Submitted by: Maria Josephine Nagawa

Lecturer Makerere University Business School Kampala, Uganda

Submitted to: Trade Facilitation Office Canada (TFO Canada) and International Development Center

(IDRC)

September 2016

Opportunities and Challenges

PROMOTING EXPORTS OF UGANDAN SPECIALTY TEXTILES TO CANADA

Maria Josephine Nagawa

Abstract

The textile industry is particularly strategic for developing countries because of its capacity to create employment across the entire value chain, to introduce new and easily adaptable technologies, and to boost incomes on both a national and individual level. The Ugandan textile industry experienced a near total collapse during the political and economic turbulence of the 1970s and 80s, and recent efforts to revive it have produced only negligible success. TFO Canada and the International Development Research Center (IDRC) have funded this study, which aims to explore the challenges and opportunities for exporting Ugandan specialty textiles and apparel to Canada and to the rest of the world, and to provide the most up-to-date information on the sector. The study gathered information on 36 small and medium sized enterprises (SMEs) producing specialty fabrics and apparel and conducted key informant interviews with various institutions affiliated with the sector. The study found that the cottage industry, where most textile producers are engaged, suffers from problems attributed to the unfavourable business environment including the high costs of credit, high energy costs, few tax incentives, and poor physical infrastructure. Nevertheless, Uganda’s SMEs boast low labour costs and unique fabrics with significant potential for quality improvements. Given the existing constraints to export, the study concludes that SMEs will not only need open markets and product promotion, but also significant investments in finance, technology, and skills training to boost their capacity to export.

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Acknowledgments

This case study report was authored by Maria Josephine Nagawa1, a lecturer at Makerere University Business School and part time research consultant. The author would like to thank her research team for their hard work throughout the project: Sophie B. Alal, Martha Nassali, Ssekamatte Allan, Barbara Yiga and Elaine Yiga. The author would also like to acknowledge, with gratitude, the contributions from key informants: John Walugembe from Uganda Small Scale Industries Association (USSIA), Noreen Kamoti from Uganda Export Promotion Board (UEPB), Basil Ajer from the Small and Medium Enterprise (SME) Department of Uganda Investment Authority (UIA), Joel Oryang from Uganda National Bureau of Standards (UNBS), Vinnay Kumar and Richard Mubiru from Nyanza Textiles (NYTIL), Prof. Aaron Wanyama from Kyambogo University, Suudi Kizito from Ministry of Trade, Industry and Cooperatives (MTIC), Agnes Kiganda from Exposure Africa, and Fred Mutebi from Bukomansimbi Organic Tree Farmers’ Association (BOTFA). The author would also like to thank the 40 SMEs and associations that informed the findings of this study. Special thanks goes to USSIA for its support in locating the SMEs. The case study report was funded by Trade Facilitation Office Canada (TFO) and International Development Research Centre (IDRC) as part of ‘Promoting Specialty Textile and Fabrics in Least Developed Countries, a two-year research project that aims to promote exports of specialty textiles and fabrics and provide the most updated information in the sector. Its findings and conclusions are those of the author and do not necessarily reflect the positions or policies of either TFO Canada or IDRC.

1 See Appendix 1

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Table of Contents Abstract....................................................................................................................................................i

Acknowledgments.............................................................................................................................ii

List of Abbreviated Terms............................................................................................................iv

List of Figures and Tables.............................................................................................................v

Figures.....................................................................................................................................................v

List of Text Boxes and Images..................................................................................................vi

1. Introduction and Background.................................................................................................1

1.1 Objectives of the Study.................................................................................................2

1.2 Methodology...................................................................................................................2

1.3 Structure of the Rest of the Report.........................................................................3

2. Uganda’s Textile Industry........................................................................................................4

2.1 Overview of Uganda’s economy...................................................................................4

2.2 The History of the Textile Industry in Uganda.......................................................5

2.3 The Economic Relevance of the Textile Industry in Uganda.........................6

2.4 Social Dimension..................................................................................................................7

2.5 Environmental Dimension................................................................................................9

2.6 Explaining the fabrics..........................................................................................................9

2.6.1 Bark cloth....................................................................................................................9

2.6.2 Kitenge a.k.a “African” fabric a.k.a “tribal” prints.................................10

3. Stakeholder Analysis and Focus Group Findings....................................................12

3.1 Outline of profiled companies......................................................................................12

3.2 Government interventions.............................................................................................12

3.2.1 Standardisation..........................................................................................................12

3.2.2 Capacity Building......................................................................................................12

3.2.3 Export promotion.......................................................................................................13

3.3 Challenges identified........................................................................................................13

4. Business Entry Strategy into Canada.............................................................................15

4.1 Structure of the Canadian market.............................................................................15

4.2 Trade in Textiles and Apparel.....................................................................................15

4.3 Canada’s Trade with LDCs...........................................................................................17

4.4 Export Strategy to Canada...........................................................................................19

5. Conclusions and Recommendations..............................................................................20

BIBLIOGRAPHY..............................................................................................................................25

Appendix 1: Research Team....................................................................................................29

Appendix 2: Database of producers.....................................................................................31

Appendix 3: TFO Canada Exporter Profile........................................................................33

Appendix 4: PowerPoint presentation at workshop......................................................37

Appendix 5: Images of fabrics..................................................................................................43

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List of Abbreviated Terms

AGOA Africa Growth Opportunity Act BOTFA Bukomansimbi Organic Tree Farmers’ Association CBSA Canada Border Services Agency GDP Gross Domestic Product IDRC International Development Research Centre LDC Least Developed Country MTIC Ministry of Trade, Industry and Cooperatives SME Small and Medium Scale Enterprise TFO Trade Facilitation Office – Canada UBOS Uganda Bureau of Statistics UEPB Uganda Export Promotion Board UIA Uganda Investment Authority UNEP United Nations Environment Program UNBS Uganda National Bureau of Standards USSIA Uganda Small Scale Industries Association

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List of Figures and Tables

Figures Figure 1: The supply chain in the textiles and apparel sector ..................................... 1 Figure 2: Trends in the shares of economic sectors, value added to total GDP ......... 4 Figure 3: Sector productivity per worker in Uganda (2002-2009) ............................... 5 Figure 4: Textiles Imports into Canada (2009-2012) ................................................. 15 Figure 5: Canadian Imports from LDCs under the Canadian Market Access ........... 17 Figure 6 : Top Imports from LDCs under the Canadian Market Access Initiative, 2013 .......................................................................................................................... 17 Tables Table 1: Index of Production, Annual Production levels (2002=100), 2010 – 2014 .... 7 Table 2: Monthly Employment in Selected Manufacturing Firms, 2008 and 2011 ...... 7

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List of Text Boxes and Images Text Boxes

Text Box 1: THE HISTORY OF BARK CLOTH ........................................................... 6 Text Box 2: Supporting vulnerable groups .................................................................. 8 Text Box 3: Africa Growth and Opportunity Act (AGOA) ........................................... 18 Text Box 4: Definition Africa and online branding ..................................................... 23

Images

Image 1: Ugandan or “African” fabrics in Kampala ................................................... 43 Image 2: Bark cloth ................................................................................................... 43

1. Introduction and Background

The textiles industry is particularly strategic for developing countries in both the short and long run. In the short term, the textiles industry has the potential to increase industrial output, to provide jobs by exploiting the labour cost advantage of poor countries, and to boost incomes and export revenues to the population by diversifying exports. In countries such as Cambodia and Bangladesh, the textiles industry accounts for over 80% of manufactured exports and up to 90% of employment in manufacturing. In the long term therefore, the textiles industry can play a significant role in sustained economic development (Keane and Velde, 2008). The textiles and apparel industry bears special characteristics that make it particularly suitable to developing countries. It is labour intensive, offers entry-level jobs for unskilled labour, and advances in technology can more easily be adopted and adapted by poorer countries. Moreover, because of the fast evolutions in fashion, unique characteristics provided by newcomer countries can be used as a competitive advantage. Overall, the structure of the textiles industry allows for strong linkages across the value chain; providing employment and incomes from farming to the final consumer (Nordas, 2004). Figure 1 below demonstrates the supply chain in the textiles and apparel sector. However, fortunes in the textiles industry may vary, depending on a country’s ability to effectively employ technology, on the level of entrepreneurship, and on state initiative. For example, while both India and Japan adopted textiles technology from Britain and the US, Japan was able to overtake India in the early 20th century and become a major competitor with Britain by more efficiently applying the above-mentioned factors (Haussman and Rodrik, 2003).

Figure 1: The supply chain in the textiles and apparel sector

Source: Nordas, 2004 The fashion industry is constantly growing; there are expectations that it will generate USD 5 trillion annually in the next ten years. In Africa, the industry is also on the rise. Companies such as H&M and Phillips-Van Heusen (PVH) are set to build factories in countries like Ethiopia and Kenya respectively. Currently, the combined apparel and footwear market in sub-Saharan Africa is estimated to be worth USD 31 billion (Gregorio, 2016). The strong linkages along the value chain can be capitalized to develop a “made in Africa” brand of apparel and propel a large portion of the population out of poverty. However, large-scale enterprises are not the only avenue for developing business opportunities in the textiles and apparel industry. Small and Medium Scale Enterprises (SMEs) can be supported to access international markets by facilitating direct connections with retailers abroad, through vertical linkages with multinationals, or by clustering them to boost production and marketing capacity. This report is a market entry study that analyzes ways to promote exports of Least Developed Country (LDC) specialty textiles or fabrics produced by SMEs to Canada. A market entry strategy is the planned methodology of delivering goods to a new target market and distributing them there. The exports in specialty textiles and fabrics incorporate local and unique knowledge and expertise that offer valuable trade opportunities from LDCs to Canadian/global markets. The study focuses on the business case for these exports, but also

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pays attention to how these exports could provide employment opportunities for young, female or (where appropriate) ethnic minority entrepreneurs or workers in the country of origin. The Trade Facilitation Office Canada (TFO Canada) and the International Development Research Centre (IDRC) market entry study will inform an audience of practitioners and policy analysts about the most updated information from the selected economic sector (specialty textiles and fabrics), the strategic relevance of the sector, provide a database of contacts of entrepreneurs in the sector, and propose practical solutions to overcome barriers to trade with Canada. There are a variety of countries that were chosen to participate in this project and these include: Uganda, Ethiopia, Madagascar, Bangladesh and Cambodia. This project is going to be targeting over 120 buyers that are already exporting and interested in the available products but have not yet tapped into these markets. The products are going to be showcased in the following provinces in Canada: Quebec, Ontario and British Columbia.

