Background

The Uganda Integrated Programme (UIP) is a joint venture between the Government of Uganda and United Nations Industrial Development Organisation (UNIDO). Its main objective is to enhance competitiveness and sustainability of industrial development in Uganda with particular emphasis on agro?industries and micro and small?scale enterprises. Phase 1 had five components, namely: Support to Agro-related Industries (Food Industry; Textiles and Leather), Support to Micro and Small-scale Enterprises (MSEs); Investment Promotion and Information Network; Strengthening the Uganda National Bureau of Standards (UNBS) and Uganda Cleaner production Centre (UCPC). The first Phase was successfully completed in December 2002 and highlights of its achievements were contained in the Ministerial Policy statement for FY 2003/04.

Total project cost was US $ 6,259,317 contributed by UNIDO, Denmark, Italy, Japan, Norway and Austria. Government contributed UGX 51 million.

Brief description of Phase 2

Phase 2 of UIP launched in January 2004, will build on results of Phase 1, with a focus on agro-processing and private sector development. The second Phase is articulated around three objectives to which all the activities will contribute. Objective1: Strengthen the capacity of the agro-processing support framework and develop the human resources required. Objective 2: Strengthen the capacity of micro and small-scale entrepreneurs focusing on rural areas and women. Objective 3: Promote business partnership and market networking between local and foreign entrepreneurs.

The ultimate objective of UIP Phase II is to contribute to the reduction of the widespread poverty in the country and the immediate objective is to strengthen the competitiveness of selected agro-industries relying entirely or partly on local raw materials and to establish business partnerships and linkages with a network of commercial post-harvest operations. The strategy of the programme relies on assisting Uganda to gradually strengthen the market orientation of its agro production through an improved functioning of agro-industry value chains.

The focus of UIP Phase 2 on agro processing and private sector development takes into account (i) the lessons learnt and achievements of Phase I ensuring that successful activities are continued as requested by the beneficiaries, (ii) the priorities of the Government and private sector of Uganda, (iii) the priorities and funding potentials of various donors as expressed through continuous consultations with the UIP team and (iv) the priorities and field of competence of UNIDO and potential for high integration of its various services.

Phase 2 Implementation Milestones

1. The capacity of the Department of Industry and Technology in the development of industrial policies and programmes strengthened.


2. The food industrial sector strengthened: SPS and TBT infrastructure (food safety/quality) strengthened and made operational.


3. The national capacity in entrepreneurship development strengthened through schools and vocational training centres.


4. A national programme on investment promotion carried out to support agro-processing MSMEs.


5. The national capacity in rural energy, energy strengthened.


6. Existing post harvest pilot centers strengthened and new ones established in selected districts.


7. TEXDA strengthened and an outreach programme in garment production and product development, surface design and handloom weaving carried out.


8. A system for collection of hides and skins and quality grading established and training programmes of TCFC strengthened with the establishment of small workshops for shoemakers in selected districts


9. Multi skills training and assistance provided to the war veterans and their dependants for increased self-employment in agro processing related activities.


10. MSEs business development skills improved with emphasis on rural women entrepreneurs


11. Pilot district business resource centres established


12. Market networks and business partnerships established.

Funds Mobilization Status and its Implications for Programme Implementation:

In principle interest from donors for UIP Phase II is very high and the expected funding is as follows:

1. US$ 700,000 approximately available from Phase I


2. US$ 792,380 UNIDO Seed money approved by the Executive Board


3. US$ 662,300 funding from Austria for output 2.5 (information)


4. US $ 3 to 4 million expected funding from Norway for activities on food, cleaner production, textile) and master craftsman and women.

However, due to the establishment of a common basket for donor funding, release of donor funds will take more time and will face some procedural difficulties although the programmes have to be submitted to donors through the Ministry of Finance, Planning and Economic Development. Government contribution is also being explored through the normal budget framework.

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