Traders Urge EABC to Address Economic Challenges

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Traders Urge EABC to Address Economic Challenges
Traders Urge EABC to Address Economic Challenges

Africa-Press – Uganda. Ugandan traders are calling on the East African Business Council (EABC) to intervene and address persistent challenges at regional border points that continue to cripple cross-border trade despite the promises of East African Community (EAC) integration.

The traders cite long bureaucratic procedures, unfair dollar-based charges, and high tariff barriers as key bottlenecks undermining trade growth and regional competitiveness.

Among those affected is Prudence Ukkonika, a Ugandan entrepreneur dealing in wines, who says clearing goods at border points has become a frustrating ordeal.

“We take too long to clear our products, yet we’re charged in dollars and subjected to high tariff barriers all this while we are supposedly in the same EAC bloc,” she lamented during a capacity-building workshop held in Kampala.

Uganda’s traders argue that such non-tariff barriers contradict the spirit of the EAC Common Market Protocol, which was designed to promote free movement of goods, services, and capital across member states.

Business consultant Mabala Moses urged traders to unite under organisations like the Private Sector Foundation Uganda (PSFU) to amplify their grievances.

“Many small traders suffer in silence. They need to engage associations like PSFU that can advocate effectively on their behalf at the EAC level,” Mabala advised.

A recent joint report by PSFU and the Alliance for a Green Revolution in Africa (AGRA) underscores the gravity of the situation, revealing that Uganda is losing up to $3.5 billion (Shs 13 trillion) every year in perishable agricultural exports due to border inefficiencies, poor infrastructure, and outdated trade systems.

Perishable goods such as fruits, vegetables, fish, and dairy products often rot in transit, spending up to 14 days at border posts a sharp contrast to the EAC’s target clearance time of just 48 hours.

The report paints a bleak picture of a trade system bogged down by red tape and logistical inefficiency, warning that Uganda’s export potential is being severely undermined.

“This is not just a missed opportunity; it’s a direct loss of income for farmers, exporters, and the economy at large,” said Martin Maku, PSFU’s Policy Coordinator. “Every day we delay, we lose revenue, market share, and our regional competitiveness.”

According to the report, over 70% of surveyed traders said they struggle to navigate Uganda’s export regulations, citing excessive paperwork, limited digitalisation, and inconsistent standards among EAC partner states.

These challenges have pushed many exporters into the informal trade sector, which is now estimated to exceed $500 million (Shs 1.9 trillion) annually, as traders seek cheaper and faster alternatives to formal export procedures.

Trade experts argue that the persistence of such barriers exposes weak coordination among EAC institutions and highlights the urgent need for reform.

They call upon the EABC to take a proactive role in harmonising border processes, streamlining documentation, and ensuring that national revenue authorities across the bloc implement uniform standards.

Ugandan traders now await tangible action from the regional business body, warning that without urgent intervention, the dream of a seamless EAC market will remain an illusion.

“We are losing billions every year not because we lack goods to trade, but because the system works against us,” Ukkonika stressed. “The EABC must step in to rescue cross-border trade from total collapse.”

At a time when Uganda is striving to expand exports and create jobs through regional markets, these barriers threaten to erode confidence in the EAC integration agenda and with it, billions in potential earnings.

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