KEY POINTS
- President Museveni refuses to ban cheap Tanzanian rice imports.
- Museveni criticizes the inefficiency of Ugandan rice producers.
- He opposes government protectionism for local rice growers.
Ugandan President Yoweri Museveni announced he will not ban the importation of inexpensive processed rice from Tanzania, describing such a move as a “huge mistake.”
According to a report by Ghana Web, Museveni made his position known on Thursday at the 600 MW Karuma Hydropower Dam in Kiryandongo District’s official opening.
The remarks made by the president coincide with escalating hostilities between the Ministry of Trade and local stakeholders in the rice sector over plans to approve the duty-free import of 100,000 metric tonnes of white rice, which is estimated to be worth 199.7 billion Ugandan shillings.
Economic implications and policy resistance
Although Museveni admitted that there was pressure to forbid Tanzanian rice imports, he issued a warning that this could result in Tanzanian export restrictions on a number of Ugandan goods.
He argued in favour of continuing open trade while disputing statements made by a few local rice growers regarding Tanzanian rice’s competitive pricing.
“If they grow rice and don’t have enough buyers, their industry will collapse,” Museveni said, emphasizing the potential detrimental effects on both Tanzanian farmers and Ugandan consumers.
He criticized the inefficiency of Ugandan rice growers and rejected the idea of protectionism.
In reference to the expectations of the local rice producers for assistance, Museveni also offered a striking analogy: “You want a child to stand up and walk; you don’t carry them all the time.”
He made it quite clear that he would not “carry” the rice growers, suggesting that they would need to improve their competitiveness on their own.
