource management, and the 
promotion of small and medium-size enterprises.  The interests of manufacturing companies are 
represented by the Uganda Manufacturers Associa tion (UMA), the Uganda Chamber of Commerce 
and Industry, the Uganda Small-scale Industry Asso ciation, and the Private Sector Foundation.  
73. A number of programmes are in place to increase the productivity of Uganda's manufacturing 
sector.  The Innovations Fund, handled by the Uga nda Industrial Research Institute, supports product 
certification, laboratory testing, and quality assuran ce.  The Industrialization Fund, handled by the 
Uganda Development Bank, supports companies in the commercialization of prototypes they have 
developed.  The Integrated Programme (IP) aims to develop and enhance capacities in agri-industries 
with good export potential, and promot e small and medium-size enterprises in priority sectors such as 
food, textiles, and leather.81  The Regional Export Intensificati on Programme (REXIP) of the Uganda 
Export Promotion Board (UEPB) has identified a nu mber of manufactured products (including metal 
products, paper, soap, confectionery) considered su itable to be promoted in regional export markets.82   
74. The average MFN tariff on manufacturing imports (ISIC Rev.2) is 12.8%, with rates ranging 
up to 100% on food pr oduction, such as cane sugar and beat sugar (Common Report, Chart III.2).  
Other products carrying high tariffs include Portla nd cement, matches, linen, worn clothing, and 
crown corks.  The mixed pattern of escalation of the EAC tariff creates an anti-export bias in certain 
industries, such as food processing (Common Report, Chapter III(3)(i)).  An anti-export bias may also 
arise in industries where tariff escalation is positive,  such as textiles and apparel, and where high 
tariffs introduce a wedge between domestic and worl d prices, creating a disincentive to export.  The 
fixed duty drawback and manufacturing under bo nd schemes may in part help to correct this 
distortion, but are not a substitute for low across-the-board customs tariffs.   
 
                                                      
81 UNIDO (2004) .  
82 Uganda Export Promotion Board (2005a). WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
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 (5) SERVICES  
75. Services constitute a major sector of the economy in terms of contribution to GDP and to 
employment.  It has been the most dynamic sector since the last TPR of Uganda.  The leading subsectors in 2004/05 were community services
83, which accounted for 16.2% of GDP, followed by 
wholesale and retail trade (10.1%), and transport an d communications (6.6%).  Services exports grew 
from US$219 million in 2000/01 to US$477 million in 2004/05, while imports increased from US$449 million to US$777 million over the same period.
84   
76. The Service Sector Export Strategy, adopted by  the Uganda Export Promotion Board in 2005, 
aims to enhance national capacity to export services.  The Strategy identified five priority subsectors 
for intervention:  higher education, migrant la bour, health service expertise and management of 
communicable diseases, niche tourism, and information and communication technology.  
77. Uganda has specific commitments under the GA TS in communications services, and tourism 
and travel-related services.  It has no horizontal co mmitments.  Uganda expanded its commitments on 
basic telecommunications under the extended negotiations  of the Uruguay Round.   The Directorate of 
Foreign Trade in the MTTI is the national enquiry point for trade in services.85  
78. Jointly with other Members, Uganda has submitted several communications on services 
during the Doha Round, including on the assessment of the participation of developing countries in 
international  trade in services86, increasing participation of developing countries in trade in services87, 
and special and differential treatment for least developed countries.88  
(i) Financial services 
79. There is a high degree of foreign ownership in Uganda's financial sector.  In 2004, there were 
15 commercial banks, 12 of which fore ign-owned (Table IV.7).  Other financial institutions include:  
7 credit institutions, 19 insuran ce companies, a social security fund, the stock exchange, and 
numerous foreign exchange bureaux and micro-finance institutions.  
Table IV.7 
Structure of the financial system, 1999-04 
Types of institutions 1999 2000 2001 2002 2003 2004 
Depository institutions       
  Commercial banks 17 17 17 15 15 15 
  Credit institutions 5 6 6 7 7 7 
  Micro-finance institutions .. 102 102 101 .. .. 
Non-depository intermediaries       
  Securities firms 8 8 8 8 .. .. 
  Finance companies 1 1 1 1 .. .. 
  Insurance companies 3 3 4 4 .. .. 
    Pension funds 1 1 1 1 .. .. 
Forms of ownership       
  State-owned banks 1 1 1 0 .. .. 
  Foreign-owned banks 11 11 11 11 .. 12 
.. Not available. 
Source:  IMF (2003), Uganda: Financial System Stability Assessment ;  and Bank of Uganda (2004), Annual Report.   
                                                      
