PROTECTIVE DOMESTIC TAXES BY EAC MEMBER STATES HINDERS FREE FLOW OF TRADE- UMA BOARD CHAIR SAID

Some Exhibitors at UMA show ground at Lugogo

The just concluded 29th International Trade Fair attracted a total of 1,018 exhibitors from EAC region and globally. This was revealed by the Uganda Manufacturers Association Board Chairman Mr. Deo Kayemba at the closure of the week long trade fair.

He said that the trade fair has achieved its intended overall objectives of interacting with buyers, exchange ideas face to face, showing what is produced as well as realizing the theme, of digital transformation and innovation as per government policy guidelines.

He also said that International Manufacturers who exhibited have signed up memorandum of understanding with their local counterparts to take on joint ventures and this is also a major achievement that will foster the manufacturing sector in the country.

“ This has been a special kind of trade fair which has bounced back after Covid- 19 Pandemic which impacted on us negatively. We have now recovered and we are in better position to continue producing despite other challenges.’’ Mr. Kayemba said.

“ The total of 1,018 exhibitors includes 100 from other EAC countries and 20 from Europe, America and Asian countries which indicates that it has been truly an international Trade Fair also showing the importance of infra-regional trade.’’  He stressed.

Uganda’s infra-trade total exports increase from US$ 65 billion in 2021 to US$ 74 billion in 2022 which indicates a 11.2% growth from 9.8% in 2021 while the imports increased from US $ 239 billion to US $ 263 billion. We as the total exports of Uganda with partner states such as South Sudan, Kenya and DR. Congo increased by 27% in 2022.

The improvement in the volume of trade was attributed to improved weather conditions which cause a bumpy crop production, enhancement in value addition and an increase in the manufacturing of products in the country.

The main products traded in are exports of Sugar, cooking oil, Maize floor, Fish, cement iron and steel products, pharmaceuticals and household products.

Kayemba also said that the manufacturers are facing a number of challenges which includes, the protective domestic taxes and levies by the EAC member states, Framed EAC secretariat permits which are not under the region protocol and lack of implementation of the EAC single Customs territory.

The minister of state for Trade Commerce and Cooperatives in charge of marketing Harriet Ntabazi who grace the closing ceremony of the trade fair said that the private sector has been able to rebuild and even made the economy better than before the outbreak of Covid-19 pandemic.

She said that because of the high quality products which are being supplied to the regional market consistently, other countries competing with Uganda have developed envy and begun to use under methods to undermine our products.

“ I want to commend you for the improved sanitation, branding and packaging of our products, this has helped to increase market opportunities world over we now need just proper planning and organization such that we improve further and maintain the standards.’’ Ntabazi said.

She argued the producer of sugar and maize now to devise means of scaling up the production levels so as to meet the levels of demand in the market because currently there is scarcity of such products.

She also said that government will continue to invest in the development of infrastructures in the export zones so as to have one stop centers in order to reduce time taken while exporting products for instance it has completed the constructions of facilities at Mpondwe and exporters can now access all government services at one Centre.

By George Bukenya

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