Traders strike still on as government softens

Trade minister Amelia Kyambadde arrives at the Government Media Centre in Kampala to address a press conference on the government’s stand regarding the implementation of pre-inspection charges. Photo by Geoffrey Sseruyange. 

By Ismail Musa Ladu
 

 

KAMPALA- Traders in Kampala insist they will not call off their strike even after the government yesterday announced a raft of measures meant to appease them.

Trade minister Amelia Kyambadde told journalists at the Media Centre in Kampala that government would renegotiate the pre-inspection charges because they are “unfairly high”.

For a third day yesterday, traders in Kampala kept their shops closed, protesting against a pre-inspection programme that subjects imports to a mandatory standard check in the country of origin before being shipped.

Government argues that the Pre-import Verification Conformity to Standards (PVoC) programme will help ward off the influx of counterfeit and sub-standard goods because it requires importers to subject their products to quality inspection in the country of origin before they are shipped to Uganda.

The traders, however, say the inspection fee of $235 (about Shs580,000) to $2,375 (about Shs6m) charged on each consignment is too high and will increase the cost of doing business.

Ms Kyambadde yesterday said: “On July 01, service providers (companies contracted to do the import verification in the country of origin) will be here and we are committed to reducing the inspection fee. This programme will also be reviewed after every three months.”

Appealing to traders to call off the strike as the government negotiates with the service providers, the minister also noted that pre-inspection fee would be higher if it were paid at the points of entry to the country and asked traders to note that the cost of importing sub-standard goods could be higher if it affected the health of consumers. “The success of the traders is my success. And if they fail it means that I have also failed in my duties,” said Ms Kyambadde, who, in order to calm the traders, also announced that “groupage cargo” (several consignments in one container) will be inspected here and at no cost at all.

The carrot for the traders also includes reducing the number of high risk goods subjected to mandatory standard check to only six. Previously every import would be subjected to the pre-inspection scheme before being shipped to Uganda.

But the traders were having none of it, insisting they would only open their shops once the entire PVoC programme, which is being enforced by the Uganda National Bureau of Standards, is suspended.

“We have instructions that emanated from the meeting with our members on Wednesday that not until the PVoC programme is suspended the strike continues,” said the spokesperson of Kampala City Traders Association (Kacita), Mr Isa Sekitto.

As we went to press, it emerged that the Private Sector Foundation (PSFU), the country’s top private sector body, had offered to mediate in the stand-off.

The traders are expected to hold another meeting today to plot the way forward.

Mr Stephen Magera, the commissioner for trade in URA, said the strike was causing a Shs20 million loss to the body daily since most of the striking traders.