COMESA
Leather and Leather Products Institute
(COMESA/LLPI)

Member of: IULTCS    International Council of Tanners

Leather for Health, Wealth and Luxury

Uganda

Country: Uganda
 
Country Information
Country Size : 236,040 Sq Km
Population: 33.4 millions
Currency: Ugandan shilling (UGX)
Languages: English is the official language. Swahili and Luganda widely spoken.
Capital City: Kampala
GDP(US$): 17.0 billions
Economy-Overview: Uganda has been one of Africa’s recent success stories with its groundbreaking accomplishments against HIV/AIDS and reports of robust economic growth. This economic success has been as a result of the implementation of economic reforms. Despite this, private investment has to be increased in order to ensure continued economic growth. In 2001 the country had foreign direct investments totaling US$144.7 million. New monetary and exchange rate policy operating procedures were implemented in 2002 and have facilitated sterilization operations and resulted in a reduction in volatility in interest and exchange rate movements. The privatization of the Uganda Commercial Bank in 2002 and its consequent merger with an international bank contributed to the continual strengthening of the country’s banking sector. Measurements concerning bank supervision have also been strengthened.
Main Economic Sectors: · Agriculture (food crops, cash crops) GDP growth rate 2004/5 was 2.1%
· Industry (formal manufacturing, SME's, electricity water, construction) GDP growth  was 9.1%
· Services (whole sale and retail,  hotels & restaurants, transport & communications, Community services GDP growth was 7.2%
Main Exports: coffee, fish and fish products, tea, cotton, flowers, horticultural products; gold
Main Imports: capital equipment, vehicles, petroleum, medical supplies; cereals
Main Industries: Sugar processing, Edible oil Cement, roofing products, FishProcessing, Monetary construction
Natural Resources  
International Organization Membership: East African Community (EAC), Common Market for Eastern and Southern Africa (COMESA), African Union (AU), Commonwealth, United Nations (UN) –, Intergovernmental Authority on Development (IGAD), WTO, WHO,
Infrastructure: Airports: Entebbe. Roads: Northern by-pass, Kampala- Nairobi-Mombasa, Nairobi Dar-Es-salaam. Transport networks: Rail to Kisumu, Rail to Bukoba and Mwanza via Lake Victoria by ship then to Mombasa or Dar. Communications: Mobile telephones of MTN, Celtel, Mango and land line of UTL and MTN. However, Uganda is land locked and benefits from sea ports of Kenya and Tanzania. Towns on Lake Victoria are linked to the sea by road and or rail networks.
Other:  
Livestock Information
Cattle Population : 7.6 million
Sheep Population: 1.9 million
Goat Population: 9.2 million
Camel Population: 0.1 million
Other Populations: 1.7 million pigs
Cattle Off take Rates: 10.15%
Sheep Off rake Rates: 22.2%
Goat Off take Rates: 33.45%
Camel Off take Rates: 1.75%
Livestock Policy: The Agriculture Sector provides for up to 42% of the National Gross Domestic Product (NGDP) and up to 80% of the labour opportunities and the related income generation to Uganda’s more than 25 million people.  The animal industry accounts for about 17% of the Agricultural Gross Domestic Product (AGDP) and 9% of the National Gross Domestic Product.  Up to one third of the total national households are involved in livestock industry related activities.

Uganda’s climate favours animal farming since natural, improved pastures and supplement feeding is available for all ranges of animals. The meaning of animals is defined by OIE International animal health code as: mammals, birds and bees among others. As a developing country Uganda has had various technical and non technical constraints in the animal industry, however, these are being addressed through better policies, regulatory framework and institutional strategies that has started yielding quantitative, qualitative, safe and wholesome animals and their products.

The single most difficult issue in the developing countries where the majority of animals are not confined is the easy with which trans-boundary animal diseases may be acquired and propagated. This is largely due to the predominant pastoral, communal and back yard farming systems that tend to farm different kraals / herds/ flocks at the same time on the same open ranges. Many countries with such systems have previously had difficulties to introduce effective disease and vector control strategies and also conduct effective animal movement control.

