Export troubles continue as merger confusion persists 

Exporters under Uganda Fruits and Vegetables Exporters and Producers Association have asked government to quickly restore export functions previously handled by Uganda Export Promotion Board, failure of which the fruits and vegetables export value chain will suffer serious losses.

The call comes at a time when government has, for about three months, sought to create a new entity - Uganda Free Zones and Export Promotions Authority – from the merger of Uganda Export Promotion Board and Uganda Free Zones Authority.

In April government tabled a Bill, which was later passed by Parliament seeking to rationalize the two agencies and facilitate efficient and effective service delivery by defining functions to avoid duplication.

However, Ms Hasifah Tushabe, the Uganda Fruits and Vegetables Exporters and Producers Association coordinator, told Monitor that the confusion and laxity with which the rationalisation has been handled posed a serious danger to their businesses, farmers, and the economy at large.

“We cannot keep losing out on business because of confusion or malfunction of rationalisation. We are not just doing this for ourselves but for the economy. We need services efficiently restored as soon as possible or else we will be out of business and many people including the farmers, the economy, and government will pay dearly for this laxity,” she said, noting that every day at least 10 people seek export licenses or services relating to export, but for the last one and half months, they have been registering losses due to difficulties in access to export certificates. 

Monitor had last month detailed the troubles that exporters were facing following the merger of Uganda Export Promotion Board and Uganda Free Zones Authority.

More than a month and a half later, exporters continue to not only struggle with the acquisition of export certificates but also remain uncertain when normal services will resume.

Last month it was revealed that close to 60 exporters were struggling with getting export certificates, putting at risk nearly $50m (Shs183b) earned from exports.

Rwenzori Commodities, the producer of Mukwano Tea noted then that its market in Italy was at risk due to delayed clearance and licensing of its samples to the European country.

Before the merger, Uganda Export Promotion Board was mandated with issuing export certificates. 

However, after merging it with Uganda Free Zones Authority to become Uganda Free Zones and Export Promotions Authority, government had earmarked two weeks to restore operations, which has not happened more than three months since the merger was implemented.

Monitor has established that earlier efforts to have a board in place were rejected by Cabinet, with Ministry of Trade, which is responsible for the two merged agencies, now seeking to put in place a new board that will oversee management and monitor activities of the exports sector.

Government has not indicated when it expects to put in place a competent office to issue export licenses.

On Monday, Trade Minister Francis Mwebesa, said: “We are handling the matter,” and admitted that sorting the merger issue had taken longer than anticipated.

Government has previously indicated that merging, mainstreaming, and rationalization of Uganda Export Promotions Board, among other agencies, sought to facilitate efficient and effective service delivery by removing duplication of functions.

However, many exporters indicate the move has not only disrupted their operations but has occasioned monetary losses.

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