83 Community services include general Government, education, health, and rents.  
84 Uganda Bureau of Statistics (2005c).  
85 WTO document S/ENQ/21/Rev.1, 3 February 1998.  
86 WTO documents S/CSS/W/114, 9 October 2001;  and S/CSS/W/132, 6 December 2001. 
87 WTO document S/CSS/131, 6 December 2001. 
88 WTO document Job(02)/30, 21 March 2002. EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
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 (a) Banking 
80. Total assets of commercial banks amounted to U Sh 3,216 billion in June  2004, an increase of 
14.1% over 2003.  The share of non-performing loans improved from 8.0% in June 2003 to 1.6% in June 2004.  However, the capital adequacy of the banking system, measured by the proportion of total 
capital to risk-weighted assets, declined only slight ly, from 20.5% to 19.0% over the same period.  
Interest rates are market-determined, with a spread  of some 15% in June 2006.  Since 2000, lending 
rates have fluctuated between 17% and 25%.  
81. The Bank of Uganda regulates and supervises the financial system.  Over the past few years, 
Uganda's banking sector has recovered from the disr uptions caused by the bank failures of the late 
1990s.  A new Financial Institutions Act (
FIA) was adopted in 2004, replacing the 1993 Financial 
Institutions Statute.  The 2004 FIA is aimed at  improving the corporate governance of financial 
institutions, and places tighter restrictions on insi der lending and large exposures.  The Act seeks to 
reduce the concentration of ownership.  It also pr ovides for mandatory corrective action to be taken by 
the regulatory authority on distressed financial ins titutions and seeks to enhan ce transparency through 
the publication of standardized information.  Th e minimum capital requirement for commercial banks 
under the Act is U Sh 4 billion.  
82. The FIA paved the way for the enforcement of stri cter banking standards.  At the end of 2004, 
nine implementing regulations had been finali zed, covering licensing, capital adequacy, credit 
classification and provisioning, credit concentrati on and large exposures, insider lending, liquidity, 
corporate governance, the credit reference bureau, and ownership and contro l.  These regulations 
entered into force in  2005.  In a ddition, on-site examinati ons of banks in financial distress have been 
intensified and an early warning system has been launched. 
83. A Micro Finance Institutions Act, which entere d into force in 2003, provides the regulatory 
framework, including prudential provisions, for Uganda 's numerous micro-finance institutions.  The 
authorities hope that this will increase linkag es between commercial banks and micro-finance 
institutions.  The number of micro-finance providers is  growing:  over 200 institutions are registered. 
84. An anti-money-laundering bill was approved by  Cabinet in January 2005 and submitted to 
Parliament.   
(b) Insurance 
85. Uganda's insurance industry has grown consider ably in recent years;  gross premiums 
amounted to U Sh 80.4 billion in 2004, up from U Sh  53.5 billion in 2002 (Table IV.8).  Growth is 
attributed largely to an increase in economic activity and an expansion of insura nce products offered.   
However, the contribution of the insurance subsec tor to the national economy is still limited, with 
gross premium income equivalent to less than  0.7% of GDP, and a total of only about 
1,000 employees.   
86. The Insurance Statute of 1996 established the Uganda Insurance Commission (UIC), which is 
responsible for regulating and overseeing Uganda's in surance industry.  The Statute requires insurance 
companies and brokers to be members of their professional associations and conform to their 
respective codes of conduct.  Capital requirement s for insurance companie s are laid down in UIC 
Statutes 59 and 60 of 2002.  A company can be registered for both life and non-life insurance business.  Both domestic and foreign-owned companies must have a minimum capital of U Sh 1 billion for life and non-life insurance business , and U Sh 2.5 billion for reinsurance business.  WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-262 
 
 
 Table IV.8 
Insurance services indicators, 2000-04 
 2000 2001 2002 2003 2004 
Number of companies      
Local 13 11 12 .. .. 
Foreign 6 6 6 .. .. 
Type of operators      
Insurers 19 17 18 17 20 
Reinsurers 0 0 0 0 0 
Brokers 32 28 31 22 25 
Loss assessors/adjusters 11 10 8 .. 9 
Agents 236 238 249 279 310 
 (U Sh billion) 
Total gross premium income 39.1 47.2 53.6 64.7 80.4 
Non-life (share of business) 89.0 91.2 93.1 .. .. 
Life (share of business) 11.0 8.8 6.9 .. .. 
.. Not available. 
Source:  Uganda Insurance Commission, Annual Report 2002 ; and online information. Available at:  
 www.uginscom.go.ug.  
87. Ugandan residents cannot be insured by fore ign insurance companies not registered in 
Uganda, but Ugandan companies can insure non-reside nts.  Insurance premiums are not regulated, but 
the minimum premiums set by companies are subject to the UIC's approval.   
88. State ownership in insurance services has furthe r declined since Uganda's last TPR.  In 
October 2004, the Government sold a 60% stake in  the National Insurance Corporation Ltd. to a 
private investor from Nigeria.  
(c) Capital markets 
89. The Uganda Securities Exchange (USE), establis hed in June 1997, is supervised by the 
Capital Markets Authority in accordance with Uga nda Security Exchange Rules of 2003 and the 
Uganda Security Exchange Listing Rules of 2003,  which set a framework for listing and disclosure 
requirements.  In October 2005, the USE had five listed companies.  However, the privatization 
programme is expected to increase this number.  There are no restrictions on foreigners buying and 
selling on the USE.  Securities traded on the USE include government and corporate bonds.  
90. The regulatory authorities of Kenya, Tanzania, and Uganda signed a memorandum of 
understanding in 1997 and created the East Africa n Member States Securities Regulatory Authorities 
(EASRA).  The EASRA, an umbrella body, seeks to introduce cross-border listings of securities, 
harmonize the legal and regulatory framework, and develop capital markets in the region. 
(ii) Communication services 
91. The communication subsector contributed 3.1% to GDP in 2004.  While GDP has grown by 
around 6.1% annually since 1998, yearly growth in the communications subsector has been about 
25% over the same period.  The expansion of the subsector has been attributed mainly to strong 
growth in telecommunications services, where libera lization and privatization have led to increased 
competition, including the entry of foreign companies, and greater product innovation. 
92. Policies for the subsector are formulated by the Ministry of Works, Housing and 
Communications (MWHC).  The Uganda Communi cations Commission (UCC), established in 1998 
under the Uganda Communications Act (UCA) 1997 , is an independent regulatory body for EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-263 
 