1.1 Objectives of the Study

i. Elaborate a market entry strategy for Ugandan medium and small-scale specialty producers (potential exporters) and exporters of textiles and fabrics into the Canadian market.

ii. Identify how opening up the Canadian market will be economically beneficial to the local exporters in terms of employment and improvement of incomes. Special attention will be paid to the youth, women, and ethnic minorities.

1.2 Methodology

This study used both primary and secondary data, and is largely qualitative. The primary data was collected through:

1) Identification and validation of 36 SMEs and associations (producers and designers2) involved in the specialty textiles sector. A group comprising 5 research assistants physically visited and assisted the SMEs to fill an exporter profile form provided by TFO Canada3. In addition, photos of the workshop and products made were taken for assessment by TFO Canada. The exporter profile form included information on registration, employee structure, capital invested, revenue generated, and export experience. The businesses had to have Ugandan ownership and source local materials for the purpose of making specialty textiles or fabrics and final products (apparel, and fashion and home accessories). To select producers, the study used a database provided by Uganda Small Scale Industries Association (USSIA), references provided by the SMEs and international recognition4. The SMEs identified were located in six districts: Kampala, Mukono, Wakiso, Manafa, Bukomansimbi, and Masaka. Because of the nature of the industry: comprising micro enterprises with negligible linkages most of the SMEs are scattered across the country. Nevertheless, the highest numbers of SMEs in the industry were found in Kampala, Mukono, and Wakiso. These 3 districts alone constitute nearly 12% of the population of Uganda (UBOS, 2014).

2) Focus group discussions with 40 SMEs in the specialty textiles industry. This was done at the USSIA premises in the presence of the TFO Canada representative. These discussions focused on key issues such as: knowledge of the Canadian market; local barriers to export such as transport costs, input costs, and taxes; room for expansion; and quality and depth of the product lines. These factors were used to determine capacity to meet Canadian standards as well as provide regular and continued supply.

3) Key informant interviews with various ministries, enterprises and associations.

2 See Appendix 2 3 See Appendix 3 4 An example of an established designer is Sylvia Owori, who has already been approached by this study: https://en.wikipedia.org/wiki/Sylvia_Owori.

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4) A training workshop 5 that brought together the SMEs, government officials, a representative from the Ugandan High Commission in Canada, and leaders of trade manufacturers’ associations.

Secondary data was collected from Uganda Bureau of Statistics, World Bank data, UNCTAD (2015), and Trademap. A desk review of local and international literature on the textiles and fabrics industry was carried out. And finally, a case study on the Africa Growth and Opportunity Act initiative in Uganda is highlighted. There were several limitations involved in collecting data for the study that included: i) difficulty in accessing information from key institutions, ii) secrecy and suspicion especially on the part of the SMEs, iii) lack of a central database with updated information on the SMEs in the sector, and iv) dispersion of SMEs across the country, making it difficult to visit many of them in the given time frame and with the available funds.

1.3 Structure of the Rest of the Report

The rest of the report is arranged as follows: chapter 2 discusses the state of Uganda’s textiles industry, highlighting its history and economic relevance. Chapter 3 discusses the findings from the focus group discussions and stakeholder consultations; chapter 4 describes the Canadian market and the most appropriate export strategy for Ugandan producers; and finally, chapter 5 provides conclusions and recommendations.

5 See Appendix 4

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2. Uganda’s Textile Industry 2.1 Overview of Uganda’s economy

Uganda is a small developing country with relatively stable GDP performance at USD 23.6 billion as of 2015 and with an average growth of 5% over the last 20 years6. Uganda’s population currently stands at 34.9 million people and the country also has one of the highest population growth rates in the world, averaging 3% per annum. Furthermore, approximately 56.1% of the population is less than 18 years (UBOS, 2015) 7 . The population, however, is not very well educated. While Uganda has managed to expand education through the Universal Primary Education program, completion (primary) and transition (primary to secondary) rates are still low at 53% and 57% respectively (World Bank Data, 2015). Uganda’s labour force aged 14 – 64 years, comprise 13.9 million people or 40.7% of the total population, but only 10.2% have received some kind of post-secondary education (UBOS, 2015). Uganda’s main productive sectors are agriculture, industry, and services. Agriculture contributed 22.6% to GDP in FY 2014/15, industry 20.4%, and services 47.6%. However, employment in agriculture stands at 66% (World Bank Data, 2015) even though the contribution of agriculture to GDP has declined sharply since 1990 where it stood at nearly 60% while that of industry has slowly increased from about 15%8. Moreover, productivity per worker in the agricultural sector has stagnated over the last 15 years whereas productivity in industry has undergone a sharp increase since 2003. This indicates that Ugandan workers are trapped in a low productivity sector and barely transitioning into industry. See figures 2 and 3 below. Figure 2: Trends in the shares of economic sectors, value added to total GDP

Source: Byiers et al, 2015

6 GDP growth peaked at 9.7% in FY2010/11, but fiscal irresponsibility caused by election spending cut it in half. 7 79% of the population is less than 30 years (UBOS, 2015). In other words, 79% of the population was born after the current president came into power. 8 Industry and manufacturing are grouped as industry. 

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Figure 3: Sector productivity per worker in Uganda (2002-2009)

Source: Byiers et al, 2015

2.2 The History of the Textile Industry in Uganda

Cotton was first introduced to Uganda in 1903 with the main purpose of supplying the British colonial government. Industrialization only started when the Uganda Development Corporation was incorporated in 1958 to promote industrial development. Several textile industries were started and run by the government, such as Nyanza Textile Limited or NYTIL (now privately owned), African Textile Mills in Mbale (defunct), United Garments Industry (bought by Phoenix Logistics, which was also recently bought by Fine Spinners), and Rayon Textile Mills (defunct)9. After the civil wars in the 1970s and 1980s, cotton production as well as industrial production decreased tremendously. Moreover, the “economic war” declared by former President Idi Amin against Ugandans of Asian origin further debilitated the sector10. Since the collapse, the Ugandan textile industry has now largely been replaced by second-hand clothing that is donated abroad, but sold locally11. These donations of second-hand clothes started out as charitable ventures by the International Red Cross and various churches but eventually turned into an important business opportunity. Currently in Uganda, purchases of second-hand clothing account for over 81% of all clothing purchases, with the largest exports coming from the United States and the United Kingdom (Trademark East Africa, 2016)12. In the East African Community, the textiles industry that once employed approximately 500,000 people now employs an estimated 20,000 people (Brooks, 2016).

9 Uganda Development Corporation was dismantled during the Structural Adjustment Program of 1987 but has recently been reestablished under the Ministry of Finance, Planning and Economic Development as the investment arm of government. 10 He expelled all Asians that refused to take on full citizenship, as they owned nearly all the large businesses in the country, leaving Africans out of almost all commercial activity. 11 There is a plan underway to ban imports of second-hand clothing by 2019. 12 Canada and South Korea combined export USD 59 million worth of used clothes to Tanzania. 

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2.3 The Economic Relevance of the Textile Industry in Uganda

In Uganda, the textile industry can become one of the country’s most important sectors because it creates opportunities across the value chain. Materials are locally sourced from farmers and the technology, albeit old, exists for extensive processing both with vertical large-scale enterprises and at the household level (Government of Uganda, 2009). The most common fibers in Uganda are cotton (99% of all textiles are made from cotton) and silk (Namulinda and Tabyetekerwa, 2015), but cotton remains the most important input. Cotton was Uganda’s first cash crop, introduced to the country in 1903 by the British Cotton Growers’ Association (Cotton Development Organisation , 2015). Currently, about 50% of all cotton is grown in the Northern and North Eastern parts of the country (Regional Agricultural Trade Expansion Support Program, 2003) 13 . Cotton in Uganda is internationally competitive because it has a longer staple length, similar to the one grown in Egypt. Moreover, the capacity for organic cotton growing could be a strategic selling point for textiles originating from Uganda. However, industry in general is not well developed in Uganda (Obwona et al., 2014 ), and the textile industry has been particularly handicapped since the 1970s. Even efforts to boost it after the passing of the Africa Growth Opportunity Act (AGOA) by the United States were largely unsuccessful (East African Business Week, 2007). The textile industry suffers several

13 This is of particular importance because these are the poorest regions of the country and therefore stand to gain the most from backward linkages in the textile industry.

