News Categories: Uganda News

Why global trade is in urgent need of change

The global trading regime is in great need of change to avert real and potentially destabilising losses resulting from the escalating trade frictions between the United States and China and elsewhere, experts said. The Trump administration has leaned heavily towards unilateralism in addressing what it sees as unacceptable status quo in which the United States has long been taken advantage of by countries around the world, including its allies, in terms of trade and others, defence included. Trump has fired the first shot in this global trade battle by failing to adequately negotiate. Furthermore, China is increasingly singled out as the source of the world’s trade woes. Caught in the cross fire, many U.S. soybean farmers are feeling uneasy about their coming harvest and have contemplated planting other crops for the next season, even though the Trump administration has said it will offer a package of 12 billion U.S. dollars to compensate for their losses. “I do not want government compensation, I want the Chinese market,” said Don Lutz, a farmer in Scandinavia in the state of Wisconsin. In Brazil, the farmers there seem to have benefited from the U.S.-China trade friction, with the price of Brazilian soy beans rising by over 15 percent year on year on expectations of higher demand from China. “In the past season 2017-2018, we extended the sowing for 4 per cent more and we had a good income. For the new cycle, we tried to expand more, up to 7,100 hectares, and getting an increase...

EAC states challenged on political openness to boost integration

“Political openness is crucial for EAC partner states to realize integration opportunities. “There is also a need for countries to further push progress implementation of the Common Market Protocol,” said Bernd Schmidt, Deputy Programme Manager of the German Agency for International Cooperation (GIZ) when speaking to journalists from the six EAC member states who are on a media tour. The EAC Common Market Protocol, among other things, provides for free movement of goods, people, labour, services and capital across partner states. “Economic growth requires free movement of people and goods,” he insisted. According to Schmidt, trade barriers such as tariffs should also be addressed to promote regional trade which has maintained a downward trend for over four years. He attributed the decline to EAC countries preferring to import various goods including those for the pharmaceutical industry, which are mostly from Asia, North America and Europe. Schmidt said it was high time governments in the region started supporting small local manufacturing firms. He said by supporting local firms, governments will be creating jobs as well as improving the welfare of the people. He was of the view that for the EAC integration to prosper, member states should stop creating disputes since countries were now behaving like competitors, according to media reports. Chief Executive Officer of the East African Business Council (EABC) Lilian Awinja said despite the challenges, EAC integration has facilitated movement of goods and people across the region. She linked the outcome with improvements in infrastructure, especially roads. Awinja said...

Ready for a United States of East Africa? The wheels are already turning

The East African Community has kicked off the process of forming a political federation by appointing a 12-member Committee of Experts to draft a regional constitution. This is in line with a directive by the region’s heads of state to the Council of Ministers, asking it to begin drafting laws that will pave the way for the achievement of the last pillar of East African integration. Julius Maganda, Uganda's EAC Minister and chairperson of the EAC Council of Ministers, said each partner state has appointed two members to the CoE to conduct research, consultations and eventually draft the East African Community Constitution by 2021. The CoE is chaired by Uganda’s Benjamin Odoki and has three years to complete the drafting of the laws. The draft will be reviewed over a year before it is submitted to the Heads of State Summit for signing. It is expected to be promulgated by 2023. According to Mr Maganda, the Council prefers a confederation to a federation initially, so as to allow the partner states to harmonise their systems before surrendering to a federation. The difference between a confederation and a federation is that membership of a confederation is voluntary. One president under one constitution When the political federation comes into force, under one president, partner states’ constitutions will become subordinate to the regional Constitution. Currently, the Treaty for the establishment of the EAC is subordinate to the partner states’ Constitutions. Source The East Africa

