UGANDA – The slow move by the Ugandan government to create Uganda Free Zones and Export Promotions Authority is causing confusion to the country’s fruits and vegetable exporters and could be costly.
For about three months, the Ugandan Government sought to merge Uganda Export Promotion Board and Uganda Free Zones Authority to rationalize the two agencies and facilitate effective and efficient service delivery while removing duplication of functions.
However, exporters are finding it difficult to obtain export certificates as it is not clear when normal service delivery will resume.
Before the merger, Uganda Export Promotion Board was mandated with issuing export certificates.
However, after merging the agencies to form Uganda Free Zones and Export Promotions Authority, the government had earmarked two weeks to restore operations but has not materialized up to now.
Monitor News Agency reveals that close to 60 exporters las month were struggling with getting export certificates putting at risk nearly US$50m (UShs183bn) earned from exports.
Rwenzori Commodities, the producer of Mukwano Tea told the news agency that its market in Italy was at risk due to delayed clearance and licensing of its samples to the European country.
“We cannot keep losing out on business because of confusion or malfunction of rationalisation. We are not just doing this for ourselves but for the economy,” Ms Hasifah Tushabe, the Uganda Fruits and Vegetables Exporters and Producers Association coordinator, said.
“We need services efficiently restored as soon as possible or else we will be out of business and many people including the farmers, the economy, and government will pay dearly for this laxity.”
She noted that every day at least 10 people seek export licenses or services relating to export, but for the last one and half months, they have been registering losses due to difficulties in access to export certificates.
According to Ms Tushabe, the confusion and laxity with which the rationalisation has been handled posed a danger to their businesses, farmers, and the economy at large.
Trade Minister Francis Mwebesa acknowledged the merger issue had taken longer than anticipated but assured exporters that the ministry is handling the matter.
Nonetheless, local media houses have reported that earlier efforts to have a board in place were rejected by Cabinet.
The Ministry of Trade, which is responsible for the two merged agencies, is now seeking to put in place a new board that will oversee management and monitor activities of the exports sector.
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