Uganda takes Kenya's place in EAC for best trade environment

The index was compiled between August and September 2022 to provide a comparative view of enablers and challenges to trade across 10 African markets. Uganda performed better than Tanzania and Kenya thus moving from sixth position to fourth. Tanzania ranked fifth and Kenya ranked seventh.

Kenya slipped from the fourth position due to a significant decline in credit terms and import growth prospects.

Uganda on the other hand, has risen in the ranks due to improved import and export growth prospects, government support of trading activities, and easy access to credit.

“Significantly more businesses in Uganda (up from 45 per cent to 52 per cent) feel that the government is encouraging cross-border trading activities,” the report reads in part, noting that trader business confidence, which is a function of economic performance in Uganda remained relatively stable at 54, the same score the previous assessment conducted between December 2021 and January 2022.

However, there was a call from respondents for the government to ease cross-border trade and relax business-related taxes. 

“Greater clarity on customs duties payable, simplification of business policies, and reduction in the time required for customs clearance (will) impact trade,” the report says, noting that many businesses reported prolonged delays while waiting at customs than they spend on the road.

They also called for clarity in business policies and continued improvement in infrastructure.

“When compared to data from our first issue, the road infrastructure (has) deteriorated significantly,” the report notes.

The report noted that Uganda, along with Angola, Ghana, Nigeria, and Mozambique, suffers most from deteriorating roads, ports, airports, telecommunications, water supply outages, and customs and trade regulations.

“Given today’s uncertain economic challenges, it is unlikely that governments will invest in large-scale infrastructure projects in the near term,” the report said.