Published on 08/05/2025
Uganda Manufacturers Association (UMA) has demanded parliament to impose a total ban on the export of unprocessed grains, arguing that the move would protect farmers from exploitation and support the growth of local industries.
The appeal was made on April 23, 2025, during a session with Parliament’s Finance Committee, which is scrutinizing the External Trade (Amendment) Bill, 2025. The bill proposes a levy of US$10 per metric tonne on the export of wheat bran, cotton cake, and maize bran.
However, UMA representative John Jet Tusabe dismissed the proposed levy as ineffective, describing it as too minimal to deter unprocessed grain exports. He noted that the UGX 36 per kilogram equivalent of the levy pales in comparison to current market dynamics, where maize prices have surged to UGX 1,400 per kilogram—largely driven by hoarding and unregulated trade by middlemen.
“Kenyan traders are purchasing maize directly from farms, harvesting it themselves, and transporting it across the border. The farmers don’t benefit from the high prices—only the middlemen do,” Tusabe said. “Uganda is losing not only value but also local factories that depend on these raw materials. Other countries are protecting their raw materials, and Uganda must follow suit.”
Tusabe cited the closure of factories like Mukwano’s Lira branch due to a shortage of oil seeds, such as sunflower and soya beans, which are essential for producing cooking oil and animal feed. He emphasized the importance of preserving local raw materials to support industrial growth, job creation, and tax base expansion.
Mukwano Industries Uganda Limited CEO, Tony Gadhore, echoed these concerns, revealing that his company has been forced to import soya bean meal from India due to the scarcity of local supply.
“Beyond producing vegetable oil, we also produce a protein-rich byproduct used in animal feed. We’ve now resorted to importing soya bean meal to sustain the livestock sector. Mukwano isn’t alone—many Ugandan manufacturers are now importing grain because we are losing our raw materials to neighboring countries,” Gadhore told the committee.
The debate comes against the backdrop of the Ministry of Finance’s latest Performance of the Economy report, which showed Uganda’s export value at US$843.05 million (UGX 3.086 trillion) in February 2025, compared to merchandise imports worth US$887.31 million (UGX 3.246 trillion) in the same month.
During the same session, UMA also expressed support for a proposal in the Tax Procedures Code (Amendment) Bill, 2025, which seeks to use the National Identification Number (NIN) issued by the National Identification and Registration Authority (NIRA) as a Tax Identification Number (TIN).
Speaking on behalf of UMA, Tusabe said the initiative would help the Uganda Revenue Authority (URA) improve taxpayer tracking and compliance. However, he cautioned that strong safeguards must be put in place to protect sensitive taxpayer information.
“As manufacturers, we recognize URA’s challenge in tracking taxpayers, especially those with multiple TINs. This proposal will streamline tax compliance and enhance revenue collection,” Tusabe said. “But we’re concerned about URA’s access to large volumes of confidential data. There must be adequate safeguards to ensure this information is not misused or leaked.”
