OPINION
Halal is a way of life. It’s about ensuring consumables and non-consumables are safe, wholesome, stable, and ethical. The concept of Halal defines products and services that are permitted to consume in Islam in a healthy, sustainable, ethical, and responsible consumption manner as Islam prohibits doing harm to humankind and environment.
During the recent simultaneous Global Halal Summit and Halal Expo Nov 2024 organized by the Standards and Metrology Institute for Islamic Countries (SMIIC) and the Organization of Islamic Cooperation (OIC) convened in Istanbul, Turkey, The Summit featured several halal sectors including foods and beverages, pharmaceuticals, cosmetics, tourism, finance and banking among others.
It was revealed that the growing global halal economy is estimated at USD 8T and expected to be at USD 12T in the next five years. This was revealed by the Halal Summit Coordinator, Ms. Aylin Sengul.
The key driver for the rocketing halal market across the globe is the ever-increasing appreciation and demand for halal products and services by the non-Muslims. This demystifies the previously held misconception that Halal is merely an Islamic issue. The competitive advantage of halal products is the industry’s commitment to high hygienic standards and ethical practices throughout the production chain.
Uganda is also experiencing growing demand and interest in Halal products and services including Halal Foods & Beverages, Islamic Finance and Banking.
Uganda is strategically positioned as the only OIC member state in the East African Community (EAC) region, and therefore steadfast in catching up with the Halal Quality Infrastructure ecosystem, in order to tap into and benefits from the growing halal market regionally and globally.
For instance, the Halal standards in the country are developed/adopted and harmonized by the Uganda National Bureau of Standards, (UNBS). These standards are then implemented and applied in Halal Audits Compliance in factories and manufacturing establishments by the industry practitioners/players and Halal Certification Bodies in the country, which include:-
• Uganda Muslim Supreme Council
• Uganda Halal Bureau
• Halal Assurance Institute Uganda
As per the halal ecosystem in Uganda; Uganda Muslim Supreme Council is currently developing capacity for providing Halal Accreditation Services to Halal Conformity Assessment Bodies; (HCABs), in order to undertake the regulatory function. These include Certification Bodies, Halal Food Testing Laboratories currently established by Islamic University in Uganda (IUIU), Halal Integrity Capacity Building Network (HiCBN) is also providing training services to Halal industry to close the human capacity development gap.
Once the Halal Certification Bodies (HCBs) in Uganda attain accreditation, Uganda will be in a better competitive place to effectively tap into this lucrative Global Halal Economy.
Through exportation of Ugandan products to majorly halal consuming economies like those of the Middle East and North Africa (MENA), and the Gulf Cooperation Council (GCC) region and therefore import substitution; Ugandan manufacturers are encouraged to embrace the Halal services in order to participate in the growing global halal economy.
Despite the growing halal market across the world, Uganda is still hindered, due to lack of an internationally accredited Halal Certification Body (HCB) that conforms to OIC/SMIIC guidelines. This limits the exportation of Ugandan products to majorly halal consuming economies like those of the Middle East and North Africa (MENA), and the Gulf Cooperation Council (GCC) region.
Halal certified products for export to GCC countries requires strict compliance and conformance to halal certification services obtained from recognized Halal Accreditation Bodies (ABs); such certifications ensures that companies, product packers, producers, manufacturers, storage facilities managers, stakeholders in logistics and supply chain fully comply with the halal quality standard provisions as referenced in GSO 2055-1:2015;(Gulf Standardization Organization), OIC/SMIIC 1:2019 standard; which defines the “general requirements for Halal food that shall be followed at any stage of Halal food and supply chain including, receiving, preparation, packaging, labelling, handling, transportation, distributing, storage, displaying and Halal food service.
Apparent Ugandan manufacturers who intent to export to the halal markets are required to outsource accredited Halal Certification services from abroad. This is not only expensive but extremely bureaucratic to get together. Realizing this negative balance of trade as a major limitation and growth to our foreign exchange earnings; through importation of accredited certification service , the Government of Uganda initiated a campaign for the standardization of Uganda Halal Ecosystem.
In May 2024, the Government signed a Memorandum of Understanding with The Uganda Muslim Supreme Council (UMSC), Islamic University In Uganda (IUIU) and the Uganda Halal Bureau (UHB), to spearhead the development of the Halal standardization and certification services in the country. Under this arrangement, UMSC was charged with the accreditation of Halal Certification Bodies (HCBs), IUIU to offer Halal testing laboratory services (which is in progress) and UHB to carryout certification of halal products alongside other Certifying entitiies to be accredited by UMSC.
Spur Economic Growth through Exports
If well implemented, this is a great move that will see us tap into the booming halal economy in the Gulf region. This is more pertinent at the moment, considering Uganda’s current good relations with countries from MENA/GCC region.
However, it is important to note that the government should be fully engaged and invest in the process of developing a sound halal standardization and certification infrastructure. The Uganda Bureau of Standards (UNBS) has done a fundamental job in adopting and localizing a number of SMIIC standards for HCBs and the halal industry.
Now that we have the standards, government, as the key beneficiary from the exports market, should obviously invest in the realization of the Uganda Halal Ecosystem, as this venture has a multiplier effect of boosting export innovation, ample currency liquidity, creating employment opportunities, reducing trade deficits and ultimately improving the country’s gross domestic product (GDP)in fostering economic growth.
The Government should support the UMSC, to develop the necessary expertise and systems to internationally qualify them for accrediting HCBs. This requires benchmarking from economies outside the Gulf region with internationally recognized halal systems like the UAE; United Arab Emirates, Qatar, Saudi Arabia, Turkey, Malaysia, Singapore, New Zealand and others halal economies.
Moreover, the issue of halal certification should be given more publicity both at the policy making and implementation levels. Government should formulate clear policies that guide and support halal standards and certification services as well as actively participate in their implementation and enforcement.
There is also a need to interest and support the establishment of more HCBs in other sectors like hospitality, lifestyle, Tourism, pharmaceuticals, Finance and Banking, if Uganda to effectively cover the growing manufacturing industry, the service industry and other businesses in the country. The entry of more players in halal certification service engagement will also hype the industry as a result of heightened activities from those different players.
Furthermore, Uganda, being the only member of the OIC, in the East African Community, should effectively exploit this opportunity to become the leading halal economy in the region. If at all the UMSC successfully secures the international recognition for accrediting HCBs, it will not only accredit HCBs in Uganda but also for those in other EAC member states; likes of Kenya, Tanzania, Rwanda, Burundi, Congo, South Sudan. Ugandan accredited HCBs could also be outsourced regionally and globally to carry out and offer credible halal certification services for product and management systems.
The Memorandum of Understanding signed to establish the Uganda Halal Ecosystem, is a critical step towards tapping into the lucrative global halal economy. All players in halal certification sector should work towards its success. However, as we wait for its implementation, Halal Assurance Institute Uganda has already embarked on a process for securing Halal Accreditation and recognition of its certification services from GSO and GCC accreditation Bodies.
By Nsubuga Najib,
The author is the Director Marketing & Communications, Halal Assurance Institute Uganda.
