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More local goods, services to be bought under BUBU

By John Odyek

Added 20th May 2020 08:46 PM

Amelia Kyambadde, the minister for trade, industry and cooperatives said Government has strengthened the BUBU policy.

More local goods, services to be bought under BUBU

Amelia Kyambadde, Minister of Trade, Industry and Cooperatives speaks during the manifesto achievement presentation held on May 19, 2020 at the Office of the Prime Minister offices. (Photo by Alfred Ochwo)

Amelia Kyambadde, the minister for trade, industry and cooperatives said Government has strengthened the BUBU policy.

BUSINESS  ECONOMY

KAMPALA - The Buy Uganda Build Uganda (BUBU) Policy is to be pushed further this year to enable Ugandans supply government, get contracts, retain money in the country and support economic development.

Amelia Kyambadde, the minister for trade, industry and cooperatives said Government has strengthened the BUBU policy by launching a logo, which will be branded on Uganda's goods and services.

"The logo has been registered under the Trade Marks Act of 2010 and gazetted in the Uganda Gazette and will be rolled out in the Financial Year 2020/21, which starts in July," Kyambadde said.

The minister made the disclosure while presenting the ministry's progress report on the implementation of the NRM Manifesto 2016 - 2021. The function took place at the Office of the Prime Minister in Kampala.

She said the reservation and preference scheme guidelines have been converted into regulations to provide force of law to the BUBU Policy under The Public Procurement and Disposal of Public Assets Act (PPDA Act).

A Preference scheme is an arrangement where advantage is given to local bidders at the financial evaluation for bids of works, goods and services in a public procurement process.

With COVID 19 epidemic, she said responsiveness of local Industries have been enabled by the BUBU Policy to produce products such as sanitizers, salt, face masks and protective wear. 

Under Reservation and Preference Scheme, she cited institutions that have supported local firms. "The Uganda National Roads Authority (UNRA) has awarded contracts worth sh3.7 trillion as of March 2019. Out of these, contracts worth sh450b (12%) were reserved to local providers," she revealed.

An additional sh423b (11%) was awarded to local providers through mandatory sub-contracting by foreign providers. Thus, the total value of contracts awarded to Local Providers was 23% representing sh890b of the UNRA budget of sh3.7trillion.

Another institution, the National Medical Stores (NMS) procured medical supplies worth sh156b from local manufacturers by the end of March 2019.

The Uganda Electricity Distribution Company Ltd by March 2019 awarded contracts to national companies worth sh1.1b while Uganda Electricity Transmission Company awarded contracts to national companies worth sh1.1b.

The minister said supermarket shelf share space for local goods has grown from 20% to 40% for dry goods, and fresh goods from 30% to 70%. She said over 500 local suppliers have been trained to take advantage of the existing opportunities in procurement and supply.

Over 500 service suppliers and producers of construction services, consultancy, insurance, legal, education services, accounting and auditing, education services, printing, textile, leather and footwear, furniture, stationery, pharmaceuticals, foods and beverages, cement have been identified under the BUBU Policy.

Commenting on the Electronic Single Window (e-SW) System, she said it has improved the clearance of goods and service. The system was established to address the delays in the clearance of goods. It is operational at major trade facilitating ministries, departments and agencies of government. The system has cut clearance time for imports and exports by over 25%.

On challenges faced by the business community in the region, she explained that the system for reporting Non-Tariff Barriers (NTB) faced by the business community in the region has been established. It enables reporting by mobile phone. The user dials USSD Code *201# and follows instructions to select the appropriate NTB to report, and then submits a complaint.

The minister said that through the implementation of the Rural Industrial Development Programme, 63 enterprises from 47 districts have been supported with value addition equipment and supported to undertake production.

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