Confusion meets new protocol

A busy street in Kampala’s commercial district. Photo/FILE

The coming into effect of the common market for some Ugandans is up to today, a of matter of signed papers.

It will take time before the full benefits of the East African Common Market Protocol stream out to the most residents.

Across the region, however, from Mombasa Port to Kigali, and from Bujumbura to Dar es Salaam, a majority of locals are still grappling to put a finger on exactly what it means to them.

Closed doors

Most of the negotiations and paperwork were held behind closed doors with little or no attempt to sensitise residents in the region.

“If people on the streets of Kampala still don’t know what this protocol is all about and others are not bothered whether it will be good or bad, then we are not ready,” Kampala City Traders Association (Kacita) spokesperson, Mr Issa Sekitto said.

Other traders, however, still want some barriers maintained ostensibly to protect local industries from being overshadowed by their more developed Kenyan counterparts.

Those in the know say the region has just opened itself to greater internal competition, which should stimulate productivity, create more jobs while allowing for labour to move to the highest bidder. It will also position East Africa as a single negotiator against other trading blocs.

The region boasts more than 130 million people, a combined Gross Domestic Product of over $73 billion, an average income per capita of $506, and with vast natural resources including recently discovered oil.

Trading bloc

The common market thus presents a formidable trading bloc to the rest of the world which if well exploited, has the capacity to unlock doors to prosperity.

Most traders have interpreted the common market to mean wide open border points allowing them to import good from the region tax free.

“It’s going to be an opportunity for me to network, find new markets and learn good practices of doing business especially taking Kenya’s experience or even Tanzania especially in the processing of fish,” said Ms Grace Nanyonga, a fish processing firm proprietor.

More cautious

Mr Moses Ogwal, manager of Policy at the Private Sector Foundation Uganda, one of the few business bodies that are behind the negotiations for the protocol, is more cautious.

“This era is not going to be magical for the business person; there will be nothing free without following proper regulations. Implementing the common market protocol will be progressive,” the official said.