UGANDA INVESTMENT AUTHORITY

AGRICULTURE (BEEF)
 Overview of the Agriculture Sector

The Agricultural Sector is the most important sector in Uganda with the
largest source of Uganda‟s export earnings (40% FY 2012/13). The sector
(production) currently employs 66% of Uganda‟s working population,
which is a reduction from the traditional 70-80% indicating that more of
the work force is shifting to the services and agro processing sub sectors.
The sector contributes 23% to total GDP largely accounted for by
increased cash and food crop and production.

Uganda has the unrivaled potential to be the food basket of the East
African Community, as well as the Great Lakes regions, with the capacity
to export processed food stuffs to the wider COMESA economic bloc if
more investment is targeted at processing more of the agro products.
Currently, Uganda exports substantial surplus to South Sudan, Kenya,
Tanzania, and Burundi, Democratic Republic of Congo, Rwanda and some
countries in the COMESA region.

Uganda has very fertile soils, particularly around Lake Victoria. Coffee is
grown as the main export, with tobacco and tea the next highest-earning
agricultural products. Cocoa beans, palm oil and sugar cane are also key
cash crops for the country‟s farmers. The sector‟s contribution is vital to
increasing the country‟s export earnings, creating incomes to eradicate
poverty and providing a source of good quality food stuffs (in most cases
organic)

The booklet details the status of production and investment opportunities

in the commercial farming of coffee and tea, among other crops;
aquaculture to farm the Nile Perch, Tilapia and ‘Mukene’ species among
others; and livestock for the developing meat industry.

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 Investing in Uganda’s Meat Sector

1.0: Background to the

Sector
Livestock production
constitutes an important sub-
sector of Uganda‟s agriculture,
contributing about 9 per cent of
Gross Domestic Product and 17
per cent of Agricultural Gross
Domestic Product and is a
source of livelihood to about 4.5
million people in the country
(UIA, 2009).

In economic value, cattle are considered the most important livestock

although other animals such as goats, sheep, pigs and poultry are equally
important. Cattle are the main source of meat in the country and are
reared on rangelands which occupy 84 000 km². The greatest
concentration of livestock is found in the "cattle corridor", extending from
South-Western to North Eastern Uganda. This corridor covers the districts
of Ntungamo, Mbarara, Mpigi, Kiboga, Luwero, Apac, Lira, Soroti, Kumi,
Mbale, Moroto, and Kotido (INFOTRADE, 2011).

Most of the beef production is the done on extensive production systems

mainly located in the cattle corridor system in Central Uganda. The
livestock sector is governed by several policies and regulations including
the national delivery of veterinary services, national veterinary drug policy,
national hides, skins and leather policy, animal breeding policy and the
animal feeds policy among others. The recently enacted Meat Industry
development law was instituted to improve production, processing and
marketing of meat and meat products.

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1.1: Overview of Uganda’s Meat Sector

Graph 1: Livestock Numbers (‘000), 2009-2012

Source: UBOS (2013)

The meat sub sector is mostly very domestic and self-sufficient, with very
limited exports. There is a need to increase production through large scale
commercial farming and ranching to take advantage of the increasing
demand for Ugandan meat in the region.
i) Cattle
Uganda‟s beef is ranked 5th best in the world because of its yellow fat that
does not contain cholesterol mainly because the cows are naturally grazed.
An estimated 90% of the national cattle herd is kept under pastoral and
mixed small holder farming systems. Commercial beef ranching is limited
accounting for less than 10% of the national herd. The main sources of
meat are the culled animals and excess steers in the various farming
systems.

One must note that lean meat is preferred as a beef product by

consumers. Therefore, farmers that have traditional and indigenous
animals are at an advantage as they fetch higher prices. In western-central
Uganda cattle corridor, even up to Luwero, zebu and long horned cattle are
kept for beef production.

