Uganda - 3 Logistics Services

Uganda - 3 Logistics Services

Services and Supply

The Uganda Bureau of Statistics (UBOS) Act, 1998 provides for the development and maintenance of a National Statistical System (NSS) to ensure collection, analysis, and publication of integrated, relevant, reliable, and timely statistical information: Home - Uganda Bureau of Statistics (ubos.org)

There are several Logistic Associations in Uganda whose members include the large freight forwarders, shipping lines and customs brokers; including Uganda Freight Forwarders’ Association (UFFA) http://www.ugandafreightforwarders.com  and Uganda Clearing Industry and Forwarding Association (UCIFA) https://www.ucifa.com/

The Private Sector Foundation of Uganda (PSFU) is the umbrella body for (over 120 business associations) private sector business associations in Uganda: https://www.psfuganda.org/

Uganda - 3.1 Fuel

Fuel

Uganda Imports 100% of its petroleum requirements with the main Petroleum products imported include Petrol (PMS), Diesel (AGO), Kerosene (BIK) and Jet fuel: Ministry of Energy and Mineral Development – MEMD UGANDA (energyandminerals.go.ug)

  • By 2017 there were 43 Oil Marketing Companies (OMCs) having active licenses to import petroleum products into the country.
  • According to the Ministry of Energy, Uganda has 208 licensed petroleum product distributors, which control 71% of storage reserves.
  • However, the market is split with Total and Vivo Energy dominantly sharing almost half of the market; where Total Energies LTD has 127 and Vivo Energy has 132 fuel stations.
  • Up to 92% of fuel imported into Uganda is on the Northern Corridor, mainly carried by pipeline to Eldoret and from there loaded by tanker trucks to Kampala.
    • The other 8 percent is transported via the Central Corridor by truck ex Dar es Salaam Port to Kampala by tanker trucks.
  • The Jinja Storage Terminal (JST) is managed by Uganda National Oil Company (UNOC) on behalf of Uganda Government in order to maintain a strategic fuel reserve.
    • The facility has a current capacity of 30 million litres of fuel: UNOC: Uganda National Oil Company

 

Fuel Pricing:

Due to the landlocked nature of Uganda, almost all of Uganda’s oils and oil products are transported through Kenya via the port of Mombasa.

  • The oil industry in Kenya is represented by both the Government and private companies.
  • Therefore, any events in the Kenyan oil industry or disturbance in the Kenyan political arena have an impact on the Uganda oil industry.
  • With the deregulation of trade in the country, big fuel companies like Shell and Total import big volumes and determine fuel prices at the pump just like the other fuel dealers.
  • Prices normally shoot up when there is scarcity or instability in Kenya and slightly reduce when supply stabilizes.
 

Table 3.1.1. Uganda: Fuel prices.

Fuel Prices as of: 16 Dec 2022 (local currency and US$)

Petrol (per litre)

6,193 /=/ or $1.67

Diesel (per litre)

5,855 /=/ or $1.58

Kerosene (per litre)

4,211 /=/ or $1.14

JET A1 (per litre)

3 064 /=/ or $0.83

Source: Uganda energy prices | GlobalPetrolPrices.com

Table 3.1.2. Uganda: Seasonal variations.

Seasonal Variations

Are there national priorities in the availability of fuel, i.e., are there restrictions or priorities for the provision of fuel such as to the military? (Yes/No)

No

Is there a rationing system? (Yes/No)

Yes

Is fuel to lower income/vulnerable groups subsidized? (Yes/No)

No

Can the local industry expand fuel supply to meet humanitarian needs? (Yes/No)

Yes

Is it possible for a humanitarian organization to contract directly to a reputable supplier/distributor to provide its fuel needs? (Yes/No)

Yes

 

Fuel Transportation:

Fuel in Uganda is transported using special fuel tankers that protect fuel from rainwater or any form of external contamination.

  • The tankers are partitioned, and dealers/recipients determine the fuel quantity in the compartments using dipsticks.
  • The challenges with the fuel tankers are several; they consume fuel, increase traffic and whenever they get involved in accidents.
  • The current transport capacity is sufficient to deliver fuel to the dealers’ stations/outlets which have limited storage capacities.

