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30 June 2008

Trade Facilitation through Export Promotion

The PSFU (Private Sector Foundation Uganda) & MTN Trade Facilitation Exhibition on Friday 27 June 2008 was, I must confess, an illustrious success though I came in late from Kampala Town around noon. With stalls on almost one half plus on the long ends of the North Western Exhibition Hall at Lugogo Show Grounds, a large area was set aside for listeners to sit and you could see that the exhibition was well attended. A minister from Rwanda was speaking when I made my entrance. An apology was made by the MC about the absence of one of the panelists who had to go to the airport earlier than scheduled for checking before a voyage out of the country that evening. I expected PSFU chairman James Mulwana to be there, but didn’t see him. Could he have been the one mentioned? Executive Director Gabriel Hatega was there.

Anyway, after the minister, Richard Kamajugo a URA Commissioner [AC – Trade] on behalf of Allen Kagina started by conveying the Commissioner General’s remarks; personally I think she’s always brilliant and considerate to tax payers, you know, the aura of motherly love makes her great. I do not know much about her white predecessor but call Kagina the “Customs Mama”. Please don’t tell her daughter Mitchel that Aiko said so…Her words conveyed by Commissioner Kamajugo were worth writing home about, “Today, because of the technology, reengineering and a common East African customs understanding, consignments can be cleared within 24 hours unlike in the past which took many days... Customs is the branch of URA that handles exports and imports.”

Lunch (a package of chicken, salt, sausage, sumbi, tomato sauce, and irish) plus a drink were served to the tired listeners to woo them back from the stalls to hear more because the commissioner was not done yet. What else would you expect other than feeding all those present when these guys had made a lot of money from the sponsors and exhibitors? Richard’s subsequent presentation was about URA’s role in the export business. (For more details about his presentation, I would suggest that you check out URA’s website @ www.ugrevenue.com) All I could gather because of food in my mouth (I wasn’t prepared to write) was that some taxes had been waivered. The Most Interesting was the waiver of income tax on new agro-processing businesses 30 Kilometres outside Kampala in the new financial year which was just four days away on Tuesday. There was also a waiver on trucks that carry loads above 3.5 MT (Metric Tonnes) so buying such a truck in the new FY would be cheaper. The commissioner Richard Kamajugo even advised businessmen to replace their family saloon cars with an export truck if they so wished… Richard also mentioned the usual waivers of tax on exports such as hides and skins [yet in the past, no body was allowed to export them]. “Uganda gets her foreign exchange from exports. So without large amounts of foreign exchange, we cannot trade for imports with the foreigners. URA has come in to facilitate and promote exports…”

This was more of an export promotion exhibition. UCIFA Chairman Omar Kassim was also one of the speakers and said “UCIFA is always open (for exporters and importers)”. Sponsors (who were honored after the Rwandese minister’s speech) plus Advertisers included (in no distinguished order) PSFU, Barclays, SkyNet, uganda telecom; MTN, UIA (Uganda Investment Authority) alongside UEPB (Uganda Export Promotion Board); Stanbic Bank; Nine international embassies like Holland, UK, et cetera; South African Airways, UCIFA (Sitting at the stall was board member Lino Criel Icila and the Secretary to UCIFA’s Chairman)…Secretary General Jad Johnsons Tabule who is also the director of Freight Kargo Masters was in the crowd and so was Assistant Chairman Lawrence Ayebare who listened to the presenters; CMA (Capital Markets Authority); dfcu Bank (offering Land Loans between 5 and 75 Million UgX and other services); UPS & Daks Couriers; UFFA (Uganda Freight Forwarders Association) the second Clearing and Forwarding Association in Uganda; Tourism Uganda, UAP Insurance Company and other exhibitors not mentioned; Citi Bank Group put up their banner but were not present…

Below is the spirit of UCIFA’s role in the import and export business. As the foremost umbrella body of clearing and forwarding firms in Uganda, UCIFA is an intermediary between customs and importers or exporters. They carry out the necessary customs documentation and lodgments of entries. The body advises clients on customs requirements, laws, regulations and procedures. UCIFA updates clients on changes that occur from time to time. It facilitates import and export operations in the most efficient and cost effective manner. Also, it advises on the mode of transport & the facilities in transportation; liaises with Uganda Revenue Authority and other stakeholders in the facilitation of import and export business thus facilitating trade and tax collection.