Zebu and the Ankole-Watusi cattle are small, hardy and well adapted to
local
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conditions, but beef yields are relatively low because the animals don‟t
grow too big. The Ankole-Watusi is medium in size weighing between 900 –
1,200 pounds and the bulls weighing 1,000 -1,600 pounds. Newborn
calves weigh between 30 – 50 pounds. Therefore, beef off-take from this
sub-sector is very small. There are efforts to introduce newer breeds of
cattle to the area, through the establishment of village artificial
insemination points. Other types of cattle kept in Uganda include:
• Boran: This breed belongs to the large East African short horn Zebu that
originated from the Kenya-Ethiopian border. It is an ideal choice for
rangeland beef production because it is a vigorous grazer, has low
maintenance requirements, high ability to convert low quality feed into
prime beef, responds well to high quality feeds and is highly adaptable to
dry rangelands and is disease resistant. Mature weights of Boran range
from 500-88kg in bulls and 400-550kg in cows;
• Brahman: This humped cattle breed was developed in the USA for beef
production using Bos Indicus foundation stocks from India. It has high
growth rates, is tick tolerant and performs well under a wide range of
climatic conditions. Mature weight in cows ranges from 440-650kg and
720-990kg in bulls, with an average daily weight gain of up to 1,800
grams;
• Bonsmara: This breed originates from South Africa and was developed
from the Afrikaner, Hereford and some Shorthorn breeds. Mature cows
weigh between 590-900kg and bulls weight between 892-1,200kg.

ii) Goats
Traditional goats are very good in the production of lean meat as they do
not have a lot of body fat. The cross-breeding of the local goats with
imported goats, especially Boer goats from South Africa is being done by
some farmers to improve on the animal size and to improve on the
maturity gestation period. Traditional goats mature in a period of up to 18
months and have a body weight of up to 18 kg while Boer goats mature in
a shorter period (9 months) and have a body weight of more than 25 kg.
This increase in the body size means that farmers earn more from these
animals. A good example of successful cross-breeding is the emergence of

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 the Mubende breed. The Small East African goat and its larger sister, the
Mubende breed, have the finest skin from a non-endangered animal on the
world market. There is still opportunity for investment in other cross
breeding to improve yields for better and more meat, as well as goat milk.

iii) Sheep
Sheep farming in Uganda for the production of meat is very low as there
are many traditional taboos against eating sheep meat. However, there has
been an increase in the farming that has also seen the importation of
improved sheep from South Africa. This has been in response to an
increase in demand regionally.

2.0: Key Products in the Sector and Industry Players

Statistics show that there are 7 small scale meat processing plants
producing around between 300 to 700kgs of meat products per day.There
is also increased informal and formal exports of meat products and live
animals from Uganda to regional markets. Uganda is not exporting as
much as what is commensurate with the large livestock population
existing in the country. This is because of the difficulties in complying with
international sanitary and phytosanitary standard requirements. These
difficulties notwithstanding, there are success stories in the sector as well
as government and development partner efforts to increase capacity in the
sector and improve the products and productivity.

A Story of Success

Company: Quality Cuts

1993: Stephan Duyck, proprietor and Managing

Director opened a simple butcher shop in a Kampala
suburb selling unprocessed beef, chicken and pork to
individual buyers. Quantities were about three cows,
one pig and 100 chickens per day

2005: Bought a sausage making plant in Seguku – Imperial Gourmet [now Fresh
Cuts], which was later developed into the wholesale arm of Quality Cuts, mainly
imes
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dealing with export orders. This tripled the firm‟s production capacity for the
various products including beef, mutton, goat meat, chicken and pork to an
average at 22 tonnes per day.

Currently: Quality Cuts sells processed and packaged meat from more than 100
cows (Boran), 56 pigs and 3,000 chickens per day. The company supports the
farmers who supply them with meat in order to ensure the health of the animals
and quality of the meat produced.

Value of investment: Quality Cuts started with a $300,000 investment and is

currently worth of about $3 million. Ireland Blyth Limited (IBL), one of the largest
business groups in Mauritius operating in five main sectors of retail, financial
services, seafood, and marine, logistics and engineering & commerce recently
signed an agreement to co-own the processing plant. According to Duyck, in an
interview with the media, „the new shareholding structure has not only enhanced
professionalism and production capacity but plans are underway to invest $2.5
million in a pork products processing plant.‟ The firm also recently signed a
memorandum of understanding with the Uganda Meat Producers Union and
Notura, a Norwegian Meat firm, to develop a $10 million abattoir and processing
plant in Uganda.

Market: Apart from selling its products locally, Fresh Cuts also exports to Sudan,
the Democratic Republic of Congo and Rwanda. Plans are underway to venture
into Tanzania soon. Fresh Cuts is currently among the Top 100 Mid-sized
companies in Uganda.