THE HISTORY OF BARK CLOTH MAKING (OKUKOMAGA) IN BUGANDA BOTFA revives an ancient tradition 

  The craft of Bark  cloth making  is estimated  to  span back  some  700 years; having been invented during the reign of Kabaka (King) Kimera of Buganda (now central Uganda) who ruled between 1275 and 1335. Lule Ssonko Buyungo Wamala “Kabogoza”, an avid hunter and subject of Kabaka Kimera, inadvertently discovered this  important craft when he was  looking for materials to make traps  for hunting. He  came  across  a  certain  species of  tree  (mutuba), which he  started hitting and it kept stretching. His immediate thought was to make rope out of it, but the continued  hitting  and  stretching  allowed  it  to  develop  a  reasonable  size  and  thus,  he discovered bark  cloth. He got his nickname  “Kabogoza”  from  the  saying:  “Kabogoza  ya bogoza nge’ensaamu” which loosely translates into Kabogoza would make such loud noise with his mallet. News of this discovery reached the Kabaka’s palace; the Kabaka then summoned Ssonko and encouraged him to continue with his work and make more clothing for his subjects. Bark cloth later on became a trade item with the neighboring kingdoms; exchanged for salt, cows,  hoes,  and  ghee,  among  others. During  this  period,  the  environment was  greatly nurtured by the massive planting of Mutuba (Mituba in plural) trees in Buganda, which led to economic prosperity. The  demonization  of  bark  cloth,  as  a  symbol  of  witch  craft  and  death,  begun  when Christianity and Islam were introduced to Africa. Moreover, the introduction of other fabrics by Arab traders and European colonialists caused the production and trade of bark cloth to deteriorate. The Mituba trees continued to serve an agroforestry purpose and a few bark cloths were produced mainly for Kiganda cultural rituals and burying the dead.  In 2005, UNESCO named Ugandan bark cloth a masterpiece of oral and intangible heritage of  humanity;  hence  sparking  new  conversation  about  its  place  in  both  contemporary Ugandan culture and the global textiles research, design and manufacturing market.   Source: Interview with BOTFA, 2016

Text Box 1: THE HISTORY OF BARK CLOTH 

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setbacks including lack of sufficient financing, high cost of production, old technology, and limited knowledge. Value addition ranges from 25% for spinning and weaving to 55% for knitted and crocheted fabrics, and total lint consumption is at less than 10% of production (Ibid). The other 90% is exported mainly to China, Japan, India, and parts of Europe. The industry largely comprises small scale and informal operations at both individual and household level (Ibid) and is particularly notorious on the international markets for being unreliable and lacking variety (Compete Project, 2002). There are only two operational vertically integrated and large-scale (more than 2000 employees) factories: Nyanza Textiles and Fine Spinners. The combination of these factors has greatly weakened the Ugandan textiles industry and it thus faces stiff competition from Ethiopia and Kenya. In Ethiopia, the cost of doing business is significantly lower because of low wages and low energy costs while Kenya has higher productivity and better infrastructure (Berg, Hedrich and Russo, 2015). Table 1 below shows that in recent years, production in Uganda has been on the decline while Table 2 shows that the textile industry, after metal products, employs the lowest number of people among selected manufacturing firms. Table 1: Index of Production, Annual Production levels (2002=100), 2010 – 2014

Source: UBOS Statistical Abstracts, 2015 Table 2: Monthly Employment in Selected Manufacturing Firms, 2008 and 2011

Source: African Development Bank, 2014 2.4 Social Dimension

There are no guarantees for social benefits in the textiles industry. Women are likely to be discriminated against especially if they are mothers or fall pregnant. Most industries do not put aside sufficient time for maternity leave and many women lose their jobs in the process. Secondly, women find themselves in more rudimentary positions along the value chain such as picking cotton while the men do the marketing and selling, or sewing in a textiles factory while men almost exclusively occupy management positions. Finally, because majority of Ugandan workers do not have contracts, they are more likely to be exploited. However, since women dominate the sector, Corporate Social Responsibility initiatives tend to target less fortunate women.

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SUPPORTING VULNERABLE GROUPS The Sylvia Owori Foundation 

  The Sylvia Owori Foundation is a non‐profit organization that was founded in 2010 by world‐renowned Ugandan designer, Sylvia Owori. The charity aims to raise awareness and resources for different causes within Uganda. Its activities focus on vulnerable groups such as women, youth, people living with HIV, cancer patients, and the disabled. The foundation has also worked with other charitable organisations such as Mukisa and Wabiibi from 'The Friendship Village' in Mukono, a town located just on the outskirts of Uganda's main city, Kampala. The Friendship Village is made up of over 100 women, most of whom are living with HIV/AIDS. These women live and work together to empower each other by making crafts and apparel products from locally sourced materials like  sisal,  paper,  used  rubber,  and  worn  out  fabric.  In  order  to  enable  these  women  to  attain  financial independence, The Sylvia Owori Foundation provides fashion training and employment, and often subcontracts them  to  create  pieces  for  big  collections,  big  corporate  orders  or  simply  for  the  flagship  store  located  in Kampala.   The women have worked on fashion accessories for one of Uganda’s biggest telecommunications companies, Airtel and created jewelry for the Sylvia Owori stores. Most notably, together with the 40 women strong Mukisa group, they created paper‐bead accessories for a Sylvia Owori collection showcased  in Rome, Italy during the February 2009 Altaroma showcase. Altaroma is Rome’s fashion week dedicated to promoting ethical fashion and upcoming designers.   Image 1: Sylvia Owori designs

      As a result of this work, many of the women are able to get better healthcare, send their children to school, set up their own stalls, and provide other vulnerable women with fashion training.  The Sylvia Owori Foundation has also worked with the Alicia Keys Foundation to organise the ‘‘Running in Heels’’ event, which was a fundraiser at the Kampala Serena Hotel. All proceeds were donated to the Namuwongo based Allied Medical Services, a charity  that provides  free comprehensive and quality HIV/AIDS care  to  the vulnerable living in and around Kampala city.     

Source: Interview with Sylvia Owori and The Sylvia Owori Foundation Facebook page

Text Box 2: Supporting vulnerable groups

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2.5 Environmental Dimension

Green business models are being promoted in Uganda through various organisations such as the United Nations Environment Program (UNEP). They may apply to the textile industry through the use of organic cotton and environmentally friendly methods of textile production and waste disposal. UNEP is currently working with USSIA on a Switch Africa Green Project whose focus areas are manufacturing, agriculture, and tourism. Under manufacturing, the target sectors are textiles and leather, metal fabrication, food processing, and handicrafts with the purpose of promoting use of modern, resource efficient, and cleaner production methods. These interventions would address energy efficiency, water consumption, and “housekeeping” (efficient organization of the workshop). The goal is to ensure that by the end of 2018, 100 SMEs in the selected sectors recognize the benefits of sustainable production and energy efficient techniques, and that 40% can demonstrate use of these techniques in their businesses (Walugembe, 2015). Some of the interventions include reducing the transport miles for sourcing inputs and using eco-friendlier packaging. However, it was noted that there is limited awareness of green models by SMEs, lack of financial capacity to implement greening concepts, lack of regulatory measures to ensure greening sustainability, and poor communication between SMEs and stakeholders (Switch Africa Green, 2015). Overall, there is insufficient information in existing literature on the textiles industry in Uganda, especially on the small-scale textiles and fabrics industry. This may be partly attributed to the high levels of informality in small-scale textiles production. Nevertheless, it is generally understood that Uganda’s niche in the textiles industry is the “African” fabric locally referred to as kitenge and bark cloth 14 , all of which can be more easily be manufactured with limited technology

2.6 Explaining the fabrics 2.6.1 Bark cloth

Bark cloth is a fabric that is made from the bark of the ficus natalensis tree locally referred to as the “mutuba” tree. It is ecologically friendly because there is no need to cut down the tree; the bark is simply peeled from the tree after which the tree is protected with mud and banana leaves for three years in order to allow the bark to grow back. There are over 20 different grades of bark cloth that can be made out of 14 different species of the mutuba tree. Bark cloth can therefore serve various purposes that include canvas for paintings15, fabric for interior design, bags, winter shoes and coats16, burial shrouds17, and even furniture18. Artists and interior designers that have used the fabric include Maria Naita (2016), Oliver Heintz of Barktex (2016), Jose Hendo (2016), and Ivan Yakuze (Let art talk, 2012). Barktex in particular has experimented with bark cloth to transform it into a material that can be fire resistant, abrasion resistant, dyed, resin-ed, hardened, bleached, rubberized, or encased in glass (Robertson, 2014). The promotion of bark cloth would therefore be an important source of employment, especially for the youth who face very high levels of unemployment at 19.7%19, as well as a way to preserve forest cover. Uganda is currently facing the highest rate of deforestation in the East African region, which stood at a startling 2% per annum in

14 See Appendix 5 for images. 15 Sometimes the fabric is bleached to get a whitish colour and reinforced by starching. 16 Bark cloth is good for retaining heat. 17 Currently, many middle and upper class families in Uganda use prefabricated coffins, which contain plastic and are therefore non-degradable. On the other hand, the Islamic religion encourages burial in cloth. Bark cloth would be an eco-friendly, inexpensive alternative. 18 If the bark is not beaten, it is reportedly as hard as ply wood and can be used for furniture. It can also be varnished with veneer to provide protection and a glossy look. The use of bark for furniture is important for climate change efforts as the tree itself never has to be cut down and can be grown in almost any region of the world with a tropical climate. 19 Youth category is 18-30 years and there are 6.3 million youths in Uganda (UBOS Statistical Abstracts, 2015).

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2010 (NEMA, 2010). Unfortunately, the technology for creating bark cloth is still very rudimentary and has barely changed since the fabric was first discovered in the 11th or 12th century20.

Image 2: The process of creating bark cloth

Removing the bark Stretching out the bark

Softening the bark Bark cloth used in modern fashion

Source (Images 1-3): Bukomansimbi Organic Tree Farmers’ Association, 2016. Source (Image 4): Photo by Giulio Molfese, 2016.

