Pre-export verification programme resumes next week

 

 

A mobile money agent assists customers complete a transfer. PHOTO BY EDGAR R. BATTE 

By FARIDAH KULABAKO 

In Summary

As a result, the programme which was meant to kick off in December last year was postponed to allow for more consultations and sensitization of traders about the scheme.

The implementation of  the Pre-export Verification of Conformity Standards (PVoC) programme will start on June 1 as government moves to curb the influx of substandard goods, Uganda’s Trade Minister has said.

While debating Uganda’s economy and its future prospects in the East African region recently, Ms Amelia Kyambadde said Uganda’s economy is over liberalised, necessitating control mechanisms to regulate influx of sub standard goods.

Under the PVoC programme, products destined for the Ugandan market including food and food products, electrical and electronic products and cosmetics among others will have to be inspected in the country of origin before being shipped to Uganda.

“My ministry is determined to implement pre-export inspection next month to check the influx of goods which is likely to pose a threat to the economy,” Ms Kyambadde said at the launch of CNBC Africa Uganda Bureau, a subsidiary of CNBC international last week.

The programme, which was banned by  former Trade Minister Kahinda Otafire in 2010 following reports of alleged corruption and fraud had been lifted by Ms Kyambadde in November last year.

This, however, faced resistance from a section of traders and manufacturers saying it would increase the cost of doing business in addition to promoting corruption.

As a result, the programme which was meant to kick off in December last year was postponed to allow for more consultations and sensitization of traders about the scheme.

PVoC is aimed at protecting the public from substandard goods that affect people's health and environment, increases confidence of consumers and at the same time protects local manufacturers from substandard goods on the market.

If implemented, all imports will have to be inspected at the point of origin before they are shipped into the country.

Commenting about Uganda’s economy and its future prospects in the region, Ms Annette Mutaawe, Trade Mark East Africa country director said Uganda needs to show commitment to reducing the number of business licenses required to start a business, in order to make the country an attractive investment destination. 

Available statistics show that Uganda has 760 different business licenses which potential investors must fulfill before businesses are allowed to start operating, something that slows down business.

Ms Kyambadde, however, said the government is taking necessary steps to address the matter.

CNBC Africa Business Development Manager, Mr Denis Nabende said the channel would  enable business experts, decision makers and market movers to offer great insight into Uganda’s business and financial environment.