Masaka Elders’ Cooperative on the Brink After Shs170m Goes Missing

Masaka Elders Cooperative Saving and Credit Society has been warned it could wind up if the management and financial woes that has dogged it since 2015 is not resolved.

At stake is members’ savings worth Shs170 million that cannot be accounted for, according to audit reports, leaving a section of members demanding for the heads of the current leadership accused of mismanagement and lack of transparency in running the affairs of the cooperative.

The fight between members of Masaka Elders Cooperative Saving and Credit Society and their leaders climaxed last week with the involvement of police.

A meeting called by angry members to decide the fate of the cooperative leadership was thwarted by Board chair Margret Ntambaazi Nabaggala, who wrote to the registrar of cooperatives to gain a directive for the Masaka District Police Commander to block the meeting.

Trouble for the cooperative begun in 2015 when two separate audits found that the cooperative accounts were being mismanaged and millions of shillings could not be accounted for.

Audits carried out by Masaka District Local Government and Bwanika Certified Accountants found that members’ savings, worth Shs170 million, could not be accounted for.

The then manager, Eric Kizza, was sacked following the audits. He was, however, not prosecuted for the loss of funds.

Andrew Mawanda replaced Kizza but efforts to recover the lost monies remained futile. Mawanda is currently on suspension by the board over allegations of financial mismanagement.

Swaibu Makumbi, a delegate from Masaka Municipality to SACCO’s AGM, said the have failed to recover from the shock and are afraid that their savings could “disappear due to gross financial mismanagement and dishonesty that have been inherent of their managers.”

“The society has for quite some time been trapped in internal misunderstandings and intrigue, to the extent of failing to convene meetings to assess its performance. This has seen leaders spend money without approved budgets,” he said.

According to the delegates interviewed by theCooperator, the SACCO has not had a meeting to discuss and settle the ongoing conflicts by the board members.

Rosemary Nantumbwe, a delegate from Kimaamya Kyabukaza sub county, said the society is facing financial challenges, with members currently struggling to access credit.

She says that as delegates, they are considering disbanding the current board to save the society from collapsing as well as save the little money that could still be available.

Board chairperson Nabaggala admitted she was aware of reports of mismanagement. She, however, added that there is an ongoing audit whose report will guide their next course of action as the Board.

“We will take action on any person held liable of any mistakes, and it was actually those investigations that forced the manager to step aside so as not to jeopardize the inquiry,” she said.

Masaka Elders’ Cooperative Society was established in 2006 to primarily attend to the emerging financial needs of the elderly persons in the eight districts of greater Masaka sub region, but it also later brought on board other people.

Each sub county sends two delegates to form the AGM.

Deo Mulindwa, one of the founders, said their monthly savings ranges between Shs2,000 and Shs5,000, with their shares going for Shs10,000 each.

Records indicate that the cooperative currently has a membership of 3,047 people.

The society has been providing credit to farmers who deal in coffee, piggery and poultry at interest rate of 17 percent. It also offers credit to business community at 20 percent interest rate.

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Masaka Elders’ Cooperative on the Brink After Shs170m Goes Missing

Masaka Elders Cooperative Saving and Credit Society has been warned it could wind up if the management and financial woes that has dogged it since 2015 is not resolved.

At stake is members’ savings worth Shs170 million that cannot be accounted for, according to audit reports, leaving a section of members demanding for the heads of the current leadership accused of mismanagement and lack of transparency in running the affairs of the cooperative.

The fight between members of Masaka Elders Cooperative Saving and Credit Society and their leaders climaxed last week with the involvement of police.

A meeting called by angry members to decide the fate of the cooperative leadership was thwarted by Board chair Margret Ntambaazi Nabaggala, who wrote to the registrar of cooperatives to gain a directive for the Masaka District Police Commander to block the meeting.

Trouble for the cooperative begun in 2015 when two separate audits found that the cooperative accounts were being mismanaged and millions of shillings could not be accounted for.

Audits carried out by Masaka District Local Government and Bwanika Certified Accountants found that members’ savings, worth Shs170 million, could not be accounted for.

The then manager, Eric Kizza, was sacked following the audits. He was, however, not prosecuted for the loss of funds.

