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  • African PlatformUganda

     

    Country information

    Uganda has been one of Africa’s recent success stories with its groundbreaking accomplishments against HIV/AIDS and reports of robust economic growth. This economic success has been as a result of the implementation of economic reforms. Despite this, private investment has to be increased in order to ensure continued economic growth. In 2001 the country had foreign direct investments totaling US$144.7 million. New monetary and exchange rate policy operating procedures were implemented in 2002 and have facilitated sterilization operations and resulted in a reduction in volatility in interest and exchange rate movements. The privatization of the Uganda Commercial Bank in 2002 and its consequent merger with an international bank contributed to the continual strengthening of the country’s banking sector. Measurements concerning bank supervision have also been strengthened.
    Country Size: 236,040 Sq Km
    Population: 26.7 million
    Currency: Uganda Shillings
    Languages: English, Swahili
    Capital City: Kampala
    GDP (US$): US$8.648 billion
    Main Economic Sectors:
    • Agriculture (food crops, cash crops) GDP growth rate 2004/5 was 2.1%
    • Industry (formal manufacturing, SME's, electricity water, construction) GDP growth  was 9.1%
    • Services (whole sale and retail,  hotels & restaurants, transport & communications, Community services GDP growth was 7.2%
    Main Exports: Coffee, Fish, Cotton, Tea, Tobacco, Vanilla, Maize, Bovine hides, goat skins, sheepskins, Leather, Fish skin leather, Cut flowers, Cocoa beans, Dried fruits, Fresh fruits, Gold.
    Main Imports: Automobile, Machinery, Spare parts
    Industry (Main Industries): Sugar processing, Edible oil Cement, roofing products, FishProcessing, Monetary construction
    Natural Resources: Lakes, Rivers, Swamps, Forest, Shrubs, Mountains, Grassland, Minerals
    Agriculture (Main Products): Livestock products and by-products, Coffee, Cotton, Tea, sesame seeds, Sun flower seeds, Tobacco, Vanilla, Cut flowers
    International Organization Member: UN, WTO, WHO,COMESA, OIC, EAC, ACP, Etc
    Infrastructure: Airports: Entebbe. Roads: Northern by-pass, Kampala- Nairobi-Mombasa, Nairobi Dar-Es-salaam. Transport networks: Rail to Kisumu, Rail to Bukoba and Mwanza via Lake Victoria by ship then to Mombasa or Dar. Communications: Mobile telephones of MTN, Celtel, Mango and land line of UTL and MTN. However, Uganda is land locked and benefits from sea ports of Kenya and Tanzania. Towns on Lake Victoria are linked to the sea by road and or rail networks.

    Livestock

    Cattle Population: 6.5 million
    Sheep Population: 1.1 million
    Goat Population: 6.8 million
    Camel Population: 0.1 million
    Other Population: 1.7 million (Pigs)
    Cattle Off Take Rates: 16.9%
    Sheep Off Take Rates: 20%
    Goat Off Take Rates: 35%
    Livestock Policy: The Agriculture Sector provides for up to 42% of the National Gross Domestic Product (NGDP) and up to 80% of the labour opportunities and the related income generation to Uganda's more than 25 million people.  The animal industry accounts for about 17% of the Agricultural Gross Domestic Product (AGDP) and 9% of the National Gross Domestic Product.  Up to one third of the total national households are involved in livestock industry related activities.

    Uganda's climate favours animal farming since natural, improved pastures and supplement feeding is available for all ranges of animals. The meaning of animals is defined by OIE International animal health code as: mammals, birds and bees among others. As a developing country Uganda has had various technical and non technical constraints in the animal industry, however, these are being addressed through better policies, regulatory framework and institutional strategies that has started yielding quantitative, qualitative, safe and wholesome animals and their products.

    The single most difficult issue in the developing countries where the majority of animals are not confined is the easy with which trans-boundary animal diseases may be acquired and propagated. This is largely due to the predominant pastoral, communal and back yard farming systems that tend to farm different kraals / herds/ flocks at the same time on the same open ranges. Many countries with such systems have previously had difficulties to introduce effective disease and vector control strategies and also conduct effective animal movement control.