2.6.2 Kitenge a.k.a “African” fabric a.k.a “tribal” prints “Kitenge fabric depicts the African heritage in every sense”.

Gloria Wavamunno, Ugandan fashion designer21

20 The history of bark cloth has been passed down orally over the centuries, but books written at the beginning of the 20th century by important historical figures in the Buganda kingdom such as Sir Apollo Kaggwa, provide a record of history. 21 Uganda website: http://thisisuganda.org/ugandas-kitenge-craze/

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The kitenge, as it is known in East Africa, is a colourful fabric worn by both women and men all over Africa. It is used to make all kinds of apparel from dresses to ties to shirts. It can also be added onto footwear, bags, and jackets to accentuate the look. The shiny multi-coloured effect visible on the fabric is produced by a tie and dye process followed up by a substantial application of wax (Waiswa, 2014). The history of the kitenge goes back to Indonesia where the Indonesians used wax-resist dying to make batik. It is suggested that in the mid-19th century, the Dutch colonialists enlisted West African men, including slaves, to beef up their army in Indonesia. These men supposedly took a liking to the fabric and returned samples back home, where a fashion phenomenon was born. Meanwhile in Europe, efforts begun to figure out a way to make the batiks mechanically–since the process was so labour intensive– so as to flood the Indonesian market. At the end of the 19th century, a Belgian printer found a way to mechanically apply resin to both sides of a cotton cloth. European producers such as Vlisco continue to produce kitenge to this day and their patterns are copyrighted (Felsenthal, 2012). The Ugandan made kitenge faces stiff competition from kitenge imported from West Africa, the Netherlands, India, and China because the latter is often of superior quality. Image 4: Gwen Stefani in kitenge

Source: Slate

Beyonce in a kitenge dress for her song Redemption

Source: Boston Globe

Image 3: Vlisco model

Source: Beyond Victoriana

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3. Stakeholder Analysis and Focus Group Findings

3.1 Outline of profiled companies

The study found that textiles SMEs in Uganda produce unique fabrics, but struggle with the difficult business environment that affects their cost of production, capacity to expand or formalize, quality of their products, and uniformity and depth in the product line. Below are the salient characteristics among the producers validated:

64% are registered as formal businesses The average number of employees is 16 There are 60% more women employed than men The average value of assets is USD 31,500 BUT median is USD 3,200 The average annual turnover is USD 13,200 BUT median is USD 2,300 ZERO companies have loan financing 13% have certification for either fair trade or organic production 25% have export experience NONE have an agent in Canada

3.2 Government interventions

Government officials identified several interventions that had been put in place to support SMEs for both production and export:

3.2.1 Standardisation Standardisation accords the advantage of market access: attesting to the buyer that the product is of good quality and therefore building confidence and facilitating trade. The Uganda National Bureau of Standards (UNBS) has established more flexible and cost-friendly procedures for standards development, training and certification of SMEs. The information on textiles standards is relatively inexpensive; ranging from USD 4 to 6 depending on the exchange rate. However, the process of standardisation is demand-driven and therefore private sector led. If there is no demand on the part of the private sector or the product has not been proven to be harmful to the general public, the standard will not be put in place. As a result, products like kitenge and knitted cotton fabric have a nationally prescribed standard, while others like bark cloth do not, which is problematic if there are no international standards applicable to them. In addition, information on standards is not freely accessible, even for research purposes. The names of the standards can be accessed online, but the content therein has to be paid for. Standardisation efforts face several other challenges that include the following:

i. Market perception is negative. Certification procedures are costly and SMEs view them as a way to close their businesses.

ii. There are limited human and financial resources to facilitate the quick development of standards. SMEs pay for certification but the cost of standard development is borne solely by UNBS.

iii. There is limited enforcement capacity for standards since there is no proper regulatory structure. Without a standards policy and/or regulation in place, it is impossible to prosecute violations.

3.2.2 Capacity Building The SME Division in Uganda Investment Authority is mandated to facilitate domestic micro, small and medium enterprise (MSME) investment. For a long time, the directorate operated in a vacuum; Cabinet only approved the SME policy in 2015. Nevertheless, the directorate provides services such as:

i. Training for business and technical skills development. This entails how to keep books of accounts, formally register, and improve product quality, among others. Training is usually outsourced to university graduates through an apprenticeship program (business development) and to specialists in the sector (technical development).

ii. Creation of linkages with funders especially venture capitalists. Some equity funders such as Mango Tree and DTOS from Mauritius have set up shop in Uganda.

iii. Facilitating clustering of SMEs.

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iv. Provision of investment incentives such as land and workspaces in the investment zones. The priority areas for this particular intervention are agro-processing, oil and gas, mining, and tourism 22 . Land is freely given to an SME with a minimum investment of USD 50,000 on condition that it develops it within 6 months to a year. The SME must have formal registration, a business plan, an architectural plan, and proof of financing like a bank guarantor or other fixed assets.

v. Extend domestic investment interventions to the grassroots level through the creation and mobilisation of District Investment Committees.

Capacity development efforts are hampered by the lack of long term-low cost financing, which 90% of the SMEs that visit the directorate demand. In addition, there are no impact evaluation studies carried out to assess the success of the interventions currently underway.

3.2.3 Export promotion One of the main export strategies has been to diversify the country’s export products and markets. As a result, the basket of exported products has grown from 12 in 1986 to over 500 in 2015. More recently, there has been a revision of tariff levels in an effort to boost exports of manufactured goods. For example, fabrics like kitenge carry a 50% import duty and used clothing a 35% CET or USD 0.20 per kilogram (whichever is higher) in addition to domestic taxes, while inputs like cotton sewing thread attract a duty remission scheme of 10%. The Uganda Export Promotion Board (UEPB) is mandated to facilitate exports of Ugandan products. Its work involves providing market information on international prices, buyers, and export procedures; supporting product and market development; promotion and marketing; business matchmaking; and capacity building.

3.3 Challenges identified

The study identified several challenges faced by the SMEs in the textile industry including: The absence of an institutional framework to implement the Textiles Policy is one

of the key reasons for the recession in the sector. This is partly attributed to a lack of resources to implement the policy. Uganda’s tax revenue to GDP ratio is among the lowest in the world at about 12% (UBOS, 2015). Moreover, the highest potential taxpayers are given extensive tax holidays such as a 10-year corporate tax holiday and a 5-year Value Added Tax (VAT) holiday.

The cost of credit in Uganda is prohibitively high; interest on loans can be as high as 30% per annum, which explains why no producers have loan financing in the capital structure23.

Slow growth in the industry, which has resulted in very little incomes and forced some producers to venture into side businesses for survival.

Unreliable and expensive energy supply. Ugandan producers have to pay USD 0.12 per minute compared to India at USD 0.04 per minute of electricity consumed, in addition to the regular power cuts.

Transportation is expensive especially for upcountry regions. The main cotton growing areas include Gulu and Kasese, but access to the main trading districts is still onerous and dangerous.

Due to Insufficient capital, producers cannot expand their businesses nor meet the large orders required for exports.

Producers are forced to work with limited technology and use outdated machinery, which negatively affects the quality and demand for their products.

Stiff competition from cheap new clothes from South East Asia that use synthetic materials.

Export subsidies provided to competitors from India, Taiwan and China undermine the competitiveness of Ugandan textiles and apparel on the international markets.

Price fluctuations both at home and on the world market affect the production cycle and sustainability of incomes.

22 Industry, and textiles in particular, is glaringly absent. 23 There is an ongoing government scandal about the nearly USD 300 million bailout of 65 of Uganda’s top firms that have failed to pay back bank loans. 

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Producers lack the proper branding techniques and as a result, are unable to retain their customer base.

Expensive legal issues manifested through the need to protect themselves and their products through patents and exclusivity. These measures are unattainable for the standard Ugandan SME.

Heavy taxes levied on the producers locally when importing inputs and internationally when exporting abroad.

Exhibitions abroad are not well organized and many producers have had to tackle with problems such as the weather - heavy rains, poor attendance, and the inconvenient locations that are unsuitable for the showcasing of products.

Programs set up for the specialty textiles industry are dominated by top government officials who do not know much about the sector and are unable to sell the business abroad.

The government has not acknowledged that the sector holds great potential for revenue and has therefore not invested in it. In some cases, the traders face problems abroad, but are not aided by the representative embassies.

The visa requirements demanded of the traders who want to go abroad are oftentimes prohibitive.

An unstable political climate sometimes prevents funders and/or investors from visiting the country.

Limited training that results in lack of innovation and skill on the part of Ugandan producers.

Not enough data on the sector; for example, how many traders are exporting. Fashion ideas and business plans are often plagiarized not only by individuals, but

also organisations and government agencies. This has created a lot of suspicion and secrecy in the sector.

Weak coordination of strategies by government resulting in ineffective scattering and spreading of implementation resources.

Government is the biggest consumer of textiles, but because it procures internationally, local companies are forced to compete with low cost – higher quality international companies. This has been partly mitigated by the Buy Uganda Build Uganda initiative that gives preference to local producers. However, some producers have complained that the tendency for corruption in the government (where officials pressure companies into inflating invoices) has made dealings with government institutions unpleasant.

Standardisation. SMEs lack sufficient knowledge on both local and international standards. This may be partly because standardisation in Uganda is demand driven; if the private sector does not demand a standard, it is not put in place. As a result, certain cultural items such as bark cloth, have no standard created for them.

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4. Business Entry Strategy into Canada “There are opportunities in the Canadian apparel market for creative entrepreneurs who can supply innovative and fresh products to this market.”

TFO Canada

4.1 Structure of the Canadian market Canada has just over 35.9 million people, a population size close to Uganda’s but only a tenth that of the United States. However, Canada has more people over the age of 65 than under 15; the reverse is true in Uganda. 20% of the Canadian population is made up of immigrants and 80% live within 160 km of the US border in urban areas in the western and central parts of the country. The most populated cities, with over 1 million inhabitants are Toronto (5.9 million), Montreal (3.9 million), Vancouver (2.4 million), Calgary and Ottawa-Gatineau (about 1.3 million each), and Edmonton (1.2 million) (TFO Canada, 2013). The per capita income is estimated at USD 47,500. The demographic structure shows that besides the young economically active Canadian population, there is considerable potential in catering to the immigrant and older demographics.