Andrew Mawanda replaced Kizza but efforts to recover the lost monies remained futile. Mawanda is currently on suspension by the board over allegations of financial mismanagement.

Swaibu Makumbi, a delegate from Masaka Municipality to SACCO’s AGM, said the have failed to recover from the shock and are afraid that their savings could “disappear due to gross financial mismanagement and dishonesty that have been inherent of their managers.”

“The society has for quite some time been trapped in internal misunderstandings and intrigue, to the extent of failing to convene meetings to assess its performance. This has seen leaders spend money without approved budgets,” he said.

According to the delegates interviewed by theCooperator, the SACCO has not had a meeting to discuss and settle the ongoing conflicts by the board members.

Rosemary Nantumbwe, a delegate from Kimaamya Kyabukaza sub county, said the society is facing financial challenges, with members currently struggling to access credit.

She says that as delegates, they are considering disbanding the current board to save the society from collapsing as well as save the little money that could still be available.

Board chairperson Nabaggala admitted she was aware of reports of mismanagement. She, however, added that there is an ongoing audit whose report will guide their next course of action as the Board.

“We will take action on any person held liable of any mistakes, and it was actually those investigations that forced the manager to step aside so as not to jeopardize the inquiry,” she said.

Masaka Elders’ Cooperative Society was established in 2006 to primarily attend to the emerging financial needs of the elderly persons in the eight districts of greater Masaka sub region, but it also later brought on board other people.

Each sub county sends two delegates to form the AGM.

Deo Mulindwa, one of the founders, said their monthly savings ranges between Shs2,000 and Shs5,000, with their shares going for Shs10,000 each.

Records indicate that the cooperative currently has a membership of 3,047 people.

The society has been providing credit to farmers who deal in coffee, piggery and poultry at interest rate of 17 percent. It also offers credit to business community at 20 percent interest rate.

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Prioritize Agricultural Research – NARO

Kampala, Uganda: Researchers and agricultural scientists have called for increased investment in agricultural research, noting that it holds the key to unlocking Uganda’s agricultural potential.

Speaking at a policy dialogue jointly organized by the National Agricultural Research Organization (NARO) and The Uganda We Want Policy think tank at NARO’s crop and livestock research center in Namulonge on Friday, Dr. Yona Baguma, NARO’s Deputy Director-General for Research argued that research offers Uganda the surest way to transition its Agriculture sector from subsistence to modern commercial farming. “We should be able to influence policy from an evidence-based position,” he said.

Baguma also called for a coordinated multi-sectoral approach to agricultural transformation, noting that structural investment along the entire agricultural value chain is critical to linking production to markets.

Echoing Dr. Baguma, Economist Fred Muhumuza argued that the transformation of the agriculture sector must be deliberate. “Subsistence farming economically speaking, is a viable way of surviving in harsh conditions. Most people are locked in there (subsistence farming) as a self-preservation strategy. To begin the transformation, you must give these guys assurance. You must play a deliberate strategy to invest in these people so they can get out of subsistence farming.”

At least 80% of Uganda’s labor force remains employed in agriculture, with 69% still trapped in subsistence farming, according to the latest figures from the Uganda National Bureau Of Standards. Some of the issues that continue to affect productivity include poor seed varieties, unpredictable weather patterns, pests and diseases, and lack of valuable research information.

Muhumuza says that NARO has been influential in changing the sector’s fortunes and that it’s capable of doing more if supported. “We did a survey and found out that research from NARO has contributed between 25-40% of total economic development of Uganda,” he said. He, however, noted that there’s still a big challenge in communication between NARO and farmers, with few farmers able to access new improved and drought-resistant varieties and other extension services.

Vision Group CEO and proprietor of Rugyeyo farm Robert Kabushenga advised fellow farmers and cooperatives dealing in agriculture to consult and spend time with Scientists before doing any investments, arguing that it would save them a lot of regrets. “I made my mistakes. But if anyone wants to go into farming, please talk to the Scientists. They will save you from mistakes. I may be able to take the pain of loss, but other people may not,” he counseled.

Dr. Baguma assured participants that NARO is committed to carrying out its research mandate to support farmers and promote food security through innovation, but rued what he called insufficient financing from the government.