 
 communications services.  Its vision is to provide acce ss to reliable, cost effective, and affordable 
telecommunications and postal services, largely de livered by private providers.  The UCA 1997 also 
provides for the institution of the Uganda Communicati ons Tribunal;  which, however, this has not yet 
been established.    
93. The Uganda National Council for Science and Technology prepared a national information 
and communications technology (ICT) policy in 20 03.  Key components of the ICT policy include 
institutional capacity building and the developmen t of e-government, e-comme rce, tele-medicine, 
tele-education, and tele-agriculture.  
(a) Telecommunication services 
94. The liberalization of telecommunication services has led to significant improvements and 
expansion in Uganda's teleco mmunications infrastructure.  Telephone density increased from 
0.28 lines per 100 persons in 1998 to 4.2 lines in 20 04.  This significant increase is due to a rapid 
expansion of mobile phone subscriptions and, to some extent, fixed telephone lines.  The number of 
mobile cellular subscribers increased to over 1.4 million in June 2005 and fixed telephones increased 
from 56,000 in 2001 to 88,000 in  mid-2005, and the number of pay-phones increased from 3,000 to 
almost 7,000 over the same period (Table IV.9).  Th e number of internet services providers increased 
to 19 in June 2005, all of which are privately owned. 
Table IV.9 
Telecommunication services, 2001-05 
 2001 2002 2003 2004 2005a 
Operators      
National telephone operators 2 2 2 2 2 
Mobile cellular operators 3 3 3 3 3 
Internet service providers 11 17 18 18 19 
Services provided      
Fixed telephone lines 56,149 59,472 65,793 82,495 97,393 
Mobile cellular subscriptions  276,034 505,627 777,563 1,165,035 1,410,318 
Pay phones 3,310 3,200 3,456 4,634 8,091 
a September.  
Source:  Uganda Communications Commission ( undated), "Communications Sector Comp arative Figures".  Available at: 
 http://www.ucc.co.ug/mark etInfo [10 April 2006]. 
95. In 2000, the Uganda Posts and Telecommunica tions Corporation was unbundled into three 
separate companies:  Uganda Telecoms Limited (UTL), Uganda Post Limited (UPL) and Post Bank 
Limited.  The State's 51% share in UTL was sold in 2001 to a private consortium of Ucom Limited 
(Detecon, Orascom and Telecel).    
96. The MWHC, with advice from the UCC, issues ma jor licences;  minor licences are granted by 
the UCC.  Major licences cover local, long-di stance or international telephone services;  trunk 
capacity resale;  rural telecommunications;  and cellular or mobile services. Minor licences include 
forward messaging services, paging services, and pr ivate telecommunications services.  Tariffs for 
fixed telephone services are set by the Uganda Te lecoms Limited;  interconnection tariffs are 
negotiated between operators and s ubject to UCC approval.  Mobile tariffs are set by operators and 
subject to approval by the UCC. 
97. There are two holders of a major licence, UTL and MTN.  These two operators were granted 
an exclusivity period until July 2005.  Holders of a major licence must provide universal services.  A 
third licence has been granted, to Celtel;  howev er, this covers only mobile telephone services.  WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-264 
 
 
 98. In 2001, the UCC adopted a Rural Communi cations Development Policy.  A Rural 
Communications Development Fund w as launched in 2003.  The Fund is  financed by a 1% levy on all 
telecommunications services, with additional c ontributions from the World Bank and donors.   
99. In January 2005, the UCC released a review  of the telecommunications policy, which 
provides recommendations to further promote an d develop telecommunications services.  Its 
objectives are to support ICT for development and to ensure universal access fo r Ugandans.  It also 
aims to promote competition and boost private investment in telecommunications services.  
100. In addition to VAT, an excise tax of 7%  is imposed on mobile phone calls.  
101. Uganda's market access commitments under th e GATS are without limitations on measures 
affecting consumption abroad of telecommunications services, while there are some limitations on 
measures affecting the other modes of supply.  Uganda bound, without li mitations on national 
treatment, measures affecting cross-border supply, consumption abroad, and commercial presence for 
supply of telecommunications services.  Measures af fecting presence of natural persons are unbound.  
Uganda has signed the Telecommunications Referen ce Paper, but is not a signatory to the WTO 
Information Technology Agreement (ITA).89 
(b) Postal services 
102. The UCA 1997 obliges the UCC to ensure a fair, e fficient, and equitable distribution of postal 
services throughout Uganda.  The UCC is responsible  for issuing major and minor postal licences as 
specified in the Postal Regulations 2003.  In cons idering an application for a licence, the UCC must 
take into account the following criteria:  capability  of the applicant, policy objectives under the UCA 
1997, and the obligation to operate nationwide.90  UPL, a state-owned company, holds the only major 
licence, giving it the exclusive right to deliver le tters up to 1 kg and to issue postage stamps, pre-
stamped envelopes, aerogramme forms, and interna tional reply coupons.  For these services, UPL has 
universal access obligations. UPL's licence is not time-bound. 
103. The UCC has granted minor licences to a number of private courier operators.  A minor 
licence allows operators to provide specific posta l services, but does not impose universal service 
obligations.  The activities of the private couriers are mainly centred within and between the major 
urban areas.  In June 2005, 22 providers were o ffering domestic, regional, and international courier 
services, up from ten in 2001.   
104. The UCC released a Postal Policy in 2003.  It s objectives are to improve postal services and 
infrastructure by encouraging private investme nt, supporting the commercialization of UPL, and 
promoting private competition.  The policy also aims to enhance postal services in rural areas by 
providing support to establishing outlets, with the target of one postal outlet in each sub-county.  
(iii) Transport 
105. Transport is among the fastest growing service industries.  Its contribution to GDP was 3.8% 
in 2004/05.91  The Ministry of Works, Housing and Communications (MWHC) is responsible for 
formulating policies for transport services.  Under the Ministry, various agencies have responsibilities 
in their specific areas: the Ci vil Aviation Authority, the Road Agency Formation Unit, and the 
                                                      
89 WTO document GATS/SC/89/Suppl.1/Rev.1, 29 November 1999. 
90 Uganda Communications Commission (2003) .  
91 Uganda Bureau of Statistics (2005c). EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-265 
 
