East Africa SMEs grappling with high cost of doing business
East Africa Community (EAC) Small and Medium enterprises (SMEs), engaged in Agribusiness are reported to be grappling with a high cost of doing cross border business.
This was disclosed on Tuesday, during a stakeholders meeting bringing together Agro processing SMEs and officials from Ministry of East African Community, Members of Parliament and Civil Society Organisations, at Kampala Golf Course Hotel.
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Leo Kizito Ojara, Commissioner Economic Affairs, at the East African Community Affairs Ministry, pointed out that climate change, inadequate Infrastructure, lack of access to investment finance and the non-harmonizing of tax regimes across the EAC member countries are major bottlenecks facing cross border SMEs Agro processing traders.
He said EAC member states are obliged to build capacity of market support institutions and promote good governance, to reduce on the cost of doing business.
“Access, availability and quality of basic infrastructure such as; electricity and internet services are vital to facilitate investment trade”, he said.
Southern and Eastern African Trade Information and Negotiations Institute (SEATINI Uganda) country director, Jane Nalunga, called upon Government to put in place policies to support SMEs engaged in Agro Processing, to boost local industries.
She said China and Japan have developed tremendously because of Government support to cottage industries.
“We need to support our private sector to compete with foreign markets, by signing agreements to support our own SMEs”, she said.
Agnes Ameede, Member of Parliament and Vice Chairperson for EAC Committee laboured to highlight challenges faced by SMEs to include; climate change, that affects rural farmers, where heavy rains cause floods that destroy crops, especially in the Eastern and Northern part of the country, resulting in creation of poverty to communities.
She called on civil society and other stakeholders to support parliament protect Ugandan SMEs from being swallowed up by unfair competition from foreign investors.
“Parliamentary voice ends at legislating laws. Your contribution for a positive change in government policies on SMEs is highly needed”, she said.