    By policy and regulations, Uganda is moving away from such systems to commercial and profitable farming to which animal confinement / movement control is an obligation (Technical guidelines on animal movement control have been made for immediate implementation). These guidelines are being followed by the sanitary standards operating procedures (SSOP) that are HACCP or risk based up to farm level.
    Uganda is vigorously pursuing policies, the regulatory framework and its enforcement so as to conform to SPS measures on animal health and food safety since we are members of the WTO, the OIE and the Codex Alimentarius. The East African Community has approved its SPS Code harmonizing the standards and procedures for certifying the health and safety of animals and animal products thus facilitating their movements / trade into, out of and within the Community.

    The National Bill on Food Safety and its multi-sector stakeholders related to SPS/food safety for implementation will also go along way to ensure meat and other animal products quality, safety and wholesomeness. The Bill will use the food chain based risk analysis, risk management principles and procedures right from policy, production, harvesting, handling, storage, processing, laboratory analysis, inspection and certification, distribution and finally to the consumer.

    Uganda's veterinary services have been restructured and emphasize animal epidemic disease control, animal: health / production / marketing regulatory and standards enforcement at the centre with the backup extension / advisory services at the local governments. The private sector are the investors and implements. Communication with the lowest veterinary units by fixed phone, fax, mobile phone and e-mail has rapidly improved. Any disease outbreaks are reported immediately for control purposes. A national surveillance system that conducts disease search and intelligence gathering for action is in place in all the districts. An identification / traceability system for animals and animal products is under plan for implementation up to the lowest levels. Village animal and animal products export promotion centres / herds are to be introduced too.

    Farming and agro-processing is a private issue but government has and will continue to give a technical conducive environment in deficient areas. It is doing so to provide technical infrastructure and services for the promotion of production for export in meat, milk, hides and skins and honey. Latter, the private sector is to take over after a level of development has been achieved.

    Policy:

    The conducive macro-economic policies on economic that are available and in use with their strategic plans of action are as follows:
    • Economic liberalization, divestiture and privatisation
    • The new Constitution
    • The decentralisation / democratisation of society
    • The universal primary education, public service restructuring, the poverty eradication action plan (PEAP)
    • The plan for modernization of agriculture (PMA)
    • The national delivery of veterinary services policy
    • The national veterinary drug policy
    • The national apiculture policy
    • The national hides, skins and leather policy
    • The animal breeding policy
    • The food and nutrition policy
    • The animal feeds policy
    • The national environmental protection statute
    • The Uganda national bureau of standards policy
    • The national water policy
    • The national health policy

    Regulatory frameworks:

    The conducive legal / regulatory framework available and in use as applicable are as follows:
    • The new Constitution
    • The MAAIF restructuring report of year 1998 and 2000
    • The Animal Diseases Act 1964, including 1964 Rules, 1968 rules, 1968 importation of poultry and poultry products, 1997 rules making BSE, IBD and Fowl Pox animal disease, 2003 selective ban on importation of cattle, beef, semen, ova, embryos, bone, bone meal and other cattle protein preparations in relationship to BSE, 2005 Statutory Instruments making bees animals and bee diseases as animal diseases while also setting rules for honey and other bee products quality and safety
    • The Rabies Act 1964
    • The Cattle Trading Act 1964
    • The Hides and Skins Act 1964
    • The Veterinary Surgeons Act 1970
    • The Animal (Straying) Act 1964
    • The Animal (Prevention of Cruelty) Act 1957
    • The Cattle Grazing Act 1964
    • The Public Health Act 1964 (Meat and Milk Rules)
    • The Code of Meat Inspection Uganda 1973
    • The Food and Drug Act 1964
    • The National Drug Authority Policy and Statute 1994
    • The Animal Breeding Act 2000
    • The Uganda National Bureau of Standards 1993 and 1998
    • The National Water Statute
    • The National Meat Body Regulation in the making
    • The Food Safety Bill
    • The WTO Bill in the making
    • The National Environmental Protection Statute
    • The East African Community Sanitary Phyto-sanitary Bill in the making
    • The WTO SPS Agreement and measures
    • The OIE international Animal Health Codes
    • The Codex Alimentarius on food safety.