 
 Transport Licensing Board.  The overall objective of the MWHC is to promote safe, efficient, and 
reliable transport services.   
106. The MWHC adopted a National Transport Master Plan in 2005. The Plan, which has not yet 
been implemented (June 2006), defines a framework  for improving Uganda's transport, and is 
especially aimed at integrating road, water, rail and air transport.  
(a) Air transport 
107. Annual growth in air transport and related support services averaged 16.9% between 2000/01 
and 2004/05.  The number of passengers trave lling by air was 543,000 in 2004, up from 413,000 in 
2001 (Table IV.10).  Annual aircra ft movements at Entebbe Intern ational Airport (EIA) are around 
17,000;  air cargo amounted to over 48,000 tonnes in 2004, up from 26,000 tonnes in 2000.   
Table IV.10 
Commercial traffic at Entebbe International Airport, 2000-04 
 2000 2001 2002 2003 2004 
Passenger flights 16,190 15,626 14,523 17,361 16,692 
Passengers 436,290 413,316 422,559 492,848 543,098 
  International      
    Landed 171,656 170,409 180,072 208,851 237,850 
    Embarked 172,190 173,313 182,003 207,846 237,756 
    In transit 63,324 43,250 26,666 31,768 24,137 
  Domestic      
    Landed 14,482 13,239 16,920 22,596 21,918 
    Embarked 14,638 13,105 16,898 21,787 21,437 
Freight (tonnes) 26,403 37,607 34,992 36,576 48,558 
Source:  Uganda Bureau of Statistics,  Statistical Abstract 2005 .   
108. Air transport is governed by the Civil Aviation Authority Statute of 1994.  The Civil Aviation 
Authority (CAA) is responsible for regulating the av iation industry in accordance with the statute, and 
providing both air traffic and aerodromes services.  It manages EIA and 13 ot her aerodromes.  Several 
other aerodromes are managed privately under the supervision of the CAA.  In 2005, there were eleven international airlines operating at EIA. All in ternal commercial air travel is privately operated, 
currently by five local companies.   The only state-owned company, Uganda Airlines Corporation, was 
under liquidation at end-2005.   
109. Since its last TPR in 2001, Uganda has embarked upon liberalization of air transport, 
including liberalization of cross-border airline ser vices;  adoption of multiple designations;  full 
liberalization of cargo services;  removal of capacity  restrictions;  and promotion of tourism by 
designation of selected aerodromes as international en try and exit points.  Traffic rights are allocated 
on request.   No cabotage is allowed.  
110. Uganda has concluded bilateral air transport ag reements with 14 countries; most liberalize air 
transport up to the fifth freedom.92  It has also implemented Phase 1 of the COMESA air transport 
liberalization programme.  As a result, air traffi c frequencies in Uganda have increased from two 
flights per week before liberalization to about 34 f lights per week.  There has also been an increase in 
commercial cooperation between COMESA air carri ers in terms of code sharing and other 
arrangements.  The implementation of Phase 2, providing for complete liberalization of intra-
                                                      
92 These are:  D.R. of Congo, Ethiopia, Germany, Ghana, India, Iran, Kenya, Nigeria, Rwanda, South 
Africa, Sudan, Tanzania, United States, and Zimbabwe.  WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-266 
 
 
 COMESA air transport services, has been pending since 2001.93  At the continental level, Uganda has 
implemented the liberalization programme formul ated under the 1999 Yamoussoukro Decision.   
111. Air transport services have been expanded and improved.  The capacity for cold storage at 
EIA has  been expanded.  A project to construct a new cargo centre, costing over US$24 million, is 
under way.  The monopoly of Entebbe Handling Servi ces has been lifted;  however, airport handling 
remains inefficient.  
112. An Air Transport Development Master Plan is under preparation by the three EAC members.  
The Plan will especially identify projects coveri ng safety and security, marketing and commercial 
development, and ICT.   
(b) Road, rail, and water transport 
113. Uganda's road network comprises:  national ro ads (10,500 km), district roads (27,500 km), 
urban roads (2,800 km), and community roads (30, 000 km).  The number of motor vehicles increased 
from 189,000 in 2000 to 247,000 in 2004.94  
114. Roads have been identified as one of the six priority areas in Uganda's poverty eradication 
agenda.  Substantial resources have been injected to develop the road infrastructure.  The Road Sector 
Development Programme (2001/02-2010/11) identifies various maintenance and investment projects.  
The total cost of the programme is estimated at US$2.3 billion.  It has four major components:  
national roads maintenance and rehabilitation;  impr ovement of parts of the national road network to 
meet increased traffic demand;  rehabilitation and maintenance of district, urban, and community 
access roads;  and capacity building in  road administration and the local construction industry.  There 
are no restrictions on foreign ownership in road transport.  Cabotage by foreign companies is not 
allowed.   
115. A Road Agency Study was carried out to ex amine the statutory, legal, and regulatory 
framework required for the establishment and operati on of a national road authority to replace the 
interim Road Agency Formation Unit.  A draft law to create the National Road Authority is before 
parliament.  
116. Uganda has an operational railway network of 1,228 kilometres.  Railway transport remains 
underdeveloped:  much of the infrastructure is old a nd dilapidated, and there is an acute shortage of 
rolling stock.  Cargo transported by the Uga nda Railway Corporation (URC) amounted to 
229.4 million tonne kilometres in 2004, up from 209.5 million tonne kilometres in 2001. 
117. Uganda has joined regional rail transport initia tives to link landlocked East and Central 
African countries to the Indian Ocean, via either Kenya or Tanzania.  An ultimate goal of these 
initiatives is also to link Uganda to West Africa. 
118. Since Uganda's last TPR, progress has been ma de in the privatization of the URC.  In 
October 2005, South African-led Rift Valley Railway Consortium won a 25-year contract to manage 
Uganda's railways (together with Kenya's railway system).  The Consortium offered to pay to the 
Government US$1 million a year and a share of 11.1%  of cargo revenues;  it is expected to commence 
operations on 1 August 2006.  The authorities are planning to establish a railway regulator in charge 
of safety issues, but also to be empowered to set maximum prices in case of monopolistic behaviour. 
                                                      
