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Improving the Border Agency Cooperation

Among the OIC Member States for Facilitating Trade

79

4.2.

Case Uganda

Highlights:

Recently-established One-Stop Border Post (OSBP) at the Uganda-Kenya border makes

cross-border trade and travel faster, more reliable and cost-effective.

Uganda and countries of the East African Community (EAC) have reduced the complexity

of cross-border trade and logistics by harmonising regulations concerning food and

agricultural products, simplifying certificates of origin and by establishing a trade

helpdesk.

The World Customs Organisation supports Uganda and other EAC countries in launching a

regional Authorised Economic Operator Program (AEO)

4.2.1.

Setting the scene for iBAC in Uganda

Economic and trade overview

In the past decades the Ugandan economy has experienced a positive development. While the

global economic downturn of 2008 hit the economy through exports, it is among one of the

strongest in Africa. The GDP is currently 24.7 BUSD (2015, official exchange rate). The growth

rate has remained at 4-5 % during the past three years. The GDP per capita remains at a

relatively low level of 2,000 USD per capita. However, the level is similar to other non-oil

producing countries in the OIC African region.

The economic outlook for Uganda looks promising due to its relative stability, a number of

positive developments and investments, and due to the fact that the country has been able to

sustain GDP per capita growth despite the population growth rate (3,2 % in 2015), which is

one of the highest in the world. As a consequence, the median age of the Ugandan population is

only 15.6 years, which makes the population the second youngest in the world. In fact, the

Ugandan population is expected to exceed 100 million by 2050, which would make it more

populous than e.g. Turkey, Japan or any Western European country.

Such a tremendous growth calls for massive investments in the infrastructure and

developments in the economy. A lot of promise comes from the recent discovery of oil and

natural gas, which currently remain unutilized. The country is rich in other natural resources

too, such as copper and gold, but particularly its fertile soil, regular waterfall and abundant

water resources provide excellent conditions for agriculture.

Overview of the regional trade facilitation agenda

The Customs Management Act of the East African Community (EAC) Customs Union sets the

basis for customs operations in Uganda. The East African Community comprises Uganda,

Kenya, Tanzania, Rwanda, Burundi and South Sudan (since April 2016). The Customs

Management Act provides the baseline for cooperation of the respective authorities in customs

matters – including trade facilitation issues, standards, plant and animal health, human health,

statistics and security – in the six member countries.

Over the past two years, customs administrations of Rwanda, Uganda and Kenya have

successfully strengthened their collaboration, especially regarding cross-border movement of