    Most veterinary regulatory frame works is old as compare to the new policies. The regulatory framework is thus being reviewed or entirely reformulated to meet the new economic policies and harmonise with WTO. It will also be harmonized with the regional and international regulatory frameworks on similar issues. We expect to conform to the EAC, WTO / SPS, OIE and Codex Alimentarius standards and procedure hence the entry into the global market.
    Slaughter Facilities: Slaughter houses:  40
    Slaughter slabs: 800

    Industry profile

    Hides and skins

    Tanning

    Footwear

    SWOT analysis

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     Hides and skins

    Quantity Hides: 1.1 million
    Quantity Sheep: 0.22 million
    Quantity Goat: 2.04 million
    Annual Collection Level Hides: 90%
    Annual Collection Level Sheep: 70-80%
    Annual Collection Level Goat: 70-80%
    Flaying Methods: Hand-flaying
    Preservation Methods: Hides:
    Suspension drying: 10%
    Wet-salting: 90%

    Skins:
    Sun dry: 70%
    Dry salted: 20%
    Grading Systems, available grades and percentage of Each: Grade I: 20%
    Grade II: 30%
    Grade III: 50%
    Market (%): Local hides/skins - 10%
    International - 90%

    Major Markets:
    China, Hong Kong, Italy, India, United Emirates, Pakistan, Kenya, United Kingdom.
    Annual Export Value (US$): Estimated: $16 million
    Average market Bovine price: $ 0.5/kg (wet salted) / $0.85/kg (dry salted)
    Average market Sheep price: $1.1/pc / Lamb skins - $0.44/pc
    Average market Goat price: $1.1/pc / Kid skins - $0.44/pc

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     Tanning

    Number of Tanneries: 4: bovine, goat and sheep / 1: fish skins
    Installed tanning capacity: Hides: 1150pcs or 29,900sqft per day
    Skins: 5200pcs per day
    Tanneries in Operation: 3 - hides/skins / 1 - fish skins
    Utilized capacity: Below 20%
    Output of the industry: Wet blue: 43,000 hides, 150,000 skins p.a.
    Finished: 3,000 hides or 75,000sqft p.a.
    Fish skins: 30,000 pc processed p.a.
    Number of employees: 88
    Market (%): Major Markets: Italy, Pakistan
    Estimated Annual Export Value (US$): $2,000,000 (2004/05)

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     Footwear

    Number of Footwear Factories: 8
    In Operation: 7
    Manufacturing capacity: Installed: 160,800 pairs p.a.
    Utilized:  93,360 pairs p.a.
    Number of employees: Not Available
    Market (%): International 1%
    Local: 99%
    Major Markets: Rwanda, DRC.
    Estimated Annual Export Value (US$): Negligible

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     SWOT analysis

    Strengths:
    • Institutions are or have been set up for standards and quality in the industry
    • The meat policy and the hides, skins and leather development policies have been developed
    • Standards for both have been designed for implementation
    • Skinners and flayers are being trained to reduce flay cuts
    • Trained footwear and leather goods entrepreneurs and workers available.
    Weaknesses: Lack of trade and marketing information; low productivity and poor workmanship; lack of grading law hides and skins and price settings; lack of commercialized farming systems; poor marketing physical.
    Opportunities: Uganda's hides and skins are naturally of high quality, high texture and heavy substance and are suitable for the production of excellent heavy upper and vegetable tanned sole leather.
    Uganda has many water bodies which provide a large quantity of fish and, in addition, the government has encouraged fish farming in many areas, consequently a high potential for fish skin.
    Crocodile farming in Uganda is gaining popularity for the provision of the valuable crocodile skin and this provides great potential for investment.
    Supportive and complementing government programs in the areas of livestock health and production as well as infrastructure development.
    Local demand for leather and leather products shows an upward trend. The total footwear requirement of the country is estimated at 20.9 million pairs per year.
    Bilateral and multilateral trade arrangements such as East African Customs Union, Common Market for Eastern and Southern Africa (COMESA), African Growth Opportunity Act (AGOA), African Caribbean and Pacific European Union (ACP-EU) and COTONOU agreement, provide potential regional market for finished leather and leather products.
    Threats: Institutional weakness; Lack of a policy to guide the sector to address the constraints and amend the Hides and Skins trade Act of 1964 which does not conform to the new policy reforms.
    Poor production methods associated with lack of proper equipment, inadequate infrastructure, limited human resource capacity and poor husbandry practices.
    Limited processing and value addition due to lack of quality raw materials, inadequate human resource, environmental concerns, high investment costs and lack of incentives to invest in the industry.
    Poor marketing as a result of poor quality products, competition from second hand and synthetic goods, poor infrastructure and marketing information, lack of credit facilities, subsidies and protectionist policies in foreign markets.
    Low participation of women due to limited awareness, cultural hindrances and limited access to means of production and resources.

