Uganda takes over leadership of the World Customs Organization (WCO) Council.
Uganda’s Commissioner for Customs, Dicksons Kateshumbwa has been elected today as the Chairperson of the WCO Council ahead of the Russian contender Ruslan Davydov during the annual WCO Council session that just ended at the WCO headquarters in Brussels, Belgium.
Kateshumbwa takes over from Uruguay’s Enrique Canon who has been the Council Chairperson for the last 2 years. The WCO Council is the highest supreme body of the World Customs Organization shaping the global customs and international trade agenda.
The council which makes final decisions on Customs matters is composed of all Directors General of Customs or Commissioners of Customs of WCO’s 181 members / countries across the world. It also includes special bodies like the European Union, World Bank, IMF, African Union and other Regional blocks as observers.
As Council Chairperson, Kateshumbwa will preside over WCO’s Policy Commission that meets twice a year. He will also chair all council meetings that take place annually. While this is not a full time activity, it is a huge responsibility for Kateshumbwa to ensure that he steers the global customs agenda to focus on key WCO priorities and emerging areas such as implementing the Trade Facilitation Agreement (TFA), capacity building for members, comprehensive review of the harmonized system, the revised Kyoto Convention, r-Commerce, Illicit Financial Flows, Customs Performance Measurement, emerging technologies, Security, Revenue Collection Compliance among others.
He follows in the footsteps of Hon. Pravin Gordhan, the current Minister of Public Enterprises, Republic of South Africa who was the Chairperson from 2001 to 2006. The first ever from Africa. Kateshumbwa’s election is a vote of confidence in Uganda and a global recognition of URA’s tremendous Customs reforms that have attracted the world’s attention.
Last year Uganda was the first African country to host the WCO Global AEO Conference that attracted over 1000 delegates. Kateshumbwa remains the Commissioner Customs at Uganda Revenue Authority. His election comes amidst the changing role of Customs globally from largely Revenue collection to Trade Facilitation and managing supply chain security as well as growing global trade threats of protectionism and illegal trade.
The Collecting continues. 30th June, 2019 (The Return filing and tax payment deadline) is tomorrow midnight.
Lord Dolar Popat of Harrow, the United Kingdom Prime Minister’s Trade Envoy to Uganda has confirmed that plans to roll-out the UK-Uganda business forum are underway with this project expected to materialize as early as 2020.
The move if implemented will offer an open platform for Uganda and UK businesses to directly engage each other and their respective governments on matters that affect trade and general doing of business environment.
Lord Dolar made this revelation on Wednesday 19th June during a high level meeting organized by TradeMark East Africa and attended by key trade facilitators including; Hon Amelia Kyambadde – the Cabinet Minister for Trade, Industries and Cooperatives, H.E Peter West – UK High Commissioner in Uganda, Richard Kamajugo – TradeMark East Africa Chief Operations Officer, Dicksons Collins Kateshumbwa – URA Commission Customs, Adrian Green – Head of Growth and Economic Management at UKAid , Gideon Badagawa – Private Sector Foundation Uganda Executive Director, Moses Sabiiti – TradeMark East Africa Country Director for Uganda and South Sudan and Merian Sebunya – the National Logistics Platform Chairperson.
“Currently exports of goods to the UK account for just £2m a year and the aim is to double that, we want to sustain an increase year on year of exports going to the UK – because it makes business sense. Plus, over 95 per cent of Ugandans in the UK would want to come back and invest here. UK is committed to make this happen,” Lord Dolar Popat noted.
Lord Popat used the same meeting to congratulate TradeMark EA Uganda Office, Ministry of Trade, URA and other partners for the great trade facilitation work done. He noted that projects such as the one stop border posts in Busia, Mutukula, Malaba and Elegu are playing critical roles in trade facilitation.
“By bringing UK companies to Uganda, I wish to boost trade and investment between our two countries. Regional markets are very convenient, and it is becoming easier to trade across borders – thanks to initiatives like TradeMark East Africa for which the UK funds 70%. I was in Busia and saw how the Busia One Stop Border Post is facilitating easier and faster trade. I will be in Malaba very soon to see the progress there,” Lord Dolar Popat noted.
This high-level meeting came at the back of another UK Businesses operating in Uganda gathering hosted by TradeMark East Africa on Monday 17th June and attended by over 50 business representatives. During the first meeting, representatives of UK businesses operating in Uganda highlighted a number of challenges that needed immediate attention.