93 Marawa (2005).  
94 Uganda Bureau of Statistics (2005c).  EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-267 
 
 
 119. Water transport is governed by the Ferries Act,  the Vessel Registration Act, and the Inland 
Water Transport Control Act.  Inland water trans port is a major component of Uganda's transport 
system as 18% of its surface consists of lakes and rivers.  It is usually also the cheapest mode of 
transport for passengers and cargo.  The main navi gable waterways include lakes (Victoria, Kyoga 
and Albert) and rivers (Nile, Katonga, Kafu, Aswa , Semliki, and Kagera).  Uganda has five 
government-owned vessels, all based on Lake Victor ia;  none is currently operational but there are 
plans to put them back into service under private management.  Foreign enterprises are allowed to 
provide cabotage services for cargo, but not for passengers. 
120. Poor water landing site infrastructure, and weak  enforcement of regulations constitute a major 
challenge to water transport in Uganda.  Poor adjacent infrastructure of feeder roads and ferry 
connections also impede continued development of lake fisheries.  
(iv) Tourism 
121. Tourism earnings amounted to US$321 million in 2004, making the industry one of Uganda's 
leading foreign exchange earners.  Tourism acc ounts for approximately 3% of GDP.  Hotels, 
restaurants, and bars are the third largest employer  in the non-agricultural sector, after wholesale-retail 
trade and manufacturing.  In 2005, there were 42 tour operators and 38 travel agencies in Uganda, 
most of them in Kampala.  Uganda has about 1,300 registered accommodation establishments with 
some 20,000 rooms. 
122. Uganda possesses a variety of tourist attracti ons, including Lake Victoria, the Murchison 
Falls, and the Mountains of the Moon, along with a number of national parks and wildlife reserves 
hosting, among other fauna, half the world's mountai n gorilla population.  Uganda is also arguably the 
richest African birding destination with over 1,2 00 birds species recorded.  However, the tourism 
infrastructure is still underdeveloped and lacks adequate accommodation, and event and exhibition 
facilities.95   
123. Tourist arrivals in Uganda have increased s ubstantially in recent years, to over 500,000 in 
2004 (Table IV.11).  Some 80% of all tourist arri vals were from Africa, particularly neighbouring 
countries.  However, that a large share of arrivals  from Africa are East African residents crossing 
borders for the day and transit passengers at Ente bbe airport.  Tourists from Europe accounted for 
9.6% of total tourist arrivals, followed by visitors from America and Asia.   
Table IV.11 
Tourist arrivals, 1999-04 
Origin 1999 2000 2001 2002 2003 2004 
Africa 116,980 132,240 144,257 192,891 234,643 406,744 
America 12,898 11,947 12,919 14,785 16,414 23,438 
Asia 10,493 8,368 8,163 9,302 10,955 17,884 
Europe 43,133 36,050 36,592 33,853 39,225 48,847 
Middle East 2,410 1,479 1,248 1,227 1,398 2,095 
Oceania 2,678 2,069 1,325 1,325 1,555 2,405 
Others 755 602 783 836 1,529 10,966 
Total 189,347 192,755 205,287 254,219 305,719 512,379 
Source:   Uganda Bureau of Statistics. 
                                                      
95 Uganda Investment Authority (undated) . WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-268 
 
 
 124. The Uganda Tourist Board (UTB), an agency under the MTTI, is mandated to promote the 
tourism industry.  The Uganda Wildlife Authorit y (UWA) is responsible for the management of 
Uganda's 10 national parks, 12 wildlife reserves,  and 14 wildlife sanctuaries;  it also provides 
guidance for five community wildlife areas.  Th e UWA has taken steps to involve communities 
neighbouring national parks in park management.  In return, communities receive 20% of entrance 
fees. 
125. A regional hotel and restaurant classification system is in place at the EAC level, with 
implementation left to each member country.  There are no restrictions to foreign ownership in the 
tourism subsector, and prices are market-driven.   
126. A Tourism Policy, adopted by Cabinet in 2003, aims to make tourism a major vehicle for 
poverty reduction by increasing annual tourist arri vals to around 500,000 and tourism earnings to 
some US$360 million within ten years.  The policy places central importance on increasing safety and security measures, without, however, proposing a detaile d plan for this.  The main strategy is to 
market Uganda as a niche destination, offering speci alized environmental, cultural, and activity-based 
tourism.  In order to give effect to the policy,  a Tourism Bill has been under consideration by the 
Government since 2004.  One of the main measures of the bill would be the introduction of a tourism 
levy, proposed at 2.5%, placed on all accommodation and tourism service bills.  
127. In 2002, the MTTI launched a Sustainable T ourism Development Programme for 2002-07.  
The programme, supported by the European Union, is to ensure effective implementation of the 
Tourism Policy.  Its main objective is to promote sustainable growth and development of the tourism 
subsector.   
128. Since Uganda's last TPR, a number of hotels ha ve been privatized.  Recent privatizations 
include Masindi Hotel in 2000, Apollo Hotel Corpora tion in 2001,  and the Nile Hotel International in 
2004.  There are no state-owned enterprises left in the tourism subsector. 
129. In the Uruguay Round, Uganda made specifi c commitments under the GATS in tourism and 
travel-related services.  Uganda bound, without limit ations on national treatment, measures affecting 
cross-border supply, consumption abroad, and co mmercial presence for the supply of tourism and 
travel-related services.  It also bound, without lim itations on market access, measures affecting cross-
border supply, and consumption abroad of these services.  Limitations on market access apply to the binding of measures affecting commercial presen ce for the supply of these services.  Measures 
affecting presence of natural persons for the su pply of tourism and travel-related services are 
unbound.
96 
                                                      
96 WTO document GATS/SC/89, 15 April 1994. EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-269 
 
 
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African Development Bank (2005), Statistics Pocketbook , Tunis. 
Ayoki et al (2005), Tax Reforms and Domestic Reven ue Mobilization in Uganda , January, Kampala.  
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Bank of Uganda (2005b), Quarterly Economic Report September 2005 , Kampala. 
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IMF (2005b), Uganda –  Selected Issues and Statistical Appendix , Washington D.C. 
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APPENDIX TABLES EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-273 
 
 
 Table AI.1 
Structure of exports, 1998-04 
(US$ million and per cent) 
  1998 1999 2000 2001 2002 2003 2004 
                
Total (US$ million) 509.9 505.7 401.6 450.5 467.4 534.1 639.5 
                
  (per cent) 
                
