Science, Technology And Innovation Policy Review Of Uganda

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U N I T E D N AT I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N TUgandaSCIENCE,TECHNOLOGY& INNOVATIONPOLICY REVIEW

U N I T E D N AT I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N TUgandaSCIENCE,TECHNOLOGY& INNOVATIONPOLICY REVIEWGeneva, 2020

2020, United NationsAll rights reserved worldwideRequests to reproduce excerpts or to photocopy should be addressed to the Copyright Clearance Centerat copyright.com.All other queries on rights and licences, including subsidiary rights, should be addressed to:United Nations Publications405 East 42nd StreetNew York, New York 10017United States of AmericaEmail: publications@un.orgWebsite: shop.un.orgThe designations employed and the presentation of material on any map in this work do not imply theexpression of any opinion whatsoever on the part of the United Nations concerning the legal statusof any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiersor boundaries.This publication has been edited externally.United Nations publication issued by the United Nations Conference on Trade and Development.UNCTAD/DTL/STICT/2020/4ISBN 978-92-1-112986-1eISBN: 978-92-1-005189-7Sales No. E.20.II.D.24

Science, Technology and Innovation Policy Review of UgandaNoteUnder its overall mandate on trade and development, the United Nations Conference on Trade andDevelopment (UNCTAD) serves as the focal point within the United Nations Secretariat for all matters relatedto science, technology and innovation. Its work is carried out through intergovernmental deliberations,research and analysis, technical assistance activities, seminars, workshops and conferences.The following symbols have been used in the tables: Two dots (.) indicate that data are not available or not separately reported. Rows in tables havebeen omitted in those cases where no data are available for any of the elements in the row. A hyphen (-) indicates that the item is equal to zero or its value is negligible. A slash (/) between dates representing years – for example 2009/10 indicates a financial year. Use of an en dash (–) between dates representing years – for example 2008–2010 signifies thefull period involved, including the beginning and end years. Reference to “dollars” ( ) means United States dollars, unless otherwise indicated. Annual rates of growth or change, unless otherwise stated, refer to annual compound rates. Details and percentages in tables do not necessarily add to totals because of rounding.iii

Science, Technology and Innovation Policy Review of UgandaPrefaceThe Science, Technology and Innovation Policy (STIP) Review of Uganda was prepared on the request ofthe Ministry of Science, Technology and Innovation of Uganda.Ugandan development aspirations require that its national science, technology and innovation (STI) plansand programmes make an effective contribution to its social and economic development. Strengtheningnational innovation performance is required to improve the competitiveness of Ugandan firms andindustries competing in the global economy. Furthermore, like all other countries, Uganda is facing thechallenges of Agenda 2030 for Sustainable Development and its 17 Sustainable Development Goals(SDGs). Here, as well, technology and innovation are increasingly important factors of success.The Review has three fundamental goals. Its first goal is to offer Uganda an assessment of activitiesand institutions that make up its STI ecosystem. The second goal is to draw attention to the main STIpolicy challenges and enhance institutional capacity for policy design and deliver through capacity buildingactivities. Special attention has been placed on the agriculture and information and communicationtechnologies (ICTs). The third goal is to provide recommendations for strengthening STI policies andpropose measures that may improve national technological capacities and encourage innovation.During visits to Uganda, the STIP Review team held 60 interviews and meetings with representatives ofgovernment agencies, research institutes, universities, chambers of commerce and businesses. A draft ofthis document was presented and discussed at a series of national workshops held in Kampala between9 and 12 December 2019, with the participation of more than 100 experts and national STI stakeholders.The feedback and suggestions provided have been considered in the preparation of this review.This review would not have been possible without the cooperation of the Ministry of Science, Technologyand Innovation of Uganda and, in particular, Honourable Minister Dr. Elioda Tumwesigye and PermanentSecretary David O. Obong. A special appreciation is owed to the Ministry STIP team, led by AssistantCommissioner Jennifer Muwuliza. Gratitude is also extended to all participants in the national workshopand to the persons and entities, too numerous to list, that generously contributed their commentsand ideas. Special thanks go out to colleagues at UNESCO, and from UNDP and UNIDO in Kampala,collaborating and assisting on the Review and related activities.While national partners, counterparts and experts in Uganda may have advised on its content, they maynot necessarily concur with the entirety of the STIP Review’s analysis and recommendations. The datacited in the Review is established by UNCTAD research staff. The assessments, opinions and conclusionsexpressed in this document are entirely those of the UNCTAD secretariat.v