29Uganda Bureau of Statistics, 2020., Statistical Abstract

 

Standards, Quality and Testing:

Due to the high tax levied on fuel products in the country, some unscrupulous dealers adulterate their products to earn higher profits.

  • These acts have affected vehicle engines and the government and individual dealers such as Shell Uganda (now Vivo Oils) have opened their own laboratories to test fuel delivered to their depots and have three other mobile testing facilities, fitted their trucks with GPS to monitor fuel trucks until their final destinations.
  • The Fuel Marking and Quality Monitoring Program were introduced in Uganda in 1999 by the Ministry of Energy and Mineral Development (MEMD) in collaboration with the Fuel Marketing Companies and Uganda National Bureau of Standards (UNBS).
  • Under the Petro mark Technology supplied by Global Fluids International (GFI) two types of markers are used: Petro mark T1 for marking PMS (petrol) and AGO (diesel) and Petro mark T2 for marking BIK (kerosene).
  • Both markers are used to control and monitor product adulteration, smuggling and dumping of transit fuel.
  • It is a legal requirement that all importers of petroleum products are licensed by MEMD and adhere to the provisions of the Fuel Marking Program.
  • Marking is currently done at customs entry points of Malaba, Busia and Mutukula.
  • Arrangements can also be made to mark the fuel in Kampala with clearance from Uganda Revenue Authority.

 

Table 3.1.3. Uganda: Industry control measures.

Industry Control Measures

Tanks with adequate protection against water mixing with the fuel (Yes/No)

Yes

Filters in the system, monitors where fuel is loaded into aircraft (Yes/No)

Yes

Adequate epoxy coating of tanks on trucks (Yes/No)

Yes

Presence of suitable fire-fighting equipment (Yes/No)

No

Standards Authority

Is there a national or regional standards authority? (Yes / No)

Yes

If yes, are the standards adequate/properly enforced? (Yes / No)

No

Testing Laboratories

Are there national testing laboratories? (Yes / No)

Yes

Fuel Testing Laboratory

Name

Uganda National Bureau of Standards

 

 

 

Address

Plot M217 Nakawa Industrial Area

P.O. Box 6329, Kampala, Uganda.

Telephone and Fax

Tel: +256-041-505995

Fax: +256-041 286123

E-mail: info@unbs.go.ug

Contact

Mr.Aziz Mukota

Head Chemistry Laboratory

Standards used

The South African National Accreditation System

Uganda - 3.2 Transporters

Transporters

The transport sector in Uganda is a fast-growing industry for both Primary and Overland transport, given the stability in the country, increased investment opportunities and improved infrastructure.

  • There are over a hundred local transport operators who transport goods within Uganda and across borders to the Democratic Republic of Congo, South Sudan, Rwanda, Tanzania, and Kenya.
  • Trucks available in Uganda currently are sufficient to meet the local demands including for humanitarian organizations in case of any influx.
  • The national market includes transportation of local agricultural produce from the farmers to the market and transportation of merchandise, construction materials and machinery from the town centers to the retailers within the city and upcountry locations.
  • Cross border trade also includes transportation of agricultural products, stationery, construction materials, machinery, and other merchandise to the neighboring countries.
  • Registration of new vehicles is conducted by the Uganda Revenue Authority for private vehicles while the Ministry of Works and Transport (MoWT) registers Government owned vehicles30
  • Trucking associations have still a limited capacity to articulate issues or influence industry or policy making in large, however there is the
    • Regional Lorry Drivers and Transporters Associations (RLDTA) with over 450 individual members (truck owners and crew) and approximately 20 trucking companies.
    • Also the Uganda National Transporters Alliance (UNTA).
  • The Uganda Shippers Council (USC) has worked as an umbrella organization for many shipping organizations that provides its members with a platform for networking, lobbying, advocacy, and capacity building: Uganda Shippers Council – Reduction in cargo transit time and costs for shippers. - TradeMark East Africa

 

Table 3.2.1. Uganda: Transporters.

