The Ministry of Trade, Industry and Cooperatives offices at Parliamentary Avenue, Kampala. PHOTO |MINISTRY WEBSITE
Confusion. Panic. And helplessness. That is the state of affairs the Uganda Export Promotion Board (UEPB) now finds itself in after being merged with the Uganda Free Zones Authority into one entity called the Uganda Free Zones and Export Promotions Authority.
For nearly three weeks now, several exporters have been finding it difficult to acquire the much-needed export certificate issued by the UEPB.
The certificate is an endorsement of the product, without which it cannot be exported. The certification also helps with brand reputation and guarantees safety and quality.
Following the merging of the two agencies, two weeks was given as the needed time to have the two merge under one roof before resuming operations. Meanwhile, the Ministry of Trade, responsible for the two agencies, was tasked to take up UEPB duties.
As we speak, the Ministry of Trade has either gone AWOL - absent without official leave or struggling to discharge the duties they have been temporarily tasked to deal with.
This is because for the last two to three weeks, several exporters have been struggling to get services needed to facilitate their exports, which in turn fetches much sought-after foreign exchange needed in stabilising or easing pressure on the shilling against key global currencies.
When contacted on Monday, the Minister of Trade Industry and Cooperatives, Mr Francis Mwebesa, said: “You have just brought this to my attention. I didn’t know about it. I will take it up tomorrow morning.”
Helpless exporters
Meanwhile, the transition, which should have been finalised by the beginning of this month has since left exporters not only confused and helpless with the state of affairs they have been sucked into due to laxity if not irresponsibility of the government, but also staring at losses estimated in billions of shillings.
In the last two weeks alone, Daily Monitor has learnt that nearly 60 exporters struggling to get export certificates collectively risk losing the opportunity to make nearly $50 million, (about Shs182 billion) which is twice the budget of the Ministry of Trade, Industry, and Cooperative, in export deals abroad.
Among the struggling exporters is Rwenzori Commodities Ltd, the producer of Mukwano Tea. When contacted on Monday, Mr Mohammad Mustafa, an official of Mukwano, said: “It is true indeed that we have been struggling to get certification since UEPB was dissolved.
“We need to export to Italy, and one of the requirements is the certification issued by UEPB. Now that UEPB is no more, we have been left wondering. We have been referred to so many contacts for help in vain so far -- I can tell you nobody has assisted us as we speak. I think for the third week now, we are stuck with the trial order for the client yet if this deal succeeds we will export tonnes and tonnes of tea,” he said.
Irrational?
The two government agencies' transition, currently dragging on at the expense of exporters' deals, couldn't have happened at a worse time when export and import businesses are looking to seal festive season orders ahead of the busy trading period closing the year.
The main intention of merging the two was to increase export competitiveness and foreign exchange earnings. Although it is still early, the way the transition and integration are unfolding leaves much to be desired.
So far, the UEPB has focused on developing strategies to enhance the competitiveness of the country’s products in international markets, providing market intelligence, trade facilitation services, and support for product quality improvement in compliance with international standards, not to mention promoting value-added exports, all lie in limbo.
Unless the government gets its act together – and pretty quickly, this scenario involving UEPB could be a tell-tale sign of what could be playing out across the government ministries, departments, and agencies— Confusion. Panic. Helplessness. And possibly irrationality.
Rationalisation
Rationalisation costing businesses: Whereas most of the agencies are necessary due to the critical nature of the functions they perform, the government has established that a certain number of agencies were established without due consideration to the aspects of institutional harmony, functional duplications, overlaps, and affordability.
The government has also established that some agencies have served the purpose for which they were established. The mandate of a few other agencies has been overtaken by events. Such agencies need to be rationalised.
The objective of merging, mainstreaming, and rationalisation of the Uganda Export Promotions Board was to relieve the government of the financial drain on its resources and the burden of wasteful administration and expenditure.
Also to facilitate efficient and effective service delivery by clearly delineating the mandates and functions of government agencies and departments, thereby avoiding duplication of mandates and functions And to restructure and reorganise agencies and departments of government by eliminating bloated structures and functional ambiguities in government agencies and departments.
