Category: Uganda

It’s not just a cocoa bean

If you wanted to transform 1,500 families in Tanzania, where would you start? How about with a cup of chocolate? By helping cocoa farmers in Tanzania access the market profitably, TMA’s Challenge Fund, beneficiary Kokoa Kamili is transforming their lives for the long term. 65 year old David Sanga lives in Mbingu Village in the Kilombero District of Tanzania and has grown cocoa for over ten years. Before every bean reaches the market, David must ensure that he has the right seedlings, that the trees are pruned, weeding done, the soil fertilised and the crop is free from pests for him to harvest a good crop. The crop should be delivered to collection centres which are set up for aggregation to ensure efficient access to markets. The buyers must offer him a competitive price for his cocoa beans for the practice to support his family. Thus, before the hot chocolate lands in your cup, there is a complex behind the scenes infrastructure that makes it possible. Kokoa Kamili is ensuring these behind the scenes activities benefit the farmers. Kokoa Kamili begun their project in Bingu in September 2014 after establishing that few cocoa buyers meant that local cocoa beans fetched poor prices comparative to other areas. The prices set by out-growers’ associations were also predetermined and non-negotiable. Transport costs to the collection points meant a further dip in farmers' profits. Poor seedlings affected the amount of produce down the line. Kokoa Kamili's mixed approach offers free collection services for wet...

Annie’s Metal Works, Interior and Ex Designs – a budding business that has crossed Ugandan borders

30-year-old Annie Nakizibu Mirembe has crossed borders in trade to market and expand her steel welding business. “I started doing it as a hobby because I love art and design. I never went to school to acquire this skill,” the graduate of Bachelor of Library and Information Science says of breaking barriers in the male-dominated steel welding world and attests to the opening up of markets in the East African Community. Ms. Mirembe employs six Ugandans and two Kenyans in her welding shop, based in Katwe, a Kampala suburb. As a cross border trader, Mirembe is no stranger to intra-regional trade challenges as just two weeks ago, she experienced a four day delay at the Malaba border as she shipped metal products to Kenya, “The system was down and no one explained. Such incidences make traders like us incur extra costs on accommodation and food and also delays our obligations to our clients.” She says. As a cross border trader, Mirembe is one of the few who grabbed the opportunities provided by EAC treaty and is already celebrating success. She has export clientele in Rwanda and Kenya and plans to enter the Burundi market in the near future.  The EAC Treaty states that the first stage of the integration would be the formation of a Customs Union with its primary objective being to facilitate inter and intra-regional trade in goods. “The trade system on the borders makes cross-border trade for small businesses like mine very fast and easy,” she says....

Earning respect from buyers, one maize kernel at a time

TMA is supporting SEATINI in Uganda to build capacity for export trade, specifically for maize and sesame, two key Uganda staples. The project is recording wins: hundreds of Farmers in Uganda’s Nakaseke district are now earning UGX 700 from 400 UGX for graded and sorted maize, according to an independent evaluation.   As Kamya Kirubira leads us through a syrup-coloured maize field in his home district of Nakaseke in Central Uganda, the hard leaves scratch gently against our skin, assuring us the crop is as dry as it looks. Juxtaposed against a powder blue sky, the rows of maize are an idyllic scene that could have come straight from the front of a well-branded breakfast cereal box. This is Nakaseke today. Maize is in high demand in East Africa. It is the foundation of every staple food, in every country in the region. Every morning, afternoon and evening, middle class families sit down to eat maize, whether in the form of a roasted maize cob, a bowl of ugali (maize porridge), a fried chapatti, or an intoxicating local brew. Kenya is opening up to Ugandan maize and other markets will surely follow, but only if the maize makes the grade. In fact, the demand for this cereal crop far outweighs its production in East Africa. Yet, by Kamya’s own accounts, he wasn’t always the 40-acre owning commercial farmer he is now, and Nakaseke wasn’t always hailed as a model district for maize growing. In fact in 2013, when the World...