As summarized by Moses Sabiiti – TradeMark Uganda Country Director, the challenges presented by the UK Businesses operating in Uganda were; Non-Tarrif Barriers faced by Ugandan tour operators in Kenya and Tanzania, Poor Standards and Counterfeit Products, Poor infrastructure on Lake Victoria , Delayed Tea Auction process at the Mombasa port, Slow uptake of the Authorized Economic Operator (AEO) scheme by UK businesses and Limited engagement between UK businesses and government of Uganda.
“In order to ensure that there is more engagement between UK businesses operating in Uganda and the government of Uganda, there will be bi-annual engagements coordinated by TradeMark Uganda office, and Ministry of Trade,” Sabiiti noted before referring the rest of the raised issues to the Ministry of Trade.
Responding to the aforementioned challenges, Hon Kyambadde noted that her ministry on behalf of the government of Uganda is fully committed to improving Uganda’s business environment. This she further stressed is supported by healthy partnerships with development partners such as TradeMark, DFID, UKAid, European Union and World Bank.
“Uganda has put in place many initiatives to ease doing business. These have resulted in to faster registration of businesses, digitization of business registration records, establishment of one stop border posts, elimination of non-tarrif barriers, border export zones and promotion of automated economic operators. The ministry of Trade has also continued to create an enabling business environment that enhances private sector investments and growth. Some of the policies implemented include the national export development strategy, Buy Uganda Build Uganda (BUBU), National Cooperatives Policy and the Grains Trade Policy among others,” Hon Kyambadde noted.
She added: “With all this work already done, and much more underway, the government of Uganda is confident that more investors from the United Kingdom will come to Uganda to enhance production and value addition. This will boost export capacities of the various sectors to further consolidate our bilateral economic ties.”
In all; both these two meetings provided a forum for open discussion on seminal issues affecting trade in Uganda, the East African region and consider emerging issues related to the African Continental Free Trade Area.
Orient Bank, a leading commercial bank in Uganda has partnered with Makerere University Business School (MUBS), Uganda’s oldest business education center, to train and facilitate over thirty small scale business owners through the Orient Business Academy to grow their businesses to the next level.
Speaking at the launch of the academy in its 3rd year of running at MUBS, Orient Bank Limited’s Managing Director, Julius Kakeeto urged all small scale business owners to take part in finance literacy programmes to equip themselves with the relevant skills to enable them survive in the country’s competitive business environment and also position themselves for growth.
“A research done by Makerere University Business School in 2004 indicated that one in every two Ugandan businesses that were started failed within three years. Despite the ranking the country got four years ago as the most entrepreneurial country in the world, the MUBS research still holds water today as businesses continue to struggle to make it to the 5 year mark.
This is why we started the Orient Business Academy. So that we can equip as many brilliant business men and women as possible to enable them grow and maintain their businesses and put Uganda’s flag at a new high someday,” Kakeeto said, adding that;
“A business needs a strong backbone in order to survive and this academy will definitely enhance what the participants already possess in form of talents and skills with the right direction from our carefully selected facilitators.”
The Orient Business Academy will run on an intensive 10 weeks training programme that climaxes into a graduation ceremony at which 5 top performers will be awarded with up to Shs20 million to finance their businesses as selected by a panel of judges comprised of the Academy’s facilitators and bank analysts .
Speaking at the same event, Makerere University Business School’s Principal, Prof. Waswa Balunywa (PhD) noted that programmes such as the Orient Business Academy hold the key to eradicating unemployment in the country and urged Orient Bank and other corporate institutions to open the trainings to other parts of the country for purposes of inclusion.
“We are pleased to partner with Orient Bank for the 3rd year running on the Orient Business Academy and we will continue to work together to shape the future of our business economy. Operating a successful business takes a lot of effort and continued learning given the changing trends of business operations globally and locally, especially now in the digital era. I therefore encourage all business owners and entrepreneurs to equip themselves with the necessary skills and information to beat the odds in especially our overly competitive business environment. I also urge companies like Orient Bank and the government which have opened their knowledge assets to the business community to expand these trainings across the country for the benefit of those that might not have the opportunity to travel to and from Kampala to access these trainings or simply develop an online training hub to which interested parties can subscribe and get certification.”