Total primary products 93.6 90.2 83.9 82.9 80.2 85.2 76.6 
   Agriculture 89.4 89.3 72.6 74.8 72.9 84.9 72.1 
      Food 85.4 72.8 60.1 61.2 63.5 62.9 58.1 
         0711 Coffee, not roasted 52.3 52.8 30.2 21.6 20.7 22.2 19.4 
         0345 Fish fillets and other fish meat  fresh, chilled/frozen 9. 2 1.6 1.6 7.5 8.7 9.4 11.2 
         0741 Tea 5.5 4.2 9.2 6.7 6.7 5.0 5.8 
         1211 Tobacco, not stemme d/stripped 2.9 1.7 5. 4 5.3 8.3 7.1 4.1 
         0344 Fish fillets, fr ozen 3.2 3.0 5.3 9.1 9.6 4.7 4.1 
         1212 Tobacco, wholly or partly  stemmed/stripped 1.5 1. 1 1.2 1.7 1. 1 1.8 2.2 
         0471 Other cereal flours 0.3 0.1 0.1 1.1 0.9 1.4 1.3 
         0542 Leguminous vegetables, dr ied, shelled 0.5 0.7 1.1 0.4 0.6 1.4 1.2 
         0721 Cocoa beans, whole or broken, raw or roasted 0.3 0.3 0.3 0.4 0.4 1.2 1.1 
         0752 Spices (except pepper and pimento) 0.3 0.0 0.3 0.6 1.5 1.6 1.0 
         0449 Other maize, unmilled 1.5 0.5 0.3 0.5 1.0 1.1 0.9 
      Agricultural raw material 4.1 16.5 12.5 13.6 9.3 22.0 14.0 
         2634 Cotton, carded or combed 0.0 0.0 1.9 2.2 1.1 11.1 4.9 
         2926 Bulbs, tubers, cuttings, slips,  live plants, etc. 0.5 0.2 0.0 1.2 1.7 4.2 4.4 
         2632 Cotton linters 0.0 0.0 0.2 0.1 0.3 1.7 1.3 
         2631 Cotton (other than linters), not carded or combed 0.4 2.4 3.6 0.7 0.8 2.5 1.1 
   Mining 4.1 0.9 11.3 8.1 7.3 0.3 4.5 
      Ores and other minerals 1.8 0.7 4.0 2.9 1.6 0.2 0.3 
      Non-ferrous metals 0.0 0.0 0.1 0.1 0.1 0.0 0.0 
      Fuels 2.3 0.2 7.1 5.1 5.7 0.1 4.2 
         3341 Motor gasoline, light oil 0.0 0.0 2.2 0.0 0.0 0.1 2.2 
         3510 Electric energy 2.3 0.0 4.6 2.3 3.3 0.0 1.9 
               
Manufactures 5.0 3.1 5.3 6.2 6.8 8.8 13.8 
   Iron and steel 0.1 0.2 0.5 0.7 0.9 1.6 2.8 
         6741 Flat-rolled products, iron/steel , zinc plated 0.1 0.1 0.2 0.4 0.4 0.6 1.1 
   Chemicals 1.7 0.6 1.1 1.5 1.5 2.0 2.6 
         5541 Soap 0.3 0.4 0.4 0.6 0.7 0.9 1.2 
   Other semi-manufactures 1.0 0.3 0.6 0.9 1.0 0.9 1.5 
   Machinery and transport equipment 1.5 1.5 2.5 2.2 2.4 3.0 4.0 
      Power generating machines 0.0 0.0 0.0 0.1 0.0 0.0 0.0 
      Other non-electrical machinery 0.6 0.5 0.4 0.6 0.6 1.2 1.2 
         Agricultural machinery and tractors 0.1 0.1 0.1 0.0 0.1 0.1 0.1 
      Office machines and telecommuni cation equipment 0.1 0.2 0.1 0.5 0.5 0.5 1.1 
      Other electrical machines 0.1 0.1 1.0 0.1 0.1 0.2 0.2 
      Automotive products 0.6 0.6 0.9 0.6 0.8 0.9 1.1 
      Other transport equipment 0.1 0.1 0.1 0.3 0.4 0.2 0.4 
   Textiles 0.3 0.3 0.3 0.3 0. 4 0.2 0.4 
   Clothing 0.0 0.0 0.0 0.0 0.0 0.5 0.7 
   Other consumer goods 0.3 0.3 0.5 0.6 0.5 0.6 1.7 
               
Other 1.5 6.6 10.8 10.9 13.0 6.0 9.6 
   Gold 1.5 6.6 10.8 10.9 13.0 6.0 9.6 
         9710 Gold, non-monetary (excl. gold or es and concentrates) 1.5 6.6 10.8 10.9 13.0 6.0 9.6 
Source:  WTO Secretariat estimates, based on UNSD, Comtrade database SITC Rev.3 data. WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-274 
 
 
 Table AI.2 
Structure of imports, 1998-04 
(US$ million and per cent) 
  1998 1999 2000 2001 2002 2003 2004 
                
Total (US$ million) 1,105.5 1,015. 2 935.6 1,005.7 1,073. 7 1,375.1 1,656.6 
                
  (per cent) 
                
Total primary products 32.6 30.7 35.3 32.6 34.3 33.2 30.2 
   Agriculture 19.7 16.5 16.3 14.7 16.6 18.2 18.7 
      Food 17.4 14.0 14.1 12.2 14.0 16.2 16.8 
         0412 Other wheat (including spelt) and meslin, 
 unmilled 1.1 1.3 2.2 2.5 3.1 4.0 4.4 
         4222 Palm oil, fractions 3.1 1.7 1.8 1.8 2.4 2.3 2.5 
         0612 Other beet, cane and chemically pure 
 sucrose, solid form 0.9 1.2 1.1 0.7 0.8 0.8 1.1 
         0423 Rice, milled, semi -milled 1.4 1.3 1. 7 1.2 1.0 1.0 1.1 
      Agricultural raw material 2.3 2.5 2.2 2.5 2.6 2.0 1.9 
         2690 Worn clothing and other worn te xtile articles, rags 1.9 2.1 2.0 2.2 2.3 1.7 1.6 
   Mining 12.9 14.2 19.0 17.8 17.7 15.0 11.5 
      Ores and other minerals 1.7 1.2 0.9 1.0 0.9 0.8 0.8 
      Non-ferrous metals 0.8 0.7 0.6 0.6 0.5 0.5 0.8 
      Fuels 10.4 12.3 17.5 16.2 16.3 13.7 10.0 
         3341 Motor gasoline, light oil 0.0 0.0 7.3 0.0 0.0 13.4 9.6 
               