4.2 Trade in Textiles and Apparel

Imports of textiles and apparel have been growing in Canada, by 13% between 2008 and 2012 as shown in figure 4 below: Figure 4: Textiles Imports into Canada (2009-2012)

Source: TFO Canada, 2013. Large retailers account for only half of the total retail sales and women’s clothing and accessories gross the highest revenues in textiles and apparel (Ibid). An exporter to Canada needs to take into account the following factors:

i. Producers need to be aware of the source of their raw materials. There is increasing demand in Canada for environmentally friendly products and therefore competitive advantage can be built around issues like energy costs and carbon footprint (Ibid). This advantage can be created by sourcing regionally; establishing long term relationships with near fabric producers rather than using multiple producers from far off locations. Specifically, buyers require one of the following:

a. 80-85% of fabric and accessories inputs should be sourced in-country; b. 95% should be a maximum of 7-day transit; and c. 99% should be a maximum of 14-day transit.

ii. Labour rights are a competitive advantage that can be gained over Asian suppliers because violation of human rights and political and/or social instability are major factors in sourcing decisions.

2,952 

2,679 2,785 

2,985 

3,336 

 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,500

2008 2009 2010 2011 2012

Textiles Im

ports US$ Millions

Year

Textiles Imports 2008‐2012 (CAD$ Millions)

Value of textilesimports

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iii. Responsible or sustainable apparel is increasingly popular as evidenced by the growth in sales of organic clothing, at more than 15% since 2003. While organic cotton still remains popular, recycled materials are trending more and more24. It is important that organic materials are certified; in other words, government institutions have proven them to be eco-friendly. Furthermore, Corporate Social Responsibility (CSR) statements play a big role in influencing choices. CSR means that buyers are interested in the activities involved in the entire production process.25

iv. The key consumer spending seasons are spring (March to May), summer (June to August), and Christmas. Due to immigration, other cultural and religious festivities such as Eid al Fitri and the Chinese New Year are increasingly important dates to watch. Importers make their orders well in advance of these dates; that is 6 to 9 months of the season depending on the location. Exporters must therefore begin their marketing efforts in tandem with these timelines.

v. Suppliers should pay attention to trade shows in the region. Canadian importers and buyers usually visit foreign markets once a year to coincide with the most important trade shows where they can explore opportunities for imports and assess industry trends. The most important cities to follow for fashion events held in Canada are Montreal, Vancouver, and Toronto.

vi. Quality and inspection. All imports sold on the Canadian market must meet minimum quality requirements based on factors such as flammability, durability and strength. The quality and supply must be consistent and reliable, which may require close communication with the buyer.

vii. Given the small size of the Canadian market, some buyers may attempt to obtain exclusive importing rights for the items they import. For large production ranges, it is common for retailers to ask for a price discount of 5-10%.

viii. All labels should conform to Canadian standards and therefore suppliers should have drafts approved by buyers before they are printed. The label must contain information about the clothing or fabric: Where it was made Who made it: here, either the company’s name and address is used or a 5-digit

dealer number What it is made out of: any fiber consisting more than 5% of an item must be

indicated How to take care of it: while care labels are not mandatory, they are highly

recommended ix. Each item requires a 10-digit HS Code, available from the Canada Border

Services Agency (CBSA) website, or from the partner buyer. A fully detailed commercial invoice and packing list must be submitted to CBSA (via email through the freight forwarder or the recipient) 10 days prior to its ex-country departure. All other permits and documents must also be presented. Without the CBSA’s approval, the ship will not accept the cargo, but at the moment, air cargo requires all information be available at arrival only26.

x. Buyers in the textiles and apparel sector are particularly interested in: Their suppliers providing easy access to senior management Being able to quickly solve problems Offering fair pricing and freight costs Developing a good relationship Having knowledgeable sales staff

24 A good example are the recycled jeans used by Sylvia’s Boutique (Uganda). 25 Other considerations like retail styling and high performance team or athletic wear may be beyond the technological capacity of Ugandan SMEs. 26 Ibid 

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4.3 Canada’s Trade with LDCs

Canada started the Market Access Initiative (MAI) in 2003 (TFO Canada, 2015), a program governed by the General Preferential Tariff (GPT) and Least Developed Countries Tariff Rules of Origin (LCDCT) to cover 48 LDCs, including Uganda. Before the MAI, LDCs were subject to an average tariff of 19%, which discouraged exports to Canada. The MAI allowed goods under this initiative originating from LDCs to enter Canada with duty free and quota free access. Although exports from LDCs still account for a small percentage of total Canadian imports at only 1%, since the MAI was implemented in 2003, they have grown at a compounded average rate of 22% annually over 10 years, compared to 4% growth in exports from the rest of the world. Figure 5: Canadian Imports from LDCs under the Canadian Market Access Initiative (2003-2013 CAD$ millions)

Source: TFO Canada, 2015 Figure 6 : Top Imports from LDCs under the Canadian Market Access Initiative, 2013

Source: TFO Canada, 2015

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How Preferential Treatment Fails The Case of AGOA in Uganda 

The United States (US) Congress enacted the Africa Growth and Opportunity Act (AGOA) on May 18, 2000 to enhance market access to the US by qualifying sub‐Saharan countries1. Inclusion in the program depends upon establishment or efforts to establish: rule of law, elimination of barriers to US trade and investment,  economic policies  to  reduce poverty,  a  system  to  combat  corruption  and bribery,  and protection of  internationally  recognized workers’  rights  among others1. AGOA expanded duty  free access for goods available under the Generalised System of Preferences (GSP) program, bringing the combined number of tariff lines to 7000. One of the more prominent products under the program has been  textiles and apparel. Despite Uganda being among  the original countries  to be put under  the AGOA program, trade with the US remains relatively low. Uganda ranks as the US’ 156th largest trading partner with total trade volumes amounting to USD 172 million1. Exports under AGOA dropped from USD 3.31 million in 2010 to USD 1.15 million in 20141.  Since AGOA was initiated in 2000, exports to the US have not significantly improved, increasing by nearly 59% from USD 29 million to USD 46.1 million between 2000 and 20141, compared to nearly 462% to the rest of the world from USD 402.8 million to USD 2.3 billion1. Moreover, the ratio of US exports to world exports has steadily declined from 0.07 in 2000 to 0.02 in 2014. Several reasons have been put forward to explain the failure of the AGOA program to significantly enhance trade relations between Uganda and the US: 

i. Lack of competitiveness and an unfavourable business environment. Production is characterized by the  use  of  basic  technologies,  lack  of  control  over  production  conditions,  high  input  costs  and infrastructural  deficiencies  ‐  especially  of  road,  rail,  irrigation,  electrical  power,  storage  and refrigeration which are critical in trade competitiveness. 

ii. Capacity deficiencies for quality assurance. The  framework  for standards and their enforcement  in Uganda  remains weak. As a  result, domestic exporters  tend  to be either unaware of  international quality standards or to  lack the capacity to meet the  required standards. This  is often due to such things as  the use of poor quality  raw materials, unhygienic production conditions, adulteration of inputs and tempering with or inaccurate scales. 

ii. Lack of clear strategy on AGOA. Although government set up the Export‐Led Growth Strategy Unit (ELGSU)  to  expedite  export  related  issues  by  circumventing  institutional  red  tape,  a  number  of challenges continue to haunt the  initiative. The  first  is conflicting mandate and reporting structure between the Unit and relevant Ministries, Departments and Agencies (MDAs). Personnel from ELGSU assert that they report directly to the president. This has several implications including the stifling of institutional development, courting of political interference, policy inconsistencies and questionable accountability. 

v. Inappropriate and  inadequate public support. Although Uganda has a number of potentially viable niche sectors  including agro‐processing,  logistics and distribution, education services, tourism, and textiles,  the  government  significantly  rolled  back  the  State  in  nearly  four  decades  of  neoliberal reforms. Available evidence increasingly points to the critical role of an active Developmental State for success in development, especially in support for sectors and activities that are labor intensive to boost employment and which add value to ensure economic diversification 

v. Lack of inward investment in tradable sectors. The AGOA policy was linked with policy reform in the 

Text Box 3: Africa Growth and Opportunity Act (AGOA) 

Source: UBOS Statistical Abstract, 2015; World Bank, 2015; Office of the United States TradeRepresentative, 2013; United States Census Bureau 2016; Ministry of Trade, Industry and Cooperatives, 2016; Ijjo et al, 2015; AGOA Info, 2016.

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4.4 Export Strategy to Canada

The most appropriate strategies for export from Uganda to Canada are direct exporting and piggy backing. Direct exporting involves selling directly to the retailers or customers in the destination country while piggybacking is where an SME in a foreign country distributes its products through a larger distributor in the destination country.

Given the capacity constraints of the producers, the best strategy for them is to work directly with the boutiques rather than work with middlemen/distributors, whose demand would be overwhelming. Orders may be in the hundreds, which is within the means of a typical Ugandan SME. Nevertheless, this makes Canada a good training ground for small Ugandan business to start their export experience to the North American market. If they manage to achieve success in Canada, they can then dare to venture into the United States market, which is a lot bigger and therefore more demanding. An SME with bigger capacity for production may attempt to export through piggybacking, whereby they work with a larger distributor on the Canadian market. The orders would be bigger, however, and the SME would have to be sure to provide consistent supply over a long period of time. However, Ugandan apparel colours are too bright for the Canadian market. The Canadian market is dominated by sober colours such as blacks, beiges, and greys. Producers would have to use the Ugandan fabric to simply accentuate an apparel item. Further complications with apparel for the Ugandan producers are brought about by capacity constraints. Capacity shortages restrict Ugandan producers from creating range in sizes. The focus should thus be on fashion and home accessories such as clutch bags, table cloths, cushion covers, throws, among others. Ugandan SMEs also need to be careful to create more depth and variety in their products. In other words, have a clearly catalogued product lines. Fashions may change as often as twice a year; the longest period for an item to remain in fashion is three years. Therefore, producers constantly need to be coming up with new designs.

