Uganda to ban export of raw materials to boost manufacturing
Uganda’s government has banned the exports of raw materials to boost the East Africa nation’s manufacturing sector.
The country’s Ministry of Trade, Industry and Cooperatives said it will implement the ban starting this financial year.
During a press conference last week, the State Minister for Trade, Harriet Ntabazi, said 69 percent of raw materials in the country are exported, causing revenue loss.
She said the main plan of government is to turn all traders into industrialists to boost manufacturing.
"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," Ntabazi said.
Dr Joseph Denis Walusimbi, the dean of faculty business and management at Victoria University, welcomed the move, saying raw material exports are bought at a low price, but are three times the price when imported as a finished product.
"This move will impact positively on strengthening regional and international trade for creating a conducive atmosphere of doing business," Walusimbi said.
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.