Brokers accessed of hijacking rice business

By Our reporter

KAMPALA – Rice importers say brokers are allegedly working with officials in the Ministry of Trade, Industry and Cooperatives to take control of the country’s rice import business through a permit allocation system.  They claim that the permit allocation system has locked genuine traders out of the market.

According to the association, the arrangement has left trucks stranded at the Mutukula border for two weeks, increased import costs, and threatens to push up rice prices if supplies continue to be disrupted. Association chairperson Livingstone Ssenyonga explained that they are not against regulation.

“What we oppose is a system where permits are issued to brokers instead of genuine importers,” he said.

The dispute centres on permits introduced by the Ministry of Trade for rice imports from Tanzania.

Ssenyonga said more than 200 established rice importers applied for permits but none was approved.

He alleges that only about 25 permits were issued to individuals with no known history in the rice trade.

“Established importers with registered companies, tax records and long-standing supply chains have been excluded,” he said.

He said permit holders now wait at Mutukula border and charge traders up to Shs18,000 per truckload to facilitate customs clearance. “Previously we paid about Shs12,000. Now these brokers demand Shs18,000 without importing a single bag of rice. They are simply selling access to permits.”

Other traders allege the arrangement is exposing them to financial losses.

Constance Kasolo claimed some brokers deliberately under-declare consignments submitted to the Uganda Revenue Authority. “When you tell them you have 40 tonnes, they sometimes declare only 35 tonnes. When URA weighs the cargo, the importer, not the broker,is fined.”

The traders say they recently refused to use the brokers’ companies, leading to an impasse that has left dozens of trucks parked at Mutukula.

“We have refused to use their companies because we believe the system is wrong,” said trader Henry Lukyamuzi.

Importers say the delays are increasing transport costs, storage charges and loan servicing expenses.

“The additional charges and delays have pushed many traders into losses,” said importer Aminah Nambuya.

The association has petitioned Parliament, the Inspector General of Government and President Yoweri Museveni, calling for investigations into what it describes as corruption and collusion in the allocation of import permits.

“We want a transparent permit allocation system that gives permits to genuine importers rather than middlemen,” Lukyamuzi said.

The dispute extends beyond the traders themselves. Uganda has become increasingly dependent on rice imports from Tanzania.

According to the Uganda Revenue Authority’s 2024/25 Annual Databook, Tanzania supplied goods worth Shs12.46 trillion last financial year, making it Uganda’s largest source of imports ahead of China, India, Kenya and the United Arab Emirates.

Bank of Uganda estimates indicate Uganda imports between US$100 million and US$150 million worth of goods from Tanzania annually, excluding gold, with rice among the key commodities.

Industry players warn that prolonged delays at the border could tighten supplies and increase retail prices in Kampala and other urban centres that rely heavily on imported rice.

When contacted, Ministry of Trade spokesperson Khadija Nakakande confirmed that officials had been dispatched to Mutukula to investigate the complaints.

“We need to establish the facts on the ground first. Once the assessment is complete, the ministry will issue an official position,” she said.

Asked about allegations that ministry officials were colluding with brokers, Nakakande said those claims would also form part of the assessment before any conclusions are reached.