Traders urged to embrace marine insurance to avoid surcharges

KAMPALA, Uganda — Trade experts and insurers are urging Ugandan importers to secure marine insurance early in the procurement process to avoid steep financial penalties that inflate the cost of doing business.

The call was made during a stakeholder engagement at Hotel Africana, where the Uganda Cargo Consolidators Association and Liberty General Insurance Uganda announced a partnership to increase awareness of risk management in the logistics sector.

Peter Makhanu, managing director of Liberty General Insurance, said many traders currently face a 1.5% surcharge on their cargo simply because they arrange for insurance too late.

Our purpose is to demonstrate how marine insurance helps traders save money while protecting their businesses, Makhanu said. He noted that proactive insurance coverage through Liberty costs approximately 0.4% of the cargo value, offering a significantly cheaper alternative to the penalties triggered by delays.

Uganda’s trade relies on the regional corridors of Mombasa and Dar es Salaam, where logistics hurdles often pressure the margins of local businesses. UCCA Chairman Kenneth Ayebare said the partnership is a response to a general lack of awareness regarding the costs of delayed coverage.

Marine insurance should be treated as a fundamental part of the importation process rather than a last-minute compliance requirement, Ayebare said.

Steven Kaddu of the Insurance Regulatory Authority of Uganda described marine insurance as a critical tool for safeguarding the national import-export ecosystem. He noted that while digital portals have been introduced to streamline the process, stakeholder engagement remains vital to improving compliance and market confidence.

To further ease the movement of goods, Geoffrey Okaka of the Uganda Revenue Authority said the tax body has implemented short-term port interventions and a transparent tracking system. These reforms allow importers to monitor their cargo throughout the value chain, reducing the likelihood of unexpected delays.

The new partnership between UCCA and Liberty Insurance is expected to promote early insurance adoption and strengthen the competitiveness of Ugandan traders in the regional market.