President Yoweri Museveni has reinforced Uganda’s ban on the export of unprocessed raw materials, aiming to promote local value addition and industrial growth. This directive, announced on April 7, 2025, via State House’s official X (formerly Twitter) account under the title “No to Economic Haemorrhage!”, targets a range of sectors including agriculture, forestry, and mining.
Key Points of the Ban:
• Agricultural Products: The ban encompasses unprocessed agricultural exports such as bananas, beans, maize, rice, cassava, tea, coffee, fruits, vegetables, meat, dairy, and fish.
• Timber: Museveni reiterated the prohibition on exporting unprocessed timber, urging local industries to convert timber into finished products like furniture for export.
• Minerals: The government has maintained a longstanding ban on the export of unprocessed minerals, including iron ore, to encourage domestic processing and value addition.
Government Support Measures:
To facilitate this transition, the government is offering incentives such as tax exemptions on imported raw materials not produced locally and reduced taxes on intermediate goods used in manufacturing. Additionally, the Ministry of Energy and Mineral Development has been directed to withhold export permits for raw minerals, granting them only to entities that process these resources domestically.
Implications:
This policy shift is poised to transform Uganda’s economic landscape by fostering industrialization, creating employment opportunities, and enhancing the value of exports. However, it also presents challenges for exporters accustomed to trading raw materials, necessitating adjustments in operations and supply chains.
For a visual overview of President Museveni’s stance on this policy, you can watch the following video:
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