| UFPEA NEWSLETTER
– JUNE- AUGUST 2019 VOLUME: 1
|CHAIRMAN’S FOREWORD MESSAGE|
|It is with great pleasure that I introduce to our esteemed readers Uganda Fish Processors & Exporters Association (UFPEA)’s first E-newsletter. Previously we had several printed newsletters that attracted a good readership among the fisheries fraternity and beyond.
Uganda Fish Processors & Exporters Association (UFPEA) was established in 1992 by a few pioneers of the industry who took advantage of the NRM Governments’ strategy of liberalization of the economy from government-controlled enterprises to a private sector-led economy and diversification of the export base to accommodate new products that generate export revenue at the same time create jobs and provide food security for many Ugandans.
Like any infant business, the start had some hurdles as a lot of investments were needed to put up modern fish factories plus infrastructure at landing sites which had to meet minimum export standards. By 2005 most of the needed infrastructure was in place and our main export market which is the EU had an appointment the Directorate of Fisheries Resources as the Competent Authority to oversee the quality and standards of fish products.
By 2006 the fish sector had registered reasonable grown as fish and fish by-products merged as Uganda’s second export earner and the leading non-traditional export product. However, in the preceding years from 2006 to 2017, the industry faced a long period of challenges arising from Illegal fishing using illegal gears which resulted in a decline in NP fish stocks. The result was an emergence of a black market for undersized dried fish (makayabu) to neighboring countries which become a menace and very difficult to control.
Today I am happy to inform our readers that the situation has gradually changed for the better as a result of H.E. the President’s Directive of 2016 to have the army carry out enforcements against illegalities on Uganda’s s major lakes of Lake Victoria, Lake Kyoga, and Lake Albert. I wish to take this opportunity to thank H.E. President Yoweri Kaguta Museveni for his bold decision that has revived the almost lost glory of our industry. By 2017 when this effort started only 5 factories out of the original 21 factories were in operation. Today I am happy to report that 6 more factories have reopened within 2 years bringing the total to 11.
Fish continues to generate consideration share of foreign exchange to Uganda’s economy that reached a landmark of USD 209.9 million against a volume of 38,889 MT in 2018. We hope that with the current good conducive business environment the industry will perform better in the coming years.
I wish to take this opportunity to thank our members who have dedicated their time and resources to keep UFPEA as a vibrant and re-known association in the private sector of Uganda.
During the difficult years, they embraced the Self –Monitoring and Control inspections and selflessly contributed to its success by financing its operations. The UFPEA Self-Monitoring & Control program was certified for sustainable fisheries by UGOCERT (a Ugandan certification body) in 2012 and branded with a LOGO which has improved accessibility of our fish in international markets.
Last but not least I wish to thank our development partner the GiZ that is currently giving our association support to carry out some of the activities under the Responsible Fisheries Business Chain Project (RFBC)
|SELF MONITORING & CONTROL BY THE FISH INDUSTRY IN UGANDA.|
The year was 2006 when the fish industry was in a crisis due to a lack of fish supplies for processing that a new phenomenon was invented to address this challenge. Uganda Fish Processors & Exporters Association an umbrella association of all industrial fish processors came up with an idea of self-monitoring and control among its member companies. Since the major source of the raw material is Lake Victoria that is shared by the three partner states of Kenya (6%), Uganda (43%) and Tanzania (51%), it was inevitable that our sister associations of AFIPEK and TIFPA should be included in this new initiative
Nile Perch Sustainability Logo
By: Ms. Ovia Katiti Matovu
Chief Executive Officer, UFPEA
On 24th April 2006, a commitment was signed in Nairobi by the three associations to start inspections in their member factories. With the backing of Lake Victoria Fisheries Organization (LVFO), there was mutual understanding and trust among the processors. The start was not easy as some guidelines had to be developed that were agreeable to all.
With the help of Mr. Philip Borel of Greenfields (U) Ltd, UFPEA‘s first inspection guidelines came out in 2007 and the exercise commenced in September the same year.