Non-cooperation hurting EAC integration

Arusha. Regional integration and development within the East African Community (EAC) is being undermined by a failure of member states to cooperate on key issues. Speaking in Arusha, Tanzania, Bernd Schmidt, the Deputy Programme Manager GIZ, said political openness among member states was required if integration is to be deepened, suggesting that the envisaged single currency and political confederation cannot be achieved if the successes of the Customs Union are not safeguarded and the Common Market is not pushed any further. The retricted movement of goods, services and persons including the right of establishment and the right of residence were cited as key issues hindering the acceleration of economic growth and development for the people in the region. “Trade within the EAC region has been declining for over four years now. This is a new reality for the community. You might get the impression that some East African leaders together with their administrations are happier to import be it soap, sugar, biscuits, or pharmaceuticals from Asia, North America or Europe than to support existing small firms from within the region; firms that create more of the desperately needed jobs and wellbeing among let me say brothers and sisters,” he said. Mr Schmidt who was speaking to journalists from across the EAC on a media tour of various key EAC projects urged member states to work for the greater common good than advancing selfish interests. The journalists supported by the EAC Secretariat, in collaboration with the GiZ and the East African Business...

Northern Uganda to get new $8.8m logistics hub

September 26, 2018—Gulu town in Northern Uganda, is to get a new $8.8 million trade logistics hub with money being provided by the European Union (EU) and the British Department of International Development (DfID). The project is to be implemented by non-profit trade consultancy firm, TradeMark Africa (TMA) which has regional headquarters in Nairobi, but country offices in the East African Community member states. Damali Ssali, the TMA Uganda acting country director said early this week, “The Hub is expected to improve capacity of transport infrastructure in Northern Uganda to serve markets in South Sudan, Northern Uganda and parts of the Democratic Republic of Congo (DRC), enhance efficient management of freight transport through Northern Uganda and improve capacity to handle containers and other cargo in Gulu.” The transport and works ministry and specifically Uganda Railways Corporation will operate the proposed facility. The main objective of the Hub is to help reduce barriers to trade between Northern Uganda and the neighbouring countries of South Sudan and the DRC. The Gulu Logistics Hub (GLH) will serve the trade corridors of Kampala – Gulu – Elegu/Nimule – Juba Trade Corridor; and Gulu – Pakwach Goli/Pader/Lira/Vurra DRC Trade Corridor. In recent years Uganda has played a vital role as a distribution hub for South Sudan and eastern DRC. A World Bank study (Uganda Diagnostic Trade Integration Study) highlights that importers in South Sudan and DRC keep supplies in bonded facilities in Kampala, and bring them into either country as and when needed, but with...

Seize the opportunity offered by Africa’s Free Trade Area

September 26 (today), the United Nations Industrial Development Organisation has convened a high level event in New York on the margins of the 73rd session of the United Nations General Assembly. The event aims to further foster the implementation of the Third Industrial Development Decade for Africa (IDDA III). Below is a message from Mr Li Yong, the Director General of UNIDO. Since the turn of the millennium, Africa has experienced a steady and unprecedented economic growth. However, poverty continues for people across the continent, especially in the sub-Saharan region. Unemployment and inequality have remained high. The rural population and the urban poor, women and youth have not benefited from economic growth. African policymakers realise that, for the benefits of growth to be shared by all, there needs to be a structural transformation of the economy. Specifically, there is an acknowledgement that its composition should change, with increased shares of manufacturing and agro-related industry in national investment, output, and trade. Manufacturing, thanks to its multiplier effect on other sectors of the economy, has always been one of the most important drivers of economic development and structural change, especially in developing countries. Manufacturing is an “engine of growth” that enhances higher levels of productivity and greater technical change, thus creating more jobs with higher wages for both women and men. Recognising this, the United Nations has proclaimed the period 2016-2025 as the Third Industrial Development Decade for Africa (IDDA III) in order to increase global awareness and encourage partnerships to achieve...

Kenya’s plan to boost exports to Tanzania, Uganda

Kenya has announced plans to lobby for closer bilateral ties with African countries in the wake of falling total exports to African countries which have been in a steady decline for the past five years. The country’s exports blueprint will be revealed during the Intra-African Trade Fair which will be held in Cairo, Egypt from December 11 to December 17. Speaking during a press conference in Nairobi on September 26, Exports Promotion Council (EPC) CEO Peter Biwott said that Kenya will lay special emphasis on Tanzania and Uganda in an attempt to improve trade with the East African countries which has largely been affected by trade spats. “We will be seeking to see how many markets we can reach so that we can be able to sell our products. We want to focus more on trade within Africa. We invest a lot in finding markets for our products and that was the main reason that as a government we signed the Africa Continental Free Trade Area treaty in March,” said Biwott. Source Business Today

