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{UAH} Is the proposed ban on used clothes and shoes good for Uganda.

Is the proposed ban on used clothes and shoes good for Uganda.

By:  Moses Wilson

In 2012, the US exported approximately $100 million worth of good to Uganda and imported approximately $35 million worth of goods – an imbalance of approximately $65 million.

In 2016, the US exported approximately $69 million worth of good to Uganda and imported approximately $52 million worth of good – an imbalance of approximately $17 million.

It is projected that this year the imbalance will be less than $5 million.

So what would happen if AGOA was eliminated for East African countries because of the clothes ban?

On this one, I have to agree with President Kagame.  East Africa has sacrificed the development of its own textile industry over these "cheap" imported used clothes and shoes.  There are those who argue that this ban will only impose a hardship on many local traders. 

It is my belief that the benefits of promoting the growth of Uganda's own textile industry outweighs what I believe will be a temporary hardship on the traders.  After all, Ugandans will still need to dress, just like they will always need to eat.  It may take some time to sort things out, but I think that it is ultimately the best path for our country - even if the US stops the AGOA program.

However, the question is, who will benefit the most from this move – politically connected big shots or local wanainchi?  I think that the opportunities will be there for whoever is prepared to reach out and grab them.

Kagame speaks out on US threat over used clothes ban

 

By: Collins Mwai - June 23, 2017

 

President Paul Kagame has said that Rwanda will proceed with the planned phase-out of importation of second-hand clothes despite the threats that it could lead to a review of eligibility to access duty-free access to the American market.

President Kagame made the remarks yesterday while addressing a news conference moments after submitting his nomination papers to the National Electoral Commission (NEC).

Rwanda, Uganda and Tanzania's eligibility to trade with the US is under review, following the region's move to phase out the importation of used clothes.

The review could see Rwanda and her neighbours lose duty-free access to the American market under the African Growth and Opportunity Act (AGOA).

Kagame, however, said the situation leads Rwanda to make a choice between continued importation of used clothes and developing the local textile industry.

He said that despite the consequences of being locked out of AGOA, Rwanda is keen on developing its local textile industry.

"Rwanda and other countries in the region that are part of AGOA, have to do other things, we have to grow and establish our industries," Kagame said.

"We are put in a situation where we have to choose; you choose to be a recipient of used clothes with a threat hanging or choose to grow our textile industries, which Rwandans deserve at the expense of being part of AGOA.

"This is the choice we find that we have to make. As far as I am concerned, making the choice is simple, we might suffer consequences. Even when confronted with difficult choices, there is always a way," he added.

The President noted that this is not the first time that Rwanda has had to make tough decisions in the interest of citizens.

EAC member countries have moved to phase out the importation of used clothes and shoes across the East African region as part of an industrialisation plan to give rise to the growth of the local textile industry.

As part of the move, Rwanda last year increased taxes on used clothes from $0.2 to $2.5 per kilogramme, while taxes on used shoes will increase from $0.2 to $3 per kilogramme.

Budget focus

In the 2017/18 Budget Estimates, the Government also eased taxes on inputs under the Made-in-Rwanda initiative, which is expected to facilitate the growth of the local textile industry.

President Kagame is one of the African heads of state advocating for improved engagement terms between African countries and Western countries for mutual benefit.

Kagame has said several times that it's time to consider Africa as an equal partner in development as opposed to a beneficiary requiring donations and aid.

As part of the move to make the continent less dependent on external financing, Kagame was last year asked to spearhead the African Union reforms.

He said he will continue playing the role as requested by the African heads of state to support the reforms process.

Kagame is scheduled to present a progress update at a meeting in Addis Ababa, Ethiopia, next month.

The President said that the intention by African leaders to change status quo was a huge step.

"The fact that the leaders of Africa have found it necessary to do things different is a very big step," he said.

Going forward, he said the move by the continent will reduce the impact of external factors on the continent's socio- economic progress.

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