He revealed that NARO received Shs.79.6 billion from the government for the financial year 2019/2020, way short of the Shs.300 billion they had requested for, to be able to operate at optimal level.

“For research to serve the current and future generation, there is a need for sustainable research capacity in terms of highly skilled people, competitive and highly equipped facilities, sustainable and adequate funding and land. Because agricultural research is made on land,” he said.

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Moses Ali summons West Nile leaders over Walimu SACCO funds

1st Deputy Prime Minister and Deputy Leader of Government Business in Parliament Moses Ali has invited Local Government leaders from West Nile over the Shs.399.850,000 received by teachers’ SACCOs hailing from the sub-region.

In a letter dated 30th July 2019 and addressed to the LCV Chairpersons of Koboko, Adjumani, Arua, Maracha, Yumbe, Nebbi, Moyo, Zombo, Pakwach, Obongi and Madi Okollo which theCooperator has seen, Gen(rtd) Moses Ali noted that “it was deemed prudent that a meeting of all stakeholders be convened” to among others; sensitize them about the Teachers’ SACCO funds, ensure that all leaders in West Nile benefit from the funds and carry out capacity building for leaders and members of SACCOs about best SACCO management practices.

The invitation letter, which was copied to all the sub-region’s Resident District Commissioners, Chief Administrative Officers, District Commercial and Education Officers, Town Clerks, Chairpersons of SACCOs and SACCO board members, also noted that the meeting would seek to determine a savings and loan recovery model that shall be convenient for all SACCOs in the sub-region.

The Chairperson of Walimu SACCOs Union has also been invited to attend.

The funds are part of the shs.25billion committed by the Government of Uganda in 2010 to Walimu SACCO – the umbrella Union of all teachers’ SACCOs in the country. The commitment by President Museveni followed incessant demands by teachers for a salary increment and was intended to create a central fund from which all teachers across the country could borrow at affordable interest rates.

The money was supposed to be released in installments of shs.5billion every year, starting with the 2011/2012 financial year. So far, Shs.17.085 billion has been released, with the last installment of Shs.1.3billion released last month.

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CID Questions Coop Boss Ivan Asiimwe, Two Others over Forgery, Fraud

Kampala, Uganda: Following the interrogation of Uganda Cooperative Alliance General Secretary, Ivan Asiimwe, last Friday on suspicion of forgery, police today questioned two more senior officials of the Union on the same matter.

The officers are Rosanne Muhumuza, the human resource manager and Sam Odeke, the finance manager.

The two were interrogated by police detectives based at the Uganda National Roads Authority’s Investigations and Compliance Department over allegations of forgery, abuse of office, and causing financial loss at the cooperatives umbrella body.

First to be interrogated was the Human Resource Manager, Rosanne Muhumuza, who arrived at UNRA’s head office in Nakawa at 10.26am. The interrogation lasted three and half hours. Finance Manager, Sam Odeke arrived for questioning at 2pm, and was questioned for three hours.

Last week, police interrogated Uganda Cooperative Alliance (UCA) General Secretary Ivan Asiimwe, over suspected use of forged board minutes to access UCA’s residual land tittles previously held by Uganda National Roads Authority (UNRA).

No charges have been preferred against the officials.

Chelimo Beata, CID head of Compliance and Investigations department at UNRA told theCooperator that investigations were progressing on schedule: “We are yet to get to the bottom of the matter, but so far all those summoned have appeared and my team is handling the interrogation,” said Chelimo at her office in Nakawa.

When asked about the investigation’s findings so far, she was reluctant to reveal details, but said concrete findings would be ready by Tuesday next week.

The investigations follow a number of complaints by UCA senior management staff to the union’s board and the Ministry of Cooperatives.

In a 16-page petition to the UCA board, the staff accuse UCA’s leadership and Ivan Asiimwe in particular of abuse of office, financial mismanagement and disrespecting and maltreatment of staff members.

“We would like the board to interest itself in how project funds are utilized in UCA because on several occasions, partners have expressed dissatisfaction over the utilization of funds in the organization,” the petition reads.

The staff want Asiimwe to step aside as investigations continue.

