Uganda National Council for Science and Technology CHALLENGES OF INTEGRATING THE “JUA KALIS” INTO THE NATIONAL SCIENCE AND TECHNOLOGY SYSTEM IN UGANDA Bashir Rajab Kagere Policy Analyst Uganda National Council for Science and Technology P.O. Box 6884, Kampala, Uganda August, 2008 Negombo, Sri lanka

Introduction Uganda’s industrial sector GDP contribution of 21% in the financial year 2006/07, up from 20.9% in 2005/06 focused on light manufacturing and offering services for local consumption 90% of Uganda’s exports are agricultural products with little technological input or value addition August, 2008 Colombo, Sri lanka

Introduction Cont………….. Small Scale Industries Poor performance of industries and the high levels of unemployment have led to the emergence of micro and small scale enterprises within both the formal and informal sector fill in gaps between imported products and what is produced locally either because they are too expensive to afford or not available in the market August, 2008 Colombo, Sri lanka

SSE growth: The Path to Industrialization SSEs as a source of entrepreneurship and continual innovation “breeding ground” or “seedbed” from which larger firms emerge modern small and medium scale enterprises did not primarily originate from micro manufacturing enterprises but rather started with more than ten employees. Firms uncover their true efficiencies, over time, through a learning process (Jovanovic, 1982) August, 2008 Colombo, Sri lanka

“Jua Kali”: Who are they? “Jua Kali” is a Swahili word meaning hot sun. term is used to refer to small scale artisans eking out a living through manufacturing of products and offering services in the open scorching heat of the sun August, 2008 Colombo, Sri lanka

Metallic doors August, 2008 Colombo, Sri lanka

Metallic windows August, 2008 Colombo, Sri lanka

Carpentry August, 2008 Colombo, Sri lanka

Water Peddling Pump August, 2008 Colombo, Sri lanka

Water Peddling Pump Cont….. The water peddling pump was developed by the “jua kali” in kisenyi, kampala district. The pump is used for irrigation and is powered by two bicycles The prototype was tested at Makerere University and is capable of delivering a water flow of upto 27 litres per minute at a distance of 5metres Still undergoing modification, but could pump upto 300 litres/ 45 sec August, 2008 Colombo, Sri lanka

“Jua kali” Contribution to the Economy It is estimated that there are 800,000 small scale enterprises operating under the informal sector in Uganda, employing 2.6 million people Over 20% contribution to GDP August, 2008 Colombo, Sri lanka

Characteristics of “Jua Kali” Sole proprietorships with the owner as the only person in a managerial position Do not have well laid out plans Labour intensive Imitation/ copying Easy entry and Exit Extensive use of local raw materials in production August, 2008 Colombo, Sri lanka

National Innovation System Uganda possesses a poorly functioning national innovation system and innovation processes for her prevailing objectives and circumstances. Developing countries are not organized in ‘systems of innovation’ but ‘learning systems’ (Viotti, 2002) August, 2008 Colombo, Sri lanka

Components of Uganda’s STI System STI Policy & Institutional Framework Institutions Policies Resources (financial) STI Manufacturing and Marketing Products and services Prices Consumers STI Infrastructure R&D facilities ICT facilities Others STI Human Resources Knowledge Skills Entrepreneurship August, 2008 Colombo, Sri lanka

Management of the STI System Uganda’s STI system is managed through a constellation of macro and sectoral policies whose major focus is on non-STI specific indices of development Parallel mandates of STI governing bodies complicate coordination of the system August, 2008 Colombo, Sri lanka

Jua Kali: A case of Metal Fabrication Metal fabrication industry in Uganda is still in its infancy Skills in the metal fabrication sector are basically learned on the job through an older and experienced worker teaching a novice over a relatively long period of time Some of the commodities produced include; metallic windows and doors, staircases, mortars, vehicle spare parts, spare keys, grinding machines, tanks, source pans, chairs, tables, etc August, 2008 Colombo, Sri lanka

Metal fabrication Cont…. low levels of technology 45% of the metal fabricating firms did not introduce any new products over a 3 year period ranging from 1997 to 2000 (Z.M. Nyiira et al, 2001). Products introduced are either imitations of domestic models or applications of existing technology in the market August, 2008 Colombo, Sri lanka

Metal fabrication Cont….. Most metal fabricating enterprises begin small (1 to 5 people) and remain in this state since the goal of the initiative is for personal survival and not growth Modern metal fabricating enterprises in the business include: Hwan Sung, Alminium halloware, Steel Rolling Mills Ltd, casements, etc August, 2008 Colombo, Sri lanka

Challenges of Integrating Jua Kalis into the S&T System Policy Environment Institutional Framework Classification of SMEs Deepening of the Concept of National Innovation System Financing Technology Incubation/ clustering August, 2008 Colombo, Sri lanka

Challenges Cont….. Technology Transfer and Management Standardization of Products Competition and Legal Protection Link between Jua Kali and Industrial Establishments Entry and Exit August, 2008 Colombo, Sri lanka

Challenges Cont….. Jua kali Capacity to Absorb Technology Tacit Knowledge August, 2008 Colombo, Sri lanka

Conclusion In developing countries, SMEs are the engines of growth and are responsible for most jobs, products, tax revenue and development. It is therefore imperative that governments in developing countries as a matter of necessity and survival of their economies support and fund knowledge creation and infusion into SMEs August, 2008 Colombo, Sri lanka

Thank You For Listening August, 2008 Colombo, Sri lanka