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In light of the ongoing ban on Ugandan exports to Kenya, traders have voiced their desire for a more forceful response, as diplomatic efforts have proven ineffective.
"Our very direct request as manufacturers is that there should be a retaliatory action. We cannot remain in a partnership where certain areas are off-limits. Each time we raise concerns about Uganda's treatment, the government engages in seemingly endless discussions with Nairobi and other capitals,” said Richard Mubiru, the Executive Director of UMA.
"Given that no amount of dialogue has yielded improved outcomes for Uganda, the private sector cannot thrive in an environment of diplomatic appeasement that severely damages investments."
This call to action was made during a presentation on the state of the economy at a meeting of the Committee on National Economy. Representatives from the Private Sector Foundation Uganda (PSFU) and the Kampala City Traders Association (KACITA) were also present.
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Julius Byaruhanga, the director for policy and advocacy at PSFU, expressed concerns about the ban on milk exports to Kenya in March 2023, which has significantly impacted trade.
He noted, "It's essential to recognize that Kenya represents 75 percent of Brookside's dairy market. This practice is fundamentally unfair, disregarding the disruptions in the value chain and the resulting losses it incurs."
Byaruhanga also lamented the recent bans on wheat and maize exports to Kenya, stressing that Kenya has been the primary consumer of Ugandan maize, generating export revenue of US$92 million in 2020 and US$52 million in 2021.
Traders are now advocating for an enhancement of trade relations with the Democratic Republic of the Congo (DRC), citing its potential.
"To nearly double our manufacturing output, we don't need to invest additional capital. If we can secure US$500 million for the DRC, with a focus on women, youth, and small-scale exporters, we estimate that our revenue could quintuple, potentially reaching US$2.5 billion annually," Mubiru said.
He emphasized the necessity of an export insurance policy to safeguard against trade losses and reduce the need for government compensation.
Isingiro County South Member of Parliament, Hon. Alex Byarugaba, stressed the importance of the private sector collaborating with the government to curb what he described as illicit trade, which has contributed to the bans on Ugandan products.
He said, "Our traders buy inexpensive rice from Tanzania, mix it with local rice, and export it. Similar practices have been reported with milk. You are deceiving us. It's time to clean up your own backyard."
Hon. Francis Katabaazi, the Kalungu East County MP and Shadow Minister for East African Community Affairs, highlighted the need to improve diplomatic relations in the region, as trade conflicts are not limited to Kenya.