    Government policy

    Fiscal Policies: VAT, export levies, corporate taxation
    VAT is 18%,
    20% on exports of unprocessed Hides and skins,
    Corporation tax is 30%
    No levies on processed exports.
    Monetary Regulations: The exchange policy is liberalized.
    Trade regulations: Import licenses

    Import certificates, which are non-good-specific, are required and have a validity of 6 months. The certificates take the place of import licenses.Form E (declaration of imports) can be processed by commercial banks and foreign exchange bureaus. All importers are required to complete form e.

    Export controls

    Items which cannot be exported without prior authorization by the ministry of trade and industry include:- waste and scrap of ferrous cast iron, wood charcoal, timber from any wood trees grown in Uganda hewn or machined (but not any other articles manufactured from such wood), coffee husks, fresh unprocessed fish, game trophies

    Import/export documentation

    The following supplementary documents may be required by the Uganda revenue authority at the entry point whenever the following goods are imported:
    • human and animal drug medications: verified pro-forma invoices from the pharmacy board
    • firearms: firearms certificate, live animals (domestic and wild): health certificate
    • wild endangered species: approval authority, secondhand clothing: fumigation certificate, explosives: approval authority,  seeds and plants: phyto-sanitary certificate

    The following supplementary documents will be required at the customs exit whenever the following goods are exported:- fish: health certificate and trading license for fish, minerals: permit to export minerals and mineral dealer's license, fresh/dry fruit, vegetables and produce: phytosanitary health certificate, game trophies: permit to export game trophies and wild animals, hides and skins: export buyers license, export certificate for hides and skins, veterinary health certificate

    Temporary entry

    Many products are shipped through Uganda on their way to eastern Congo and Rwanda. The customs administration has reduced the time allowed for goods to transit Uganda to 7 days.

    Prohibited imports

    The following items cannot be imported into Uganda:
    • pornographic materials, used motor vehicle tires, imports banned under international agreements to which Uganda is signatory.

    Investment environment

    Requirements For Foreign Investment / Joint ventures: There are no restrictions for partnerships/joint ventures.
    Tax Incentives: The new incentive regime is specified in the Income Tax Act, 1997 in sections 28 to 34, 36, 37 and 168. These incentives can be summarized in three categories namely:

    Category 1:

    The incentives covered in this category are capital allowances/expenses which are deductible once from the Company's Income.
    • Initial allowances on plant and machinery located in Kampala, Entebbe, Namanve, Jinja & Njeru: 50%
    • Outside Kampala, Entebbe, Namanve, Jinja & Njeru: 75%
    • Start-up costs spread over the first 4 years: 25% p.a.
    • Scientific Research expenditure: 100%
    • Training expenditure: 100%
    • Mineral exploration and exploitation expenditure: 100%
    • Initial allowance on new industrial buildings
    (including tourism facilities like hotels and lodges)  Effective July 1, 2000: 20%

    Category 2:

    Deductible Annual Allowances

    Depreciable Assets specified in 4 Classes under declining balance method:
    Class 1: Computers & Data handling equipment: 40%
    Class 2: Automobiles, Construction and Earth moving Equipment: 35%
    Class 3: Buses, Goods Vehicles, Tractors, Trailers, Plant & Machinery for farming, manufacturing and mining: 30%
    Class 4: Railroad cars, Locomotives, Vessels, Office furniture, fixtures etc.: 20%

    Category 3:

    Other Annual Depreciation Allowances
    • Industrial Buildings, Hotels & Hospitals (Using the straight - line method): 5%
    • New Commercial buildings (constructed after July 1, 2000) (Using the straight-line method): 5%
    • Farming - General farm works declining balance depreciation: 20%
    • Horticulture (Horticultural Plant & Construction of Green houses) straight line depreciation: 20%
    Free Trade Zones:      The law on Free Trade Zones is not yet in place. The bill is yet to be tabled to parliament.