Employment creation: Quality Cuts employs about 250 workers on a

permanent basis with between 20 and 30 casual workers on a daily basis.

Other key Industry Players

• Uganda Meat Industries on Old Portbell

Rd, Kampala. The company has a spacious
slaughter house in the industrial area of
Kampala. It is one of the leading players in
the sub-sector.
• Lubowa Investments Limited on Entebbe Road
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• Meat Process (U) Ltd on Ggaba Rd in Kampala are involved in general
meat processing

 Farmers Choice a beef, poultry and

pork producing company, operates in
Kampala under the franchise name
„Your Choice,‟ producing beef and
pork products in the market. In
Uganda, sausages are still largely a
reserve delicacy for the urban elite
communities. Growth in
consumption of processed meat products is often more visible
among middle-class consumers.

 Sembeguya Estates is a wholly

domestic owned goat farm that
targets the Arab market. The
company entered a partnership with
the government of Uganda to
distribute local and exotic goats
(pure savannah goats are highly
productive) to farmers to enable the increase of their productivity
targeting the export market. Before distribution, all the goats are
pre-treated, sprayed, de-wormed and vaccinated against Peste des
Petits Ruminants, a highly contagious goat disease.
 Ugachick Poultry Breeders is a
private Ugandan, family owned and
run business. Established in 1992, it
has since evolved into a vertically
integrated poultry producer, located,
about 15 miles North of Kampala.

 Biyinzika Enterprises Ltd, a Uganda/Dutch joint venture in

Kampala, which has built sizable clientele base which currently

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 stands at a market share of 50-60% in supplying day old chicks in
Uganda

3.0: Sector Outlook

3.1: Meat Production

Source: Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) –

Animal Production and Marketing (2012)

Total cattle ownership is estimated to have increased by 54% since 2005.

Nonetheless, current production levels in the sub-sector can still only meet
half the domestic and regional demand. The potential for the export
market is high and opportunities exist for the expansion of dairy and
meat; hides, skins and leather; apiculture and sericulture.

The Hides, skins and furskins are the major export earners followed by
dairy products and bird eggs, meat, live animals and meat preparations.
The major export markets for the products are Burundi, Democratic
Republic of Congo, Kenya, Rwanda, Southern Sudan and Tanzania.
Southern Sudan is the major destination for Uganda‟s meat products.
Other potential export markets for livestock and livestock products exist in
the Middle East countries and the European Union.

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Exports are still limited because of the prevalence of diseases, lack of an
export-standard abattoir and the high demand of the national market
(MAAIF, 2011). Access to export markets of livestock and livestock
products requires at times significant investments to meet veterinary
requirements largely intended to protect the importing country‟s animal
and human populations. Furthermore, the exporting country must meet
additional product quality requirements with respect to production,
marketing and processing. Generally, compliance with international or
regional standards is often achieved by developing countries at a great
cost. Gaining access and maintaining presence in high value markets such
as the EU market is often costly as standards and expectations keep on
growing due to consumer pressure in the targeted high-value markets. So
far one or two meat processors are close to achieving this standard.
Herein lies a viable investment opportunity to joint venture with an
existing processor to improve the productivity levels and products to
international standards.

Trade Statistics for Meat and Meat Preparations by Value (000’ US$)
Exports Re-exports Imports
2008 530 3 1,242
2009 634 15 1,277
2010 2,171 4 1,719
2011 1,682 11 3,241
2012 1,648 31 2,861
Source: Uganda Bureau of Statistics, Uganda Revenue Authority, Civil
Aviation Authority (UBOS: Statistical Abstract 2013)

3.2: Annual production and growth trends

Uganda has enjoyed substantial growth in beef and fed cattle exports over
the past years as economic conditions favoured development and
expansion of the cattle feeding industry. Similar to the period 2010-2011,
livestock/poultry numbers increased between 2011 and 2012 by about
3.2%. These increments were attributed to the steady efforts to control
animal diseases and improvement in the livestock production systems as a

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result of routine livestock extension intervention services. However, there
was a reduction in exports due to increased national demand, indicating a
need to increase productivity by promoting large scale commercial farming
/ ranching with modern techniques that can withstand the climatic
changes that have affected output