Bringing the EAC to the people – A case of Uganda

From her small metal fabrication workshop in Kitwe, a Kampala suburb on Entebbe Road, Annie Nakizibu Mirembe has multinational ambitions. Her small business employs a workforce of Ugandans and Kenyans to make metal furniture, which she ships locally and into neighbouring Rwanda. Her steel is Ugandan and the sisal fibre she uses for cushions comes from Kenya. Mirembe now has her sights set on expanding across the border into Burundi after capturing the markets in Uganda, Kenya and Rwanda—capitalising on the opening up of regional markets resulting from the political and economic integration of the East African Community (EAC). The EAC’s Common Market Protocol allows for the free movement of goods and services, labour and capital across the borders of the region’s states. Despite the efforts at the political level to reduce friction for traders seeking to expand regionally, barriers still remain—not least a lack of knowledge amongst the population. Studies show awareness of the existence and benefits of a regional market are low in Uganda. In fact, small scale businesses like Mirembe's find it difficult to access information that would inform them of how to access and conduct themselves in neighbouring countries markets. “The first time I received a worthwhile order from Kigali—the Rwandan capital—I was nervous but also extremely excited. At that point, I did not know how to export steel products to neighbouring country, so I had to take time to research,” she says. Mirembe’s experience mirrors the challenge most citizens face across the EAC states in recent years. It is a need that...

NUCAFE Supports Coffee Max Young Entrepreneurs

Assiimwe Allan is a 22-year-old student in his second year at the Makerere University, in Kampala, Uganda. He is pursuing a Bachelor of Science degree, taking statistics as his major and mathematics as his minor. In August 2015, Allan teamed up with five fellow hardworking students to form a transformation movement project called Coffee Max which will be operationalized through the registration of a business company at the Makerere University. The Coffee Max project intends to develop a new generation of young people to embrace and enjoy coffee in its full diversity. As a result, this will increase domestic coffee consumption amongst the young people and integrate them more along activities in the coffee value chain. Allan began this project with the aim to popularize coffee as a trendy beverage amongst university students which, in turn, would reduce alcoholism. He and his team participated in the annual Uganda coffee festival that was hosted in November 2015 and organized by NUCAFE in conjunction with the Uganda Coffee Developed Authority (UCDA). In addition, Allan developed a strong passion to boost his fellow young people, especially his fellow university students with entrepreneurial skills to assist them to be self-employed which in turn will reduce the overwhelming youth unemployment rate in Uganda. The project will start with the purchase of automated coffee vending machines that will offer a wider variety of coffee beverage. This will be followed with a vigorous coffee club at the Makerere University and accompanied by trendy promotional materials for awareness...

A lesson for importers – how to save money through becoming an AEO

Question: How can Customs authorities and importers work together so that tax revenues increase while importers save money? It sounds like a contradiction in terms. How can importers hope to save money when the more products they import the more tax they pay? Yet it is happening in East Africa where Customs reforms, facilitated by TradeMark Africa (TMA), are not only encouraging importers to be tax compliant, but are also helping them to save money on transport and related costs. Robert Bapfakurera, founder and Managing Director of Roba General Merchants in Kigali Rwanda, is a good example. His company imports fast moving products such as rice, cooking oil, sugar and soap, from countries as close as Uganda and as far away as Pakistan and Indonesia. For a landlocked nation like Rwanda, importing products from overseas used to be a stop-go process, a minefield of bureaucracy combined with a plethora of barriers that included weighbridges, roadblocks and unofficial payments at borders. Today, thanks to expertise and training provided by Rwanda Revenue Authority (RRA) in collaboration with TMA, the journey is less stressful, with a reduction in transit time of an incredible two thirds. For Bapfakurera the change began in 2012 when he was chosen by the RRA to become one of only three Authorised Economic Operators in Rwanda, referred to as ‘AEOs’. AEOs, are accredited importers and exporters benefiting from preferential treatment and incentives because they have demonstrated a history of compliance. The new status gives Roba General Merchants the right...

UNBS – On a Mission to Improve Standards

Mission of the Uganda National Bureau of Standards: “To provide standards, measurements and conformity assessment services for improved quality of life.” How much do you know about the quality of your television set? Or your washing powder? Even your toothpaste? You probably did some research before handing over the money for your TV, perhaps asking your friends, comparing costs, or even checking online. But did you bother to check that your washing powder actually does what the packet says it does, and won’t bring you out in a rash? As for your toothpaste, which you put in your mouth at least twice a day, how do you know it won’t poison you? In Uganda, the Uganda National Bureau of Standards (UNBS) is the organisation that ensures that consumer products meet current standards including safety. In 2010 the UNBS, with assistance from the Sweden International Development Cooperation Agency (SIDA) and TradeMark Africa (TMA) began a five year Quality Infrastructure and Standards Programme (QUISP)worth US$2.7 million, to establish and strengthen the standards development and implementation capacity of the country. The programme is designed to assist not just Ugandan producers, but also importers who suffer delays due to product testing. QUISP has five components: to put in place a national standards and quality strategy; to develop a legal framework for quality infrastructure;to coordinate the different players, especially regulators, standards developers and standards implementers; to build the capacity of the above players in terms of training and equipment; and to raise awareness of and...

