East African region in drive to boost imports

KAMPALA: The East African Community (EAC) has eased a number of restrictions on imports by member states in a bid to boost local businesses.

One of the revised rules involves goods made in partner states being sold dutyfree, local media reported.

The products will be required to have a certificate of origin issued by the originating country, showing that they have a local content input of at least 30 percent, unlike previously when the threshold was set at 35 percent.

Under the old rules, 25 percent duty was imposed because certain parts or ingredients used in their assembly or production were imported from outside the economic bloc, reported The East African.

Commenting on how the eased restrictions would affect Uganda’s economy, George Wilson Ssonko, the principal economist at the Bank of Uganda, said they were positive developments that were important for Africa’s development and progress.

“It is important to note that arrangements which are aimed at boosting intraregional trade are important for the continent’s progress as these have been very low compared to other regions of the world,” said Ssonko.

“For example, in 2011, intra-trade in Africa stood at 10 percent of total trade in contrast to 70 percent, 52 percent, 50 percent, and 26 percent among the EU (EU-27), Asian countries, North American countries, and Latin American and Caribbean countries, respectively,” Ssonko said.

“The government of Uganda’s approach has been to put in place enablers like sufficient energy and infrastructure like roads to reduce the cost of doing business and boost overall productivity and trade in the medium to long term.” – ANA