Rwanda private sector weak—Kategaya

Uganda’s first deputy Prime Minister Eriya Kategaya has blamed Rwanda’s private sector for being weak.

Tuesday, October 09, 2007
Ugandau2019s first deputy Prime Minister Eriya Kategaya (left). He was welcomed in the country by Rosemary Museminari, the State minister for Regional Cooperation (centre) and Charles Murigande, the Foreign Affairs and Cooperation minister. (Photo/ G. Barya)

Uganda’s first deputy Prime Minister Eriya Kategaya has blamed Rwanda’s private sector for being weak.

The traders’ umbrella body has reportedly failed to pressurise central governments to break bureaucracy slowing down businesses in the East Africa region.

Emmanuel Hategeka, the Secretary General Rwanda’s Private Sector Federation had early said because of bureaucracy, imported goods spend 95 days from Mombasa Port to Kigali while exports spend 60 days to reach the port.

Kategaya who is also Uganda’s minister in charge of the East African Community could not believe the delays. And, wondered why the private sector is not lobbying governments to break the trade barriers.

"I didn’t know that it was like that. But how can you run business with such a delays, especially if you are using debt financing?”

He is among several people who think the East African member state should strive to break non-tariff barriers, if the region is to become more competitive in doing business. It is believed bureaucratic procedures are putting private business in the region at stake.

Kategaya was among the members of the East African Council of ministers who paid a courtesy call on the Rwanda private sector in Kigali recently.

He told the meeting that the East African states are also coming up with an agreement on free mobility of capital and other factors of production.

If passed, one can invest capital in one of the East African countries and then transfer the money to his respective country.

Already cross border listed companies like East African Breweries Limited, Kenya Airways and Jubilee Holdings are benefiting from this arrangement. Free movement of labour and capital will be discussed during the negotiations on the common market.

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