Global Policy Forum

By Dorothy Nakaweesi and Mercy Nalugo

Ugandan traders are still scared of the East African Customs Union, just a month to the signing of the protocol. In their last minute plea, the traders have returned with the old argument that Uganda needed more time to reverse the trade imbalance with neighbouring Kenya.

These issues were raised during a one day East African legislators Assembly Public hearing on the Protocols on Customs Union and Standardisation, Quality Assurance, Metrology and Testing at Hotel Africana on September 26. The traders asked government to delay signing the protocol with Kenya and Tanzania.

Mr Daudi Ndiwalana of the Uganda Manufacturers Association (UMA) said that the timing of the Customs Union is not right for Uganda. "Uganda may not be in position to compete with the other two countries," he said. He said that in the CU, which will eliminate tariffs would erode Uganda's only 10 per cent market share of the region's market. Presidents Yoweri Museveni of Uganda, Benjamin Mkapa of Tanzania and Mwai Kibaki of Kenya are expected to sign the protocol in November.

Mr Isah Ssekitto, Spokesman for Kampala City Traders Association said: "There is still a communication breakdown. Our goods have been destroyed because of the East African Customs Management Act which is too ancient." Both Kenya and Tanzania enforce this act, which prohibits transportation of loose cargo in imported vehicles. Recently, Ugandan traders claimed that they lost their goods to the Tanzanian Revenue Authority, as the latter enforced the act. "If they (Tanzania and Kenya) have refused to give us time to get prepared for the changes in this act how do you expect the Customs Union to work?" he wondered.

Added Ndiwalana: "Uganda has been hit by the 1970'S and 80's war challenges that left the industrial sector down. Infrastructure still needs a lot of attention, cost of production is still higher than that of Kenya and Tanzania."

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