Overview:

Traders warn that political interference is causing high duties and protectionism on essential food imports like rice and wheat. KACITA vows to investigate the alleged monopolies that hurt the business community.

KAMPALA, Uganda — Ugandan traders are asserting that political influence is the root cause of high import duties and monopolistic practices that are crippling local businesses dealing in rice and wheat.

Traders allege that politically connected “heavyweights” are leveraging their power to dominate the market for these essential staples.

Mathias Mutyaba, chairperson of the Namanve Industrial Park area, said the restrictive practices are hurting local traders who attempt to supplement the country’s limited domestic production of rice and wheat.

“Businesspeople who try to complement this production by importing more of these products face barriers imposed by mainly politicians who are in the same business,” Mutyaba stated.

The Kampala City Traders Association (KACITA) is questioning the legality and ethics of the situation. KACITA Chairperson Issa Ssekitto said that politically instigated monopolies can lead to “unhealthy political patronage and protectionism,” where a few entities benefit from lowered taxes at the expense of general dealers.

KACITA is preparing to investigate the alleged monopoly on wheat and rice importation, calling on the government to intervene to protect the business community.

The claims come as Uganda struggles to meet its domestic food needs. The country is a net importer of rice and relies on imports for up to 95% of its annual wheat consumption.

An investor, who requested anonymity, specifically criticized the high duties imposed on rice imports, particularly good quality unbroken grains, and advocated for reducing tariffs on rice from East African countries to boost regional trade.

The high dependence on imports is driven by demand: NARO reports Uganda needs 650,000 metric tonnes of wheat annually but produces only 25,000 tonnes. Similarly, domestic rice production of 350,000 metric tonnes falls short of demand.

When asked for comment, Trade Minister Francis Mwebesa was unavailable, citing upcountry engagements. Efforts to reach the ministry spokesperson for a statement were also unsuccessful.