Uganda Biotrade Programme - Project Brief

Background
Agricultural exports constitute 45% of total export earning (UBOS 2002) and employs about 80% of the work force in Uganda. The sector has experienced shocks and imbalances resulting from declining international markets, soil fertility loss, increased land pressure, declining yields, etc, factors that had ecological, social and economic implications. In light of these, there was need for strategic interventions that would increase livelihoods of the natural resources dependent Ugandans, while assuring the sustainable use of the resources base. In 2003, the Ministry of Tourism, Trade and Industry identified UNCTAD’s Biotrade initiative as the opportunity to combine sustainable use, biodiversity conservation and poverty alleviation. Uganda’s rich biodiversity, the growing market demand for biodiversity based products, the favorable policy climate for sustainable production, and the demonstrated private sector interest in biotrade enterprises, were among the factors that influenced the national decision to introduce the biotrade initiative to Uganda. Uganda Export Promotion Board was designated as the national focal point for the initiation of the programme, and to coordinate its development

Programme initiation and development
With funding support from UNCTAD, a national pre-assessment study was carried out in 2004 which confirmed the biodiversity potential and the supportive legislative framework for its sustainable use. Over 10 tradable sectors were identified, and so were the potential institutional actors to advance biotrade in Uganda. The Uganda BioTrade Programme was thereafter designed to facilitate and promote trade in biological goods and services for employment creation, increased trade and to contribute to poverty alleviation and the sustainable use of Uganda’s natural resources.

Specific Programme Objectives
(a) To create an enabling environment for ‘biotrade’ in general, and for selected product value chains in particular;
(b) To disseminate information on issues related to trade in product and services derived from biodiversity, facilitating decision making processes of relevant stakeholders and generating awareness;
(c) To provide technical assistance to biodiversity based enterprises and their suppliers;
(d) To promote national and international trade of biodiversity-based products and services;
(e) To integrate sustainability issues in productive processes

The programme responds to the Poverty Eradication Action Plan (PEAP) which is the national development framework, and also to biodiversity frameworks such as the National Biodiversity Strategy and Action Plan, the Wildlife Statute. International frameworks such as the Rio MEAs, the MDGs, and the CITES are also addressed by the programme.

Four priority sectors were selected for the 2006-2010 planning period based on economic, social, ecological and technological considerations. These are natural ingredients for pharmaceutical, cosmetic and food industries, eco-tourism, wildlife trade and carbon trade. Sector assessments were conducted for three of the sectors, and strategies designed with stakeholder participation and also based on methodologies such as the Value Chain Analysis.

A BioTrade Unit was established at Uganda Export Promotion Board in 2005 to continue with the coordination of programme activities, including resource mobilization to support implementation of the sector strategies. A National Coordinator manages the Unit, supported by an Ecological Expert and a Programme Assistant. UNCTAD has provided salary support to the Unit since 2005, which ended in April 2007. UEPB has provided the day to day administrative support for programme management.

3.0 Programme accomplishments

3.1 Streamlining biotrade into national planning processes
Collaborative approach to implementation of sector strategies: Possible synergies and areas for cooperation for the partner agencies are indicated in the sector strategies. Accomplishments registered include: the sensitization workshop for district environment officers on the wildlife trade legislative framework (April 2006); the CITES Mission to Uganda (October 2006); and the wildlife stakeholder study tour to Tanzania (April 2007).

Incorporation into the National Export Strategy: The natural ingredients sector is identified among the key export sectors with potential to increase export earnings, advance economic development and improve livelihoods. The National Export Strategy is being finalized and shall be launched in June 2007.

Harmonization of sustainable development methodologies: The programme approach to sustainable development is tailored to UNCTAD’s methodological approaches such as the eco-system approach, species management plans, the value chain analysis, etc. A harmonization workshop was organized for the public resources management authorities and private sector in August 2005. These deliberated on the approaches and agreed on the common principles to be used in integrating sustainability principles in biotrade activities.

3.2 Private sector support
The programme approach is to work with companies and their supplier communities to assure sustainable production, improve product quality and promote and market these to national, regional and international markets.

Production support and strengthening supply chains: Key among the interventions has been the documentation of supplier groups and assessment of production practices for companies producing natural ingredients. A training manual has been designed based the GACP and GAP production best practices.

Export marketing support: Through the UNCTAD/CBI partnership, 3 companies were supported to participate in trade fairs in Geneva, Spain, France and Germany. The companies are also active in the B2B programme that aims to link buyers and sellers of natural ingredients.

Sector organization: The sectors of wildlife and natural ingredients have been supported towards the formation of associations to increase sector visibility and lobby for Government support. The Uganda Natural Ingredients and Products Association (UNIPA) is such an outcome.

Naturals Exposition: The first ever natural products exposition with the theme ‘bioiversity trade opportunities in the 21st century” was organized with support from UNCTAD and contributions from the participating companies. The exposition aimed to increase awareness of the biotrade concept and also showcase the biotrade enterprises and supportive public sector services such as research and laboratory services. Over 300 visitors were registered over the two day period and the organizers and participating companies resolved to organize a similar event every year. The 2007 Expo is planned for September.

Information on trade in natural products: The programme responds to information requests from the public and enterprises on markets, appropriate processing technologies, ecological information, trade documentation requirements, quality assurance etc. We provide this through internally generated information briefs, and dissemination of UNCTAD Technical Briefs and CBI publications. Briefing meetings are also held on key areas of concern such as quality requirements and relevant trade regulations. An average of 12 information requests is registered by the BioTrade Unit every month. All buyer inquires are also processed by the Unit who identify potential suppliers and create the buyer/seller linkages.

Identification of opportunities for company support: Development support such as DANIDA’s Enterprise Innovation Fund of Danida, the PUM programme of the Netherlands, and the Enterprise Capacity development initiative of UNDP are among the initiatives introduced to the companies and suppliers.

Resource mobilization
The BioTrade Project: The project is designed based on the alliance created at the UNCTAD XI event in Sao Paulo in 2005, between UNCTAD, UNDP, Netherlands Government and Government of Uganda to support the implementation of the BioTrade Programme. The project seeks to harness the potential of Ugandan biodiversity and develop the country’s capacity to commercially generate from this native biodiversity, products and services for the national and international markets, using criteria of environment, social and economic sustainability. The project shall focus on strengthening supply chains of selected community groups and promotion of natural products through selected companies. Implementation is based on cooperation with national and international partners. The key constraint to project commencement has been the delay in commitment by all partners.

Wildlife Trade Policy Review Project: This is a joint project to be implemented in collaboration with the National Environment Management Authority with UNEP/CITES support. The project shall support components of the wildlife trade strategy developed by the BioTrade Programme and aims to create an enabling policy climate for private sector participation in the sustainable utilization of wildlife resources through trade.

Drylands Project: The initiative aims to explore opportunities for harmonization of the UNCTAD and Global Mechanism approaches to sustainable development in dryland areas. Uganda’s dryland areas cover 33% of the total land area, and the programme was already working with some companies specialized in dryland products. A study was commissioned with funding from Global Mechanism, and the recommendations shall guide the cooperation between the two agencies in promoting sustainable use and land management.

Next Immediate Steps
a) Participate at the CITES event in the Hague, Netherlands (June 3-16, 2007) as national delegate, and at the UNCTAD side events, and CITES Secretariat activities. Also mobilize private sector participation at the event.
b) Formalize and begin implementation of the BioTrade Project
c) Continue to implement the programme components and coordinate on-going project initiatives.

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