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5. Conclusions and Recommendations

This chapter will identify the gaps, challenges and opportunities as well as lessons that can be drawn from the country study. The gap analysis will serve as key for the training on specialty textile business on the Canadian market.

For government action Since the World Bank and International Monetary Fund led Structural Adjustment Programs initiated in 1987, government exempted itself from doing any kind of business and limited its role in the private sector largely to formulating policy and regulation. However, lack of government support has led to the near collapse of the industrial sector as evidenced by the textiles industry. More government led initiatives, which focus on lowering the cost of doing business, are needed to boost capacity in the textiles industry.

“As government, we have realised that we had blundered. When our friends—the development partners like the World Bank—when they said that ‘government is not a good business person, we should move it out of business,’ I think we overdid it. We should have abdicated from it and abandoned it. Our colleagues in Kenya, they never did that. For us we moved all out. Wholesale. Now that we are realising our problems, we have decided to come back. We used to have a bank even—the Uganda Commercial bank—but we abandoned it. We have Kenya Commercial bank, which is a government bank and is here. We had Uganda Electricity Board, which was in charge of generating and distributing electricity, but we abandoned it. We brought in a private company, which is a South African government company. ESKOM and UMEME are government companies. For us we are moving out of business, but we are bringing in a company which is government owned. So we have realised now, that we’re going back.”

- Official from the Uganda Ministry of Trade, Industry and Cooperatives The government needs to lower the cost of doing business in terms of charges on electricity, transportation, and taxation. This will enable the SMEs to maximize economies of scale and compete favorably. Access to long term – low cost finance is a prerequisite for allowing industry to take off. Certain soft loans such as the Buffer Stock Fund and the Technology Upgradation Fund exist for large-scale textiles enterprises but should be extended to and tailored for small/cottage industries. Uganda Development Bank, whose priority should be industry, is focused on financing agriculture (Mugalu & Kayiwa, 2015) and is still undercapitalized (Muhumuza, 2015). In addition, producers need to be availed with more information in regards to financial deepening. For example, there needs to be greater awareness about modern methods of payment such as credit cards or electronic bank transfers that can ease the process of buying from abroad. This may also have a gender dynamic. Many women’s incomes are susceptible to use by their spouses. Therefore, having knowledge of and access to banking services would help them protect their business incomes. Electricity still remains prohibitively expensive for SMEs, consuming up to 20% of the total cost of production according to some producers. The construction of new dams such as the Bujagali (Ndayahabwe, 2015), Isimba and Karuma (Kamugisha, 2016) dams was supposed to bring down the cost of electricity to USD 5 or 6 cents, but these projects are plagued with corruption related problems. With the construction of the Standard Gauge Railway connecting the East African coast with Uganda, the light rail system proposed by Kampala City Council Authority, and the expansion of various highways, transportation bottlenecks should be eased in the medium term.

Put in place an institutional framework to implement the Textiles Policy. While the textiles policy was published in 2009, no institutional framework has been put in place to ensure

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implementation. As a result, the various recommendations within the policy are like a barking dog with no bite.

Training to promote quality assurance by for example, setting up of professional fashion schools. This will help the producers in branding and establishing themselves on the market. Some of the more special fabrics such as bark cloth are made using rudimentary tools and there is no standardized process of production. Therefore, training programs need to be put in place to ensure consistency in quality.

The government needs to expand and deepen its export awareness campaigns. Uganda Export Promotion Board needs to be more active through provision of initiatives and programs that can help producers acquire the necessary information on how to export. There is also need for support in market penetration through Uganda’s embassies abroad or other agencies such as UEPB. The East African Community has proposed an increase on import tariffs of textiles and apparel and a ban on second hand apparel in order to boost production and employment in local industries (Trademark East Africa, 2016). In 2015, the East African Community imported second hand clothing worth USD 151 million, with the bulk coming from North America (Brooks, 2016). However, any move to ban these imports needs to be simultaneously implemented with programs to boost capacity at home. Merely banning second hand clothes will negatively affect consumer welfare without improving outcomes in industry27.

For SME producers and designers

Create a network linking the various stakeholders that can support the textiles sector.

A textile cluster that connects the value chain all the way from cotton growing to the final products in order to ensure that the industry is 100% Ugandan and that business links are enhanced. Clustering would also facilitate lobbying & advocacy, acquisition of supplies, and would lower the costs of shipping, distribution and e-commerce fees.

Develop honesty and trustworthiness in business operations in order to enhance SME cooperation.

Formalizing businesses and institutionalizing operations would lower the costs of doing business in the long run as SMEs would have access to benefits such as government training, tax breaks, and lower fees for certification.

Enhance creativity and reinvent products regularly. This would enable producers to deepen and expand their product lines, meet the requirements for changing tastes and preferences, and overcome copyright infringements.

Focus on depth, variety and quality in order to meet the demands of the market and manage competition.

Take on gradual growth and expansion process. SMEs with no export experience are encouraged to explore regional markets first as this prepares for and improves readiness to export to overseas markets.

SMEs that wish to establish themselves as exporters need to have their products certified. First, they need to ascertain that the standard exists, and if none does, they should apply for it with the Uganda National Bureau of Standards (UNBS). All information pertaining to the process of standardization and certification is available on the UNBS website: http://www.unbs.go.ug. UNBS also has a special package for registered SMEs that allow them to procure certifications relating to process at a lower cost than large enterprises.

SMEs need to work outside the system. For example, it is virtually impossible to access any of the financing the government is supposed to put aside for SMEs such as the Women Entrepreneurship Fund, the Youth Entrepreneurship Fund (each nearly USD 75 million), and the Technology Fund (about USD 148 million), but they

27 Rice farming in Uganda is a great example of how a high Common External Tariff (CET) of 75% has not led to significant improvements in technology or profitability (FAO, 2016). 

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can exploit the opportunities presented by equity financing to expand their businesses.

It is imperative that SMEs develop an online presence. However, they must try e-commerce in Uganda first to gain experience before launching internationally. An i

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Sources: BBC,2014, CNN (2014) and an interview with Definition Africa

ESTABLISHING YOUR BRAND ONLINE A journey into Definition Africa’s branding campaigns 

Definition Africa, a Ugandan fashion label based in Kampala, Uganda, was founded in 2009 by Nadia Bhegani, Olga Mugyenyi and Nahida Bhegani. Its brand ethos is to source all of its raw materials from Africa, especially Uganda. The Definition brand draws inspiration from Ugandan daily life and colloquial expressions, with the aim of celebrating the local experience. They hope to redefine the marketplace for African products through trade ‐ not aid. One of their more interesting t‐shirts has both the words aid and trade printed on it, with aid crossed out and another with an expression stating: “pay me don’t play me”.  

   All  of  Definition’s  products, mostly  t‐shirts,  are manufactured  locally, with  the  exception  of  occasional collaborations with other African designers. Definition Africa’s story is particularly interesting for a Ugandan company because  the business was initially  launched on Facebook and only opened  its own store 5 years later in January 2014. Since inception, Definition’s story is a succession of online campaigns on several social media platforms. In 2010 they launched a Facebook and Twitter campaign that focused on transforming the African image from a negative to a more positive one with descriptive words such as avant‐garde, new wave, inventive, hip. They followed this up with another Facebook “Wall of Fame” campaign that got their customers all over the world to take pictures of themselves wearing their Definition t‐shirts. The year was concluded with  several  photo  shoots  with  local  Ugandan  musicians  and  branding  in  their  music  videos,  dubbed “Definition stars”. They kicked off 2011 with an appearance at the London Fashion Week for a brand of t‐shirts designed  for  Ugandan  based  Gloria Wavamunno.   Later  in  the  year,  they  launched  a  #FreeTeeFriday campaign where tweeps were offered a chance to win a t‐shirt. By the start of 2012, nearly all their products were designed, printed, and produced in Africa. In 2013, they started printing Definition Fabric and launched a homeware line. Over the years, they have sponsored several events such as the Uganda Press Photo Awards, the  LaBa!  Street  Arts  Festival,  Bayimba  International  Festival  of  the  Arts,  Uganda  Tennis  Open and Friday Night Lights (for basketball), and have stocked their products at various stores such as Bold and Sylvia Owori. They have also been featured in several media outlets such as the BBC, DSTV and CNN as well as local ones like The Monitor, The Observer, and African Woman Magazine. They were nominated for the Kadanke National Youth Awards for Best Fashion Designer  in 2014 and have received the Young Creative Entrepreneur Award from the British Council. 

Text Box 4: Definition Africa and online branding 

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For development partners There is need for greater interest from the donor community in industrialization rather than trade facilitation, the latter of which is focused on exporting raw materials for processing in third party countries. Some respondents noted that efforts by Western development partners towards manufacturing and value addition are mainly lip service. In certain instances, training on manufacturing processes, standards and equipment is organized in countries like China. However, this kind of “soft” support (no equipment or financing) cannot solve the problems in Uganda. As a result, Uganda is looking more towards Asian countries to provide “hard” support. For example, in 2014 South Korea financed the construction of a fruit processing plant worth USD 7.4 million in Soroti district (Osujo & Odong, 2014). Projects on trade promotion need to be medium to long term in order to enable capacity building. Two years is not enough time for many Ugandan producers to establish themselves as exporters to Canada given the various capacity constraints that they face. There is need for mass sensitization to create greater awareness of the project, of the research findings and of the opportunities available on the Canadian market. In conclusion, while opening up markets for SMEs in developing countries is imperative for boosting incomes both at an individual and national level, it only benefits the SMEs with an established advantage. Therefore, vulnerable groups, unless they are being supported by an already established SME, are not in a position to benefit. The study has shown that many SMEs face supply side constraints that prevent them from tapping into markets abroad. They lack the financing, technology, training, and both regional and international export experience required to take advantage of new markets. Hard investment that involves the transfer of capital (both financial and physical) and knowledge/technology to the beneficiary country would go further in lifting vulnerable textile producers out of poverty.