    Institutional support

    Institute Name
    Uganda National Bureau of Standards
    Uganda Manufacturers Association
    Uganda Leather and Allied Industries Association
    Uganda Investment Authority

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     Uganda National Bureau of Standards

    Contact Name: Dr. Safina Namugga
    Job Title: Standards Officer
    Address : Plot M217 Nakawa Industrial Area
    P.O.Box: 6329    
    City: Kampala
    Country: Uganda
    Phone1: 256-41-505 995 Phone2: 256-75-699 271
    Fax: 256-41-286 123    
    Email: safina.namugga@unbs.go.ug
    Website: http://www.unbs.go.ug
    Activity:  Other Government body  
    Presentation of the institute: The Uganda National Bureau of Standards (UNBS) is a statutory body under the Ministry of Tourism, Trade & Industry established by an Act of Parliament in 1983. UNBS is responsible for the development and promotion of Standardization, Quality Assurance, Metrology and Testing practices to enhance the competitiveness of local industry, to strengthen Uganda's economy and to promote quality, safety and fair trade.

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     Uganda Manufacturers Association

    Contact Name: Jackie Onyango
    Job Title: Information Officer
    Address : Lugogo Show Grounds
    P.O.Box: 6966    
    City: Kampala
    Country: Uganda
    Phone: 256-041-221 034    
    Fax: 256-041-220 285    
    Email: information@uma.or.ug
    Website: http://www.uma.co.ug
    Activity:
     Association  
    Presentation of the institute: Uganda Manufacturers Association was established in the 1960's but was disrupted in the 1970's due to the political turmoil. It was later revived in April 1988, and today it is one of the largest organisations representing industrial and commercial sectors for the private sector in Uganda.

    It has a membership of close to 500 members drawn from both the private and public sector. The Secretariat is run by a small team of 15 well qualified staff headed by the Executive Director who reports to the Executive Board.

    The headquarters are at Lugogo Show Grounds near Kampala. There are also two regional offices in Jinja and Mbarara.

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     Uganda Leather and Allied Industries Association

    Contact Name: Emmanuel Mwebe
    Job Title: General Manager
    Address : USSIA, UMA Show ground Lugogo
    P.O.Box: 1307    
    City: Kampala
    Country: Uganda
    Phone1: 256-772-447130 Phone2: 256-41-574527
    Fax: 256-41-345598    
    Email: mwebez@yahoo.com
    Activity:
     Association  
    Presentation of the institute: The Uganda Leather and Allied Industries Association (ULAIA), was established with the support and assistance from, Uganda Manufacturers Association (UMA); Ministry of Agriculture Animal Industry and Fisheries (MAAIF); Ministry of Tourism, Trade and Industry (MTTI), by United Nations Industrial Development Organization (UNIDO Leather Projects) in January 1996 to promote, advise and assist in the further development of the country's leather sector. ULAIA is a registered company limited by guarantee without share capital to represent the collective interests of the; butcher's associations, hides and skins collectors and exporters/ merchants, tanners, footwear and leather goods manufacturers. ULAIA's foremost objective is to assist in providing a policy framework designed to strengthen the country's leather industry, supporting and coordinating activities related to:Production of quality hides and skins, the manufacture of leather and increased value addition onhides and skins for domestic

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     Uganda Investment Authority

    Contact Name: Dr. Maggie Kigozi
    Job Title: Executive Director
    Institute Name: Uganda Investment Authority
    Address : The Investment Centre, Plot 28, Kampala Road
    P.O.Box: 7418    
    City: Kampala
    Country: Uganda
    Phone1: 256-41-301 000 Phone2: 256-41-301 143
    Fax: 256-41-342 903    
    Email: info@ugandainvest.com
    Website: http://www.ugandainvest.net
    Activity:
     Other Government body  
    Presentation of the institute: Uganda Investment Authority (UIA) was established by an Act of Parliament, the Investment Code Act Cap 1992 Laws of Uganda 2000. The mandate of UIA is to facilitate and supervise investments in the country, to promote investment opportunities available in Uganda, and to provide policy advocacy services to improve the investment climate. Our vision is to make Uganda the leading investment destination and the mission is make a significant and measurable contribution to Uganda's development process by promoting private investments. UIA networks with other agencies through the Team Uganda platform using client charters in order to create a favourable investment climate.  The institution plays an active role of policy advocacy through the Presidential Investors Round Table (PIRT) whose secretariat is the UIA. This is a high level advisory committee chaired by the President of Uganda with famous and successful international and local business members. The private sector has registered a big