12 years down the road, the Self-Monitoring exercise has gained the confidence of all stakeholders in the fisheries sector as it has contributed to the sustainability of the resource amidst the rampant illegal fishing and trade in immature fish. With the punitive measures put against non-compliances, it’s now hard to find an NP fish that is below legal size 50cms being processed in all the factories in Uganda.
Figure 3: Training session for factory staff on Self-Monitoring and Control.
In 2012, UFPEA received support from PSFU (Private Sector Foundation Uganda) under the CEDEP project to audit and certify the self –monitoring program among its member companies. The exercise was carried by UGOCERT, a local certification company that trained the Quality Assurance Managers.
A logo was developed which became a proof mark for the NP sustainability among UFPEA members’ customers in different markets.
During the decline of the fish stock, some fish factories closed which reduced the number to 6. However, with the recent recovery efforts of the NP by the Marine Fish Protection Unit, a new set of factories have reopened bring the number to 11 to date. With all the above different happenings, UFPEA’s Executive Committee (EC) decided to review the inspection guideline of 2010.
A request was made to GiZ under the Responsible Business Chain Project (RFBCP) to review the guidelines and train the factory workers, suppliers as well as the fishers at selected landing sites.
The review process was carried out in May and June 2019 and the first training was done in August 2019. Training materials that included a Revised Inspection Manual of 2019, posters and Billboards were printed to assist during the training. The training is still ongoing with the support of GIZ Responsible Fisheries Business Chain Project.
|A REVIEW OF THE FISH EXPORT STATISTICS|
|THE LAUNCH OF THE 9TH EDITION OF THE AGRICULTURAL FINANCE YEAR BOOK HELD AT SHERATON HOTEL KAMPALA, UGANDA ON 11TH, JULY 2019.|
By: Mr. Musinguzi M. Jamil
Program Officer, UFPEA
The agricultural year book is a synthesis of research conducted by the Economic Policy Research Center (EPRC) as well as from members of the Agricultural Finance platform. The launch of the 9th edition of the Agricultural Finance Year book at was held at Kampala Sheraton Hotel. The theme of this edition of the agricultural year book is “Development Financing for Agro-Industrilisation”. As a key stakeholder, UFPEA was invited to take part in this launch and was represented by;
Launch of the 9th edition of the Agricultural Finance Year book.
Overview of the 2019 agricultural finance year book.
The 2019 agricultural finance year book which is also the 9th edition in the series coincides with the 10th anniversary of the Agricultural Credit Facility (ACF), and offers an in depth analysis of the trends in the sector performance, with particular emphasis on interventions to promote agro-industrilisation.
Uganda’s total financing deficit is 1 Trillion for the next five years and yet the budget allocation target production on the expense of processing while banks focus on processing given the fact that it is less risky. This publication intends to track investments in the agricultural value chains and underscore the need to facilitate other segments of the value chain like processing.
Opportunities for private equity investments in agriculture in Uganda
An equity investment generally refers to the buying and holding of shares of stock on a stock market by individuals and firms in anticipation of income from dividends and capital gains. During the year 2007-2014 at least USD 1.6 billion was raised for private equity investment specifically for East Africa. These figure indicate a steep jump in equity investments and rising to USD 1.1 billion during 2015-2016.
Private equity as a source of financing for agro-industrilisation.
Equity financing involves raising capital through the sale of a company to the public to institutional investors or financial institutions. Currently agro-manufacturing firms that are looking out for equity financing must leverage on private equity (PE) which in this context is funds and investors that directly invest in private companies. Equity has the potential to augment other relatively expensive debt options however it’s not a common instrument in Uganda due to knowledge gaps, informality and lack of trust.
The period between 2013 and 2018 different agribusiness firms have benefited from Between 2010 and 2016, Uganda reportedly had 31 PE deals. Mr. Adolfo Cires notes that In order for businesses to benefit from equity financing there has to be a mindset change in terms of corporate ownership among businesses. Secondly he highlights that businesses have to keep proper corporate records especially credit records as they are usually evaluated by investors.
