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A firm to undertake a feasibility study to improve the export potential for Ug.
Procurement Process :RFP - Request for proposal
Office :UNDP-UGA - UGANDA
Deadline :16-Jul-23 @ 04:59 PM (New York time)
Published on :29-Jun-23 @ 12:00 AM (New York time)
Development Area :OTHER  OTHER
Reference Number :UNDP-UGA-00116,1
Contact :JONATHAN KAWUMA - ug.procurement@undp.org

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Introduction :

Introduction

Uganda has made considerable progress in diversifying its export bundle. Export growth in Uganda has over the last decade been impressive increasing from about USD 2.810 billion in 2012 to about USD 4.493 billion in 2021. As such, Uganda’s third National Development Plan (NDP III) 2019/20 – 2024/25 identifies export promotion as one of the development strategies to drive industrialization, create employment and livelihood opportunities, generate wealth and foster inclusive growth.

NDP III also rightly, recognizes the AFcFTA market as one of the strategic opportunities that will spur increased interest for foreign direct investment, create over 2.5 million jobs envisaged, and open new markets for Ugandan products with exports to the rest of Africa increasing by USD 199 million. The African continent particularly the Common Market for East and Southern Africa (COMESA) remains the main destination of Uganda’s exports. Earnings from African economies increased from USD 1.598 billion in 2012 to USD 1.972 billion by 2021. The significant increase in earnings from African economies highlights the importance of the AFcFTA to the country and reflect huge scope for expanding exports.

To drive the cross-border trade agenda, the Government of Uganda has put in place robust legal and policy frameworks including the National Trade Policy, National Industrial Policy, AFcFTA National Implementation Strategy and a continuum of relevant sector policies and strategies covering disciplines supportive of regional and international trade. The President of Uganda also established the Presidential Advisory Committee on Exports and Industrial Development (PACEID) whose objective is to increase Uganda’s exports by USD 6 billion in the next five years by addressing strategic and operational bottlenecks that impede Uganda from fully harnessing its industrial and export potential. The Government also signed the AFcFTA Agreement in March 2018 and subsequently deposited the instrument of ratification with African Union Commission in November of the same year.

The United Nations Development Programme (UNDP) recognizes inclusive intra-Africa trade as a prerequisite to accelerate achievement of the 2030 Agenda for Sustainable Development and Agenda 2063 – a blueprint for Africa’s development. To this end, UNDP in Uganda is supporting efforts to harness the enormous potential of AFcFTA to drive inclusive growth and accelerate the country’s structural transformation. UNDP is partnering with the Government of Uganda and several Business Support Organisations to:

  •               enhance the capacities of national institutions and trade support institutions to create an enabling environment conducive to the realization of AFcFTA;
  •               strengthen trade readiness and competitiveness of Micro, Small and Medium-sized Enterprises (MSMEs) to position, produce for, as well as trade through intra-African marketplaces and mechanisms.
  •                  build capacities to identify key products and services’ offering competitive advantages; and trade and market opportunities within the context of AFcFTA; and
  •                 enable SMEs, particularly those led and owned by women and youth to access niche markets in Africa. 

Scope of Work

Taking into account the purpose of the assignment, the Consultant will undertake the following:

a)       Analyze the AFcFTA legal texts and any other existing official documents relevant to the assignment to determine its implications to Uganda trade (for goods and services) with the rest of Africa.

b)      Conduct an analysis of the targeted countries’ trade over the last 10 years. The trade analysis should specifically focus on and highlight the following:

o   Main exports at HS six-digit level and destination markets.

o   Main imports at HS six-digit level and source countries.

o   Analysis of the targeted countries’ products/sectors growth trends and prospects.

o   Uganda’s main exports at HS six-digit level to the targeted countries

c)       Determine, from data, products with export potential for Uganda at HS six-digit level.

d)      Conduct an analysis of the targeted countries’ trade over the last 10 years with respect to the following 5 priority sectors: Communication, Transport, Financial Services, Tourism and Business Services. The trade analysis should specifically focus on and highlight the following:

o   A regulatory review of the priority services in the target countries.

o   Main exports based on the WTO/120 Services Sectoral Classification List which is incorporated by reference to the AFcFTA Services Protocol.

o   Main imports based on the W/120 (see above) and source countries.

o   Analysis of opportunities for commencement and growth, as appropriate – for exports in the above -mentioned services sectors which consist of the first 5 priority sectors for the AFcFTA.

o   Identification of any indirectly converging services sectors of export interest in these targeted countries.

e)      Undertake stakeholder consultations including exporters, Government ministries, agencies and departments, exporters or business associations that may have an interest in export opportunities.

f)        Consumption and production trends by targeted countries of products of export interest to Uganda. The analysis should assess supply and market demand, required Sanitary and Phyto-sanitary Standards (SPS), identify main local and foreign suppliers (importers) and analyze distribution channels for the of export interest to Uganda.

g)       The level of tariffs applied to Uganda’s exports in the targeted markets and to products that have export potential as well as the projected reductions based on AFcFTA submitted tariff offers.

h)      Analyze import regulations and non-tariff measures faced by Uganda’s existing and potential exports to targeted markets. The analysis of non-tariff measures should include but not be limited to:

o   All measures affecting importation of goods into the target countries.

o   Rules of origin per product of existing and potential export products.

o   Customs, border procedures and other trade facilitation measures.

o   Import license regulations.

o   Sanitary and Phytosanitary measures.

o   Food and Agricultural import regulations (food standards, labelling requirements and other regulations).

o   Technical Barriers to Trade

i)        Recommend practical market entry and penetration strategies for identified Ugandan products and services into each of the targeted markets. The strategies should also propose diplomatic, technical and political solutions to the identified Non-Tariff Barriers.

j)        Assess the feasibility of establishing Uganda Trade Hubs in the select markets as well as advise on the priority order for establishment including the main trade focus of the hub in each market.

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UNDP OFFICE UGANDA

PROCUREMENT UNIT

Amendment : Addition to the scope of works.
Documents :
Negotiation Document(s) (Before Accessing other negotiations Document(s), please click on this link)