MANSONS (U) LTD Transport Capacity Summary

Regions Covered

Nationwide                                                                                            

 

Number of Vehicles

Capacity per Vehicle (MT)

Comments / Condition of the Vehicles

Vehicle Type

100 Boxed Body

32 MT

Good

 

 

30Uganda Bureau of Statistics, 2020., Statistical Abstract

Vehicle Type

100 Skeletal Trucks

32 MT

Good

Total Capacity

200

6,400 MT

 

ABAMWE Transporters LTD Capacity Summary

Regions Covered

Nationwide

 

Number of Vehicles

Capacity per Vehicle (MT)

Comments / Condition of the Vehicles

Vehicle Type

65 Boxed / Skeletal

32 MT

Good

Total Capacity

65

2,080 MT

 

APONYE (U) LTD Transport Capacity Summary

Regions Covered

Nationwide

 

Number of Vehicles

Capacity per Vehicle (MT)

Comments / Condition of the Vehicles

Vehicle Type

40 Boxed Body

32 MT

Good

Total Capacity

40

1,280 MT

 

KKT Transporters LTD Capacity Summary

Regions Covered

Nationwide

 

Number of Vehicles

Capacity per Vehicle (MT)

Comments / Condition of the Vehicles

Vehicle Type

50 Boxed Body

32 MT

Good

Total Capacity

50

1,600 MT

 

 

Uganda - 3.3 Manual Labour

Manual Labor

The labor market in Uganda is governed by the Constitution of the Republic of Uganda and does not approve of slavery, forced labor, and emphasizes the right to freedom of association including the freedom to join trade unions, political and civic organizations. It disallows economic exploitation of children.

  • Although Uganda already has legislation in place to establish a minimum wage, the 1957 Minimum Wage Advisory Board Act, which would allow trade unions and other stakeholders to participate in setting the wage, this was never fully implemented.
  • Uganda last set the monthly minimum wages in 1984, at 6,000 Ugandan Shillings (approximately equivalent to 2.07 USD).
  • Currently, due to the high level of unemployment, workers negotiate with their intended employers and agree on payment terms each time there is an activity.
  • The proposal for a minimum wage bill has been drafted for presentation to the parliament of Uganda by the labor union for all labor categories and approval was expected by end of April 2015. However, the bill was once again tabled: Work and Wages, Payment of Bonus, Hours/Wages in Uganda - WageIndicator.org
  • Currently employers negotiate with the laborer’s on what should be paid for a specific task, and this varies from organization to another. Once this is agreed, the interval of the payment is discussed and agreed: Labour Market & Earnings - Uganda Bureau of Statistics (ubos.org)

 

Labour Rate(s) Overview

 

Cost (Local Currency & USD)

Rate as of mm yyyy

Daily General Worker (Unskilled casual labour)

250-650 000 UGX/month

N/A

Daily General Worker (Semi-skilled labour)

650-3,000,000 UGX/month

N/A

Skilled Worker

3,000,000 – 20,000,000 UGX/month

N/A

Source: LATEST LIST: New salary structure for all Ugandan civil servants starting July 2021 - Watchdog Uganda

Uganda - 3.4 Telecommunications

Telecommunications

The Uganda Communications Act, 1997, was passed under the general macro policy of liberalization and privatization, which has been pursued by the Government of Uganda in order to promote investment.

  • The Government of Uganda through Uganda Communications Commission (UCC), which is the regulatory body of the communications sector in Uganda: UCC: Uganda Communications Commission – Communications for all
  • All telecommunication companies are licensed and regulated by the government through the Uganda Communications Commission.
  • At present there are a number of telecommunication service providers in Uganda providing land line, mobile telephone & Internet Data services; (the leading privately owned service providers are MTN Uganda Ltd and Airtel Uganda Ltd. and Uganda Telecom Ltd, owned by the government of Uganda).
  • There is no restriction in the registration of SIM cards as long as one is able to present their National Identity card or passport: Ministry of ICT & National Guidance – Uganda

Table 3.4.1. Uganda: Telephone services.

