Government is drumming up the Buy Uganda, Build Uganda policy (BUBU) aimed at popularising the consumption of locally produced goods with the aim of stimulating the growth of indigenous industries.
The Chief guest at the 12th International Private Sector Uganda Trade Expo at Lugogo on Tuesday last week, Trade Minister Amelia Kyambadde asked Bank of Uganda Governor Emmanuel Mutebile to support some government policies such as ‘Buy Uganda Build Uganda’ (BUBU).
Many Industry concerns were present chiefly among them Kampala Cement.
Kampala Cement Company Limited is a state-of-the-art manufacturing plant for cement located at Namataba, Mukono District 35 kms from Kampala on Jinja highway.
The Kampala Cement plant has production capacity of 1.2 million tons per annum capacity making it the 2nd largest cement producer 3 years into operations. The plant currently manufactures under four brand names of Nyati 32.5R PPC, Kifaru 42.5R PPC and Ndovu 42.5R OPC and Supercrete 52.5N OPC which due to high cement grade and quality have taken over the Constriction Industry and Sector by storm and eating into the market share of the two oldest Cement Producers Tororo and HIMA Cement.
According to Kamukama, the Business Development Manager of Kampala Cement “Let us all support BUBU.
The objective of Bubu Policy is to promote the consumption of locally produced goods and services by increasing the consumption of local products through public procurement and encouraging the Private Sector to consume locally originating products thus increasing the participation of the locally established firms in domestic trade”.
On how Kampala Cement is prepared to take on the challenge given the opportunity to supply, Kamukama said: “Our Company has got a capacity of 1.2 million Metric Tons production capacity per annum, we are ready and totally open for business”
Trade Minister Kyambadde said. “BUBU is premised on the PPDA clause which –it came from a PPDA Act which talks about preference of 23 per cent which is built into a policy and then into a local content bill.”
Kampala Cements Oscar Kamukama when asked why Uganda needs BUBU said “BUBU is a landmark policy which if successfully implemented will change the fortunes of local producers of domestic products;BUBU will enhance the competitiveness of local products; BUBU will boost the growth of local Industry which form the biggest percentage of the Private Sector (90%) and BUBU will contribute enormously to employment and solve the unemployment problem in Uganda”.
Kamukama further reiterated that the implementation of the BUBU Policy is crucial for the country to attain the middle income status.
Kyambadde responding to the Governor’s speech read for him by deputy director research David Sajjabi, in which the BOU Governor criticized the BUBU policy saying it will jeopardize Uganda’s export trade with her neighboring states in the East African community (EAC).
Sajjabi said: “The proposal for BUBU legislation would, if implemented, offer domestic producers preferential treatment on the domestic market over our EAC partners, for example, through preferential public procurements policies.”
Kyambadde said BUBU is not conflicting with regional exports but supports through the competition generated locally.
“What you should know is that all other partner states have restrictive public procurement policies that restrict local content globally. Even if you’re the best you will not wake up and compete,” she explained.
She added that BUBU will not retaliate because there is already an agenda to promote government procurement locally.
According to Mutebile, BUBU offers trade protection through administrative measures rather than tariffs.
“It is therefore inconsistent with the EAC customs protocol which bids any EAC partner state from undertaking any administration measures which discriminates in favour of its own producers at the expense of those of its partner states,” he added.
He said a level playing field for producers in all partner states is a fundamental principle of the Customs Union and the common market. BUBU is not consistent with this proposal.
BUBU Policy in its first three first three years of implementation will focus on Construction of roads, railways and dams, Textiles, Leather and footwear, Furniture, Stationary, Pharmaceuticals, Foods and beverages, Electronics as well as Oil and Gas.