By policy and regulations, Uganda is moving away from such systems to commercial and profitable farming to which animal confinement / movement control is an obligation (Technical guidelines on animal movement control have been made for immediate implementation). These guidelines are being followed by the sanitary standards operating procedures (SSOP) that are HACCP or risk based up to farm level.
Uganda is vigorously pursuing policies, the regulatory framework and its enforcement so as to conform to SPS measures on animal health and food safety since we are members of the WTO, the OIE and the Codex Alimentarius. The East African Community has approved its SPS Code harmonizing the standards and procedures for certifying the health and safety of animals and animal products thus facilitating their movements / trade into, out of and within the Community.

The National Bill on Food Safety and its multi-sector stakeholders related to SPS/food safety for implementation will also go along way to ensure meat and other animal products quality, safety and wholesomeness. The Bill will use the food chain based risk analysis, risk management principles and procedures right from policy, production, harvesting, handling, storage, processing, laboratory analysis, inspection and certification, distribution and finally to the consumer.

Uganda’s veterinary services have been restructured and emphasize animal epidemic disease control, animal: health / production / marketing regulatory and standards enforcement at the centre with the backup extension / advisory services at the local governments. The private sector are the investors and implements. Communication with the lowest veterinary units by fixed phone, fax, mobile phone and e-mail has rapidly improved. Any disease outbreaks are reported immediately for control purposes. A national surveillance system that conducts disease search and intelligence gathering for action is in place in all the districts. An identification / traceability system for animals and animal products is under plan for implementation up to the lowest levels. Village animal and animal products export promotion centres / herds are to be introduced too.

Farming and agro-processing is a private issue but government has and will continue to give a technical conducive environment in deficient areas. It is doing so to provide technical infrastructure and services for the promotion of production for export in meat, milk, hides and skins and honey. Latter, the private sector is to take over after a level of development has been achieved.

Policy:

The conducive macro-economic policies on economic that are available and in use with their strategic plans of action are as follows:

- Economic liberalization, divestiture and privatisation
- The new Constitution
- The decentralisation / democratisation of society
- The universal primary education, public service restructuring, the poverty eradication action plan (PEAP)
- The plan for modernization of agriculture (PMA)
- The national delivery of veterinary services policy
- The national veterinary drug policy
- The national apiculture policy
- The national hides, skins and leather policy
- The animal breeding policy
- The food and nutrition policy
- The animal feeds policy
- The national environmental protection statute
- The Uganda national bureau of standards policy
- The national water policy
- The national health policy

Regulatory frameworks:

The conducive legal / regulatory framework available and in use as applicable are as follows:

- The new Constitution
- The MAAIF restructuring report of year 1998 and 2000
- The Animal Diseases Act 1964, including 1964 Rules, 1968 rules, 1968 importation of poultry and poultry products, 1997 rules making BSE, IBD and Fowl Pox animal disease, 2003 selective ban on importation of cattle, beef, semen, ova, embryos, bone, bone meal and other cattle protein preparations in relationship to BSE, 2005 Statutory Instruments making bees animals and bee diseases as animal diseases while also setting rules for honey and other bee products quality and safety
- The Rabies Act 1964
- The Cattle Trading Act 1964
- The Hides and Skins Act 1964
- The Veterinary Surgeons Act 1970
- The Animal (Straying) Act 1964
- The Animal (Prevention of Cruelty) Act 1957
- The Cattle Grazing Act 1964
- The Public Health Act 1964 (Meat and Milk Rules)
- The Code of Meat Inspection Uganda 1973
- The Food and Drug Act 1964
- The National Drug Authority Policy and Statute 1994
- The Animal Breeding Act 2000
- The Uganda National Bureau of Standards 1993 and 1998
- The National Water Statute
- The National Meat Body Regulation in the making
- The Food Safety Bill
- The WTO Bill in the making
- The National Environmental Protection Statute
- The East African Community Sanitary Phyto-sanitary Bill in the making
- The WTO SPS Agreement and measures
- The OIE international Animal Health Codes
- The Codex Alimentarius on food safety.