There is need for Agri-businesses to register as companies limited shares can be sold since it is the only way PE investors can come in and out of the business through buying shares. There is also need for proper regulatory environment covering both investors and agri-businesses.
The panel discussions were held and the panelists included Ms. Joanita Kamuli Babumba from the Agriculture Credit Facility (ACF), Francis Abibi s Chief Economist UDB, Ms. Mona Muguma Ssebuliba the aBi Trust chief operating officer and Martin Luther Munu from EPRC. The following were their key points;
Panel discussions at the launch of the 9th edition of the agricultural finance year book
Agricultural Business Initiative (aBi)
Ms. Mona Muguma Ssebuliba the aBi Trust chief operating officer noted that one of the major problems facing agricultural financing was lack of collateral and there is need to develop a model of collateralizing. Secondly there was a need for technical assistance to farmers and also a holistic value chain development which does not only focus on one end of the value chain.
Uganda Development Bank
Francis Abibi s Chief Economist UDB pointed out that the Bank supports Small & Medium Enterprises (SMEs) and large scale development projects and intervenes to bridge the gaps in agricultural financing by offering long term loans to enterprises. He highlighted that UDB uses the 3 point criteria when selecting financing area these include.
Agriculture Credit Facility (ACF),
Ms. Joanita Kamuli Babumba from the Agriculture Credit Facility of the bank of Uganda highlighted that the main objective of the ACF is to promote commercialization of Agriculture through provision of medium and long term financing to projects engaged in agriculture, agro processing, modernization and mechanization. The interest rate to the final borrower is up to a maximum of 12% per annum. The 50% GoU contribution is disbursed to the PFIs at zero Interest (interest free). She further explained that ACF is a government intervention but works hand in hand with banks by providing a risk sharing medium and the government has injected 141 billion shillings to capitalize this fund with the aim of bridging the gaps in agricultural funding. She pointed out that the best way to increase on the agricultural lending is through de-risking the agricultural sector.
|National Budget FY 2019 /2020.|
The National Budget 2019/2020 was read on June 13th, 2019 under the theme ‘Industrialization for Job Creation and Shared Prosperity’. The budget for FY 2019/20 is aimed to enhance governments continued commitment to attain middle-income status.
The budget strategy for FY 2019/20 will continue to emphasise implementation of the commodity approach, with focus on the twelve (12) key food security and household income commodities with MAAIF and Local Governments giving special attention to Fisheries promotion and enforcement of good fishing practices among others.
UFPEA attended the private sector post budget luncheon at UMA main exhibition hall.
Agriculture tax policies FY 2019 /2020
The agriculture sector received a 1 trillion budget up from 893 billion and this accounted for about 3% indicating a decline of about 0.4% as compared to FY 2018 /2019 which was 3.5% of the national budget allocations. However, the government continued with its policy of supporting agriculture in its tax policies as shown below.
Table 1: MAAIF Eligible spending areas for the fisheries sub-sector.
Mr. Musinguzi M. Jamil
|UFPEA ANNUAL GENERAL MEETING|
The UFPEA annual general meeting was held on Friday June 14, 2019 at Shanghai restaurant. The annual general meeting (AGM) is a mandatory yearly gathering of the association where the board members gather to deliberate on important decisions regarding the association. The members are also informed of the previous and future activities of the association and it is at this meeting where the members receive copies of the association’s accounts and review fiscal information for the past year.
UFPEA Annual General Meeting at Shanghai restaurant Kampala
Highlights of the meeting.
UFPEA membership has rose to 11 fish processing companies as compared to 6 of 3 years ago. This increase can be attributed to increased fish supplies that are a result of enforcements carried out on Uganda major lakes by Marine Fisheries Enforcement Unit headed by Lt Col James Nuwagaba which started in March 2017.
The latest members to join UFPEA in 2018 & early 2019 were: One to Fish Ltd, Fresh Perch Jinja and Lake Perch Entebbe. The secretariat also a recruited a new member of staff Mr. Musinguzi Jamil who will work as the Program officer to help in the running of the additional UFPEA work and to strengthen the association.