Cattle and Poultry Numbers (‘000) by breed, 2009-2012

Cattle Poultry
Year Indigenous Exotic Indigenous Exotic
2009 10,963 788 33,820 4,737
2010 11,292 812 34,834 4,879
2011 11,631 836 35,879 5,026
2012 11,979 861 39,644 6,257
Source: 2013 Statistical Abstract (UBOS)

Beef production in Uganda uses predominantly indigenous breeds

(INFOTRADE, 2011) while improved cattle breeds are kept under intensive
management, mostly on small scale and medium sized dairy farms and
zero grazing unit. The indigenous breeds are mainly kept under extensive
system. The indigenous breeds are East African short horn zebu, long
horned Sanga, Ankole, Turkana, and Toposa. The indigenous breeds
account for about 95 per cent of the national herd/flock of which the
Ankole (50 per cent) longhorn breed1 is most dominant. Small numbers of
exotic tropical beef breeds are found on commercial ranches, most notably
Boran and, to a lesser extent, the Bonsmara and their crosses with
indigenous breeds. In terms of distribution, the eastern region (23 per
cent), Karamoja (20 per cent) and central region (19 per cent) have the
highest number of cattle followed by the south western (16 per cent) and
the northern (14 per cent) regions

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Major Livestock production districts in Uganda

Source: INFOTRADE (2011)

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4.0: 10 Reasons why Uganda’s Meat Industry is a Viable
Option for Investment

1. Organically fed animals:

Uganda‟s animals are fed
on natural grass (more
than 80% of the feeding),
therefore beef is organically
produced. This means
there are very minimal
grain feeding and nutritional supplements.
2. Low cholesterol and fat level in meat: The Ankole cattle, the main
supplier of meat in Uganda have the leanest meat making it a
healthier option for consumption.
3. Flavour: Uganda‟s meat is known for good taste and flavor. This is a
good market quality attribute.
4. Strategic location: Uganda is strategically located in the Great
Lakes region which is ideal for supplying the growing regional
markets in Kenya, Tanzania, Southern Sudan, Congo and Rwanda.
5. Halaal certification: Uganda‟s beef is produced under halaal
slaughter with independent halaal certifiers. This is a requirement
for markets that practice Islam.
6. Affordable inputs: Livestock, feed and labour
7. Available land for agriculture: Uganda has abundant land for
production and processing and the climate and soils are good for
poultry feed production.
8. Improved transport infrastructure: in form of upgraded road
network and air transport.
9. Effective demand: Consumption of beef is increasing both in
absolute terms and on per capita basis, as the incomes of people
increase. Beef consumption in Uganda is only 6kgs per capita,
which is below the recommended 50kgs by FAO. The growing
incomes represent an opportunity to invest in the sector.

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 10. Conducive climate: Uganda has great potential for the export
of meat products to the neighboring countries where the hostile
climate hinders production of quality beef.

5.0: Investment Opportunities in the Sector

5.1: Potential areas for investment

1. Meat canning: Although canned meat has wide distribution because
of sterility and long shelf life, currently there are no meat canning
facilities in the country. All the tinned beef in Uganda is imported
from Europe (Denmark and Germany) and South Africa. It packed in
250 grams and 500 grams containers. The most common brand is
Morgan‟s.
2. Investing in meat processing and canning is a good business
opportunity in Uganda and the Great Lakes region.
3. Abattoirs: The construction and operation of modern (international
standard) abbatoirs
4. Animal breeding and supply of stock
5. Vaccine development
6. Feedlot fattening projects
7. Poultry farming and processing
8. Animal feeds manufacture and innovations, for instance Makerere
University in Kampala has developed nutritious organic grass feed
from (green house grown) barley
9. Leather processing
10. Development of information marketing systems (local and
international) to scale up the production and marketing trends

5.2: Some Indicative Costs of Investment (based on pre-feasibility

business plans-2011)

1. An Export Oriented Beef Processing Plant

 Projected capacity: 1,000 kg of beef cuts and 1,000 kg of processed
meat products like sausages.

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  Estimated total investment: US$ 1,168,066
 Estimated payback period: three (3) years

2. Poultry farming and processing

 Projected capacity: 10,000 birds per day to produce dressed chicken
and chicken parts for domestic, regional and the Middle East
markets
 Estimated total investment: US$ 6,753,804
 Estimated payback period: five (5) years.

