Kampala. Manufacturers are finding it difficult to trade in D.R Congo and South Sudan due to the lack export guarantees, Uganda Manufacturers Association (UMA), has said.
An export guarantee protects exporters against default and is usually offered by government.
Mr Richard Mubiru, the UMA executive director, told Trade Minister, Amelia Kyambadde that the lack of export guarantee schemes, makes it difficult for traders to venture into volatile countries such as DR Congo and South Sudan.
By 2013, before the break up of a protracted civil trade between Uganda and South Sudan, according to data from the Ministry of Trade, stood at more than Shs890b ($358m) but has plunged Shs2.3b.
In her response, Ms Kyambadde advised trader to be cautious with the South Sudan market until when there is guaranteed stability.
For DR Congo, she said, Uganda already has a bilateral arrangement, including a Memorandum of Understanding that seeks to ease market access.
The agreement, she said, also allows manufactured goods originating from Uganda to access the DR Congo market with little or no interruption.
Ms Kyambadde said government would engage diplomatically on the issue of export guarantees.
Buy Uganda, Build Uganda policy
Manufacturers have also applauded government for pursuing the ‘Buy Uganda, Build Uganda’ (BUBU) policy, which has been one of Ms Kyambadde’s pet projects in the last two years.
UMA also commended government for revamping Uganda Development Corporation, a key business financier.
However, they urged government to expedite the industrialisation policy to align it with Uganda’s 2040 development agenda.