Telephone Services

Is there an existing landline telephone network? (Yes/No)

Yes

Does it allow international calls? (Yes/No)

Yes

On average, number, and length of downtime periods

Very rear

Mobile phone providers (List)

MTN Uganda, Airtel Uganda, Uganda Telecom, Lyca Mobile

Approximate percentage of national coverage

75%

 

Telecommunication Regulations:

Importation and licensing of communication equipment is regulated by the Uganda Communications Commission.

  • Companies apply detailing the model and make of equipment that they intend to import and the number of frequencies requested.
  • Frequencies are allocated and paid for per frequency and per gadget.
  • So long as one operates within the given guidelines, there is no restriction on the usage of the communication equipment after licensing.

 

Table 3.4.2. Uganda: Regulations.

Regulations

Regulation on usage or import of:

Yes / No

Regulating Authority

Satellite

Yes

Uganda Communications Commission (UCC)

HF Radio

Yes

UCC

UHF/VHF/HF radio: handheld, base and mobile

Yes

UCC

UHF/VHF repeaters

Yes

UCC

GPS

No

 

VSAT

Yes

UCC

Individual Network Operator Licenses Required:

Yes

Frequency Licenses Required:

Yes

 

Existing Humanitarian Telecoms Systems

At present, the humanitarian telecoms include VHF, HF and VSAT communications.  

  • VHF and HF communications are managed by UNDSS.
  • Each humanitarian agency procures its own equipment, gets it installed and during usage, reports to UNDSS on certain channels.
  • The equipment is located at the different offices, and some is installed within the vehicles, in addition to the portable equipment held by staff.

 

Table 3.4.3. Uganda: Existing UN Telecommunication System.

Existing UN Telecommunication System

Organizations

UNDP

WFP

UNICEF

UNDSS

UNHCR

WHO

VHF frequencies

 

153.365MHz,

157.75MHz

162.8MHz

 

 

 

 

HF frequencies

 

5205, 6260,

7734, 9102

 

 

 

 

Repeaters

 

RX 162.8MHz

TX 157.75MHz

 

 

 

 

VSAT

 

Yes, at all office locations and

managed by WFP

 

 

 

 

 

Internet Service Providers (ISPs):

Internet is available in almost all parts of the country.

  • The services are provided through private companies that have been licensed to provide these services.
  • The optic fiber option tends to be more reliable that the wireless links.

 

Table 3.4.4. Uganda: Internet Service Providers.

Internet Service Providers

Are there ISPs Available?

Yes

 

 

 

If yes, are they privately or government owned?

Privately Owned

Dial-up only?

No

Approximate Rates Dial-up (Local Currency and USD)

 

Approximate Rates Broadband (Local Currency and USD)

2Mbps at UGX 806,000/- or USD 212

Max Leasable “Dedicated” Bandwidth

No limit

 

 

 

 

 

 

 

 

 

 

Mobile Network Operators (MNOs):

The mobile network in Uganda covers more than 75% of the country and in most of these areas, and is generally reliable; the main service providers are MTN Uganda ltd and Airtel Uganda Ltd.: GSM Association website.

  • The use of mobile money is widespread and is available wherever there is a mobile network, where the key restriction has been withdrawing of sums above UGX 5,000,000 (equivalent to USD 1316).
  • Companies offering mobile money services have unlimited number of agents everywhere. These basically offer sending and receiving services.
  • There are as well bank agents using agency banking although these are mostly found in urban centers.

 

Table 3.4.4. Uganda: Mobile Network Operators.

Company

Number of Agent Outlets by Area

Network Strength by Area

Contracted for Humanitarian or Government Cash Transfer Programs?