25

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Hausmann, R. & Rodrik, D. (2003). Economic Development as Self Discovery. Harvard University. Retrieved from: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.116.8525&rep=rep1&type=pdf Heintz, O. (No date). Barktex Bark Cloth. Launch. Retrieved from: http://www.launch.org/innovators/oliver-heintz Ijjo, A. T., Katunze, M. and Nagawa, M. (2015). Uganda’s Weak Performance from AGOA and Lessons from Kenya and Lesotho. Economic Policy Research Centre. Kampala. Jose Hendo. (2014). Bark Cloth one of Earth’s Natural Treasures. Jose Hendo London. Retrieved from: http://josehendo.com/barkcloth/ Kamugisha, D. (2016). Putting the Karuma, Isimba shoddy works in perspective. The Observer. Retrieved from: http://www.observer.ug/business/38-business/43640-putting-the-karuma-isimba-shoddy-works-in-perspective Keane, J. & Velde, D. W. (2008). The Role of Textile and Clothing Industries in Growth and Development Strategies, Overseas Development Institute. Retrieved from: http://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/3361.pdf

LetArtTalk. (2012). Ivan Yakuze, Visiting Artist. LetArtTalk. Retrieved from: http://www.letarttalk.net/who-we-are1/uganda-based-project-development/15010839 Ministry of Trade, Industry, and Cooperatives. (2016). Untitled. MTIC, Government of Uganda. Retrieved from: http://www.mtic.go.ug/index.php?/Current-News/trade-minister-meets-us-ambassador-over-agoa-as-uganda-prepares-for-a-review-of-the-programme/

Muhumuza, M. K. (2016). Government yet to recapitalize Uganda Development Bank – chairman. Daily Monitor. Retrieved from: http://www.monitor.co.ug/Business/Government-recapitalise-Uganda-Development-Bank/-/688322/2954118/-/vq6qj/-/index.html Mugalu, M. & Kayiwa, S. (2015). Uganda Development Bank to focus on agriculture market. The Observer. Retrieved from: http://www.observer.ug/business/38-business/36659-uganda-development-bank-to-focus-on-agriculture-market Martinuzzi, A., Kudlak, R., Faber, C. & Wiman, A. (2011). CSR Activities and Impacts of the Textile Industry. RIMAS Working Papers NO. 2. Vienna University of Economics and Business. Retrieved from: http://www.sustainability.eu/pdf/csr/impact/IMPACT_Sector_Profile_TEXTILE.pdf Molfese. Gulio. (2015). Jose Hendo’s Barkcloth Pataches @ The Kampala Fashion Week. FASHION4WRD7. Retrieved http://fashion4wrd7.com/2015/11/16/jose-hendos-barkcloth-patches-the-kampala-fashion-week/ Nakaweesi, D. (2013). Textile Industry Potential Crippled by Low Funds, Policy Hurdles. Daily Monitor. Retrieved from: http://www.monitor.co.ug/Business/Prosper/Textile-industry-potential-crippled-by-low-funds--policy-hurdles/-/688616/1704120/-/item/0/-/254l9kz/-/index.html

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Namulinda, T. & Tanyetekerwa, M. (2015). Textile Industry of Uganda – An Overview. Textile Tribune. Retrieved from: http://www.textiletribune.com/2015/02/textile-industry-of-uganda-overview.html

Nassuna, S. (2015). Jose Hendo’s Bark Cloth Patches @ The Kampala Fashion Week. Fashion4wrd7. Retrieved from: http://fashion4wrd7.com/2015/11/16/jose-hendos-barkcloth-patches-the-kampala-fashion-week/ National Environment Management Authority. (2010). Uganda Atlas of Changing Environment. National Environment Management Authority (NEMA). Retrieved from: http://www.nemaug.org/atlases.php Ndyahabwe, S. (2015). The Uganda government has not learned from Bujagali. FIVAS. Retrieved from: http://fivas.org/frontsak/the-ugandan-government-has-not-learned-from-bujagali/ Nordas, H. K. (2004). The Global Textile and Clothing Industry post the Agreement on Textiles and Clothing. Discussion Paper No. 5. World Trade Organisation. Retrieved from: https://www.wto.org/english/res_e/booksp_e/discussion_papers5_e.pdf Obwona, M., Shinyenkwa, I., Kiiza, J. & Hisaali, E. (2014). The Evolution of Industry in Uganda. Working Paper No. 9, The Brookings Institution. Retrieved from: http://www.brookings.edu/~/media/Research/Files/Papers/2014/11/learning-to-compete/L2C_WP9_Obwona-et-al.pdf?la=en Office of the United States Trade Representative. (2013). Uganda. Retrieved from: https://ustr.gov/countries-regions/africa/east-africa/uganda Osujo, F. & Odong, J. (2014). Museveni launches construction of Soroti fruit factory. The New Vision. Retrieved from: http://www.newvision.co.ug/new_vision/news/1310254/museveni-launches-construction-soroti-fruit-factory Regional Agricultural Trade Expansion Support Program. (2003). Cotton Textile Apparel: Value Chain Report for Uganda. Centre for Regional Agricultural Trade Expansion Support. Retrieved from: http://pdf.usaid.gov/pdf_docs/Pnadn348.pdf

Robertson, L. (2014). Rethinking Material Culture: Ugandan Bark Cloth. Textile Society of America Symposium Proceedings. Paper 897. Retrieved from: http://digitalcommons.unl.edu/tsaconf/897

Rosenbaum, S. I. (2016). Let’s Talk About Beyonce’s Lemonade Dress. Boston Globe. Retrieved from: https://www.bostonglobe.com/lifestyle/style/2016/04/28/beyonce-lemonade-shonibare-and-creating-something-new-from-ruins-oppression/fEY3ZUOpxNJwzfIOyg0CWJ/story.html

Switch Africa Green. (2015). Switch Africa Green Quarterly Report: October-December 2015. Switch Africa Green. Retrieved from: http://www.switchafricagreen.org/sag2/index.php/links/sag-knowledge-repository/presentations/quarterly-reports-1/22-sag-quarterly-report-october-december-2015-1/file TFO Canada. (2013). Apparel and Textiles. Market Information Paper. TFO Canada. Ottawa.

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TFO Canada. (2015). Canadian Market Access Initiative: A Guide to Duty Free Export to Canada from Least Developed Countries. TFO Canada. Ottawa. The Ugandan Masters. (No date). Maria Naita. The Ugandan Masters. Retrieved from: http://www.theugandanmasters.com/maria_naita.html The World Bank. (2016). Uganda. Retrieved from: http://data.worldbank.org/country/uganda

Todd, M. & Muhwezi, S. (2014). Ugandan T-Shirt Brand Devoted to ‘100% African-made’. CNN. Retrieved from: http://edition.cnn.com/2014/09/02/business/definition-africa-t-shirt-brand/ Trademark East Africa. (2016). A Second Hand Clothing Ban in East Africa? Trademark East Africa. Retrieved from: https://www.trademarkea.com/news/a-second-hand-clothing-ban-in-east-africa/ Uganda Bureau of Statistics. (2014). National Population and Housing Census, 2014. Uganda Bureau of Statistics. Retrieved from: http://unstats.un.org/unsd/demographic/sources/census/wphc/Uganda/UGA-2014-11.pdf

Uganda Bureau of Statistics. (2015). Statistical Abstract. Uganda Bureau of Statistics (UBOS), Government of Uganda. United States Census Bureau. (2016). Foreign Trade: Trade in Goods with Uganda. United States Census Bureau. Retrieved from: https://www.census.gov/foreign-trade/balance/c7780.html UNCTAD. (2015). Merchandise: Total trade and share, annual, 1948-2015, UNCTADStat. Retrieved from: http://unctadstat.unctad.org/wds/TableViewer/tableView.aspx Waiswa, B. (2014). Start-up reinvents Kitenge fabric. East African Business Week. Retrieved from: http://www.busiweek.com/index1.php?Ctp=2&pI=685&pLv=3&srI=73&spI=59&cI=20 Walugembe, J. (2015). Sustainable product innovation and energy efficiency project among SSIs in Uganda: Presentation at the Switch Africa Green national stakeholders’ workshop. Uganda Small Scale Industries Association. Retrieved from: http://www.switchafricagreen.org/sag2/index.php/links/sag-knowledge-repository/presentations/uganda-grantee-presentation/43-ussia-presentation-national-stakeholders-workshop/file

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Appendix 1: Research Team

Maria Nagawa: Team Leader Maria Nagawa is a Lecturer of International Business Economics and Ugandan Economy at Makerere University Business School. She holds a Bachelors of Commerce and a Masters in International Economic Policy. She speaks 3 international languages: English, French and Spanish and has worked as a research consultant for Economic Policy Research Centre and as a business consultant for the French embassy for two years. She is currently working on analysing trade between the BRICS and EAC. Sophie Alal: Research Assistant (Interviews and company validation) Sophie Alal is a writer. Previously, she has worked for non-profits and is experienced in reporting, research writing, documentation, archiving, and monitoring and evaluation. Her freelance contributions on development, arts and culture in East Africa have been published in several countries and through her organisation Deyu African. Her latest work of non-fiction appears in Moonscapes: Short Stories and Poetry, published by African Writer's Trust (2016). Since April 2014, she has been a mentor to youth hosted by Fontes Foundation in Bukasa. Here, she shares life skills with youth from underserved communities on how to hone their business skills. Some of her most successful students are pursuing careers in the food industry and waste management. She is currently pursuing an MSc at the University of Edinburgh. .