One stop border posts – contributing to the ease of doing business in East Africa

Abdul Mohamed is a small business owner based in Dar es Salaam Tanzania. He owns and drives his own truck, which he uses to export plastic chairs to neighbouring Burundi. On Tuesday 9 September 2014 Abdul leaves Dar es Salaam at 7.00 AM carrying almost 2,000 chairs bound for a retailer in Bujumbura, the capital city of Burundi. The following day at 1.00 PM after 30 hours on the road, Abdul arrives at the border post of Kobero, just inside Burundi territory. Abdul Mohamed has been exporting chairs to Burundi for the last three years, a five-day return journey covering nearly 2,400 Km. He has made good time on this journey and he expects to spend up to four hours at the border post before getting back behind the wheel and on the road. But it wasn’t always so. Just four months before, Abdul would have had to make the same journey with two border stops, the first at Kabanga on the Tanzanian side of the border, then at Kobero. The procedure was lengthy. Abdul would, through the services of a clearing agent, declare his goods to the customs officers who would make a physical inspection of his cargo. That could take up to 12 hours as he waited in line with the many other truck drivers who use the central corridor to carry goods inland from the port of Dar es Salaam. Then, having completed that procedure, Abdul would go through immigration procedures before finally being allowed into the...

Helping women with small businesses to compete in the East African market

One of TradeMark Africa’s (TMA) objectives, towards its ultimate goal of reducing poverty by increasing trade in East Africa, is improved cross border processes for small traders, especially women. Empowering women in the East African Community as part of the regional integration process is essential to TMA’s goal of improving business competitiveness. Its long-term aim is, through policy change, to eliminate barriers that affect women in trade. In Uganda, TMA is contributing to this by advocating for policy change that will assist women cross border traders and by building capacity, specifically through women’s organisations. “Women need help because of their historic marginalisation”, said iCON Programme Director, Ben Matsiko Kahunga. “They need both confidence and means. If a woman is processing and packaging juice what does she need to cross borders? How does she access quality certification? How can she get advice about packaging, branding and standards?” That is a question that had never occurred to Esther Kabengano, a 37 year old mother of two, living in the Ugandan capital Kampala, where she runs a small business processing and selling fruit juice. She was just too busy trying to survive. By any standards, Kabengano’s business is small, operating from her home where she makes 10 litres of juice at a time (10 litres being the size of the container she uses to hold it) and which she sells on the streets of Kampala by the cupful. Her profit is Ush 4,000 per day - about US$1.5. The profits are not enough...

Setting the East African Standards for Increased Trade and Prosperity

The five Partner States of the East African Community (EAC) are currently involved in activities related to the conformity of products traded within the region. The process which includes the preparation, approval and adoption of the standards related to those products is undertaken by the different national standards bodies in each one of the partner states. A common definition of a standard is a document approved by a recognized body that provides for common and repeated use rules, guidelines or characteristics for products or related processes and production methods, for which compliance may or may not be mandatory. Standards play an important role in regional integration. “Standards are vital to integration,” says José Maciel, Director of Non-Tariff Barriers (NTBs) and Standards at TradeMark Africa (TMA). “In addition to safeguarding the health and safety of the consumers and the environment, standards can cut the cost and time of doing business by huge amounts. In that sense, they are central to the future wealth of the EAC.” All across the five-nation regional economic bloc, TMA is helping national partners harmonize the standards of the most commonly traded goods in the region so that they can cross borders unimpeded by questions about their authenticity or reliability or origin. These include some of the most-traded goods in the EAC such as tea, coffee, iron, petroleum and edible fats and oils. TMA is assisting the EAC national bureaus of standards, the private sector and the EAC Secretariat on two levels: national and regional. At the...