Services Offered (i.e., Merchant Payment, Bulk Disbursement,

Receive & Make Payment)

MTN Uganda LTD

N/A

N/A

N/A

N/A

Airtel Uganda LTD

N/A

N/A

N/A

N/A

Uganda Telecom

N/A

N/A

N/A

N/A

LycaMobile

N/A

N/A

N/A

N/A

Company E

N/A

N/A

N/A

N/A

Uganda - 3.5 Food and Additional Suppliers

Food Suppliers

The Ugandan agricultural market is very competitive and vibrant comprising of both large and small scale agricultural and processing firms (business entities): Uganda (UGA) Exports, Imports, and Trade Partners

| OEC - The Observatory of Economic Complexity

  • Typical food crops consist of plantains, cassava, sweet potatoes, millet, sorghum, maize, beans, groundnuts, and sesame, also livestock and export crops (coffee, cotton, tea, and tobacco).
    • Some high value crops (e.g., cut flowers and certain vegetables and fresh fruits, are also being exported.
  • The agricultural products are regulated by the weather and produce comes from all the regions of the country, except Karamoja.
    • Sometimes, the overall supply does not meet demands pending climatic conditions causing shortages both at the household level and at the market levels.
  • Bulk products are readily available in Uganda from a number of both local and international suppliers.
    • There is high competition in the supply market between the large-scale suppliers who have warehouses, machines, and the capital to finance their activities and the small-scale entities that lack machines and have to acquire loans to run their business.
    • The major Ugandan food processing companies include; Sunrise Commodities & Millers, Buyinzika, Unga Millers, Britainia Allied Industries, Mukwano Industries, Kakira Sugar works and Reco Industries.
    • The government, through UNBS requires all food processors and their products to be ISO certified to meet international standards: Uganda National Bureau Of Standards (unbs.go.ug)
    • Other private bodies who are allowed to inspect and certify products are SGS, Chemiphar, Bureau Veritas, Intertek, among others: SGS in Uganda | When You Need To Be Sure

 

Uganda - 3.5.1 Food Suppliers

Food Exports

Uganda mostly exports agricultural products (80% of total exports) where the most important exports are coffee (22%) followed by tea, cotton, copper, oil and fish. Uganda’s main export partners are Sudan (15%), Kenya (10%), DR Congo, Netherlands, Germany, South Africa, and UAE: Uganda Indicators (tradingeconomics.com)

  • Coffee is the main export commodity in Uganda in terms of value (555.7 billion USD in 2017) and fourth in terms of volume 313 K MT in 2019.31
  • Fish production is the second largest export in terms of value with a total of almost 179 million USD (2017).
  • Maize and beans are respectively 4th and 5th main export commodities in terms of value. Including other grains (sorghum, rice, sesame, and soya beans), they represent 11.5% of total exports in value.
    • Diverse variety of grains are produced across all regions in Uganda.
    • For maize the main production area is Eastern Uganda with about half production with the rest produced in Western, Central and Northern regions.
    • Most of Uganda’s grain production is grown by smallholders (ca. 80%) while commercial farms’ share is about 20% where the maize sub-sector is a source of income for about 3 million agricultural/farm households, more than 1,000 traders and exporters, according to UBOS statistics.
    • According to the Grain Council of Uganda TGCU there are about 200 consolidation centers or “Grain Regional Hubs” (GRH) across the country providing cleaning, grading, drying and other value-added services: The Grain Council of Uganda - Uniting key stakeholders in the grain value chains (tgcu.org)

 

Food Imports

Rice and Wheat are by far the largest imported grain cereal commodities in Uganda in terms of volume and commercial value.

  • UBOS statistics show cereal imports by Uganda stood at USD 288.8 Million during the year 2017.
  • Grain cereals are imported from several countries, for example rice, is majorly procured from Pakistan, whereas Wheat is mainly imported from Russia, Argentina, and Ukraine.
  • Rice from Tanzania enters Uganda duty free under the Common External Tariff (CET) arrangement of the East African Community.
  • Uganda imports 95 per cent of wheat grain requirement costing over $121m and growing annually Wheat flour & milling is increasingly becoming an essential commodity.
  • Most of the Uganda major domestic buyers are located in greater Kampala.

Uganda - 3.6 Additional Services

Additional Services

Accommodation

Uganda has a growing hotel industry with several hotels located in strategic points to choose from for accommodation with online booking available in many cases.

  • Hotels offer options for self-catering and most of the hotels have access to fresh foods from the farm.
  • The real estate industry is also attractive with several upscale apartments dotted around town with good security arrangements.