Mr. Musinguzi Jamil the new UFPEA Program Officer
Exploring new Export Markets for Uganda’s fish
UFPEA was committed to its continued efforts to diversify fish export markets in the Middle East and Far East regions. The Quality Assurance Managers Association (QAMA) a technical arm of UFPEA was working together with the CA following up the issue of the Gulf market and they had received a feedback from Saudi Arabia where a link on how an establishment can register was sent. The China market is being worked on to include fish maws while negotiations with the Russia market were also still ongoing.
Election of Office Bearers
With the end of the year elections of new office bearers was done where by members were nominated and assumed their respective offices as shown below.
Chairman : Mr. Sujal Goswami
Vice-Chairman : Mr. Rakesh Shetty
Treasurer : Mr. James K.C
|THE NUTRIFISH PROJECT LAUNCH HELD AT GOLDEN TULIP-CANAAN HOTEL, KAMPALA, UGANDA ON 27TH, JUNE 2019.|
NutriFish is an interdisciplinary collaborative research project between Department of Zoology Entomology and Fisheries Sciences, College Of Natural Sciences, Makerere University, The National Fisheries Resource Research Institute (NAFIRRI), National Agricultural Research Organization (NARO), McGill University Canada, Nutreal Limited (a private company).The goal of the project is to increase availability, accessibility and Consumption of Under-utilized Small fishes and Fish processing by-products for sustainable food and nutrition security and better livelihoods of vulnerable groups in Uganda. The project is jointly funded by the International Development Research Center (IDRC) of Canada and the Australian Center for International Agricultural Research Center (ACIAR) under the Cultivate Africa’s Future Fund Phase 2 (CultiAF2). As a key stakeholder, UFPEA was invited to take part in this workshop which was also the project launch and was represented by;
The project has been created with a theme ‘Harnessing dietary nutrients of under-utilized fish and fish processing by-products to reduce micro-nutrient deficiencies in Uganda’. The projects aim is to tackle wide spread nutritional deficiencies in poor and urban communities of Uganda particularly among women of reproductive age and children under 5years.These groups are particularly affected due to limited access to animal protein and micronutrient-rich foods, especially fish. Fisheries and aquaculture provide opportunities to reduce hunger, improve nutrition, alleviate poverty and generate economic growth. Fish has become less available to Ugandans due to declining stocks of large species coupled with high exports and post-harvest losses.
Statistics of Uganda’s fish consumption.
Statistics from the World Food Program show that 1.4 million people are suffering from chronic hunger at least 60% of Uganda’s children under the age of 5 are underweight, 6% are wasted while 12% of women of reproductive age are malnourished. Uganda’s per-capita consumption estimated at 10kg per person per year is lower than the FAO recommended 25kg per person per year. This is projected to decline further with high population growth rate in Uganda. Currently over 80% of Nile perch is processed for export leaving by-products like frames, skin and head for local population. In addition only 40% of the small fishes (<20cm total length) caught are utilized for human consumption most being used in the animal feed industry and thus are “Under-utilized”. The by-products from fish processing are rich in essential nutrients e.g. the Nile perch skin contains 6 times more iron and 3 times more Zinc than the flesh. Poor handling and rudimentary processing of the by-products and small fishes impedes harnessing of all the nutrients.
Currently over 80% of Nile perch is processed for export.
Project objectives and expected outcomes.
NutriFish aims to address the nutritional needs of vulnerable groups who can’t afford expensive commercial fish but who are in critical need of high-quality nutritious diets. This project aims to find ways to reduce losses and increase product quality, safety and acceptability and improve distribution among populations living far from water bodies. Given women are often excluded from profitable ventures; NutriFish aims to integrate a gender responsive strategy that includes women as key participants in the fish value chain. It is estimated by the project that 560,000 consumers from lower income segments will be able access affordable and nutritious fish-based products by the end of the 3 years of project duration.
By increasing consumption of higher quality protein from fish, NutriFish will:
Future prospects of the project for UFPEA members.