3. Meat canning
 Projected capacity: 5,000 canned products per day of canned meat,
corned beef, canned minced meat, canned meat pieces in stew and
canned hams
 Estimated total investment: US$ 2,489, 284
 Estimated payback period: three (3) years

4. Operating modern abattoirs to produce high quality products for the

local and the export markets
 Projected capacity: 9,000 tones (carcass weight) per annum for a
central abattoir and processing plant in Nakasongola in Central
Uganda, and an abattoir with slaughter and cutting lines at
Kiruhura in South-West Uganda
 Estimated total investment: US$ 13,565,900
 Estimated payback period: five (5) years.

5. Undertaking feedlot fattening projects

 Projected capacity: The project aims to purchase young and weaned
calves of about 4 months old from a myriad of small scale producers
and ranchers within the cattle corridor and have them prepared for
slaughter (i.e. fattened) through improved feeding
 Estimated total investment: US$ 6,753,804
 Estimated payback period: five (5) years.

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6.0: Availability of special skills
Uganda has skilled human resource from Universities and Technical
Colleges which is trainable and easily adapts to new technologies. There
are graduates in Food Technology with industrial practical experience
acquired from existing processing plants. Makerere and Kyambogo
Universities have 30-40 graduates in food science and technology each
year

7.0: Quality Standards and Licenses required for operation

in the sector
7.1: Licenses / Registrations Required for Operations

 Certificate of Incorporation from the Uganda Registration Services

Bureau (URSB)
 Investment License from the Uganda Investment Authority (UIA)
 Health Certificate for Facilities and Personnel from the District
Health Department
 Product Certification form the Uganda National Bureau of Standards
(UNBS)
 Tax registration form the Uganda Revenue Authority (URA)
 Environmental Permit from the National Management
Environmental Authority (NEMA)

Environmental Aspects
The National Environmental Management Authority (NEMA) and the
Uganda National Bureau of Standards (UNBS) are responsible for ensuring
compliance with national environmental and hygiene requirements.

7.2: Regulatory Framework and adherence to Standards

Uganda is vigorously pursuing policies, the regulatory framework and its

15
enforcement so as to conform to SPS measures on animal health and food
safety since she is a member of the WTO, and the OIE (World Organisation
for Animal Health). The East African Community also 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. Below are the
applicable regulatory frameworks:

1. The Animal Diseases Act 1964, 2003 selective ban on importation of

cattle, beef, semen, ova, embryos, etc in relationship to BSE;
2. The Cattle Trading Act 1964;
3. The Hides and Skins Act 1964;
4. The Veterinary Surgeons Act 1970;
5. The Animal (Straying) Act 1964;
6. The Animal (Prevention of Cruelty) Act 1957;
7. The Cattle Grazing Act 1964;
8. The Animal Breeding Act 2000;
9. The Uganda National Bureau of Standards 1993 and 1998;
10. The National Water Statute;
11. The National Environmental Protection Statute;
12. The East African Community Sanitary Phyto-sanitary provisions;
13. The WTO SPS Agreement and measures;
14. The OIE international Animal Health Codes, among others.

Most veterinary regulatory frameworks are old and are thus being reviewed
or entirely reformulated to meet the new economic policies and to
harmonise with WTO Agreements and measures. These will also be
harmonized with the regional and international regulatory frameworks on
similar issues. Uganda also expects to conform to the EAC, WTO / SPS,
OIE and Codex Alimentarius standards and procedures so as to guarantee
its continued participation in the global market.

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7.3: Regulatory Institutions

Ministry of Agriculture, Animal Industry and Fisheries (MAAIF): This is

the parent ministry of the livestock sector which designs all government
policies and laws promoting the development in the meat industry.
Government of Uganda retains the responsibility to control certain
epidemic diseases of livestock such as Foot and Mouth Disease,
Contagious Bovine Pleuro Pneumonia, Rinderpest and Rabies.

Uganda National Bureau of Standards: Responsible for setting the

national standards for products and their enforcement.

National Animal Genetic Resources Center and Data Bank (NAGRC &
DB): NAGRC & DB is the custodian of the animal breeding policy and
responsible for implementing of all government policies related to animal
breeding in Uganda, including artificial insemination.