Most veterinary regulatory frame works is old as compare to the new policies. The regulatory framework is thus being reviewed or entirely reformulated to meet the new economic policies and harmonise with WTO. It will also be harmonized with the regional and international regulatory frameworks on similar issues. We expect to conform to the EAC, WTO / SPS, OIE and Codex Alimentarius standards and procedure hence the entry into the global market.
Slaughter Facilities: Slaughter houses:  40
Slaughter slabs: 800
Hides and Skins
Quantity Hides: 0.7 million pieces
Quantity Sheep: 0.4 million pieces
Quantity Goat: 2.4 million pieces
Annual Collection Level Hides: 90%
Annual Collection Level Sheep: 70-80%
Annual Collection Level Goat: 70-80%
Flaying methods: Hand-flaying
Preservation Methods:  
Grading Systems, Available Grades and Percentage of each: Grade I: 20%
Grade II: 30%
Grade III: 50%
Hides and Skins trade channels: NA
Market(%): Local hides/skins - 10%
International - 90%

Major Markets:
China, Hong Kong, Italy, India, United Emirates, Pakistan, Kenya, United Kingdom.
Annual Export Value(US$): NA
Average Market Bovine Price: NA
Average Market Sheep Price: NA
Average Market Goat Price: NA
Tanning
Number of Tanneries: 4: bovine, goat and sheep / 1: fish skins
Installed Tanning Capacity: Hides: 1150pcs or 29,900sqft per day
Skins: 5200pcs per day
Tanneries in Operation: 3 - hides/skins / 1 - fish skins
Utilized Capacity: Below 20%
Output of the Industry: Wet blue: 43,000 hides, 150,000 skins p.a.
Finished: 3,000 hides or 75,000sqft p.a.
Fish skins: 30,000 pc processed p.a.
Number of Employees: 88
Market (%): NA
Estimated Annual Export Value: $2,000,000 (2004/05 est.)
Footwear
Number of Footwear Factories: 8
In Operation: 7
Manufacturing Capacity: Installed: 160,800 pairs p.a.
Utilized:  93,360 pairs p.a.
Number of Employees: NA
Market (%): International 1%
Local: 99%
Estimated Annual Export(US$): NA
Leather Goods
Number of Leather Goods and Garment Factories:  
In Production:  
Manufacturing Capacity:  
Number of Employees:  
Market (%):  
Estimated Annual Export Value(US$):  
SWOT Analysis
Strengths: - Institutions are or have been set up for standards and quality in the industry
- The meat policy and the hides, skins and leather development policies have been developed
- Standards for both have been designed for implementation
- Skinners and flayers are being trained to reduce flay cuts
- Trained footwear and leather goods entrepreneurs and workers available.
Weaknesses: Lack of trade and marketing information; low productivity and poor workmanship; lack of grading law hides and skins and price settings; lack of commercialized farming systems; poor marketing physical.
Opportunities: Uganda’s hides and skins are naturally of high quality, high texture and heavy substance and are suitable for the production of excellent heavy upper and vegetable tanned sole leather.
Uganda has many water bodies which provide a large quantity of fish and, in addition, the government has encouraged fish farming in many areas, consequently a high potential for fish skin.
Crocodile farming in Uganda is gaining popularity for the provision of the valuable crocodile skin and this provides great potential for investment.
Supportive and complementing government programs in the areas of livestock health and production as well as infrastructure development.
Local demand for leather and leather products shows an upward trend. The total footwear requirement of the country is estimated at 20.9 million pairs per year.
Bilateral and multilateral trade arrangements such as East African Customs Union, Common Market for Eastern and Southern Africa (COMESA), African Growth Opportunity Act (AGOA), African Caribbean and Pacific European Union (ACP-EU) and COTONOU agreement, provide potential regional market for finished leather and leather products.
Threats: Institutional weakness; Lack of a policy to guide the sector to address the constraints and amend the Hides and Skins trade Act of 1964 which does not conform to the new policy reforms.
Poor production methods associated with lack of proper equipment, inadequate infrastructure, limited human resource capacity and poor husbandry practices.
Limited processing and value addition due to lack of quality raw materials, inadequate human resource, environmental concerns, high investment costs and lack of incentives to invest in the industry.
Poor marketing as a result of poor quality products, competition from second hand and synthetic goods, poor infrastructure and marketing information, lack of credit facilities, subsidies and protectionist policies in foreign markets.
Low participation of women due to limited awareness, cultural hindrances and limited access to means of production and resources.

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COMESA - Leather and Leather Products Institute (LLPI)
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Tel. +251-11-439 0928/0327/1319
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Addis Ababa, Ethiopia.