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Uganda loses Sh180 billion deal as export council finds itself in limbo

Confusion. Panic. And helplessness. This is where the Uganda Export Promotion Board (UEPB) now finds itself having merged with the Uganda Free Zones Authority into a single entity called the Uganda Free Zones and Trade Promotion Authority. exports.

For almost three weeks, several exporters have been struggling to obtain the essential export certificate issued by the UEPB.

The certificate is an attestation of the product, without which it cannot be exported. Certification also contributes to brand reputation and ensures safety and quality.

Following the merger of the two agencies, two weeks were given as the necessary time for the two to merge under one roof before resuming their activities. At the same time, the Ministry of Commerce, responsible for both agencies, was tasked with assuming the functions of the UEPB.

As we speak, the Ministry of Commerce is either on the run, absent without official authorization, or struggling to carry out the tasks assigned to it temporarily.

Indeed, over the last two or three weeks, several exporters have had difficulty obtaining the services necessary to facilitate their exports, which allows them to obtain much sought-after foreign exchange, necessary for the stabilization or mitigation of pressure on the shilling against major world currencies.

When contacted on Monday, Minister of Trade, Industry and Cooperatives, Mr Francis Mwebesa, said: “You have just brought this to my attention. I didn’t know anything about it. I’ll take care of it tomorrow morning.

Meanwhile, the transition, which should have been finalized by the start of this month, has since left exporters not only confused and helpless in the situation they have allowed themselves to be dragged into due to laxity, even irresponsibility of the government, but also in the face of losses. estimated in billions of shillings.

In the last two weeks alone, the Daily Monitor has learned that nearly 60 exporters struggling to obtain export certificates collectively stand to lose the opportunity to earn close to $50 million (about Sh182 billion), which is double the budget of the Ministry of Trade, Industry and Industry. Cooperative, in foreign export transactions.

Among the exporters in difficulty is Rwenzori Commodities Ltd, the producer of Mukwano tea. Contacted on Monday, Mr. Mohammad Mustafa, an official from Mukwano, said: “It is true that we have had difficulty obtaining certification since the dissolution of UEPB.

“We have to export to Italy, and one of the requirements is the certification issued by the UEPB. Now that the UEPB no longer exists, we ask ourselves questions. So far, many contacts have been made to us in vain for help. I can tell you that no one has helped us as we speak. I think for the third week now, we are stuck with the trial order for the customer, but if this deal succeeds, we will export tons and tons of tea,” he said.

The transition between the two government agencies, which is currently dragging on to the detriment of agreements with exporters, could not have come at a worse time, as export and import companies seek to close their orders for the end-of-year holidays before the busy commercial period which closes the year.

The main objective of merging the two was to increase export competitiveness and foreign exchange earnings. Although it is still early, the way the transition and integration is taking place leaves much to be desired.

Until now, the UEPB has focused on developing strategies to improve the competitiveness of the country’s products in international markets, by providing market information, trade facilitation services and support to improving product quality in accordance with international standards, without forgetting the promotion of value-added exports. , all remain in limbo.

Unless the government gets its act together – and very quickly, this scenario involving the UEPB could be a telling sign of what could be at play in government ministries, departments and agencies: confusion. Panic. Impotence. And maybe irrationality.

Streamlining costs businesses: While most agencies are necessary due to the critical nature of the functions they perform, the government has established that a number of agencies have been created without due consideration of aspects of institutional harmony, functional duplication, overlap and affordability.

The government has also established that certain agencies fulfill the purposes for which they were created. The mandate of a few other agencies has been overtaken by events. These agencies must be rationalized.

The objective of the merger, integration and rationalization of the Uganda Export Promotion Board was to relieve the government of the financial drain on its resources and the burden of unnecessary 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 reorganize government agencies and departments by eliminating bloated structures and functional ambiguities in government agencies and departments. .