National Agricultural Research Organization (NARO): NARO is

responsible for research in the livestock sector. Different NARO divisions
do research and development of technologies in animal health, breeding
and nutrition of livestock. Veterinary services in the country are now
privatised and are readily available in most parts of the country.

National Animal Genetic Resources Centre and Data Bank

(NAGRC&DB) is a corporate body that was established by the Animals
Breeding Act of 2001 with the mandate to oversee and spearhead livestock
genetic improvement in the country. The semen of high beef breeds is
available in Uganda having been imported from the best semen suppliers
in the world.

National Environment Management Authority (NEMA): is the lead

agency for the development of environmental, including effluent, standards
and has the authority to examine factories without prior notice and to
shut down polluting productions. NEMA has 108 inspectors in the whole

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country.

Ministry of Water, Lands and Environment: Although the Ministry does

not have any treatment plants, it has a laboratory that is equipped with an
atomic absorption spectrophotometer (AAS) which is able to detect
chromium in waste water.

National Water & Sewerage Corporation (NWSC): NWSC is not obligated

to accept waste water from a factory if the pre-treatment is not adequate. If
the effluents are rejected by NWSC, the factory has to comply with the
national effluent standards as defined by NEMA.

Uganda Beef Producers Association (UBPA) is a membership

organisation of all stakeholders in the Beef industry. UBPA‟s core
functions are:
i. Advocacy;
ii. Effective service provision to its members;
iii. Mobilisation of its members;
iv. Income generation for the association;
v. Information and publicity roles, and:
vi. Generation of a data bank and record systems as part of information
generation and provision.

As part of its mandate, the UBPA is trying to undertake the following as

part of a broad development agenda:
• Put in place a modern abattoir as a pre-condition for development of the
exports and targeting the export market;
• Operationalise a model ranch programme based on the concept that
UBPA would lease two run-down government ranches, rehabilitate them
and develop them to be used for beef production;
• Develop a comprehensive market plan for Uganda with the aim of
improving the access to domestic, regional and global markets. This would
also include UBPA establishing a seal of approval of quality maintenance,

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establishing a weighing system, license beef traders, create awareness
among consumers, among others;
• Establish a breeding programme including the establishment of a
livestock register, a regional member information centre, breeding
infrastructure, performance progeny tests and capacity building services;
• Start an animal health programme with the aim of, inter alia,
establishing disease control zones in Uganda, a pre-condition for exporting
beef products;
• Undertake an education and training campaign aiming at raising the
awareness of the requirements for enhancing quality and exports.

8.0: Sector Specific Related Incentives

Incentives Rate Comments

Import Based Agriculture as a priority sector has exemptions from import

Incentives duty

Plant and Machinery - Duty free at importation (for most

directly used in production), VAT and Withholding Tax
exemption

For details of the listed incentives please log onto the

Uganda Revenue Authority: www.ura.go.ug

Export Based All exports are tax exempt except raw hides and skins
Incentives  Manufacturing Under Bond taxes)
 Duty exemption on plant and machinery and other
inputs
 Stamp duty exemption
 Duty draw back – a refund of all or part of any duty
paid on materials, inputs imported to produce for
export
 Withholding tax exemptions on plant & machinery,
animal drugs and raw materials

Investment Capital 50% Initial Allowance on plant and machinery for industries
Allowances located in Kampala, Entebbe, Namanve, Jinja and Njeru

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 75% Initial Allowance on plant and machinery for industries
located elsewhere in Uganda
25% Start up cost on actual expenditure incurred over the first 4
years in 4 equal instalments
20% Initial Allowance on Industrial buildings
Deductible Annual 5% Depreciation rate for Industrial Buildings
Allowances 40% Computers and data handling equipment
(depreciable assets) 35% Automobiles; buses and minibuses seating capacity of less
than 30 passengers; goods vehicles with a load capacity of
less than 7 tones; construction and earth moving equipment
30% Buses; goods vehicles specialized trucks; tractors; trailers
and trailer-mounted containers; plant and machinery used
in farming, manufacturing or mining operations

Comprehensive- list on www.ura.go.ug

Special Deductions 100% On scientific research capital expenditures

On costs of training /tertiary education of a citizen or
permanent resident of Uganda
Of income tax payable if 5% of their employees on full time
basis are persons with disabilities

2% Depreciation allowance granted on expenditure incurred on

farm works

Type of Tax Rate Comments

Income Tax Rate 30 % However, corporate tax for mining companies varies from
25% to 45%

