The Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi discusses, in this article exclusively talks of how Ugandans benefit from the Buy Uganda, Build Uganda policy.

Uganda recently launched Buy Uganda, Build Uganda policy implementation; what are the outcomes so far?

It has been a journey. Import substitution is on track, as the available data indicates. Uganda produces many of the simple products we used to import. Ugandans have embraced local products because the imported substitutes are either unavailable or too costly. There is a deliberate government policy to subsidize local production.

The bulk of the Personal Protective Equipment (PPEs) and the sanitisers we used During the COVID-19 period, were locally produced although some was imported.

Uganda’s export composition within the region is changing to value-added products; steel, dairy products, processed foods, plastics, footwear, and ceramics. That was impossible a few years ago.

The government’s policy to support local production by using incentives is changing Ugandans’ mindset about our goods. If we ban or impose a high tax on imported milk, Ugandans will use locally produced milk. If we ban Indian and China cement imports, Ugandans will buy Uganda cement. If we impose a high tax on Spanish tiles imports, Ugandans will use more Ugandan-made tiles.

How will this work in the East African Common market?

Nobody is better than Uganda in respecting the common market protocols. We do not retaliate when other countries ban our products. Our president knows that economics will sort out the non-tariff barriers.

Eventually, Kenya will need Uganda’s milk. As we build capacity, and if the global conditions change, Kenya will need our milk, eggs and maize.

Talk of some of the incentives available to local manufacturers pursuing the BUBU policy.

We have a good tax regime on manufacturing at the East African level. Under our Common External Tariff (CET), raw materials at zero rate tax. The non-locally available imported raw materials are not taxed.

While intermediate goods, like machinery for goods production, attract a 10 per cent tax, imported finished products will now attract a 35 per cent tax. Importing finished goods will be uncompetitive.

The government has invested heavily in infrastructure and energy. Electricity is of good quality, reliable and relatively cheaper for manufacturers. We are working to achieve the five cents and endeavouring to get it to all manufacturers. The large-scale manufacturers’ tariffs are competitive.

The construction of the Standard Gauge Railway will start in the coming financial year as the infrastructure improves.

Serious manufacturers can borrow from Uganda Development Bank (UDB) when they qualify for UDB loans and quietly get the money. No noise.

The president has said UDB frustrates investors by asking for bribes and not lending them in time. What is your take?

The president receives messages from those who don’t qualify. UDB is a bank. It is not some local government where you go and pick money. Whatever capital you give them, they must lend it and get it back to lend to other people. We would want them to sustain that capital.

Therefore, we don’t want adverse selection; the bad or good risks which will change their mind and become moral economics hazard.

I regulate UDB and get reports and give them a feedback from the people to improve their performance; they are doing a good job.