Ends

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Microfinance Regulator Boss Warns Money Lenders Against Violating Client’s Privacy

The newly appointed Executive Director of Uganda Microfinance Regulatory Authority has warned money lenders against demanding for national identity cards, bank ATM and passport as security for loans.

Edith Namugga Tusuubira says demanding for such documents amounts to a violation of principles of consumer protection and infringes on the privacy of customers.

Her warning is based on the 2016 Tier 4 Microfinance Institution and Money Lenders Act which, prohibits the use of bank ATMs, warrant books, passports and national identity cards as collateral.

‘For instance, we are no longer accepting lending using security as someone’s national ID, which has been the practice. We no longer accept security in form of someone’s passport because it is intended for identification,’ Tusuubira said.

‘We, also, no longer allow organisations to take people’s ATM cards. Those are some of the practices that UMRA is trying to curb. We also believe that if you operated under UMRA standards, there will be improved trust between the two parties that are transacting under the Tier 4 law,” Tusuubire added.

Tusuubire revealed that the Authority plans to carry out nationwide sensitization programs to create public awareness of the regulatory requirements for money lending, starting this financial year.

The law safeguards people seeking financial services from money lenders. It spells out stringent measures for persons trading as money lenders, who are required to register as corporate entities before transacting business.

The Uganda Microfinance Regulator Authority is charged with licensing and supervising money lenders.

Edith Tusuubira ascent to the helm of the authority in May, 2019 after the Board approved her to replace Elly Avu Biliku, who was the acting Executive Director since 2017 when the authority was established.

In an interview with theCooperator, she promised to tighten her grip on all the Tier 4 Microfinance Institutions and money lenders. Tier 4 microfinance institutions include Saccos, non-deposit taking microfinance institutions, self-help groups and community based microfinance institutions.

‘Historically, we have had many people borrowing and lending money informally and, sometimes, at a point of disagreement; it is not very easy for you to tell who is doing the wrong and the right thing,” said Tusuubira.

As such, Ugandans are encouraged to embrace the Tier 4 Microfinance Institutions and Money Lenders Act by obtaining licenses from UMRA that will allow them carry out business legally.

‘I picture a well-regulated microfinance sector with information that is reliable and dependable, a fully regulated financial system whereby transactions are covered, with UMRA under Tier 4 Microfinance and Money Lenders Act,’ says Tusuubira.

Tusuubira envisions curtailing fraud, with a system that identifies clients with a unique identification code and where the various financial systems communicate with each other and track transactions of any kind.

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Kabaka’s Call Shows Buganda Kingdom Cooperative Ideology Unfaltering

The unfaltering effort of the Buganda Kingdom to push for cooperatives as the engine for development of the country came to fore yet again yesterday when Kabaka Ronald Mwenda Mutebi II asked government to restore cooperatives.

Speaking at his 26th coronation anniversary at Nkumba University playground, the Kabaka narrated that the inception of cooperatives in Singo and Buddu county in Masaka in 1913 propelled coffee and cotton farmers into prosperity when they started saving with cooperative societies.

He called on his subjects to return to organising themselves into cooperatives instead of waiting for government to invest on their behalf.

The history of the Kingdom’s economic power and that of cooperatives in Uganda is closely intertwine. It was in Mubende that the first cooperative, Kinakulya, was formed by Baganda farmers who had been exploited enough by the British colonial masters assisted by the shrewd Indian community. They wanted to add value and trade their own cotton without the cartels created by the imposters of the time.

In 1923, the colonial administrators threatened to uproot coffee trees of a one Yisaga Yaliakumanyi, a Muganda farmer from Masaka in Buddu county, arguing that the trees would harm the cotton plants. Cotton was a commodity that the colonialist had preferred for the farmers then.

In response, three Baganda farmers, Paulo Balituma, Jemusi Biriko and Zakayo Mutetika, held a meeting to address the problems the farmers who were forcefully being taken off their own Shambas for community compulsory projects. It is at this meeting that the Baganda Growers Association was formed to represent the views of the framers to the Kabaka for intervention.

Ssekabaka Daudi Chwa II, grandfather of Kabaka Ronald Mutebi II, was very pleased with the formation of the association. He gave it his blessings. Kabaka Chwa II then spread word encouraging the formation of cooperative associations, which were then federated at Saza (county) level to perform coordination and advisory roles to famers.

