Kabale traders decry Competition from Foreign Investors

By Moses Agaba

Traders in Kabale District have appealed to President Yoweri Museveni to consider allocating an industrial park in the area to boost manufacturing, enhance local production, and reduce dependence on imported goods.

Margret Ziine who imports clothings from Kenya and George Haguma who imports rice from Tanzania also said that they struggle with high domestic and foreign taxes.

For instance, Ziine said she pays almost three times more taxes in Uganda compared to Kenya, while Haguma faces over taxation on rice imports from Tanzania.

Caroline Asiimwe, Richard Mbasa and Medard Turinawe, also traders in Kabale municipality also decried insufficient government financial support to traders saying traders struggle to access funds due to collateral security requirements.

Micheal Byamungu the Chairperson of Kabale municipality Traders Association (KMTA) said lack of an industrial park in Kabale district hinders economic growth and investment attraction.

Byamungu also said that Local Ugandan traders are being outcompeted by foreign investors, particularly Indians, who have expanded into various businesses and distribution channels at cheaper prices. Byamugu also decried the constant power outages, a barrier to Industrialisation in Kigezi .

The traders want the Ugandan government to develope industrial parks in Kabale and other regions to stimulate economic growth and attract investment.

They also want the government to review tax policies to reduce the burden on traders and encourage trade.

The traders also want the government to provide direct financial support to trader associations and streamlining access to funds.

Byamungu in specific wants the government to implement policies that promote local businesses and protect them from unfair competition.

They said this on Tuesday during a consultative tour organized by the Uganda National Traders Alliance (UNATA) with members of KMTA, Byamungu emphasized that diversifying into manufacturing would not only increase traders’ profitability but also create employment opportunities and spur economic growth in the region.

The President Uganda National Traders Alliance (UNATA) Godfrey Katongole said that such traders’ challenges are a reason President Museveni sent them for the consultation tours.

Katongole however encouraged traders to join local Traders’ Associations for an easier voice to their concerns. He promised to address all their concerns to the President for a possible solution.

The Consultative tours with traders in all the Municipalities and Cities in Uganda are intended at highlighting both the challenges and the practical recommendations from traders across the nation, after which a comprehensive report shall be presented to President Yoweri Kaguta Museveni for consideration.

The Consultative Tour was also attended by the Kabale District Chairperson Nelson Nshangabasheija who asked for combined efforts between traders and the government if their concerns are to be addressed with eas.

In May 2021, President Museveni approved the establishment of 25 industrial parks in all sub-regions in the country. He said at the time that the parks will be established in Arua and Adjumani in West Nile, Gulu in Acholi, Lira in Lango, Moroto in Karamoja, Soroti in Teso, Mbale in Bugisu, Jinja in Busoga; Kabale in Kigezi and Rukungiri in Western; Mbarara in Ankole, and Hoima in Bunyoro, Mukono, Namanve, Kapeeka in Nakaseke and Mengo in Kampala.

However, Chances of Kabale district benefiting from construction of a properly serviced Industrial park dwindled after Cabinet decided to give priority to Kisoro District.

In August 2021, a team from Uganda Investments Authority-UIA led by Evelyn Anite, State Minister of Finance for privatization, David Kwesiga Bahati, State Minister for Trade, Industry and Cooperatives, Victoria Businge Rusoke, State minister for Local Government, and Wilfred Niwagaba, Ndorwa East County member of parliament visited a land hosting Kanyinaburiba airstrip in Kanyinaburiba village of Kyanamira Parish in Kyanamira Sub-county, which was earmarked by Kabale district council about three years ago by then to host the industrial park.

However, Anite raised doubts after finding out that the land has no title and it is less than 50 acres, a mere tenth of the minimum 500 acres recommended by the president.

Local leaders led by Nelson Nshangabasheija, Kabale District LC5 chairman, Emmanual Sentaro Byamugisha, Kabale municipality mayor, Bahati, and Niwagaba pleaded with Anite to allow Kabale to get a fully-fledged Industrial park, saying the land crisis is a major problem in Kabale, adding that most residents survive on trade.

Major (rtd) Fred Bwino Kyakulaga, the State Minister for Agriculture in charge of Crop production said that the cabinet got convinced that Kisoro has more than 620-acre land located in Kibaya, Nyakrubuye sub county at the Uganda-Democratic Republic of Gongo border town council of Bunagana, which is enough and fit in the 500 acres recommended by the government.

Caption .. Nelson Nshangabasheija the kabale LC.5 Chairperson speaking