UMA asks Government to make trade with DRC and South Sudan safer.

Daniel Birungi, the Executive Director of the Uganda Manufacturers Association (UMA) has called upon the government to put in place safeguards that protect Ugandan manufacturers and businesses who export goods to the Democratic Republic of Congo and South Sudan over concerns about insecurity in those countries.

He made the remarks during a forum organized by Absa Bank Uganda bringing together experts from the private and public sectors to discuss the FY 2021/22 National Budget and its implications on manufacturing and trade. “We’ve opened up South Sudan and DRC, which is very good work. But the aspect of volatility in these markets requires that we have an export guarantee scheme. So that, when a manufacturer transports their goods to these countries and loses them, they are able to have recourse.”

An export credit guarantee provides safeguards and insurance for exports by a government or semi-government agency to ensure that an exporter receives payment for goods shipped overseas in the event, the customer defaults, reducing the risk to the exporter’s business. “At present, it’s really a wild west out there. You go at your own risk and whatever happens, is your business or you come back to the government and request a bailout, which is not the right way.” Birungi added.

During the reading of the FY 2021/22 National Budget, Hon. Amos Lugoloobi, the state Minister for Finance announced that UGX 5.1 trillion has been allocated in the budget for the development of the integrated transport infrastructure and related services, which includes a 1,182 km road connecting Uganda and the Democratic Republic of Congo (DRC).

Additionally, the budget also makes provisions to rehabilitate the Tororo-Gulu Meter Gauge Railway (MGR) and complete the Gulu Logistic Hub, both to expand trade with South Sudan. Ugandan manufacturers have been searching for new markets in DR Congo and South Sudan following challenges accessing markets in Rwanda and Kenya.

In 2018, Uganda exported goods to DR Congo worth $532 million, including an estimated $312 million in informal exports[i], while the country’s exports to South Sudan amounted to $357.34 million during 2020[ii]. Mumba Kalifungwa, Absa Bank Uganda’s Managing Director lauded the efforts to develop infrastructure that will stimulate growth in new markets or enhance already existing ones.


He said, “The stewards on the nation are trying to facilitate growth in trade by creating enabling activities that are targeted towards areas that are going to improve on connectivity. The implication of that is that there is a targeted and calculated agenda to support growth in terms of productivity.”


While making his submissions, Mr. Kenneth Mugambe, the Director of the Budget at the Ministry of Finance said, “The issue of access to markets relates to the provision of infrastructure and standards, because the region provides one of the biggest markets for our products. So, we are going to take advantage of that to ensure that we enhance access to these markets for Ugandan products.”