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.