Capital Gains Tax 30% Capital gains are taxable that are delivered from the
Rate disposal of assets held by a company

Dividends and 15% Tax is exempted in case a resident recipient company

Interest controls 25% or more of the voting power of the resident
company

Value-added Tax 18% Supply of goods used in Agriculture exempted from value
(VAT) added tax

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Value-added Tax 0% Good or services are exported from Uganda
(VAT) Supply of seeds fertilisers; machinery, tools and implements
suitable for use only in agriculture.
Comprehensive- list on www.ura.go.ug

Capital duty 0.5% Charged for increase in nominal capital and incorporation of
the company

9.0: Marketing Structure of beef Products

There are groups and associations that have organised themselves to
influence the supply and demand of the beef industry sector and these
are: the Uganda National Beef Producers‟ Association, the Uganda National
Farmers Federation, Uganda Livestock Industries and Uganda
Manufacturers Association (UMA). These groups influence the market
conditions in terms of supply and demand for the products. The Uganda
National Bureau of Statistics certifies the quality of the meat products in
order to declare them fit for human consumption.

The meat products market in Uganda has been liberalised since early
1990s whereby the prices of beef and beef products are determined by
market forces to a larger extend. This has led to free participation of the
private sector and also increased informal marketing of beef. Domestic
consumption of livestock products has continued to raise and will
continue as incomes go up due to focused Government interventions
geared towards poverty eradication. The tourist industry has expanded
tremendously, bringing in a new clientele of customers often demanding
prime quality and sometimes unique products. This continued expansion
of the internal market spells good prospects for medium-term growth in
the industry.

The neighboring countries and others in the COMESA have limited

available land, unpredictable weather patterns and high population growth
rates. This offers opportunities for Uganda to penetrate these markets. The
re-establishment of the East African Community has opened a wider

21
market for Uganda. The Middle East and the Arab countries of North
Africa are also a potential market.

Marketing Trends in the Beef Industry

Several trends in the beef industry are driving the need for increased use
of Value Chains. Not only are customers increasingly looking for a “story”
to be told of where the beef product came from, but also major food service
customers are requiring traceability. For example, the high end fast foods
service providers audit suppliers‟ documentation to ensure that they are
complying with food safety regulations, in particular related to UNBS and
UBPA.

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10. Key/Useful Contacts

1. Uganda Beef Producers Association (UBPA)

Tel: +256 414 257538
Email: [email protected]

2. Uganda National Farmers Federation (UNFFE)

Tel: +256 414 340249
Email: [email protected]

3. Uganda National Bureau of Standards (UNBS)

Tel: +256 414 505995 / 222369
Email: [email protected]
Website: www.unbs.go.ug

4. Uganda Export Promotion Board (UEPB)

Tel: +256 414 230233
Email: [email protected]
Website: www.ugandaexportsonline.com

5. Uganda Registration Services Bureau (URSB)

Tel: +256 414 233219
Email: [email protected]
Website: www.ursb.go.ug

6. Uganda Manufacturer’s Association

Tel: +256 414 287615
Email: [email protected]
Website: www.uma.or.ug

7. Private Sector Foundation Uganda (PSFU)

Tel: +256 312 263850
Email: [email protected]
Website: www.psfuganda.org.ug

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8. Uganda Investment Authority
Tel: +256 414 301000
Email: [email protected]
Website: www.ugandainvest.go.ug

9. Uganda Revenue Authority (URA)

Tel: +256 417 444602
Toll free: 0800 117000
Website: www.ura.go.ug

10. National Environment Management Authority (NEMA)

Tel: +256 259735
Website: www.nemaug.org

11. Ministry of Agriculture, Animal Industry and fisheries (MAAIF)

Tel: +256 414 531411
Email: [email protected]
Website: www.agriculture.go.ug

12. Ministry of Trade, Industry and Cooperatives (MTIC)

Tel: +256 414 314268
Email: [email protected]
Website: www.mtic.go.ug

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 Contact:
Uganda Investment Authority
Twed Plaza, Plot 22B, Lumumba Avenue
P.O.Box 7418 Kampala, Uganda
Tel: +256 414 301 000
Fax: +256 414 342 903
[email protected]
www.ugandainvest.com