BUBU policy to help Ugandans benefit from the Oil sector.

Uganda recently adopted an ambitious trade policy called Buy Uganda Build Uganda. The policy seeks to support and encourage domestic manufacturing and consumption in certain strategic sectors

 Buy Uganda Build Uganda (BUBU) is a unique initiative that was introduced by the Government of the Republic of Uganda through the Ministry of Trade, Industry and Co-operatives (MTIC). The idea behind BUBU is to promote the consumption, usage and appreciation of locally produces goods and services.

In 2014 the Cabinet took a step and approved the BUBU Policy envisioned on developing a vibrant dynamic and competitive private sector that transforms local products through the value chain to meet the required standards.

The BUBU Policy is Premised on three (3) Key Objectives which include the following:

• To promote consumption of local goods and services.
• To promote the use and conformity to standards to guarantee quality goods and services.
• To provide capacity building programs to local suppliers of goods and services.

The discovery of Oil in Uganda with a total number of 18 fields which have been discovered with approximately 2.5 billion barrels of oil creates a great opportunity for local manufacturers, producers and service providers to benefit from the Oil and Gas Sector in Uganda as seen in the recently signed  agreement with Uganda and Tanzania to start the construction of a $3.5 billion pipeline to export Ugandan crude oil to international markets. 

A total of 230,000 barrels of oil are expected to pass through the East African Crude Oil Pipeline (Eacop) at full production, with Total hoping to begin oil export in early 2025.

 

The policy implementation is led by Ministry of Trade, Industry and Co-operatives (MTIC) working with other Government Ministries, Departments and Agencies. These work closely with Private Sector institutions like local manufacturers, banks, individual consumers, schools, hospitals and universities.

The key stakeholders are brought together by a joint concern mostly to provide capacity building programs to local suppliers of goods and services through the e BUBU Expo which is an annual event under a Private Public Partnership between Ministry of Trade and Cooperatives (MTIC) and Investment Review Publications. This powerful annual event is aimed at promoting Buy Uganda Build Uganda (BUBU) by: Promoting local content, encouraging and building patriotism in general public and enhancing networking and coordination around BUBU policy. It is estimated that 90% of Uganda’s private sector is Micro, Small and Medium Enterprises (MSMEs). Majority of these operate informally

On 8th October 2016 while inspecting the UMA Trade-fair at Lugogo Show Ground, H.E the President directed all Ministries, Departments and Agencies to implement the “BUBU” policy by procuring locally originating/ manufactured products and made special reference to purchase of uniforms and footwear for the Army, Police and Prisons. Other items to be procured by government include furniture from local manufacturers; these items are for immediate implementation. For, instance the President Directed MDAs to procure furniture from Uganda Prisons Services.

Arising from this directive, a trade opportunity of over Shs. 32bn has been garnered from BUBU Policy Implementation. At the moment there are two companies, namely Nyanza Textiles Industries Ltd and Fine Spinners Ltd which have benefited from this opportunity of supplying the forces with uniforms.

In conclusion therefore this is a call to all Ugandans to get behind this government initiative to support all locally Ugandan made products and grow the country’s GDP and Economy