UNDERSTAFED: The writer (right) with the Brussels, Belgium embassy employees
THE Government has been campaigning for “trade not aid” in a fresh attempt to woo the developed world further open up their markets.
However, what is on the ground leaves a lot to be desired. Is it a case of preaching what you don’t practice? Asks Stephen Ilungole.
Trade ministry To be a successful trading nation, a country should have a fully-fledged trade ministry. But Uganda’s trade ministry is one of the most neglected. The political ministerial appointments, does not help matters either.
For example, in a spell of just two years, the trade ministry has had three different sets of ministers.
This means that just as the new ministers try to grasp the trade policies, they are transferred or dropped.
Another dilemma is that of understaffing and under-funding. The trade ministry, which should be helping the 26 million Ugandans get into the global trading system, has only 13 technical staff and receives just sh1.3b in budgetary allocation.
With the East African Community, the European Union’s Partnership Agreements and the World Trade Organisation all requiring technical trade policy negotiators, Uganda is yet to get the best deal.
Worse still, 44 years after independence, the country has just formulated a draft trade policy initiated by the Uganda Programme for Trade Opportunities and Policy, an EU-funded capacity building project.
This is despite trade being synonymous with development, increased revenue collections and increased household incomes. “We ask for trade not aid but with nothing to sell because we can’t meet the quality and quantity requirements. Our poor infrastructure makes things even worse,” an officer at the Uganda Geneva mission, said recently.
Foreign missions
These are Uganda’s other most neglected assets. With every country striving for the same wealthy foreign investors, most countries have now widened the scope of work for their foreign staff to include trade and investments attractions.
To this end, trade and investment officers are a must at foreign missions.
Unfortunately for Uganda, most of her missions are in sorry states, understaffed and under-funded.
And most of them if not all, don’t have technical trade and investment officers. They are mainly run by foreign affairs officers.
The Belgian embassy in Brussels for example has only five technical staff.
These are expected to handle the EU affairs, Luxembourg and the Netherlands. Mark you, the EU is Uganda’s largest exports destination with over 80% forex revenue coming from the EU countries.
“The trade ministry should attach trade officers to all major embassies. Foreign polices should be redefined along trade promotion,” Katenta Apuuli, Uganda’s envoy to Belgium, said.
“We could do a lot more if more resources were provided. Business is done over breakfast, lunch or dinner. You can’t invite potential investors for a discussion over an empty table. This can’t continue. There is only one chance
to make an impression. It doesn’t matter what actually happens back at home. We are competing with others. Unless we match the task, we will be left behind,” Apuuli said.
The Switzerland mission in Geneva is no different inspite of being in the heart of the headquarters of the world’s most important organisations.
A strong team of representatives is required in Geneva since all the universally-affecting negotiations take place here. Which is why the mission was opened in 1996.
With its composition, the Geneva mission makes it the most demanding and most beneficial. But the mission is understaffed and under-funded.
“We are the eyes and ears of Uganda in Geneva. If anything, we should concentrate on Geneva because this is where the world’s top organisations
are represented,” Uganda’s ambassador to Geneva, Arsene Balihuta, said.
But does the embassy have capacity to handle its mandate?
“I wish we had. We can’t do everything we must be doing. We don’t have enough manpower and funds to effectively do our work,” the ambassador said. The finance ministry seems to be chronically “broke.”
The technocrats at the ministry are said to frustrate requests for additional staffing or training of negotiators in global trade.
Even the little money the missions make is sent back to the parent ministry.
Their debriefings to the parent ministry are also kept in office cabinets instead of passing most of
the trade and investment vital information to the intended consumers; the private sector. “It’s the private sector not the Government or bureaucrats who build a nation. The private sector should know about the WTO, EU, and EAC rules. There should be avenues to explain trade agreements to the business community,” said Balihuta.
World trade preparedness
There have been clamours for the developed world to fully open up their markets and cease farm aid. But how prepared is Uganda to exploit this opportunity if it is granted? Will the quality and quantities be available for the European market?
“There are opportunities but there are rules governing them. Standards aren’t an issue in Uganda. Consumers abide by substandard goods and services. They don’t demand for quality. But this can’t be with the European consumers. They will reject substandard products.We should be conscious about standards. It should be accepted as enabling trade,”Apuuli, said.
Karinge Githinji, the ACP multilateral trade expert, said “Admittedly, the EU standards are quite high. But if you need the market, you have to adopt. If Uganda can’t measure up to the standards, other countries will get the market. We shouldn’t continue crying because others are meeting the standards. Crying won’t help. They won’t lower standards because Uganda can’t meet them. That is the demand from their citizens (voters). We must move with the world.
“The set standards apply to everybody; the MDCs and LDCs alike. I don’t think we are being victimised. ”
Lack of trade experts
Githinji said the Governments haven’t taken keen interest in trade issues.
“Trade ministries get peanut budgetary allocations yet they are very crucial in bringing in more tax revenue. Trade hasn’t received the attention it deserves. Trade experts should be sent to foreign missions, be at the chamber of commerce and services sector.
“For example, clearing and forwarding sector should not just have businesspeople but properly-trained leaders heading the forwarding association.
“Trade should be supported. Customs officials must be trade experts. Universities should be strengthened to produce trade experts,” he said.
Ends