Going forward, Uganda’s economy progressed largely because the Kingdom had conspicuous cooperative societies commanding the cotton and coffee markets.

Prior to Uganda’s independence, Ignatius K Musazi, along with members of the Uganda African Farmers’ Union, had approached Ssekabaka Mutesa II and prayed for the king to support the farmers in their cooperatives to gin their own cotton and also sell their produce wherever they wished. These pressures yielded such that in 1949, the Buganda government acquired Ngogwe Ginnery and leased it to Uganda Growers Cooperative Union.

Buganda Kingdom would continue to bask in meadow of several successful cooperatives like West Mengo, East Mengo, Wamala, Masaka unions under which belonged thousands of primary cooperative societies. Later, these cooperatives played an instrumental role in the success of the NRA rebellion whose battlefield was in Luwero Triangle, home for many of these cooperatives.

At the 26th Coronation of Kabaka Mutebi II, it was natural that the King would reminisce the golden days of Buganda’s economy, he did not forget the anchor or the success and strength that was—cooperatives. The king was unrelenting in carrying on the kingdom’s long tested strategy of having its members working and collectively confronting socio-economic challenges through cooperatives.

In recent times, the Kingdom’s Ministry of Trade, Industry and Cooperatives has taken up the revitalisation of cooperatives with promising results in the aspects of agroforestry, coffee farming, among others.

Times have changed but the challenge remains the same. Will the government heed the call from the Kabaka and move to revive cooperatives? Or can farmers pick inspiration from this history and go it themselves once again?

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Registration of coffee farmers is a duplication – Cooperators

Coffee cooperatives have rejected the proposed move by the Government to have the Uganda Coffee Development Authority(UCDA) register all coffee farmers, saying the move is a duplication of already existing regulations governing the coffee sector.

Clause 26 of the recently mooted National Coffee bill 2018 currently before Parliament provides that the UCDA “shall register all coffee farmers” in Uganda, with the bill defining a coffee farmer as “a person who grows coffee for commercial purposes.”

The Bill has however attracted a chorus of opposition from sections of the public who have accused the government of attempting to disproportionately control the coffee trade.

In particular, actors in the coffee sector have picked issue with clause 28 of the Bill, which empowers UCDA to de-register a farmer if the authority is convinced that he or she has not complied with the terms and conditions of their registration as a coffee farmer.

Coffee cooperatives in particular have criticized the move to register coffee farmers as an unnecessary duplication of the work they’re already doing. David Lukwata, the General Manager of Kibinge Coffee Farmers’ Cooperative told theCooperator that instead of re-registering farmers, UCDA should liaise with cooperatives and get data about coffee farmers from them.

“We have updated systems of information on coffee farmers and we are much willing to offer this information to UCDA if they want the data of coffee farmers to extend different services. We are not against any good move by the government to help coffee farmers, but we do not think the inconvenience of re-registration is warranted,” Lukwata says.

Lukwata also criticized the Bill’s provision that UCDA establish a coffee auction system to act as “an alternative to the day-today selling of coffee.” Although Agriculture Minister Vincent Ssempijja has defended the provision under clause 52 of the bill as intended to offer farmers more market options, Lukwata argues that the move adds another layer of bureaucracy that will inconvenience farmers who opt for that option.

“We have been working with UCDA after buying coffee from farmers and they do the assessing before we export so we do not appreciate the necessity of the auctioning system as suggested in the bill,” Mr Lukwata adds.

He also expressed concern at several other provisions of the Bill, particularly clause 54 which prescribes punishments as long as five years in prison and fines as much as Shs.800,000 for a wide spectrum of defaults from neglecting a coffee farm to exporting coffee without a license.

“Farmers need to be properly sensitized about what for example constitutes an appropriate storage facility, or what proper post-harvest handling of coffee entails, before being sanctioned,” he says.

Under the proposed law, anybody who sets up a store or warehouse that does not meet the requirements for storing coffee and anybody who dries coffee on bare ground risk imprisonment of up to two years and 5years respectively or a fine of up to Shs.800,000 and Shs. 240,000 respectively or both.