Manufactures 67.4 69.2 64.6 67.4 65.7 66.7 69.5 
   Iron and steel 4.2 4.2 3.8 4.5 5.2 5.7 5.8 
         6732 Flat, hot-rolled products, iron/steel, not 
 clad/plated/coated 0.4 0.4 0.5 0.6 0.8 1.1 1.3 
   Chemicals 12.5 14.6 11.4 12.9 12.1 13.1 13.5 
         5429 Medicaments, n.e.s. 2.9 5.2 2.0 2.8 2.4 2.6 2.6 
         5711 Polyethylene 0.6 0.7 0.7 0.7 0.6 0.8 1.1 
         5514 Mixtures of odoriferous substances, industrial use 0.5 0.7 0.9 0.8 0.9 0.7 1.0 
         5416 Glycosides; glands, etc. and extracts; 
 antisera/vaccines, etc. 0.3 0.3 0.3 0.4 0.6 1.5 0.9 
   Other semi-manufactures 11.1 11.1 11.6 11.3 11.2 10.8 10.5 
         6612 Portland cement and similar hydraulic cements 2.4 2.4 1.7 2.0 2.5 2.4 2.1 
   Machinery and transport equipment 29.2 27.4 27.1 28.4 26.5 25.0 28.3 
      Power generating machines 2.1 0.9 1.0 1.4 0.4 0.5 1.9 
      Other non-electrical machinery 6.8 6.4 6.2 4.9 5.7 5.6 6.3 
         7272 Other food-processing machinery and parts  0.7 0.5 0.3 0.2 0.6 0.4 1.0 
         Agricultural machinery and tractors 0.7 0.5 0.6 0.3 0.5 0.3 0.5 
      Office machines and telecommuni cation equipment 4.8 4.7 5.7 8.3 6.2 6.6 7.3 
         7643 Radio or television transm ission apparatus 0.8 0.6 1.3 3.9 2.3 1.9 2.8 
         7641 Electrical apparatus for line telephony/telegraphy  1.1 0.8 0.8 0.8 0.3 0.5 1.0 
      Other electrical machines 4.1 4.7 4.9 4.4 3.5 3.5 3.4 
         7781 Batteries and electric accumu lators, and parts  1.5 1.7 1.8 1.7 1.6 1.2 0.9 
      Automotive products 9.8 7.9 7.5 7.7 8.5 7.4 7.5 
         7812 Motor vehicles for the transport of persons, n.e.s. 1.9 2.8 3.0 3.7 3.6 2.8 3.0 
         7821 Goods vehicles 3.8 3.3 2.7 2.5 3.0 2.8 2.8 
         7831 Public-transport type passenge r motor vehicles 1.4 1.0 1.0 0.9 1.2 1.1 1.2 
      Other transport equipment 1.6 2.7 1.9 1.7 2.0 1.5 1.9 
   Textiles 2.1 2.3 2.0 2.4 2. 5 2.7 2.4 
   Clothing 1.6 1.7 1.4 1.4 1.3 1.3 1.4 
   Other consumer goods 6.8 8.0 7.3 6.5 6.9 8.1 7.7 
         8928 Printed matter, n.e.s. 0.7 0.4 0.4 0.6 0.7 0.9 1.2 
               
Other 0.0 0.0 0.1 0.0 0.0 0.1 0.3 
   Gold 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source:  WTO Secretariat estimates, based on UNSD, Comtrade database SITC Rev.3 data. EAC-Uganda WT/TPR /S/171/UGA/Rev.1 
 Page A3-275 
 
 
 Table AI.3 
Destination of exports, 1998-05 
(US$ million and per cent) 
  1998 1999 2000 2001 2002 2003 2004 2005 
                 
Total (US$ million) 509.9 505. 7 401.6 450.5 467.4 534.1 639.5 812.9 
                  
 (per cent) 
                  
  America 6.5 3.3 2.4 2.1 2.5 4.0 3.0 2.3 
    United States 5.2 1.8 2.1 1.5 2.0 3.1 2.4 2.0 
    Canada 0.2 0.2 0.0 0.2 0.2 0.9 0.5 0.3 
    Other America 1.1 1.4 0.2 0.4 0.4 0.1 0.1 0.0 
                  
  Europe 53.1 46.1 50.4 45.2 49.4 53.5 46.5 41.2 
    EC(15) 39.0 35.2 24.9 29.1 33.5 33.5 28.3 31.1 
      Netherlands 10.4 3.7 8.6 11.7 12.0 9.3 9.0 10.5 
      United Kingdom 11.3 18.0 9.6 6.3 6.4 7.7 4.6 3.3 
      Belgium-Luxembourg 1.6 1.0 0.5 3.6 4.9 5.1 4.5 4.1 
      France 4.7 2.9 0.7 0.9 1.5 3.4 3.6 4.9 
      Germany 4.5 3.5 1.7 3.1 2.9 4.5 2.8 4.2 
      Spain 4.2 3.0 2.9 1.8 3.8 1.9 2.2 2.2 
    EFTA 10.3 6.6 25.1 15.6 14.9 18.9 17.1 .. 
      Switzerland 9.4 4.8 24.7 15.5 14.7 18.8 17.0 9.2 
    Eastern Europe 3.8 4.2 0.5 0.5 0.9 1.1 1.0 .. 
      Former USSR 2.0 0.0 0.0 0.1 0.4 0.7 0.4 .. 
    Other Europe 0.0 0.0 0.0 0.0 0.1 0.0 0.1 .. 
                  
  Asia 11.0 17.3 11.3 12.6 10.0 10.2 14.1 18.3 
    Middle East 2.0 4.7 1.5 2.2 2.0 4.4 5.8 10.8 
      United Arab Emirates 0.3 0.2 0.6 1.4 1.5 4.0 5.2 10.4 
    East Asia 7.4 12.3 8.5 9.8 7.9 5.6 8.1 .. 
      Singapore 4.5 4.9 3.1 1.6 1.9 2.8 3.5 3.6 
      Hong Kong, China 1.2 0.8 3.2 5.9 2.9 1.2 2.5 1.6 
      Japan 0.9 3.8 2.0 1.8 2.9 0.6 0.9 0.6 
    South Asia 1.6 0.3 1.3 0.6 0.1 0.2 0.2 .. 
                  
