Uganda stops raw materials export to boost local industries

2021-09-08 17:17:00
Uganda stops raw materials export to boost local industries

The Ugandan government has banned exportation of raw materials to encourage adding of value on all raw materials before exporting them.

The country’s Minister for Trade, Harriet Ntabazi, says 69% of raw materials in the country are exported hence causing revenue loss, adding that the ban will improve the manufacturing sector.

“Government has banned exports of unprocessed raw material starting this financial year to encourage adding of value on all raw materials before exporting them, so this money will help traders embrace value addition,” Ms Ntabazi said.

She pointed out that the trade ministry has also negotiated a U.S.$29 million loan from development partners, and sourced another U.S.$29 million given to Uganda Development Bank this financial year, to give to traders.

“Government has banned exports of unprocessed raw material starting this financial year to encourage adding of value on all raw materials before exporting them, so this money will help traders embrace value addition,” Ms Ntabazi said.

She said the main plan of government is to turn all traders into industrialists to boost manufacturing in this East African state.

Ms Ntabazi said her ministry is in discussions with Finance to give new local investors tax holidays.

Dr Joseph Denis Walusimbi, the dean of faculty business and management at Victoria University, welcomed the move, saying it will ease the cost of doing business.

He added that raw material exports are bought at a low price, but are three times the price when imported as a finished product.

Uganda mostly exports agricultural products which account to nearly 80 percent of total exports. The country’s most important exports include, coffee tea, cotton, tobacco copper, oil and fish.

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