Proponents of the Bill led by Mr. Ssempijja insist that the law is intended to strengthen quality controls and streamline the activities along the entire coffee value chain including on-farm activities, as a way of improving the quality of our coffee to command a bigger share of the international market.

Uganda remains Africa’s second-largest producer of coffee after Ethiopia, and last year, according to figures from UCDA, the country exported 4.5million bags of coffee worth $492million and targets to export 20million bags of coffee by 2025.

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Police investigate Uganda Cooperative Alliance Boss over forgery, abuse of office

Kampala, Uganda: The Uganda Cooperative Alliance’s (UCA) general secretary, Ivan Asiimwe, has been placed under investigation for alleged abuse of office including forgery and uttering of false documents.

Asiimwe, who is the topmost official in the umbrella body of cooperative is alleged to have used forged board resolutions to access the organization’s land titles deposited with Uganda National Roads Authority (UNRA).

“Investigations and Compliance Department at Uganda National Roads Authority is investigating a case of suspected forgery of Board minutes and powers of attorney,” police criminal investigations department said in a July 23 letter addressed to UCA board.

The forged documents, police say, were submitted in support of a request to UNRA to release residue certificates of title for the Uganda Cooperative Alliance Limited to Asiimwe.

He is expected to report for interrogation at the Investigations and Compliance Department at UNRA Headquarters in Nakawa tomorrow.

The Criminal investigations officer attached to UNRA, Beata Chelimo, confirmed to theCooperator, that her office has instituted an investigation against Asiimwe.

“Yes, it is true we received a complaint and I am investigating the allegations. I wrote to the Board Chair to ask Asiimwe to report here on Friday so we can listen to what he has to say about the allegations [levelled against him],” said Chelimo.

She, however, declined to disclose who had asked her office to investigate the matter.

UCA Board chair Johnas Tweyambe confirmed receipt of the summons for Asiimwe.

“I handed over the letter to our General Secretary and he is preparing documents needed for him to respond to the charges. He has to be present as required,” Tweyambe said.

The investigations follow a number of complaints from employees of the Alliance to the Board and the Ministry of Cooperatives.

In their petition to the Board, the staff point that Asiimwe has abused his office by forging board minutes and arbitrarily recruiting new staff as well as ignoring procurement procedures.

“The GS (General Secretary) has used his office to his personal and selfish interests that pose a high risk to the resources, image, and integrity of the board and UCA in totality,” says a staff’s petition to the Board.

It is alleged he used the suspect board resolutions to acquire a loan from Housing Finance Bank. “The said purported Board Resolution was recently used to acquire a loan of Shs200 million from Housing Finance Bank Ltd. Unfortunately, should any UCA member choose to query this transaction, the board will be 100% liable as per UCA by-laws,” the complaint reads.

He is accused of irregularly including his domestic worker as a staff of UCA and awarding him medical benefits.

In the 16-page petition to the UCA Board, the staff noted that they were deeply concerned about abuse of the organization’s finances.

“We would like the board to interest itself in how project funds are utilized in UCA because on several occasions, partners have expressed dissatisfaction over how funds are utilized in the organization,” the petition says.

The employees also want the Board to investigate the performance of a loan facility for UCA Naguru Apartments, alleging that the funds meant to repay the loan was not remitted as was instructed by the board.

The staff now want Asiimwe suspended – if not dismissed altogether — to pave way for investigations.

“We recommend that for purposes of saving the image of the organization, entire cooperative movement and board, the GS should be suspended immediately to pave way for further investigation if the committee finds no justification for summary dismissal. We pray that this is done with the urgency it deserves to avoid further damage.”

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Katuna women traders appeal to the EAC over Uganda-Rwanda border standoff

KAMPALA, Uganda: Women business cooperators along the Uganda- Rwanda border have called upon the East African Community to intervene in the Uganda-Rwanda diplomatic stalemate with a view of re-opening Uganda’s common border with Rwanda at Katuna.

M/s Miria Akankwasa, the chairperson of Katuna Women Cross-border Multipurpose Traders Cooperative says that as a result of the continued closure of the border, women business communities along the border were choking on loans and were susceptible to defaulting, thanks to lost cross-border business.