  Oceania 0.8 2.2 1. 6 1.2 1.0 1. 1 0.6 0.1 
                  
  Africa 28.6 31.0 31.3 34.4 34.8 31.1 33.7 35.5 
    Sub-Saharan Africa 25.0 21.6 23.3 27.9 25.1 27.3 31.4 .. 
      Kenya 9.6 6.4 15.7 13.1 13.2 10.7 12.0 8.9 
      Zaire 0.9 0.7 1.5 1.9 1.6 3.8 4.5 7.4 
      Rwanda 4.2 3.3 2.2 3.7 2.8 3.1 3.9 4.4 
      Sudan 3.7 3.3 1.1 2.0 1.2 3.0 3.5 6.2 
      Burundi 0.2 0.4 0.4 1.1 1.3 2.5 2.8 2.6 
      Congo 1.4 1.8 0.6 1.8 2.2 1.3 2.0 .. 
      United Republic of Tanzania 1.7 1.2 1.4 1.5 1.2 1.6 1.9 1.5 
    Other Africa 3.6 9.5 8.1 6.5 9.7 3.8 2.4 .. 
      South Africa 0.0 0.0 7.2 5.3 9.2 2.1 1.4 1.2 
                  
  Other 0.0 0.0 3.0 4.4 2.3 0.0 2.2 0.0 
      Areas n.e.s. 0.0 0.0 3.0 4.4 2.3 0.0 2.2 .. 
                  
Memorandum:               31.2 
    EC(25) 40.7 39.5 25.2 29.3 34.0 33.8 28.8 812.9 
.. Not available. 
Source: WTO Secretariat estimate, based on UNSD, Comtrade da tabase SITC Rev.3 data; and data provided by the 
 Ugandan authorities.  WT/TPR/S/171/UGA /Rev.1 Trade Policy Review 
Page A3-276 
 
 
 Table AI.4 
Origin of imports, 1998-05 
(US$ million and per cent) 
  1998 1999 2000 2001 2002 2003 2004 2005 
                 
Total (US$ million) 1, 105.5 1,015.2 935.6 1, 005.7 1,073.7 1,375. 1 1,656.6 2,054.1 
                  
 (per cent) 
                  
  America 5.3 8.0 5.4 4.4 4.2 6.8 8.7 6.6 
    United States 3.1 5.6 3.3 2.8 3.3 5.7 6.2 3.8 
    Canada 1.0 0.9 0.7 0.8 0.6 0.6 0.9 1.3 
    Other America 1.1 1.5 1.4 0.8 0.3 0.5 1.6 1.5 
      Argentina 0.1 0.5 0.1 0.1 0.0 0.2 1.1 1.2 
                 
  Europe 29.5 25.3 22.5 23.3 19.8 20.0 19.8 19.9 
    EC(15) 27.7 23.8 20.2 21.7 18.3 18.6 18.5 18.8 
      United Kingdom 11.9 10.2 8.5 7.2 6.3 6.3 5.1 4.8 
      Germany 2.6 2.8 2.5 3.8 2.8 2.8 2.2 2.4 
      France 2.0 1.9 1.5 2.4 1.2 1.1 2.2 1.7 
      Belgium-Luxembourg 2.4 2.0 2.0 1.6 1.5 1.7 2.2 1.5 
      Netherlands 1.3 2.0 1.9 1.5 1.8 1.8 2.1 2.1 
      Sweden 1.6 1.0 0.5 1.8 0.9 0.6 1.8 1.1 
      Italy 4.1 2.1 1.5 1.8 2.3 1.7 1.2 2.4 
    EFTA 1.5 1.3 1.9 1.1 1.1 0.6 0.6 0.9 
    Eastern Europe 0.3 0.1 0.4 0.4 0.4 0.6 0.4 .. 
      Former USSR 0.1 0.0 0.0 0.3 0.2 0.4 0.2 .. 
    Other Europe 0.1 0.0 0.0 0.0 0.0 0.1 0.2 .. 
                 
  Asia 30.8 34.2 29.8 32.8 34.1 35.2 37.0 36.4 
    Middle East 6.1 6.8 6.3 6.9 6.9 7.4 7.0 10.1 
      United Arab Emirates 5.2 5.5 4.9 5.6 5.8 5.8 5.0 6.7 
      Saudi Arabia 0.5 0.8 0.7 0.8 0.7 0.9 0.9 1.1 
    East Asia 17.6 19.0 17.9 18.5 19.5 18.9 21.9 .. 
      Japan 6.2 8.1 7.1 7.5 8.1 6.6 7.3 7.1 
      China 1.4 2.2 3.1 3.6 4.1 5.1 6.2 5.3 
      Malaysia 1.2 2.1 2.1 2.3 3.0 3.1 4.0 2.3 
      Thailand 0.6 0.7 0.8 0.9 0.5 0.6 0.9 0.7 
    South Asia 7.1 8.4 5.6 7.3 7.7 8.8 8.1 .. 
      India 6.0 6.4 5.0 6.6 6.7 7.4 7.3 6.4 
                  
  Oceania 0.3 1.0 1. 8 2.0 2.5 2. 4 2.0 0.8 
      Australia 0.1 0.7 1.7 2.0 2.5 2.3 2.0   
                  
  Africa 34.1 31.6 40.5 37.5 39.4 35.7 32.5 36.2 
    Sub-Saharan Africa 27.1 25.5 32.4 29.2 30.4 27.2 22.4 .. 
      Kenya 24.0 23.8 30.7 28.0 29.1 26.0 20.8 25.3 
      United Republic of Tanzania 2.1 1.1 0.9 0.7 0.7 0.8 0.9 .. 
    Other Africa 7.1 6.1 8.1 8.3 9.0 8.4 10.0 .. 
      South Africa 0.0 0.0 7.0 7.2 7.8 7.2 8.4 7.0 
      Swaziland 0.0 0.0 0.5 0.5 0.8 0.7 1.0 0.9 
                  
  Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
                  
Memorandum:                
    EC(25) 27.7 23.9 20.3 21.8 18.5 18.8 18.7 .. 
.. Not available. 
Source:  WTO Secretariat estimates, based on UNSD, Comtrade da tabase SITC Rev.3 data;  and data provided by the 
 Ugandan authorities. 
 
__________