The academy focuses on training small scale business owners in the areas of; The Entrepreneurial Mindset, Bookkeeping, Competitive Market Analysis, Marketing, Human Resource Management, Operations Planning and Financial Planning.
Any small business that has been in operation for between 1 and 3 years (12 to 36 months) and has an annual turnover of less than UGX 120 million is eligible to participate in the Orient Business Academy which has over the past 2 years trained over 100 small scale business owners and rewarded 10 of them with financial support of up to shs120 million.
To qualify for the academy, interested persons are required to submit a duly completed registration form, with a registration certificate, a copy of a valid identity card and 1 passport photo to Orient Bank by 11th June 2019.
The most coveted classy auto show is back for the 8th year running and will take place on July 27th, 2019 at the Sheraton Kampala Hotel under the theme, “Love of Machines” to capture the beauty marks and celebration of automobiles across the Pearl of Africa.
Speaking to the press at the Sheraton Kampala Hotel, Dr. John Baptist Niwagaba, the Chairman and founding member of the CBA Uganda Vintage and Classic Auto Show promised revelers a more fun-filled, competition led event ,bigger and better than has been the case in the previous shows.
“Consistency and innovation continue to be key drivers of success for the CBA Uganda Vintage and Classic Auto Show and this year, we are definitely taking things a notch higher. For starters, we now have four new categories; Best Mechanic, Best Garage, Best Collectibles and Best upcountry entry award. This makes the competition more exciting and more inclusive in addition to the already existing categories making a total of 25 prizes categories up for grabs. The regional participation is growing and this year we expect more entries from the rest of East Africa.
To further add spice to the show, Uganda’s most loved vintage musical group, Afrigo Band will treat our revelers to the serenading ballards of yester years. A nail biting competition of A-listers from across East Africa, topped by nice music and fine meals should be a heavenly experience”
Speaking on behalf of the event sponsors, the Managing Director, Commercial Bank of Africa (CBA) Uganda, Mr. Anthony Ndegwa expressed the sponsors’ gratitude to the show hosts for the opportunity to be part of the growing auto show legacy and urged the public to support the campaign to celebrate the machines.
“We are pleased and excited to be part of the 8th edition of the CBA Uganda Vintage & Classic Auto Show and look forward to having an even more successful event than the previous shows. Many events or shows fail to make it to just the 5th year and this show will soon celebrate its 10th anniversary! That says something about the organizers and the general public which continues to show its love and appreciation for this unique event. I therefore urge all automobile lovers to come be part of the most thrilling event of the year and also call upon other corporate companies to join us and support this unforgettable auto show and the ones to come. ”
As has been tradition, the show will be preceded by a thrilling snail trail showcasing the competing cars on the eve of the event, July 26th, 2019 slowly parading through the streets of Kampala to Sheraton Kampala Hotel Gardens and this will be organized in partnership with Uganda Police to ensure security and non-interruption of traffic on the chosen route.
The show is sponsored by Commercial Bank of Africa Uganda, Sheraton Hotel Kampala,NBS TV who will live stream the event and Singleton.
We are pleased to inform our customers that this year Afrigo Band, the best band in Uganda will be the entertainer for the event.
The show is endorsed by the Automobile Association of Uganda (AAU), Nairobi`s Concours d`Elegance and Federation of Motor sports Union (FMU).
Uganda is predominately an informal exporter mainly trading with its neighbours. According to 2014 Bank of Uganda (BoU) data, the country registered an informal trade surplus.
The 2014 BoU data indicates that informal trade accounted for more than 30 per cent of all Ugandan exports, earning about Shs1.5 trillion.
DR Congo, which fetched $139m, was Uganda’s largest informal exports destination followed by South Sudan and Kenya, which fetched $119m and $92m, respectively.
Additionally, data from BoU further indicates that informal cross-border exports earned a combined $595m in the 2017/18 financial year with DR Congo continuing to dominate as Uganda’s export destination fetching up to $291m in the period. It was followed by Kenya at $149m, Rwanda and South Sudan at $54m each while Tanzania fetched some $45m.
Agricultural produce, mainly beans, maize, sugar, other grains, bananas and fish as well as locally manufactured goods were the most informally exported items during the period.
Therefore, it is quite important and urgent, that while priority continues to be given to formal traders, some focus and steadfastness ought to be directed towards informal cross border traders too.