Dr. Martha Nassali: Research Assistant (program management and company validation) Dr. Martha J. Nassali is a medical graduate with a primary interest in research that will bring about changes in policy that ensure equity. She is involved in clinical research and was delighted to work on a project involving other sectors. She is well organised, meticulous and goal driven. She is currently working at the Joint Clinical Research Centre and hopes to influence health policy in Uganda.

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Allan Ssekamatte: Research Assistant (shadowing TFO Canada representative and company validation) Allan Ssekamatte is a student of Petroleum Engineering in China and speaks fluent Chinese.

Barbara Yiga: Research Assistant (company validation) Barbara Yiga holds a Bachelors degree in Business Administration with a major in Human Resource Management from Mbarara University of Science and Technology. She is currently working with the Ministry of East African Community Affairs on research about good governance and gender equity at the work place in collaboration with various NGOs, local government and universities. The research aims at establishing whether adequate awareness and sensitization has been carried out by the concerned bodies about the need for working women to know their work place rights and whether these rights are implemented.

Elaine Yiga: Research Assistant (company validation) Elaine Yiga holds a first class Bachelor’s degree in Business Administration from Mbarara University of Science and Technology.

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Appendix 2: Database of producers

NAME

ENTERPRISE

TYPE OF FABRIC

PRODUCT CONTACT

EMAIL PHYSICAL ADDRESS

Margaret Okullu

Manafa Widows' Association Mayenza

Karamajong 772532562

Manafa

Fred Mutebi Bark Cloth 772419220

Bukomansimbi

Stephen Coordinator - Fred Mutebi

774667654

Mukasa Fred Bark cloth 773007010

Kalisizo

Sylvia Owori Organic cotton

779274099

Luzira

Derek, Sylvia Owori PA

785556421

watimaderek@gmail.com

Luzira

Grace Kirabo Texda Hand woven cotton

713438732 752438732

gkirabo@texdauganda.net

Plot 9 Corporation Rise Bukoto

Sanaa Gateja Bark cloth Art pieces, bags

772419061

sanaa.gateja@gmail.com

Lubowa

Sarah Nakisanze

Easy Afric Designs

Bark cloth 712983651 772439767

easyafricdesigns@gmail.com lususu@easyafriquedesigns.com

Buganda Rd

Ivan Yakuze Bark cloth Wall hangings

712979128 792979128 776979128

yakuzeivan@yahoo.com

Namusera, Wakiso

Hadija Ndugwa Heritage Textiles and Garments

256703604956 256772320864

ndugwahadija@yahoo.com

Kibanga, Busika, Kalagala Rd, Gayaza-Zirobwe Rd

Agnes Kiganda Sewa Art & Craft Centre/Exposure Africa

Textiles and Garments

256701444962 256772444962

sawadesigns@yahoo.com

10 Km Entebbe Rd. Kajjansi

Kwikiriza Allison

A.K Liz Crafts

Kitenge Textiles and Garments

256772623729

rmugisha@yahoo.com

Namasuba, Kampala

Claire Nazziwa Nabuleka

ABC Tailoring $ Knitting Company

Textiles and Garments

256703001302 256776001302

babaulekallen@yahoo.com

Mutundwe Kampala

Christine Luboga

Chrisams Designs Ltd

Textiles and Garments

414531815 256772505565

christineluboga@gmail.com

Mulago

Christine Kirabo Senfuma

Chrisams Designs Ltd

776842930

kiraboc@gmail.com

Christine Namatovu

Chrissiam Designers

Tie and dye Textiles and Garments

256774042070

chrissiam98@gmail.com

Munyonyo near mild care Parents school

Jorian Mirembe Empower a woman Uganda

Textiles and Garments

256703035127 256779141001

empaw777@gmail.com

Mutungo, Kampala

Gladys Uniya Gladys Uniya Garments

Textiles and Garments

256772862314

Wampewo, Gayaza Rd

Edith Bagenda Hanrose Textiles Ltd

Tie and dye Textiles and Garments

256788990474 256755559044

Mbalwa, Namugongo

Ronald Mwesigwa

Kamwe Business Solutions

Textiles and Garments

256775469432 256776854788

mwero2k@gmail.com

Nakawa Market

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Nellie Ssali Makika Stylz

Textiles and Garments

312111193 256772647019

nelliessali@gmail.com

Luzira

Masitula Mukasa

Mercy textiles & Catering services

Textiles and Garments

256784799944 256701638572

mukasamasitu123@gmail.com

Bweyogerere, Kampala

Teopista Kyomuhendo

Our Lady of Charity Women Group

Tie and dye Textiles and Garments

256782449909 256782629861

kampole@yahoo.com

Nsoba, Mulago

Esther Najjemba

Safibah General Enterprises

Tie and dye and batiks

Textiles and Garments

256753418074 256772418074

esthernajjemba@yahoo.com

Wakaliga, Rubaga

Esther Najjemba

Lubaga Women Volunteers Initiative

TEXFAD-Centre for Textiles Innovation & Development

Textiles and Garments

256772692444 256755674141

prossiebmw@yahoo.com

Bweyogerere

Rachael Ayikiriza

TEXFAD-Centre for Textiles Innovation & Development

785000020

Margaret Rose Lukwago

Trinity Designers

Textiles and Garments

256772475342 256702475342

Konge, Kansanga

Harriet Kamya Bafasha & Noah Enterprises

Textiles and Garments

256779917876 256759917876

bafasha@yahoo.com

Mukono

Tendo Maria Baroma International Vocational Institute

Textiles and Garments

256753435045 256772435045

baromainstitute@gmail.com

Nabusi Rd, Mukono

Rose Kasule God Is Able Tailoring & Designing

Textiles and Garments

0782119792 256774281392

Near YMCA Mukono

Harriet Nakayi Harrimax Designers

Textiles and Garments

256705487449 256752899387

Mukono

Yiga Ronald Roniga Designers & Training Centre

Textiles and Garments

256751312785 256774103088

Mukono

Sarah Bulega Sarah House of Design

Textiles and Garments

256712882149

sarahbulega@yahoo.co.uk

Hamu Mukasa Road, Kitete Village, Mukono T/C

Victoria Senkubuge Byoma

Gifts A'Curious Ltd

Bark cloth/African fabric

772502363

victoriasbyoma@gmail.com

Port Bell Rd, Kitintale

Simon Drapari 757169313 772355006

sdrapari@yahoo.com

2nd Street near New Vision

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Appendix 3: TFO Canada Exporter Profile

EXPORTER PROFILE NB: This information is solely intended for TFO Canada internal use and will only be

shared with external parties such buyers with the expressed consent of the exporter.

Registered on TFO Canada website? Yes No Will be Sector: _

I. CONTACT INFORMATION

Company Name: ________________________________________________________________ Representative Name(s): __________________________________________________________ Title(s): ___________________________________________________ Gender: Male Female Address: _____________________________________________________________________ Phone: _________________________ Mobile: __________________Fax: __________________ Email: __________________________ Website: ______________________________________ Social media: LinkedIn _______________________________Facebook_____________________________ Other (please specify) ___________________________________________________________________

II. THE COMPANY

a. Type of Company (i.e. company established as Manufacturer/Producer,

Trading House, etc.) and brief description of your operations: _____________________________________________________________________________________________________________________________________________________________________________

b. Is your company officially registered as a corporation in your country? Yes No Will be Registration number_____________________

c. What is the ownership Structure of the company : (Also indicate Year Founded: __________)

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Private Company Publicly traded Co-Operative State-owned NGO Other:________

Male-owned/managed (2/3) Female-owned/managed (2/3) Mixed ownership

Disadvantaged-group management/ownership (e.g. indigenous group); describe: ____________

d. What is the size of your plant and overall premises (land)?

__________________________

e. What full-time and part-time employment is generated by your company? (approximate figures)

Full-time: Male _____ Female_____

Other employment (e.g. part-time & via suppliers): Male_____ Female_____

Location of most of this Employment: ___________________________________

f. Financial overview of your company

Size of the company’s assets (USD $)

Turnover in 2014 and 2015

What is the name of your main local bank

Do you currently get bank financing form your local bank? Yes No

If yes, please specify purpose (e.g. equipment financing, cash flow) __________________________

If you export, under what terms are you working for payments?

What is the size of your budget for export promotion on the Canadian market? _________________

g. What standards (e.g. ISO, HACCP, organic, health, labour, GAP) are you

currently certified for:

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

h. Describe any Corporate Social Responsibility activities (e.g. fair trade

certification, environmental protection, community support, etc.):

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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III. EXPORTING EXPERIENCE

a. Do you have export experience? NO YES

b. Main products available for export:

Product Per Unit Price

Production Capacity

Export Capacity

c. Describe recent export transactions below (including to Canada) and

indicate (in $US) export sales in your most recent fiscal year: Canada ________ Rest of world: _______

Product Destination Value (USD) Year

d. Logistics

What is your freight forwarder and their contact details (Name, email, phone number) ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

What export documents are required from the local authorities beyond the bill of lading, commercial invoice and packing list? _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Do you usually ship on an FOB or Ex-Work Basis? _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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IV. EXPORTING TO CANADA

a. Exportable Products targeted at the Canadian Market (Please describe

the product line & product presentation in detail, you can also include or attach images of products):

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

b. Do you have an Agent or representative in Canada? NO YES

If Yes please complete below Name Address (City) Product Line (if applicable)

c. Any additional information on your company, products and export objectives (please include additional product related information in separate documents: photos, catalogues, prices, company presentations:

__________________________________________________________________________

37

Appendix 4: PowerPoint presentation at workshop

38

39

40

41

42

43

Appendix 5: Images of fabrics

Image 5: Ugandan or “African” fabrics in Kampala

Source: A Luxury Travel Blog Image 6: Bark cloth

Source: Bambooride