Africa > Uganda

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Mr. Emre Alper
,
Ms. Wenjie Chen
,
Mr. Jemma Dridi
,
Mr. Herve Joly
, and
Mr. Fan Yang
This paper assesses the extent of economic and financial integration among the East African Community (EAC) along a number of dimensions and, where possible, whether integration has increased in the wake of the major regional integration policy milestones.
International Monetary Fund
Like most Sub-Saharan African countries, Kenya’s economic growth appears to have been primarily driven by factor accumulation. The Selected Issues paper and Statistical Appendix for Kenya examines economic developments and policies. During the last two decades, Kenya has been plagued by pervasive problems of internal conflicts, constitutional crises, and corruption scandals. The governance agenda focuses on several reforms, including upgrading the public budget and financial management systems, strengthening the anticorruption institutions, and improving the judicial framework.
International Monetary Fund
This Selected Issues paper for Kenya, Uganda, and United Republic of Tanzania highlights their private sector credit markets, identifies their main obstacles in promoting credit to the private sector, and suggests a reform strategy. If the East African Community (EAC) countries decide to pursue a coordinated approach to investment incentives, one possible solution would be to agree on a Code of Conduct for Investment Incentives and Company Income Taxation. A transparent tax system with a broad base would reduce the demand by investors for tax holidays.
Anna Maria Mayda
and
Mr. Chad Steinberg
South-South trade agreements are proliferating: Developing countries signed 70 new agreements between 1990 and 2003. Yet the impact of these agreements is largely unknown. This paper focuses on the static effects of South-South preferential trade agreements stemming from changes in trade patterns. Specifically, it estimates the impact of the Common Market for Eastern and Southern Africa (COMESA) on Uganda's imports between 1994 and 2003. Detailed import and tariff data at the 6-digit harmonized system level are used for more than 1,000 commodities. Based on a difference-in-difference estimation strategy, the paper finds that-in contrast to evidence from aggregate statistics-COMESA's preferential tariff liberalization has not considerably increased Uganda's trade with member countries, on average across sectors. The effect, however, is heterogeneous across sectors. Finally, the paper finds no evidence of trade-diversion effects.
Mr. Sanjeev Gupta
and
Yongzheng Yang

Abstract

In recent years, African policymakers have increasingly resorted to regional trade arrangements (RTAs) as a substitute for broad-based trade liberalization. This trend has long-term implications for the effectiveness of trade policy as a tool for poverty reduction and growth. This paper examines the record of RTAs in promoting trade and investment. It also explores policy measures that may help improve RTAs' performance.

Mr. Meredith A McIntyre
The paper analyses the potential trade impact of the forthcoming East African Community (EAC) customs union. It examines the trade linkages among the member countries of the EAC and the extent to which the introduction of the EAC common external tariff will liberalize their trade regimes. To gauge the potential trade impact of the formation of the customs union, simulations are conducted for Kenya. The empirical results indicate that the customs union will have a beneficial effect on Kenya's trade. The paper does not draw any conclusions on the potential welfare impact of the customs union. Finally, factors other than enhanced trade might influence Kenyan policymakers to pursue regional integration, and these include regional cooperation in "behind the border" reforms and the provision of public goods.
Yongzheng Yang
and
Mr. Sanjeev Gupta
Regional trade arrangements (RTAs) in Africa have been ineffective in promoting trade and foreign direct investment. Relatively high external trade barriers and low resource complementarity between member countries limit both intra- and extraregional trade. Small market size, poor transport facilities and high trading costs make it difficult for African countries to reap the potential benefits of RTAs. To increase regional trade and investment, African countries need to undertake more broad-based liberalization and streamline existing RTAs, supported by improvements in infrastructure and trade facilitation. Early action to strengthen the domestic revenue base would help address concerns over revenue losses from trade liberalization.
International Monetary Fund
This paper assesses Uganda’s Third Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility (PRGF) and Request for Waiver of Performance Criteria. The fiscal program was broadly on track in 2003/04. Performance under the PRGF-supported program was mixed. Despite some slippages, most quantitative performance criteria were observed for December 2003, and there has been progress in the implementation of structural measures. The authorities are requesting waivers for nonobservance of four performance criteria based on corrective actions taken.
Mr. Michael Keen

Abstract

This paper, based on the considerable practical experience of the IMF’s Fiscal Affairs Department, sets out a successful strategy for modernizing customs administration. The essence is to establish transparent and simple rules and procedures, and to foster voluntary compliance by building a system of self-assessment supported by well-designed audit policies. Having set out this strategy--and its benefits--the paper discusses in depth what is required in terms of trade policy, valuation procedures, dealing with duty reliefs and exemptions, controlling transit movements, organizational reform, use of new technologies, private sector involvement, and designing incentive systems for an effective customs administration.

Mr. Arvind Subramanian

Abstract

Since the early 1990s, many countries in sub-Saharan Africa have made significant progress in opening their economies to external competition through trade and currency liberalization. This paper analyzes trade and policy developments for 22 countries in eastern and southern Africa, looks at regional and multilateral integration issues, and reflects on the main challenges these countries face in the new decade. It addresses the main trade policy issues for these countries and suggests possible actions they and their trading partners could follow.