A 2015 study conducted by United Nations Economic Commission for Africa indicated that informal trade in Uganda provided more than 59 per cent of non-farm private sector jobs, underscoring its significance in addressing the employment challenge that Uganda finds herself in.
Different studies indicate that more than70 per cent of women-owned businesses are in informal trade, accounting for a significant majority of employment in this sector.
Women spend much of their income on uplifting family livelihoods, among which include buying food, paying school fees and re-investing in their enterprises. Therefore, informal trade, which is mainly dominated by women, must be supported to enable women improve their disposable income to contribute towards social and economic development.
It is important to highlight that women informal cross border traders face a number of unique challenges that limit their growth opportunities.
Key among the challenges is low knowledge of export requirements, lack of understanding of quality inspection procedures, lack of information on markets, lack of access to certification procedures and general gender based harassment as well as the general lack of appreciation for the certification processes.
The challenges are compounded by the limited time that women have to invest in their enterprises therefore they have to rely on middlemen to help them uplift and get value for their businesses.
However, amid all this, informal cross border traders have been organizing themselves into associations, cooperatives, and Saccos, which will help them to reason and speak with a single voice to advance their cause.
Additionally, government through the Ministry of Trade and the Ministry of East African Community Affairs is addressing some of these challenges by developing several policy frameworks such as Cross-Border Trade Strategy, which seeks to increase the value of Uganda’s exports of the specified products and services to the targeted markets over the next five years.
Other polices are Micro, Small and Medium Sized Enterprise Strategy and the Cross-Border Trade Charter.
Government has also appointed district commercial officers in every district and established regional integration centres at some busy border points and Uganda Revenue Authority is implementing the Women Trader’s Trade Facilitation Framework.
Majbrit Holm Jakobsen (L) , the Head of Mission of the Danish Embassy in Uganda shares a light moment with Damali Ssali (R) a Trade Development Expert following a recent Informal Cross Border traders Function at Elegu, Uganda/South Sudan border.
Finally, there are also some other agencies that are supporting cross border trade such as the Stanbic Business Incubator, which is providing business skills development to MSMEs, AbiTrust which is providing support to enhance the export capacity of agri-businesses and Financial Sector Deepening which is looking at provision of inclusive finance.
However, even with this kind of arrangement, there is need to ensure that the full spectrum of informal cross border traders is identified and supported to respond to existing constraints such as non-tariff barriers, limited export capability, lack of information, financing and exclusion of women.
This must be mitigated by putting in place comprehensive interventions and policy regulatory frameworks that support informal cross border traders given that an all-inclusive approach will ensure that Uganda leverages on its geographical location to access the markets around it.
We also need to enhance capacity of small and medium enterprises to provide products and services that meet export standards to ensure easy penetration to intra-regional markets.
This will not only enhance cross-border trade but will also promote social and economic development of Uganda.
Informal cross border trade provides a significant source of employment, which, if enhanced, can be the bedrock of the social economic transformation of Uganda.
It is also an economic buffer that can contribute to sustainable, inclusive and youth employment.
The Government of Denmark through her development arm – Danish International Development Agency (DANIDA) has confirmed that it will invest some USD 9 million ( about UGX 33.5 billion) in improving informal cross border trade and goods standards across Uganda.
The money which will be channeled through TradeMark Africa comes as a major boost for the thousands of Informal Traders plying their businesses at the different borders as it will ensure that their working environments are improved. Over 70 per cent of informal cross border traders in Uganda are women.
In addition, part of this money will go towards the improving of the standards of goods manufactured in Uganda.
Below is a full statement explaining this major development.
Background:
Cross border trade (CBT) is important in diversifying Uganda’s exports. Cross border trade enables the movement of produce across borders from surplus to deficit areas and is therefore significant not only in providing employment and livelihoods within border communities, but also in promoting food security.
Uganda’s cross border exports, from formal and informal trade, have grown from under $1billion in 2011 to over $1billion in 2016 and account for between 25% and 35% of total exports. The informal cross-border export earnings in the Financial Year 2017/18 were estimated at US$ 595.51 million, representing 17.08% of Uganda’s exports. The main informal commodities included beans, maize, sugar, other grains, bananas, fish, among others. DR Congo was the main informal partner of the country with total informal export trade amounting to US$ 291.48 million in 2017/18. It was followed by Kenya at US$ 149.94 million; Rwanda at US$19million.