According to the promoters of the project there is already sufficient quantities of the by-products available among the existing fish processing factories which will be a good source of the raw materials. UFPEA members will benefit from better competitive prices since there will be value addition to these processed by-products. UFPEA secretariat will soon organize a meeting with proprietors of the Nutrifish project.
|UFPEA PARTNERS WITH GIZ RFBC PROJECT FOR
|By: Mr. William Tibyasa
Uganda Fish Processors & Exporters Association (UFPEA) received financial support from GIZ Responsible Fisheries Business Chain (GIZ-RFBC) to contribute to the Nile Perch Resources Sustainable Management. This was after the German Federal Ministry for Economic Cooperation and Development (BMZ) developed a Special Initiative known as One World-No Hunger (SEWOH) which aims to improve food security and eradicate hunger.
Participants during a planning meeting for UFPEA self-monitoring inspection review.
The project synopsis
The fisheries sector contributes to the Special Initiative through the GIZ Global Programme for Sustainable Fisheries and Aquaculture. This global programme comprises several projects, one of which is the GIZ SEWOH Fisheries Project of the Uganda country package entitled Responsible Fisheries Business Chains (RFBC) project.
The RFBC project focuses on the Nile perch fishery on Lake Victoria which will contribute to the Special Initiative through its important contribution to food security, livelihoods and incomes of people in rural communities in East Africa. After constructive negotiations and planning processes, UFPEA successfully received support from GIZ RFBC Project to implement two key activities in the first phase covering ‘Improving the legislative framework and the compliance to it’.
This looked at reviewing the regulatory framework and its institutional framework under the Fisheries and Aquaculture Bill 2018 and review of the financing mechanisms for sustainable development of fisheries. The second activity supported was the review and expansion of the self-monitoring effort in order to increase compliance as a tool to resource sustainability.
The main aim of the project is to contribute to sustainable Nile perch fisheries on Lake Victoria for improved food security and income in the EAC region.
Once the project is successfully implemented and completed, we aim to achieve specifically;
With the approved total budget of Euros 92,384, the project was projected to start on August 1, 2018 up to July 31, 2018. However, there were delays due to approval processes which pushed the first phase to start on October 1, 2018 and is still ongoing.
The proposed Bill is part of efforts by MAAIF to provide an enabling policy and regulation framework to the stakeholders engaged in fisheries and aquaculture activities.
ACTIVITIES UNDERTAKEN IN 2018 TO DATE.
In the first quarter October 1, 2018 – December 31, 2018, the main activities were;
The proposed law is a revision of the Fish Act of 2000 Cap 197, which only regulates capture fish
A consultant was engaged by UFPEA to undertake the review of the Fisheries and Aquaculture Bill 2018 as well as review the financing mechanisms. These were successfully done. UFPEA received collaboration from key institutions such as the Directorate of Fisheries Resources, Ministry of Finance, UFPEA Inspectors and UFPEA technical team of Quality Assurance Managers. After an engaging consultative process, a final report was produced by the consultant and shared with the Directorate of Fisheries Resources and other stakeholders during the Fisheries and Aquaculture Bill validation workshop held at Colin Hotel Mukono organised by DiFR MAAIF. The ideas generated would form part of the inclusions in the Bill for consideration as law.
Self-regulation has been key on UFPEA’s resources sustainability efforts. This has been one of the most successful initiative implemented by UFPEA since 2007. It was therefore rewarding to receive support from GIZ RFBC Project to strengthen the UFPEA inspection protocol.
UFPEA would like to take this opportunity to appreciate the efforts of the GIZ RFBC Project staff in Jinja particularly the Project Team Leader and Project Coordinator for the good leadership and technical support always rendered. In addition, appreciation goes to the BMZ team for the kind consideration. UFPEA is committed to effective delivery of the project objectives and look forward to project extension.
For comments and details contact
Musinguzi M. Jamil
Uganda Fish Processors and Exporters Association
Agip House, 1st Floor, Suit 7 Plot 9
Kampala Road P.O Box 24576,
Kampala Uganda Tel: 0414-347835