1. 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, 2008Negombo, Sri lanka

2. 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, 2008Colombo, Sri lanka

3. 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, 2008Colombo, Sri lanka

4. 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, 2008Colombo, Sri lanka

5. “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, 2008Colombo, Sri lanka

6. Metallic doors August, 2008Colombo, Sri lanka

7. Metallic windows August, 2008Colombo, Sri lanka

8. Carpentry August, 2008Colombo, Sri lanka

9. Water Peddling Pump August, 2008Colombo, Sri lanka

10. 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, 2008Colombo, Sri lanka

11. “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, 2008Colombo, Sri lanka

12. 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, 2008Colombo, Sri lanka

13. 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, 2008Colombo, Sri lanka

14. 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, 2008Colombo, Sri lanka

15. 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, 2008Colombo, Sri lanka

16. 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, 2008Colombo, Sri lanka

17. 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, 2008Colombo, Sri lanka

18. 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, 2008Colombo, Sri lanka

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

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

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

22. 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, 2008Colombo, Sri lanka

23. Thank You For Listening August, 2008Colombo, Sri lanka