The Uganda Manufacturers Association (UMA) has called on the government to consider retaliatory measures against the Government of Kenya in response to what they describe as unfair treatment and significant harm to Ugandan investments.
The demand for retaliation comes after a prolonged ban on Ugandan exports to Kenya, which has left traders frustrated and seeking a stronger stance from their government.
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Richard Mubiru, Executive Director of UMA, emphasized the need for a more assertive approach, stating, “Our very blunt demand as manufacturers is there should be a retaliatory measure because we cannot be in a marriage where you cannot enter some bedrooms. Every time we speak about mistreatment of Uganda, the government is in un-ending engagements with Nairobi and other capitals.”
Mubiru pointed out that diplomatic efforts have not yielded satisfactory results for Uganda, and the private sector cannot endure an environment of diplomatic appeasement that is seriously harming their investments. His remarks were made during a presentation on the state of the economy at a meeting of the Committee on National Economy on Thursday, October 26, 2023. Notable attendees at the meeting included officials from the Private Sector Foundation Uganda (PSFU) and the Kampala City Traders Association (KACITA).
Julius Byaruhanga, Director for Policy and Advocacy at PSFU, highlighted the adverse impact of the ban on milk exports to Kenya, which began in March 2023. He revealed that this trade restriction has significantly affected companies like Brookside Uganda, which was forced to lay off half of its employees. Byaruhanga stressed that Kenya accounts for 75 percent of Brookside’s dairy market, and the ban fails to consider the disruptions in the value chain and the resulting losses.
In addition to the milk ban, traders expressed concerns about the recent bans on wheat and maize exports to Kenya. Kenya has traditionally been the largest consumer of Ugandan maize, with export revenue worth USD 92 million recorded in 2020 and USD 52 million in 2021.
Traders are now calling on the government to strengthen trade relations with the Democratic Republic of Congo (DRC), citing its potential as a valuable trading partner. Richard Mubiru suggested, “For us to grow the manufacturing output by almost double, we do not have to invest any new dollars. If we are able to secure USD 500 million for DRC targeting women, youth, and smallholder exporters, we estimate the number could grow fivefold, meaning we could easily get USD 2.5 billion as annual revenue.” To achieve this milestone, Mubiru stressed the need for an export insurance policy that would save the government from making compensation for trade losses.
Several Members of Parliament also weighed in on the trade issues. Isingiro County South Member of Parliament, Alex Byarugaba, called for the private sector to cooperate with the government in regulating what he described as illegal trade practices that have contributed to the bans on Ugandan products. He mentioned examples of traders mixing cheap imported rice with local rice and exporting it, as well as similar practices in the dairy sector.
Kalungu East County MP and Shadow Minister for East African Community Affairs, Francis Katabaazi, emphasized the importance of improving diplomatic relations in the region. He noted that trade disputes were not limited to Kenya, citing recent issues with South Sudan, which arrested Ugandan trucks over alleged toxin concerns related to Ugandan posho.
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The call for retaliation against Kenya and the push for stronger regional diplomacy indicate the growing frustration among Ugandan manufacturers and traders over the ongoing trade disputes, with hopes for more effective strategies to protect their interests in the East African market.
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