Pilot production of water-based paint and coatings in Uganda In the decorative paint industry one can generally distinguish between matt and glossy paints. Both products can either be made on a solvent base or a water base. In Europe, solvent based paints are banned from the consumer market because of the hazardous Volatile Organic Compounds (VOC), yet in Uganda these paints are still commonly used by the public. Matt paints already are produced on a water basis in Uganda. High gloss paints (approximately 30% of the market) however, still were not, as they required a specific production process. An additional advantage of water based paints, is the fact that it has a major positive impact on the environment.Applicant Sadolin Paint East Africa Ltd. (SPEAL Ltd.) from Kenya and its sister company Sadolin Paints Uganda Ltd from Uganda are market leaders in the paint industries in their respective countries. As such, they are on the forefront with regard to technological innovations.For this PSI project, the partners invested in a paint production line for water based glossy paints and for water based architectural coatings. The former product was not available on the Ugandan market. The water based architectural coatings was being imported and now acts as an import substitute.Although, there was no legislation on the hazardous use of solvent based paint yet, the project partners wanted to think ahead and introduce innovative technologies in order to allow for new standards to be set.The project is located at Namanve Business Park.Corporate Social Responsibility (CSR)Both Sadolin Paints East Africa Ltd in Kenya and Sadolin Paints Uganda Ltd in Uganda are ISO 9001 certified. The new production lines are incorporated in this quality control system. During the project, the partners obtained ISO 14000 certification as well. This certificate focuses more specifically on environmental issues.With regard to occupational safety and working conditions it is worth noting that Akzo Nobel audited both Sadolin Kenya and Uganda (and Tanzania), in order to make sure these 'Akzo agents' live up to the CSR standards Akzo Nobel has set for its activities worldwide.Last of all, Sadolin adopted the International Financial Reporting Standards in 2007.Impact•	Employment and working conditionsEighteen new people were employed for the water based production lines. These people are dedicated to these lines, as they require other skills than for the other production lines. 1 person is medium / highly skilled. The remaining 17 are general production workers. All employees are paid at least 50% above local minimum wages. This includes bonuses, transport allowances and the like. On top, all employees are offered medical insurance under the Jubilee healthcare scheme, covering the employee, spouse and up to 3 children.Additional benefits include free lunch whilst on duty, protective company clothing and contribution to Uganda's pension fund NSSF.•	Innovation / Transfer of knowledgeThe technology to produce water based glossy paints and architectural coatings is new to Uganda, albeit related to the current practices of paint production. Additionally, the knowledge of ISO 14000 management standards, production protocols and environmental requirements is new to the industry in Uganda.•	Chain effectsThis project provides additional business for Sadolin's existing network of transporters and distributors. On the input side, a few local suppliers of calcium carbonate and grinded stones have been contracted. Also, the labelling and packaging industry is involved.•	EnvironmentAn Environmental Impact Assessment (EIA) has been conducted. Sadolin Paints Uganda Ltd built a new waste water treatment facility, which is used for waste water produced by this project. The positive thing of water based paints as compared to solvent based is the virtual elimination of hazardous Volatile Organic Compounds during production and application. On top, the paint can be easily washed away with water which is more environmentally friendly than thinner or other oil based products.•	Position of womenAs a lot of labour involves dealing with heavy loads, the production is generally done by men. 4 of the 18 newly contracted employees is female. To establish a production line for water based glossy paints with an annual capacity of 200,000 litres, and a line for water based architectural coating with an annual capacity of 250,000 kg, designated for the local market.