Electricity:

image-20240315110733-1

Uganda Electricity Transmission Company Limited (UETCL) was incorporated in March 2001 to provide un-bundling the Uganda Electricity Board (UEB) and establishment of the Electricity Regulatory Authority (ERA)

The Electricity Regulatory Authority (est. 2000), to regulate the Generation, Transmission, Distribution, Sale, Export and Import of Electrical Energy in Uganda. ERA is also mandated to establish a tariff structure, approve rates of charges: https://www.era.go.ug/#

 

Building and construction:

Uganda National Association of Building and Civil Engineering (UNABCEC) is a non-profit, member- driven, national trade association representing contractors, and other companies and organizations engaged in construction in Uganda. The association is dedicated to fostering growth and sustainability: UNABCEC

Postal Services:

Posta Uganda is the most extensive provider of postal services in Uganda, having a network of postal delivery outlets down to sub-county level. Mail is delivered to over 70,000 post boxes and through 300 post offices all over the country, including letters and parcels, express courier service, local and international money transfers, internet services etc.: Posta Uganda – We Deliver Trust (ugapost.co.ug)

Financial Services:

The financial sector covers many different types of transactions in areas of real estate, consumer finance, banking, and insurance. It also covers a broad spectrum of investment funding, including securities. The four most common types of financial institutions are commercial banks, brokerage firms, insurance companies and investment banks.

For more information, please see following links:

  • The Uganda Institute of Banking and Financials Services
  • (uibfs.or.ug) Bank of Uganda| Home (bou.or.ug)
  • Home - Uganda Investment
  • Authority Uganda Insurers Association (UIA)

 

 

 

Uganda - 3.7 Waste Management and Recycling Infrastructure Assessment 

Waste Management and Recycling Infrastructure Assessment

In Uganda, the rapid population growth in the urban areas has greatly outpaced the ability of the urban authorities to provide adequate housing, roads, water supplies, sewers, and collection of solid waste.

  • Although the environmental problems associated with garbage do not disappear with collection, uncollected garbage exacerbates many of the environmental hazards associated with urban centers; such hazards include fire, pests and disease vectors which create human health problems.
  • Uncontrolled disposal by burning and dumping adds to atmospheric and hydrologic pollution loads, clogs waterways and increases the danger of flooding, which has been experienced in some parts of the country.
  • Solid waste management in Kampala city is done by the Kampala Capital City Authority (KCCA) assisted by some private garbage collectors and in other towns; it’s the responsibility of the town council: Waste Management - KAMPALA CAPITAL CITY AUTHORITY | For a better City (kcca.go.ug)

Generally, few materials are recycled for use.

  • Plans are underway by the government to establish a waste recycling plant that will produce fertilizers, generate power and a host of other materials, including job creation for those involved.
  • Current challenges encountered by KCCA are issues of open dumping, lack of adequate transport receptacles and vehicles, lack of spare parts, corrosion of the waste containers.

Non-Hazardous Waste Disposal:

Solid waste generated in the city is largely composed of vegetable matter from discarded foods.

  • Household waste consisting of wet organic materials and only about 10% of the households in the city are served by KCCA, assisted by other private garbage collection firms, while the remaining waste is disposed of by the generating households.
  • Waste from markets is mainly raw vegetable matter, food refuse, and some scrap metal and other inorganic materials.
  • Street waste is generated from street sweeping and consist of sand, litter, and drain cleanings, animal faeces and actual dead animals.
  • Construction and demolition wastes include lumber, pipes, bricks, masonry, and other construction materials from cleared building sites.
  • Abandoned vehicles, as well as special waste generated from hospitals, slaughterhouses and cesspool waste are problems of special importance.

Hazardous Waste Disposal:

Hazardous waste is described as waste that causes un-acceptable risk to public health and the environment: National Environment Management Authority (nema.go.ug).

  • The quantity of hazardous waste reported in here is that collected by the various NEMA licensed hazardous waste agents.
  • The Uganda Bureau of Statistics (UBOS) collects information on solid waste collected (tons) from KCCA and other selected Municipalities across the country. ​​​​​​​
  • The E-waste generated depends on the quantities placed on the market and various life spans for the various categories.