TradeMark channels $2.5m to private sector..
In Summary
Trademark East Africa has launched six grants worth $2.5 million to fund the private sector.
TMEA business competitiveness senior director Lisa Karanja said there are more grants in the offing for the private sector to boost production.
Trademark East Africa has launched six grants worth $2.5 million to fund the private sector.
In the past, TMEA focused mostly on funding government reforms, but now, deserving players in the private sector will also receive money to invest in storage infrastructure, provision of extension services to farmers, co-operatives, standardisation of products and linking producers with markets.
For instance, in Uganda’s Gulu area, where there is mass production of sesame, cassava and maize, a logistics hub with warehouses will be constructed, while the Jinja-Kisumu Corridor will also benefit from a logistics hub to develop transport interconnection of the ferry, railway and road transport services.
TMEA will also facilitate the establishment of infrastructure to support fishing in Lake Victoria.
These efforts are meant to improve the private sector’s capacity to utilise TMEA’s investment in infrastructure development over the past six years during which the organisation gave governments in East Africa $340 million to remove trade barriers.
Cost of doing business
Allen Asiimwe, TMEA country manager for Uganda, said that through the investments, EAC partner states have managed to reduce the cost of doing business, however there are concerns over the high cost of consumer goods.
According to Ms Asiimwe, TMEA’s interventions have reduced the cost of transporting a fuel container from Mombasa to Kampala from $4,000 to $1,750, but this has not resulted in lower pump prices.
“Fuel traders blame the depreciating shilling and inflation for the failure to reduce price,” said Ms Asiimwe.
TMEA business competitiveness senior director Lisa Karanja said there are more grants in the offing for the private sector to boost production.
Private Sector Foundation of Uganda executive director Gideon Badagawa noted that for Uganda to increase exports, players in different sectors must improve their productivity.
“Competitiveness is about the volumes you bring. That is why South African eggs, tomatoes and oranges are beating Ugandan and other regional produce out of the market,” said Mr Badagawa.
Equally, China exports tilapia to East Africa that sells at lower prices than the locally sourced fish.