TradeMark Africa (TMA), a donor-supported organization formed to facilitate cross-border business in the region, has expressed worry that while they have supported the modernization of ports in Mombasa and Dar es Salaam, trade volumes are still below expectations. TMA seeks to facilitate the East African Community (EAC) with $2.5m to increase intraregional trade to 25 per cent from the current 20 per cent, and grow exports outside the region by at least 10 per cent in the medium term. TMA says the $2.5m (nearly 8.5bn) towards the region will improve export capacities and private sector competiveness. Most of Uganda’s imports come through Mombasa. 

However, TMA says some EAC member states have not fully reached consensus on specific product standards, which has made it difficult for some of the proposed regional trade policies to impact on traders’ operations. Speaking during a meeting with private sector stakeholders at Sheraton hotel in Kampala recently, Allen Asiimwe, the country director TMA Uganda, said growth prospects of the East African Community remained low. She said the region needed to improve its exports position by enhancing regional ties through increasing the private sector’s capacity. “…what we have recognized over time is that these reforms, on their own [for example] improving the road network, IT [information Technology], and customs management don’t translate into increased trade or exports,” she said. 

“We continue to see that the ports [both Mombasa and Dar el salaam] are improving; goods are coming in. But we do not see a similar level of goods moving out of the region. So, we recognize it is going to be hard to achieve the key goals of increasing exports,” She added.  At the meeting, TMA announced a new line of support and commitment to Uganda for its next phase 2017 – 2024. TMA plans to further extend support to women in trade with $500,000, Staples standards (ware housing) $430,000, private sector advocacy and manufacturing $230,000, tourism project $360,000 and the National Logistic Platform Project $230,000.

Commenting on issues regarding standards and policies in Uganda, Gideon Badagawa, the executive director of the Private Sector Foundation Uganda (PSFU), said competitiveness should start within the EAC before expanding elsewhere. He said the private sector faces challenges both at a micro and macro level, which cuts across all sectors. For example, he said, “the Kenyans wash their eggs and onions before they get them to the market but Ugandans don’t.” He added: “So, we are talking about the capacity to supply but also what is the quality of standards? Are you able to meet what the market is asking for? That’s why you find oranges and tomatoes from South Africa here in the markets,” he said.

Source: The Observer

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.