    Trade statistics in 2004

    Products

    Exports (quantity)

    Exports (in USD)

    Raw hides

    19,969,254

    10,726,202

    Raw goat/sheep

    4,803,836

    9,590,630

    Wet blue hides

    848,236

    158,578

    Wet blue goat

    122,248

    292,792

    Raw goat/sheep

    5,441,329

    4,474,429

    Raw hides

    31,664,434

    22,643,409

    Wet blue goat

    83,428

    142,410

    Wet blue hides

    443,242

    610,152

    Technical cooperation projects

    UNIDO Integrated Programme: Uganda

    Duration: 2 years
    Status: Ongoing
    Description: Existing training and production facilities are to be upgraded to raise productivity and quality levels. The national Leather Training and Common Facility will be strengthened to provide training, extension services and conduct promotional activities for the footwear and leather products sector. Collection arrangements, quality standards, grading and marketing infrastructure are to be put in place for raw hides in targeted rural districts. Activities also aim at upgrading SME skills in quality control and establishing a small vegetable leather processing facility for sheep and goatskins to meet local raw material demands.

    Surveys and reports

    Investing in Ugandan Leather Sector

    Corporate Author(s): Uganda Investment Authority
    Year of Publication: 2000
    Number of pages: 25
    Language(s): English
    Abstract: The leather industry in Uganda has a big potential to thrive. Uganda is well endowed with natural resources that put it at a competitive advantage. Hides and skins, the raw materials for leather, are by-products of the meat industry. They are derived from either urban or rural slaughters of cattle, sheep, goats and recently fish and rocodiles.  

    With a population of 5.6 million cattle, l.3 million sheep and 4 million goats (SR Study- MAAIF, 1999) and off-take rates in the range of 15-17% for cattle, 25 -35% for goats and sheep, the potential raw material available in Uganda is about 1 million cattle hides and 2 million goat/sheep skins. Uganda's leather is of high quality and texture and of heavy substance.  The industry has tremendous potential for foreign exchange earnings, creating employment and has the capacity to attract tremendous and profitable foreign investment.
    Publisher: Uganda Investment Authority
    Type of Document/Material: Document

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    Uganda: Poverty Reduction Strategy Paper—Joint Staff Advisory Note

    Corporate Author(s): International Monetary Fund
    Year of Publication: 2005
    Number of pages: 10
    Language(s): English
    Abstract: The Joint Staff Advisory Note (JSAN) of the Poverty Reduction Strategy Paper for Uganda, prepared by the staffs of both the World Bank and IMF, was submitted with the member country'sPoverty Reduction Strategy Paper (PRSP) to the Executive Boards of the two institutions. A JSAN evaluates the strengths and weaknesses of a country's poverty reduction objectives and strategies, and considers whether the PRSP provides a sound basis for concessional assistance from the Bank and Fund, as well as for debt relief under the Enhanced Heavily Indebted Poor Countries (HIPC) Debt Initiative. The Boards then decide whether the poverty reduction strategy merits such support.
    Publisher: International Monetary Fund
    Type of Document/Material: Document

    Company profiles

    Company Name Products
    Foot Protection Services (U) Ltd Boots - Children's shoes - Men's shoes - Military - Safety - Sandals - Women's shoes
    Leather Works (1986) Ltd Pickled - Vegetable crust
    Tannery and Leather Improvement (U) Ltd Wet Blue
    Training & Common Facility Centre / Crane Shoes Boots - Children's shoes - Men's shoes - Military - Safety - Sandals - Women's shoes

    Environment and social responsibility

    Environment Legislation: 1. Land Act (Act No. 16 of 1998)
    2. Environmental Impact Assessment Regulations (No. 13 of 1998)
    3. National Environmental Statute (Statute No. 4 of 1995)
    Labour Laws: The Uganda Law Reform Commission (LRC) has been tasked with harmonizing the labour laws of the three member countries of the East African Community (EAC), which are Kenya, Uganda and Tanzania.
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