How URA Plans To Make Uganda’s Exports Competitive

Abel Kagumire,  URA Commissioner for Customs

The Uganda Revenue Authority (URA) plans to make Uganda’s export competitive.

Dissecting the topic ‘Understanding Customs In Uganda’s Economic Development’ Friday morning, URA Commissioner for Customs, Abel Kagumire said a number of strategies have been put in place to the country’s exports competitive.

Figures from the Ministry of Finance, Planning and Economic Development show that Uganda earned US$ 455.22 (Shs 1.620 trillion) in exports in the month of May 2021.

Kagumire says Gender based trade facilitation is one area the tax man will concentrate on. He says statistics show that women are involved in cross-border trade. To support their endeavour, Kagumire says the women in cross-border trade will be allocated storage spaces at one stop border posts for storage of their goods, train them in trade, and strengthen clearance at bus terminals, airports and couriers.

Secondly, Kagumire says by the end of the 2021/22 Financial Year, URA hopes to have increased the number of one-stop border posts from the current 5 to 9.

Some of the posts either under construction or in operation include; Malaba, Katuna, Mpondwe, Ggoli, Elegu and Mirama among others.

Increase in electronic monitoring of cargo is another area URA will give attention to. This, Kagumire says, helps in cargo tracking to avoid diversion. Already, the cargo tracking system extends to DR Congo. But Kagumire says talks are underway with South Sudan to have the system extended there. This is also expected to promote exports and reduce smuggling.

Bonded warehouse information system has also been developed. According to Kagumire, given the Covid-19 pandemic, goods have been ending up in bonded warehouses. Using some loopholes, he says, unscrupulous individuals take advantage and remove the goods. To counter this, Kagumire says URA has developed an information system which does automatic reconciliation. Kagumire says, 70% of goods entering Uganda are kept in bonded warehouses.

Recently, Uganda was ranked number 12 by the World Bank in the ease of doing business in Africa with the country’s average cost of starting and running a small to medium sized enterprise valued at $163 (Shs600,000).

However, Kagumire says with plans to have more government agencies on the electronic single window system, the ranking could drop lower. Currently, only 22 government agencies are on the electronic single window system. The plan is to increase the number to 30.

According to Assistant Commissioner, External Operations, Julius Rubagumya, the Standard Gauge Railway (SGR) will further facilitate the country’s exports.

Rubagumya says the SGR link between Naivasha, Mombasa and Longnot (where SGR meets the MRG) is a milestone that exporters can rail export to Longnot and to the sea port.

He says locomotives make 50% additional cost in doing business but with the rail being repaired, goods will be railed from Namanve to the sea port and thus imports and exports will come and go cheaply.

Outside these, Rubagumya says that discussions are underway to facilitate pre-arrival of exports, which he says will help track exports up to its final destination and also respond to any issues that may arise as the goods are in transit.

He says this discussion is ongoing with the Uganda Coffee Development Authority.

As for tea, Rubagumya says Uganda’s tea is auctioned at the Port of Mombasa. But he says this perhaps was because the country had re-engineered the road structure. He says exporters of tea can do better – set up stores back home and send samples for testing as opposed to exporting just the way it is.

“These are discussions we are having at a regional level,” he says.

Asadu Kisitu Kigozi, the Assistant Commissioner Field Services, says  compliance will be key in lowering the cost of doing business and in the end meet the tax body’s 2021/2022 target of Shs22. 42 trillion of which Shs8.142 trillion is expected to come from Customs.