$8.8m Trade Logistics Hub in Gulu to Boost Uganda’s Export Sector

With support from European Union and Department for International Development (DFID), TradeMark Africa together with Ministry of Works and Transport and Uganda Railways Cooperation are set to construct an $8.8m Trade Logistics Hub in Gulu, a move expected to stimulate trade in the region. Officials told ChimpReports on Tuesday the main objective of the Hub is to contribute to reduced barriers to trade for both Northern Uganda and the neighbouring countries of South Sudan and the Democratic Republic of Congo This Gulu Logistics Hub (GLH) will serve the trade corridors of Kampala – Gulu – Elegu/Nimule – Juba Trade Corridor; and Gulu – Pakwach Goli/Pader/Lira/Vurra DRC Trade Corridor. The proposed developments include the container yard; railway siding; container freight station; warehousing complex; vehicle holding area and traffic flows; access roads, truck stop (parking); administration building; container light repair workshop; customs office; perimeter wall; security gate and guardhouse.   Trademark East Africa Acting Managing Director Damali Ssali said the hub will provide functions such as container and break-bulk, handling and storage facilities, space for stakeholders dealing with freight transport (freight forwarders, shippers and transport operators) and the provision of accompanying services such as customs inspections, tax payment, maintenance and repair, banking and information communication technology connections. “The hub is expected to improve capacity of transport infrastructure in Northern Uganda to serve markets in South Sudan, Northern Uganda and parts of DRC; enhance efficient management of freight transport through Northern Uganda and improve capacity to handle containers and other cargo in Gulu,” said Ssali...

East Africa mulls science, technology policy to improve competitiveness

The East African Community (EAC) bloc is developing a regional Science, Technology and Innovation (STI) Policy to boost its competitiveness, officials said on Tuesday. Gertrude Ngabirano, Executive Secretary of the East African Science and Technology Commission (EASTECO), told a media briefing in Nairobi that the draft policy will be submitted to the EASTECO Governing Board for adoption before consideration and approval by the EAC Council of Ministers of the six member states. “We expect that the EAC Heads of State will endorse the STI policy in 2019, so as to create an enabling environment for increased investment in science, technology in order to boost competitiveness, support sustainable regional development and socio-economic transformation,” Ngabirano said during a regional workshop to review and validate draft STI policy and draft Intellectual Property Rights Policy. The EAC Intellectual Property Rights is expected to ensure that new products and innovations generated through research are protected from being stolen by third parties. The EAC policy will be aligned to the African Union’s Science, Technology and Innovation Strategy for Africa 2024.  Ngabirano said that once the regional STI policy is in place, it will guide the development of national science policies by the member states. “It will also harmonise national science policies in order to enhance cooperation and avoid duplication in research activities,” she added. She noted that the policy will put the east African region on the road map of being globally competitive in terms of product development. According to EASTECO, the EAC is performing poorly...

What is holding back Africa’s integration process?

The idea of countries working together under regional economic groupings to achieve real economic development, stability and unity, and growth, might be at stake as some countries move to protect their solo interests. This was observed yesterday during a roundtable debate on regional integration at the University of Kigali. Matters are not helped by cases whereby some countries are moving to protect their own interests, participants said. A case in point, the United Kingdom is in the process of leaving European Union, U.S. leaders are promoting the “America First” agenda, and a few others think that regional economic groupings are not working. In Africa, though, more than ever, the momentum to achieve regional integration is slowly taking shape, experts said. Moses Onyango, a Kenyan expert in international relations, observed that while there is improvement in regional integration across the continent, Africa still has a long way to go to get tangible benefits from the process. “If you look at the level of integration in African countries in comparison with other regions, for example, the European Union, you find that the African integration process is still facing major challenges,” he said. According to him, the issue of financing is what is still limiting the progress of integration in Africa. “Most of the challenges come about because of the member countries’ failure to contribute towards the advancement of the things that they agree on. This is the same problem that East African Community is facing,” he noted. Onyango indicated that for integration...