AbbreviationsAIArtificial intelligenceASDSIPAgricultural Sector Development Strategy and Investment Plan 2010/11-2014/15ASSPAgriculture Sector Strategic Plan 2015/16-2019/20ATISThe Alliance for Trade in Information and Technology ServicesBBLBillions of barrelsBPOBusiness process outsourcingBtuBritish thermal unitBTVETBusiness, Technical, Vocational, Education and TrainingCNDPFComprehensive National Development Planning FrameworkCOMESACommon Market for Eastern and Southern AfricaCRISPRClustered regularly interspaced short palindromic repeatsCURADConsortium for Enhancing University Responsiveness to Agribusiness DevelopmentEACEast African CommunityEUEuropean UnionFTBICFood Technology and Business Incubation CentreGCFGreen Climate FundGCIGlobal Competitiveness IndexGDPGross domestic productGEMGlobal Entrepreneurship MonitorGERDGross domestic expenditure on research and developmentGGDSUganda Green Growth Development Strategy 2017/18-2030/31GIIGlobal Innovation IndexGPSGlobal Positioning SystemGSMGlobal System for Mobile CommunicationsICTInformation and communication technologyIMFInternational Monetary FundINSEADInstitut Européen d’Administration des AffairesIPIntellectual propertyIPRsIntellectual property rightsISOInternational Organization for StandardizationITCInternational Trade CentreITUInternational Telecommunication UnionIUCTUganda Institute of Information and Communication TechnologyLDCLeast Developed CountriesLEDLight-emitting diodeMAAIFMinistry of Agriculture, Animal Industries and FisheriesMGLSDMinistry of Gender Labour and Social DevelopmentMIICMakerere Innovation and Incubation CenterNDP IISecond National Development Plan 2015/15-2019/20NGONon-governmental organizationNIFNational Innovation FundNITANational Information Technology AuthorityNRINetworked Readiness Index

Science, Technology and Innovation Policy Review of UgandaNSINational system of innovationNSSFNational Social Security FundNSTPNational Science, Technology and Innovation PlanOWCOperation Wealth CreationPIBIDPresidential Initiative on Banana Industrial DevelopmentRASAReal Agricultural Solutions for AfricaRCDFRural Communications Development FundRCIPRegional Communication Infrastructure ProgramSDGsSustainable Development GoalsSSASub-Saharan African regionSTEMScience, technology, engineering, and mathematicsSTIScience, technology and innovationSTIPScience, technology and innovation policyTALENTranscription activator-like effector nucleaseTFPTotal factor productivityTNATechnology needs assessmentUBOSUganda Bureau of StatisticsUCCUganda Communications CommissionUDBUganda Development Bank LimitedUETCLUganda Electricity Transmission Company Ltd.UIRIUganda Industrial Research InstituteUNBSUganda National Bureau of StandardsUNCSTUganda National Council for Science and TechnologyUNCTADUnited Nations Conference on Trade and DevelopmentUNDPUnited Nations Development ProgrammeUNEPUnited Nations Environment ProgrammeUNESCOUnited Nations Educational, Scientific and Cultural OrganizationUNFCCCUnited Nations Framework Convention on Climate ChangeUNFPAUnited Nations Population FundUNHCRUnited Nations High Commissioner for RefugeesUNIDOUnited Nations Industrial Development OrganizationURSBUganda Registration Services BureauUSUnited States of AmericaUSAIDUnited States Agency for International DevelopmentWEFWorld Economic ForumWFPWorld Food ProgrammeWHOWorld Health OrganizationWIPOWorld Intellectual Property OrganizationWTOWorld Trade OrganizationYLPYouth Livelihoods Programmevii

