COVID-19 | TRADE Uganda enjoyed a booming cross-border informal trade, 80% of which was being done by women as their sole source of income. However, the inevitable closure of borders because of the dangerous COVID-19 is threatening to drive the women out of business, writes Faridah Kulabako Over the past decade, increasing the participation of women in cross-border trade has been a key focus area for stakeholders in trade, including the Government, through the ministries of trade and the East African Community affairs and development partners, including TradeMark Africa (TMA), USAID and the Eastern African Sub Regional Support Initiative for the Advancement of Women. Policies have been instituted to increase the participation of informal cross-border women traders to boost their incomes, improve living standards, and contribute to the country’s overall economic development. Data from the Bank of Uganda (BOU) indicates that informal cross-border exports fetched the country a total of $595m (about sh2.8 trillion) in the 2017/18 financial year. The Democratic Republic of Congo was Uganda’s leading export destination, accounting for $291m (sh1.3 trillion). It was followed by Kenya with $149m (sh691b) worth of exports, Rwanda, and South Sudan at $54m (sh250b) each, then Tanzania at $45m. The main export items were agricultural produce, mainly beans, maize, sugar, bananas, and fish. Trade was generally booming, then the COVID-19 reached the region, necessitating the closure of borders and paralysing movement. According to the Elegu Women Traders chairperson, Margaret Auma, her group members are now stuck with merchandise – cereals, grains, and...

Government has decided that only a driver per cargo truck will be allowed into the country without a conductor or turn man in the meantime following an increase in coronavirus cases in Uganda. In a period of just one week, a number of cargo drivers from neighbouring countries have tested positive for coronavirus, which has left many Ugandans worried for their health. This has also created apprehension among Ugandans, who have since called on authorities to keep the drivers and turn men at border points until their status has been ascertained. According to a stakeholders meeting in Kampala on Friday, only a driver per truck will be allowed into the country to limit transmissions. Ms Robinah Nabbanja, the State Minister of Health in charge of General Duties, said the policy is already being implemented as companies recruit Ugandan drivers. Ms Nabbanja said only essential commodities will be allowed into the country. “One driver, no conductor no turn man. They [cargo drivers] said they can, because it is their bosses who decided. Vehicles are going to reduce, only essential commodities will be allowed in,” Ms Nabbanja told Sunday Monitor yesterday. Currently, more than 11 truck drivers from Kenya and Tanzania have tested positive to coronavirus, bringing the total number of cases to 75 by yesterday. Meanwhile, as the one driver policy is being implemented, companies have been asked to recruit Ugandan drivers within three weeks. These will proceed with the cargo from the border points into the country. “Our policy now...

Uganda on Thursday said it is devising measures to control entry of cross-border cargo truck drivers as the surge in the number of confirmed Covid-19 cases in the country is attributed to them. Jeje Odongo, minister of internal affairs told reporters here that while the country is sacrificing to keep the spread of Covid-19 minimal, the efforts are being undermined by imported cases. Odongo said that on Tuesday this week the country had 56 cases but the number jumped to 61 on Wednesday on account of five cross-border truck drivers, four from Kenya and the other from Tanzania. The minister said the national task force is studying possible remedial actions. One of the measures is relay driving, whereby a driver from a neighbouring country hands over the vehicle to a Ugandan driver at the border crossing after the vehicle has been sanitized. The Ugandan driver will take the cargo to the final destination. In case the cargo is transiting through, the Ugandan driver similarly hands over the truck to another driver at the border crossing after the vehicle is sanitized. The other measure that is being discussed, according to the minister, is deploying rapid test kits at the border so that the results are obtained before the driver proceeds within the journey. Odongo however noted that this may be prohibitive since each test costs $65 and there are three people in the truck. An average of 1,000 trucks cross into the country daily. The other possible measure is to have...

Authorities at Mirama Hills border in Ntungamo District are finding it difficult to implement several standard operating procedures instituted by government to prevent the spread of the Covid-19 pandemic due to lack of facilities. Business is going on uninterrupted at the one stop border post between Rwanda and Uganda. When Daily Monitor visited the area on Wednesday, shops dealing in merchandise that was banned by the President were still open. Roadside markets selling agricultural produce were congested while hawkers were crossing to either side of the border. “We are unable to follow up on some measures as a district. We call upon the Ministry of Health to offer us financial support. We have not received any equipment, protective gear or any other aid, including training of medics to have this job done here,” Dr Richard Bakamuturaki, the district health officer, said. Dr Bakamuturaki said the district had communicated their concerns to the Ministry of Health but they are yet to get a response. President Museveni ordered a lockdown and closed borders as one of the measures to control the spread of coronavirus but allowed cargo trucks into the country. Authorities say more than 300 trucks use the border daily but its drivers are not tested for Covid-19. Many of the trailers currently entering the country are from Tanzania. At the main border entry, there are two health workers with digital thermometers to record the temperatures of the drivers and their crew before accessing the one-stop border post. The medics only...

