Uganda hosts EAC manufacturers' forum

By Vision Reporter

Uganda Monday hosted that EAC Secretary General’s Manufacturers’ Forum officiated by Amb. Dr. Richard Sezibera.

East African Business Council in partnership with Trade Mark East Africa and EAC Secretariat hosted the Forum that was attended by Members of the East African Business Council, Members of Uganda Manufacturing Association, and the Media.

Addressing participants, Sezibera noted that the event was marking the formal launch of a series of thematic-based SG-CEO Forums to give a deeper insight and a more stable platform to address key challenges affecting the business at both the national and regional levels.

“Definitely this approach will allow for national level engagement between high level policy makers and the business community for easier follow up, both at the EAC Secretariat and at Ministerial level at the Partner States”, stated Sezibera.

The EAC Secretary General reiterated that manufacturing offers a wide range of opportunities in the EAC Partner States and the Heads of State across the region have always expressed commitment to the development of the manufacturing and micro, small and medium enterprise sectors.

 The EAC realizes that for the Manufacturing sector to prosper, there is need for all the stakeholders – including the government and private sector players – to work on ways of giving the domestic industrial sector a new lease of life.

“There is need to popularize the local products not only externally but internally as well especially now as we operationalize the East African Common Market. We need to see more campaigns towards making Ugandan products popular and more competitive in the region. If we popularize Ugandan products I believe that the manufacturing industry may grow by over 10 percent,” affirmed Sezibera.

The Secretary General called upon the local manufacturers in the region to take advantage of the several opportunities popping up as the region integrates deeper especially in the areas of pharmaceuticals, beverages, vehicle parts production as well as vehicle assembly among others.

TMEA Regional Director Private Sector and Civil Society Lisa Karanja informed the CEOs that with the establishment of the EAC Secretary General’s CEO Forum in 2012, there is great opportunity for both the Chief Executive Officers and the Secretary General to dialogue on how to enhance the EAC integration process for business and trade, as well as improve the operating environment for businesses.

Representing Uganda Manufacturers’ Association (UMA), Sikander Lalani the Chair and Managing Director of Roofings Group, commended the East African Business Council and the EAC Secretariat for taking the lead in pushing the interests of the business community in the EAC integration.

The Executive Director of the East African Business Council (EABC), Andrew Luzze urged the Ministries, Government Agencies as well as the relevant Institutions to implement actions agreed upon by the Forum. He urged the private sector to open up as the region moves deeper into the integration process.

At the Forum, Uganda Manufacturers’ Association presented some of the key policy issues affecting its members requiring urgent redress at regional level.

These include the Tax Remission for Exports Office (TREO). The Manufacturers claim the Government of Kenya through the Tax Remission for Exports Office encourages local manufacturers to export their products. This is achieved by remitting duty and VAT on raw materials used in the manufacture of goods for export.

 The Association asserts that Exports under the TREO scheme shouldn’t be within the EAC but outside the EAC since the region is now under the EAC Common Market and Customs Union. The impact of the remission on duties and VAT makes Kenyan manufacturers have a high competitive edge as compared to those within the other EAC states.

Another issue is the Railway Development Levy of 1.5% for all imports through Kenya introduced by the Government in the 2013/14 National budget for the development of the Kenyan railway network but is being paid by all States and importers using the Mombasa Port or transiting through Kenya.

To UMA, this was unfair, as the rail development won’t be implemented in all EAC Partner States and other users like South Sudan and Eastern DR Congo whom are all paying the levy.

A case was raised on Multiple Weighbridges in Kenya. Till now, these were delaying the transit transport times when plying through Kenya as well as failing to comply with the EAC agreed position of the use of Gross weight as against Axle weight.

A lot of time is spent on the delays at weighbridges, which haven’t solved the problem due to the continued corruption at the bridges.

Another issue was the denial to carry cargo in Kenya by Ugandan Transporters. Kenya denies Ugandan transporters the right and access to carry cargo and merchandise in Kenya. This isn’t in the spirit of free movement of goods and products within the EAC and Kenya should open up to allow other regional transporters and conveyors.

The Manufacturers raised the issue of Visa and Yellow fever vaccination issue with the United Republic of Tanzania.

Tanzania still insists on the visa requirement for EAC nationals travelling into Tanzania as well as demanding the Yellow fever vaccination certificate.