Despite having a steadily improving trade environment, Uganda still faces some constraints in cross border trade. These include the lack of appropriate infrastructure; non-tariff barriers to trade and costly trading standards; gaps in transparent trade processes and systems; a sub-optimal regulatory environment; limited export capability; exclusion of women and small businesses; and uncoordinated support to CBT.
The interventions:
The Government of Uganda and Denmark on 1/12/2017 signed Government to Government Agreement on Denmark’s country program for Uganda 2018-2022. One of the thematic programmes is Uganda Program for Sustainable and Inclusive Development of the Economy(UPSIDE). Upside consists of three engagements: Northern Uganda Resilience Initiative (NURI); support to Agriculture Business Initiative(aBi) and; support to TradeMark East Africa (TMEA).
All these engagements of the UPSIDE component have been launched during this week at commenced on 13th May.
Today marks the official launch of the engagement with TMEA at Elegu Border Post on May 26th, 2019. The Government of Denmark is supporting Government of Uganda through TradeMark East Africa to a tune of DKK 60 million (approximately USD9million) over the four-year period from 2019 to 2022.
This engagement will support increased trade through removal of barriers and improvement of markets with focus on 1) Improved trading standards and reduced non-tariff barriers (NTB), 2) improved and more transparent trade processes and systems, and 3) improved trade regulatory environment.
Speaking at the event, the Head of Mission of the Danish Embassy, Majbrit Holm Jakobsen said “Denmark is passionate about promoting private sector development in Uganda. We appreciate Uganda’s efforts to improve the business environment, but more needs to be done, that is why Danida is glad to further partner with TradeMark East Africa in increasing trade in the region by creating the necessary conditions for the private sector especially the informal traders who constitute the majority of cross border trade in Uganda. Informal trade directly impacts on the livelihood of the bottom of pyramid which is a key element of Denmark’s engagement in development aid.”
Addressing the event, Honorable Amelia Kyambadde, Minister of Trade, Industry and Cooperatives said, “We thank the Danish Government for supporting trade facilitation in Uganda including the Uganda National Electronic Single Window and support to cross border trade. This support comes at the right time as my Ministry developed a National Export Development Strategy that seeks to increase the value of Uganda’s exports of the specified products and services to the targeted markets over the next five years.
Doris Akol, Commissioner General of Uganda Revenue Authority “We appreciate the support from the Government of Denmark through TradeMark East Africa to enhance ICT trade systems. This support will improve the trade environment, increase efficiency, transparency and predictability of trade processes – through the implementation of the Electronic Single Window.”
Richard Kamajugo, the TMEA Chief Operations Officer noted “We appreciate the continued partnership with the Danida in its support to the Government of Uganda through TradeMark East Africa. Danida has already funded the implementation of the Uganda Electronic Single Window which has had a real impact on the economy, it is therefore a great pleasure to see that more funding has now been committed focusing on cross border trade and standards”.
Moses Sabiiti, TMEA Uganda Country Director, “In Strategy 2, TMEA seeks to deepen engagement with borderland communities with the key aim of thinning borders so as to increase access to Markets. TMEA will take a two pronged approach- build upon ongoing infrastructure work such as the One Stop Border Posts (e.g. Busia, Elegu, Mutukula) to address key trading challenges faced by both formal and informal cross border traders. This will not only cement Uganda’s position as a regional logistics hub for both informal and formal trade, but will also further consolidate gains in increasing ease of doing business in Uganda.”
The support from DANIDA builds on a number of interventions implemented by Government of Uganda through TradeMark East Africa including:
Construction and operationalisation of the 4 One Stop Border Posts at Busia OSBP, Mutukula OSBP, Mirama Hills OSBP and Elegu OSBP;
Upgrading customs management systems to improve the trade environment;
Implementation of the Uganda National Single Window.
Improving standards and elimination of NTBs;
Government of Uganda through Ministry of Trade, Industry and Cooperatives and TradeMark East Africa launched the Uganda Cross Border Strategy in 2017 that seeks to create simple procedures for small cross border traders and avail key trade information to this segment of traders;
Ministry of Trade, Industry and Cooperatives signed off the Cross-Border Trade at Mirama Hills One Stop Border Post and Mutukula One Stop Border Post. The Charter basically highlights the rights and obligations of border official and its users, including informal traders.
These interventions will contribute to increased trade through removal of barriers and improvement of markets.