Science, Technology and Innovation Policy Review of UgandaTable of contentsPreface.vAbbreviations.viKey messages. xiiiSummary.xivPart I STI policy and innovation in Uganda. 11.Introduction. 22.The economic context for STI. 32.1 Macroeconomic conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.2 Sector balance and structural transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.3 Innovation performance and comparators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102.4 Key sustainability challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102.4 Technology needs assessments and STI for sustainable development . . . . . . . . . . . . . . 132.5 Frontier technologies and relevance for national development . . . . . . . . . . . . . . . . . . . . . 152.6 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193.Policies and institutional capacity. 193.1 Policies and institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193.2 STI indicators, monitoring and evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223.3 Technology transfer capabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243.4 Investment in R&D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263.5 Financing STI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283.6 Conclusions and recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344.Framework conditions for the national system of innovation. 354.1 Key infrastructures supporting STI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364.2 Firm competitiveness and entrepreneurship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454.3 Industrial parks, business parks, and incubators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 504.4 Human capital, education and vocational training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 554.5 Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 574.6 Intellectual property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 594.7 Conclusions and recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64Part II Innovation challenges in agriculture and ICTs. 675.The agri-food industry. 685.1 The agri-food industry and the Ugandan economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 685.2 Main challenges for STI in agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 695.3 Policy background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 705.4 The agricultural innovation system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725.5 The development of the domestic, regional and international value chains . . . . . . . . . . . 775.6 ICTs and new technologies in the agri-food industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795.7 Conclusions and recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81viii

Science, Technology and Innovation Policy Review of Uganda6.The Information and Communication Technologies (ICTs) sector. 826.1 Diffusion of ICTs in Uganda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 836.2 STI stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 856.3 Policy background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 876.4 ICT companies, startups and incubators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 886.5 The fintech industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 896.6 E-commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 916.7 ICTs in the public sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 916.8 Conclusions and recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92Part III Policy recommendations. 957.Summary of policy recommendations. 967.1 Long-term recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 967.2 Medium-term recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 967.3 Short-term recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97References. 99Annex 1:What is a national system of innovation?. 104Annex 2:Sustainable Development Goals. 104Annex 3:Objectives of the National Science, Technology and Innovation Policy (2009). 105Annex 4:Ministry of Science, Technology and Innovation – Science, Technology andInnovation Sector Development Plan 2019/2020-2024/2025. 106Annex 5:Characteristics of effective innovation funds. 107Notes. 108ix

Science, Technology and Innovation Policy Review of UgandaBoxesxBox 2.1:The Ugandan economy: International trade. 5Box 2.2:Uganda’s National Development Plan II and commitment to the SDGs. 12Box 2.3:Frontier technologies: Definitions. 16Box 2.4:3D printing in Uganda. 18Box 3.1:Financing young entrepreneurs in rural areas – Youth Livelihoods Programme (YLP). 30Box 3.2:The Proposed Uganda Innovation Fund – Governance and legal framework. 32Box 4.1:Energy Policy in Uganda. 40Box 4.2:Fenix International – Off-grid power meets mobile technologies. 41Box 4.3:Oil discoveries in Uganda: Are they going to change the economic trajectory of thecountry?. 43Box 4.4:Industrial Research and Incubation for Innovation and Development in Uganda. 52Box 4.5:The Food Technology and Business Incubation Center at Makerere University. 53Box 4.6:Innovation Village, Kampala. 54Box 4.7:The role of standards in innovation – the Uganda National Bureau of Standards (UNBS). 58Box 4.8:Uganda’s Intellectual Property Laws and Treaties. 60Box 5.1:The National Agricultural Research Organization (NARO). 74Box 5.2:Examples of innovation initiatives in agriculture. 76Box 5.3:The coffee sector in Uganda. 78Box 5.4:The Coffee Sipi Falls project in Western Uganda. 80Box 5.5:Akorion – ICTs for agriculture. 80Box 5.6:Digitalizing B2B payments in the Arabica coffee value chain. 81Box 6.1:The WIMEA-ICT Collaborative Project on Weather Information. 86Box 6.2:Ugandan innovation hubs and accelerators hosting ICT startups. 89Box 6.3:MamboPay: fintech for children. 90Box 6.4:Innovation in public service in Uganda. 92

Science, Technology and Innovation Policy Review of UgandaFiguresFigure 2.1:GDP and GDP per capita, 2000-2017 (constant 2010 ). 4Figure 2.2:Annual GDP growth rate per capita: Uganda and comparators (constant

Science, Technology and Innovation Policy Review of Uganda vii NSI National system of innovation NSSF National Social Security Fund NSTP National Science, Technology and Innovation Plan OWC Operation Wealth Creation PIBID Presidential Initiative on Banana Industrial Development RASA Real Agricultural Solutions for Africa RCDF Rural Communications Development Fund

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