Uganda undertook a Diagnostic Trade Integration Study (DTIS) Update which was validated in June 2013 (which updated the original DTIS of 2006).
Description of the projects (objectives and interventions)
Starting in October 2009, Uganda began the implementation of their Tier 1 project, "the Second Trade Capacity Enhancement Project (TRACE II)". Furthermore, the first EIF Tier 2 project was approved by the EIF Board in August 2011 with a focus on supporting District Commercial Officers (DCOs). Uganda is also working on other Tier 2 project proposals prepared by the NIU and in June 2013 validated an Update to the DTIS.
Main progresses to date
Outcome 1. Sufficient institutional and management capacity built in EIF Countries to formulate and implement trade related strategies and implementation plans:
DTIS Update: The update to Uganda's DTIS was validated in June 2013 following preparation by the World Bank.
Trade Strategy: Following the adoption of the first DTIS the Government of Uganda (with the coordination input from the IF originally and later the EIF Tier 1 and direct resources through wider AfT support leveraged through the Donor Facilitator) used the DTIS to prepare a National Trade Policy, and subsequent to this the National Trade Sector Development Plan (NTSDP) which effectively acts as a Medium-Term Programme (MTP). Implementation of the NTSDP has primarily been through the mechanism of the Competitiveness and Investment Climate Strategy (CICS) formulated in 2011 as well as the National Export Strategy (2010-2015) implemented through the Uganda Export Promotion Board. The project has also contributed to the formulation of related legislation including the Consumer Protection Bill; Anti Counterfeits Bill; Competition Policy; Trade Licensing Amendment Bill and the Regulations for the Hire Purchase Act. Separately the National Standards Policy, the Sanitary and Phytosanitary policies have been developed through support from SIDA and Trade Mark East Africa (TMEA).
National Implementation Arrangements: Uganda has an established set of official networks and institutions related to the EIF.
The CICS Steering Committee serves as a high level steering committee to oversee the CICS and related programmes including the EIF.
At the operational level, a Management Committee including representatives from Government, Donors and the Private Sector is delegated authority to oversee the regular operations of the EIF projects (Tier 1 and the DICOSS project).
An Inter-Institutional Trade Committee (IITC) was approved by Cabinet in 2007 to assist in Trade Policy Formulation includes wide-reaching representation and reports to the CICS and the Trade Review Conference on an annual basis.
A technical committee that reports to the EIF Focal Point has been created including representation from the public and private sector with the specific aim to promote trade mainstreaming and implementation of the Action Matrix. In the case of Uganda this committee is known locally as the National Implementation Unit (NIU).
A separate NIU in the form described by the EIF Compendium has been established in Uganda and locally is referred to as the national "EIF Secretariat". This unit has been institutionally continued from the IF project.
Outcome 2. EIF Countries mainstream trade into their national development strategies and plans:
A dedicated chapter on trade was included in the last National Development Plan, and input from the "EIF Secretariat" was received in the manner of consultative retreats and drafting of trade thematic papers for the consideration of the National Planning Authority. This was assisted through the original Trace team and undertaken shortly before the Tier 1 project's operational start.
A majority of districts have incorporated trade into their District Development Plans (demonstrating collaboration between the Tier 1 and Tier 2 implementation).
There have been advances in the mainstreaming into sectoral plans such as Agriculture, Customs, ICT and transport, however, this is an area requiring further emphasis.
Public-Private Dialogue takes place in various fora including through the CICS and related steering committees such as the IITC as well as at the highest level through the Presidential Investors Round Table (PIRT). The Tier 1 project has been directly involved in private sector events such as Trade and Agriculture shows.
Outcome 3. Coordinated delivery of trade-related resources (funding, technical assistance, etc…) by donors and implementing agencies to implement country priorities following adoption of the DTIS Action Matrix
Uganda has an active Private Sector Donor Group (PSDG) that meets on a monthly basis.
The PSDG has recently undertaken a Donor Mapping Exercise
Government and Donor consultation on trade related matters take place in the CICS, the EIF Management Committee Meetings and IITC.
Uganda's DICOSS Tier 2 project provides a useful example of join donor initiatives, where the EIF project compliments EU and separately financed Government initiatives in different Districts. Additionally, the CICS serves as a common committee to which related project management committees report.
Outcome 4. EIF Countries secure resources in support of initiatives that address DTIS Action Matrix Priorities
Following the 2006 DTIS Uganda prepared the NTSDP which essentially works as a medium-term plan. This also includes implementation through the National Export Strategy. The Government of Uganda is also guided by the CICS (now CICS II).
One EIF Trust Fund Tier 2 project is currently being implemented (DICOSS)
The MTIC periodically reviews the implementation of the measures from the 2006 DTIS. The DTIS Update estimated that of the 150 relevant policy recommendations 94 had been taken forward and received high level attention. Overall the Update estimated that approximately 50% of the 2006 DTIS was implemented, with higher rates of implementation in the productive sectors, infrastructure and some trade-related institutions.
