The Uganda Insurers Association chairman, Latimer Mukasa, has asked importers to embrace insuring their goods locally through the Local Marine Cargo Insurance which took effect on July 1, 2022.

Speaking during a media briefing held at their head office in Kololo, Mukasa noted that through this platform, the industry will record significant growth while easing the way of doing business.

“This new platform will not promote protectionism as some traders have said in the past. In fact, most countries have already done it and I think we are among the last.

I want to categorically state that this will not increase any costs for the importer, but rather we are looking to ensure that the money that was being paid in countries like China is now paid to Uganda. Let us promote the Buy Uganda Build Uganda Policy,” Mukasa explained.

The compulsory implementation means that essentially all in-bound goods must have Local Marine Cargo Insurance to be cleared at all entry points, which inevitably thrusts the responsibility of enforcement onto the country’s tax body ― URA.

URA spokesperson, Ibrahim Bbosa Kibuuka, says they are ready to implement the new directive from the Ministry of Finance as this will help grow premiums in the insurance industry.

“We have actually been doing this in the past, what changes now though is the fact that we shall be directly monitoring transactions of insurance companies operating here. By the way, some of these importers have been dodging taxes, but now we are sure we shall truck them. Let me tell the public that we are not going to boost our revenue target of 25 trillion from this platform, but rather only implementing a government directive,” Kibuuka said.

The chief executive officer Uganda Insurers Association, Jonan Kisakye, on his part stressed that annually, Uganda has been losing up to $100m to countries that have been offering insurance covers for cargo destined to Uganda.

“Research was conducted, and as a country, we have been losing a lot. We are making this service simpler by pushing for the portal which should allow users access from anywhere. But also, for those who have been using the brokers, this will continue. Let us embrace this as it offers opportunities for the growth of the industry,” Kisakye said.

KACITA deputy spokesperson, Denis Jjemba Mulondo, welcomed that initiative, urging his fellow importers to enrol and use local insurance companies.

“We have been struggling with the issue of claims as we were working with foreign companies, now if any problem arises, we know who to run to, either URA or UIA, who does not want the ease of doing business. Importers let’s join hands and support this initiative,” Mulondo said.