Uganda’s exports to her biggest neighbouring market Kenya are showing signs of recovery after months on slugging.
The
never ending trade wars between the two countries negatively impacted
on export receipts which have been declining for more than a year and
half.
However, the last three monthly reports from Bank of Uganda
show signs of recovery, with the latest released figures for November
last year, indicating a 9 per cent increase in Uganda’s exports receipts
to Kenya.
The report shows: “In November, Uganda’s export receipts
to Kenya climbed to $57.5m (Shs194b), up from $47.4m (Shs175b) earned
the previous month of October.”
This was higher than the $42.1m (Shs155b) realised in September.
Some
goods which Uganda exports to Kenya include agricultural products such
as maize, milk, sugar, fruits, eggs, beans and other manufactured goods
in the fast moving consumables.
These goods, according to Kenya, have
created a stiff competition with the locally produced products because
of their low prices.
Trade war
In trying to regain their market, Kenya waged a trade war which saw several exports from Uganda blocked.
This
prompted manufacturers through their umbrella organisation – Uganda
Manufacturers’Association (UMA) - petition government at the end of last
year.
In a statement released in early December, manufacturers,
also expressed frustration over government’s “inability” to resolve the
unfair trade practices subjected to Uganda by Kenya in disregard to the
EAC common market commitments”, noting the statement was a culmination
of untold frustration by government in the pursuit of equity from EAC
partner states.
Mr Daniel Birungi, the UMA executive director, said
it was unfair that Uganda continues to play second fiddle and acts as a
“supermarket” for other countries yet its products are blocked from
entering the same countries that benefit from its market.
editorial@ug.nationmedia.com
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