A report on "Uganda's Experience with Aid for Trade: Approach, Processes, Implementation and Impact" has been produced which provides a useful overview of ongoing AfT interventions.
Tier 1 extension: The Tier 1 project is currently under the process of undergoing a full‑cost extension for a further two years of operations from mid-2013.
Tier 2 pipeline: Uganda currently has a number of Tier 2 proposals in various stages of development, including a silk sector project; an integrated project in the Karamoja region through sustainable production and trade in aloe, gum arabic and the honey value chain; as well as a project on tourism (with the Hotel and Tourism Training Institute).
Sector dialogue: Planning has begun for a possible Tourism-Trade-Industry Sector Working Group.
Planning: Drafting of the next National Development Plan will start, and the National Trade Sector Development Plan 2008/09-2012/13 (NTSDP) will expire.
|Outcome 1: Sufficient Institutional and management capacity built in EIF countries to formulate and implement Trade related strategies & implementation plans|
|O1.1 Tier 1 ' Support to NIAs' project completed or under implementation||Yes||Yes|
|O1.2 EIF Country with complete, up-to-date validated DTIS Action Matrices||Yes||Yes|
|O1.3 Level of capacity of NIU to perform fiduciary programme management for Tier 1 project||2||2|
|O1.4 Country with up-to date trade strategies||Yes||Yes|
|O1.5 Country with quality trade strategy||1||1|
|O1.6 Country with quality trade strategy implemented||2||2|
|Outcome 2: EIF countries mainstream trade into their national development strategies and plans|
|O2.1 Trade in PRSP and/or National development strategies||N/A||2|
|O2.2 Existence of productive sector strategies integrating the trade dimension||Yes||Yes|
|O2.3 Functioning public/private consultation mechanism||1||1|
|Outcome 3: Coordinated delivery of trade related resources (funding, TA etc.) by donors & implementing agencies to implement country priorities following adoption of DTIS Action Matrix|
|O3.1 Availability of an annual rolling implementation overview integrating all trade-related government & donor-supported activities (including gender & environment)||Yes||Yes|
|O3.2 Frequency of government and donor consultations on trade-related matters||3||2|
|O3.3 UN CEB Cluster activities based on DTIS Matrix priorities in EIF Countries||No||No|
|O3.4 Country with joint donor initiatives in the trade area (such as need assessment; strategy formulations; programming; pooled funding; M&E; etc.)||Yes||Yes|
|Outcome 4: EIF Countries secure resources in support of initiatives that address DTIS Action Matrix priorities|
|O4.1 Country with implementation plan integrating DTIS/Action Matrix priorities and indicating financing needs to be met through ODA||1||1|
|O4.2 Country where a Government budget exists for implementation of its trade strategy||Yes||Yes|
|O4.4 Number of projects funded by donors related to the DTIS Action Matrix||0||9|
|O4.4.1 Amount of projects funded by donors related to the DTIS Action Matrix (Million USD)||0||1500|
Trade has featured more prominently in development plans, with the DTIS providing inputs in shaping policies for the National Trade Policy (August 2007), the National Trade Sector Development Plan (2008/9-2012/13) and the National Development Plan (2010/11-2014/15). Trade education has also been included in the curriculum of institutions to ensure human capacity development, with plans to upgrade skills in the tourism sector and link up industry to the labour force.
The DTIS helped to kick-start the dialogue and support for pro-trade policy changes, institutional progress and coordination of development assistance to agreed priority areas, and as a result, since its validation in 2006, exports have grown at nearly 13% per year and the trade ratio as a share of GDP has risen from 39% to 58%, powering growth in the economy.
25 districts nationwide are being networked as part of the EIF Tier 2 project on providing decentralized business services to rural clients, including farmers, producers, businessmen, cooperatives, local tourism agencies and SMEs. The project has direct linkages to plans in the pipeline on supporting the hotel, tourism and hospitality sector by empowering the District Commercial Officers to facilitate and coordinate tourism benefits for local communities.
The Government has shown a strong commitment to sustain this agenda by supporting an additional 15 districts and is set to increase its annual support to new districts in order to provide the majority of the population at grassroots level with market information, linking the farmers to producers and the producers to the market.
NIA Support (T1 Phase 1 and 2)
District Commercial Services Support Project (DICOSS)
Trading Stories, the Book, accompanies the film series to show just how trade is about acting local to go global in eight of the poorest countries worldwide.
Trading Stories, the Book, accompanies the film series to show just how trade is about acting local to go global in eight of the poorest countries worldwide. It’s a journey that tracks how, with the support of the Enhanced Integrated Framework (EIF) and Aid for Trade, realities are changing on the ground. Stronger trade roadmaps are being developed, partners are coming together to build the trade agenda and projects to overcome trade barriers are being rolled out. Now, it’s over to you to share the stories, get engaged in the debate and be part of the next chapter that’s still to be written on our global trade connections.
Click here to access the Book
Written by Elena Immambocus and Justine Namara
Photographs © Elena Immambocus and Justine Namara