adminA section of Uganda businesses resumed trading with Kenya after the signing of a memorandum by Presidents William Ruto and Yoweri Museveni in Nairobi last week, ending longstanding issues choking cross-border commercial activities.
While trade in sugar and milk has resumed, businesses are still cautious, as a number of taxes, including those on Kenyan juice, are yet to be reviewed.
Simon Kaheru, vice-chairman of the East African Business Council, who also chairs the Ugandan Private sector, told The East African that the Nairobi meeting was very helpful in opening up the two countries to trade.
“So far, a number of our members involved in some sectors that were previously affected by the blockades have begun trading once again.
“We have had confirmation specifically from the sugar and dairy sectors that the situation has improved,” he said.
During President Museveni’s state visit to Kenya, the two East African Community (EAC) founding Partner States signed seven memoranda in public service management, education, SME development, sports, youth, trade and investment sectors.
The leaders also agreed to resolve the trade wars by adhering to the EAC’s protocols on the Customs Union and the Common Market.
“We should eliminate barriers which hinder trade not only between Kenya and Uganda, but also in East Africa and Africa as a whole. Protectionism is not good for Uganda, Kenya or Tanzania,” President Museveni said.
“All the issues around (trading in) rice, fruit juices, sugar, furniture, eggs, chicken and all the other issues are now resolved,” Dr Ruto declared.
But the private sector in Uganda remains wary: “We have been down this road before many times, for just as we start celebrations, another roadblock is erected,” Mr Kaheru observed. — Business Insider Africa.
Online Reporter