The Warehouse Receipt System (WRS) Project

The Coffee Market Development and Trade Promotion in Eastern and Southern Africa and improvement of cotton marketing and Trade system in Eastern and Southern Africa projects, commonly referred to as Warehouse Receipt System Project was designed in mid 1990's under the commodity market liberalization and free trade reforms under

implementation in a number of African countries. The two projects were formulated in 1995/96 upon the realization that one of the main constraints in commodity trade was lack of a system that enables access to trade finance using commodities as collateral.

Funding

The WRS project is funded by the Common Fund for Commodities (CFC), co-sponsored by the International Coffee Organisation (ICO) and the Government of Uganda. The project is implemented through the Ministry of Tourism, Trade and Industry (MTTI) with Uganda Coffee Development Authority (UCDA) and Cotton Development. The Natural Resources Institute (NRI) has been sub-contracted to guide implementation of technical components of the project.

The WRS Project Implementation

The project focus on developing and strengthening the following areas:

1. Promotion of privately run Warehouse System and establishment of a collatealrisable Warehouse Receipt System.

2. Improve and strengthen coffee/cotton quality assurance services.

3. Improve and strengthen coffee/cotton quality assurance services.

 

4. Develop a system of Commodity Trade Finance based on commodity inventory collaterisation and Warehouse Receipt System.

Expected results

Successful implementation of this project will lead to the following benefits.

  • Improved access to commodity trade finance and encouraged investment in rural commodity trade infrastructure.
  • Improved price discovery and reduced market. Imperfections as well as improved access to trade finance support services.
  • Mitigated seasonal price variability.
  • Improved stock quality.
  • Increased revenues and better business transaction for small operators (e.g. farmers and traders) through bulkanisation of commodities.
  • Reduction in transaction costs as well as improved market efficiency and transparency.
  • Establishment of a certified privately run warehouse receipt system within the prescribed legal framework.
  • Improved collaboration of the public and private institutions to efficiently and transparently operate in a liberalized market environment.

 Uganda Export Promotion Board Uganda Warehouse Receipt System Authority Management Training and Advisory Centre Uganda National Bureau of Standards Uganda Industrial Research Institute