“As Cross border women traders, we are really suffering. We have lost a lot of money since the border closed, women are shifting from homes because of microfinance loans. The loan guys are hunting for the women traders, our children are not schooling because some used to study across Rwanda,” she said. Akankwasa. She noted that because Rwandans are restricted from coming to Uganda, Ugandans along the border also do not free to travel to Rwanda

Akankwasa was speaking at a public dialogue to mark 20 years of East African Community (EAC) held at Hotel Africana in Kampala on Thursday last week. The dialogue was jointly organized by SEATINI- Uganda, the Eastern Africa Sub-Region Support Initiative(EASSI) and Centre for Social Justice in Food and Health (CEFROHT).

Speaking at the same event, the SEATINI Country Director M/s Jane Nalunga urged East Africans to put pressure on their leaders to implement regional and international commitments: “When you sign the treaties, it is imperative that you respect them by implementing them. Let’s embrace the EAC integration with joy. These are the successes that we want to reflect on as we celebrate today, and 20 more years to come,” she said.

Under the EAC Common Market Protocol that came into effect in January 2010, all EAC member states are supposed to allow free movement of people and goods from member states across their borders as a way of increasing intra-EAC trade and promote regional integration. Rwanda’s unilateral closure of its main border with Uganda in late February this year has however seen a significant reduction in trade volumes between the two countries, and Rwandan citizens have been barred by their government from traveling to Uganda.

The EAC treaty was established on 30th November 1999 and came into force in July 2000. From the founding 3 member states of Kenya, Uganda, and Tanzania, the block has grown to presently six members, admitting Rwanda, Burundi and most recently South Sudan along the way. Recently, Somalia and the Democratic Republic of Congo have also applied to join.

The Permanent Secretary Ministry of East African Community Affairs. M/s Edith Mwanje said she was optimistic about the EAC’s prospects, noting there has been significant progress on the Customs Union front: “The implementation of the elimination of non-tariff barriers has helped increase trade volumes between member-states” she said.

Challenges

Mwanje, however, noted that none payment of annual subscription fees by member states is undermining the progress of the Community. She also highlighted competition from other Economic blocs such as the Common Market for East and Southern Africa(COMESA) as another challenge.

These, coupled with on and off bilateral tensions between member-states culminating in non-tarrif barriers has seen intra-EAC trade suffer significant decline in the recent past, with member countries exploring alternative markets. Between 2013 and 2017 for example, intra-EAC trade fell from $3.5billion to $2.4billion, and analysts argue that the recent bilateral tensions between Uganda and Rwanda mean it(trade) won’t be recovering soon.

Already, the standoff has already significantly hurt Uganda’s exports to Rwanda, with figures from URA and Bank of Uganda noting that Uganda earned just $34.12million in the first quarter of 2019, the lowest quarterly earnings from Rwanda in 9 years!

Hon. Fred Mukasa Mbidde, Uganda’s representative to the East African Legislative Assembly Member(EALA) called upon leaders to always listen to citizens’ concerns about the community, arguing that its them (the citizens) that the Community is meant to serve: “Traders, when you tell your leaders what they are supposed to do, that is not politics. It’s your right.” He said.

He argued that what brought the first EAC crumbling in the 70s was political differences between leaders of member-states, which are emerging even today: “People don’t just close borders. Rwanda is complaining that its citizens are jailed in Uganda without trial. These are people issues – allegations that have to be verified by a joint verification committee,” said Mbidde.

M/s Sheila Kawamara Mishambi, a former Member of EALA and the Executive Director EASSI expressed disappointment with what she called the reluctance of EAC leaders to resolve the Uganda-Rwanda stalemate, arguing that it was affecting hundreds of ordinary lives:

“The people at the borders are East Africans. They feel the pinch and when borders are closed, they suffer most,” she said. “You are bringing on board DRC with all their own problems to be added to South Sudan at a time when we’re failing to resolve old misunderstandings between Rwanda and Uganda. How do you expect to handle all these problems,” she asked.

Ambassador Nathan Irumba, Executive Director SEATINI called upon member countries to obey the Community’s laws, noting that only then can the Community move towards full integration: “The challenges facing EAC stem from failure to obey the laws. Leaders forget that after ratifying the protocols, they are supposed to implement them to the dot,” he said.

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