Legal Practitioner and Senior Partner at AB& David Africa, David Fosu-Dorte has called on African governments to domesticate purchases and procurement processes to boost Intra-African trade strategizes and minimize the negative economic impact of the COVID-19 pandemic. “We could see Africa and some countries in Africa becoming an alternative base of supply chain of some items. We may have to as African countries coordinate our response to COVID in such a way that COVID becomes an impetus for increasing intra African trade rather than decreasing it,” he said. Speaking on the Eye on Port Panel discussion on how national and international Trade and regional Protocols have been frustrated by the COVID-19, the lawyer, said the global consequences of COVID-19 should teach African nations a lesson to boost intra-African trade because the reliance on the West and Far East has obviously proven not to be the best sustainable option. AfCFTA Implementation He also indicated that the COVID-19 has significantly impacted the establishment of the African Continental Free Trade Agreement in various ways, including uncertainty surrounding the level of commitment of governments, and the closure of borders indicating a substantial reduction of intra-African trade volumes since the pandemic. “Businesses on the continent are having stresses so you don’t expect them to ramp up production especially at a point they can’t export. So in the absence of open borders, in the absence of free movement, definitely, all these are going to affect the ability to produce and even when the restrictions are lifted...

BUSIA – As a new measure adopted to further combat the spread of Covid19 at Uganda’s borders, all truck drivers driving into Uganda are required to present themselves to the Ministry of Health officials for testing. On the 12th of April, 2020 a truck driver enroute to Southern Sudan went through the same procedure before clearance by immigrations and URA to proceed with his journey. 24 hours later, the results came back and one of the drivers tested positive. The URA Electronic Cargo Tracking System (RECTS) was used to trace the actual movement of the driver from Malaba OSBP up to Corner Kamdini Customs Check point where he was intercepted. RECTS utilizes the Global Positioning System (GPS) to trace the movement of trucks from their point of entry in a country right up to the point of exit to curb cargo dumping among many other risks along trade routes. Following this interception, a team led by Hon. Amelia Kyambade Uganda’s Trade Minister who is also the Chairperson of the National Covid19 Taskforce, has met at the URA headquarters to further discuss how they can take advantage of the Electronic Cargo Tracking System in the fight to combat the spread of Covid19. Hon. Kyambade was accompanied by Gen. Katumba Wamala the Co-chairperson of the Taskforce who is also the Minister of Works and Transport together with other dignitaries from the Ministry of Internal Affairs and the Ministry Of Health. The URA Commissioner General, John Musinguzi took the team on a tour...

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The Covid-19 outbreak has transformed life. We can feel the economic and health impacts in Kenya, the UK and across the globe. Good people are working hard to support their communities – including those with day jobs who now have little income. Others are shamelessly trying to exploit the situation. Many of us with office jobs have been able to work from home, where we have become adept at conference calls, trying to keep a routine and balancing the demands of childcare and exerting extreme willpower not to snack on unhealthy foods. It has been decades since we have faced a peacetime challenge like Covid-19. The UK stands with Kenya as one of our strongest partners. By working together, we will reduce the impact of the virus for both our nations – saving lives, protecting development gains, supporting the economy and helping Kenya bounce back quickly so those most in need reap the benefits. The G20’s decision on April 15 to freeze debt payments has given 76 economies some breathing space – including some of Kenya’s debt. On April 12, the UK announced a global support package of Sh26 billion to UK charities and international organisations to slow infections and save lives globally, including in Kenya. The total amount of UKaid committed to the global fight against Covid-19 is Sh97 billion, making the UK one of the biggest donors to the international response. An equally distributed vaccine will be the best defence. In Kenya, leaders, businesses and communities are leading...

As the COVID-19 virus continues its gallop across the world, we are forced to constantly reassess our expectations of both the human and economic costs that it will bring. Indeed, the world is now reaching a point where unilateral decisions by food exporters and falling national revenues could have devastating effects for food-insecure countries, compounding health problems for already vulnerable citizens. Earlier this year, when the virus was more or less limited to China and a few of its neighbours, analysts were more focused on disruptions to global manufacturing value chains, foreign direct investment, and the likely impact of the Chinese economy’s slowdown on global GDP, given the weight of China in the global economy. Consequently, at the beginning of the pandemic, little emphasis was placed on food security, given the expectation that food markets would be well supplied, as cereal stocks would reach their third highest level on record and that, as a result, export availabilities for wheat, maize, rice and soybeans would easily meet anticipated demand. Food Security Devastating effect on food security It is now feared that the COVID-19 pandemic could have a devastating effect on food security if major cereal exporters adopt trade barriers or export bans, as experienced during the 2007-2008 food crisis, or if coronavirus’ effects on the labour force and logistics become important. In addition, for countries that strongly rely on food imports, food security is vulnerable to revenues lost as a result of slowing economic activity caused by COVID-19. Developing countries, particularly...

Just when Africa was preparing to roll out the African Continental Free Trade Area (AfCFTA) COVID-19 struck. Policy and advocacy think tank, AfroChampions has provided a detailed report of how the global pandemic could disrupt this beautiful plan which would have changed the face of trading among African countries. The AfCFTA was described as the game-changer for Africa's socio-economic development by the Macroeconomics and Governance Division, Economic Commission for Africa (ECA). The March 2020 opening and operationalization of the Accra AfCFTA Secretariat has delayed. AfCFTA Secretary-General has been sworn in but is without the full complement of secretariat teams due to disruptions to recruitment and staffing. The AfCFTA, which is headquartered in Accra would have provided the opportunity for Africa to create the world's largest free trade area, with the potential to unite 1.3 billion people, in a $2.5 trillion economic bloc and usher in a new era of development. AfroChampion in their report said that the continent as a whole had a commitment and readiness level of below 50 per cent arguing that, Africa that was looking forward to opening its borders to a new trade revolution starting July 2020, now has almost all of its borders shut in order to fight the pandemic. They believe with this pandemic, it is likely some more countries will lose interest in AfCTA and that could have a negative impact on the policy. They also predicted that COVID-19 could plunge some companies into serious financial stress. “COVID-19 is already destroying much of...