Kampala — Efforts to streamline logistics for Ugandan traders have taken a significant step forward as stakeholders rally behind local marine cargo insurance implementation. Emmanuel Karugaba Neezha, CEO of DESLER LOGIS U LTD, Associate Partner at SIMBALAND CARGO HOLDINGS U LTD, and Vice Chairman of the Uganda Consolidators Association (UCA), highlighted the transformative potential of this initiative in an exclusive interview with The Independent.
Founded in 2019, the Uganda Consolidators Association represents members who import and export consolidated cargo. The association aims to address logistical challenges that have long increased the cost of doing business for small and medium enterprises (SMEs) in Uganda.
Karugaba said, "We currently operate with a membership of 26 registered companies, both in the countries of origin where we consolidate cargo, such as China, Dubai, Turkey, and Vietnam, and here at the destination."
Local marine cargo insurance is seen as a solution to hidden costs often borne by traders and provides a streamlined process for compensation in case of losses or damages during shipping.
Previously, small traders faced difficulties accessing compensation, often having to rely on consolidators to mediate claims.
"With local marine insurance, small and medium traders can now address their losses locally and individually, empowering them to operate more efficiently," Karugaba explained.
The association is actively engaging key stakeholders to ensure a smooth rollout of the initiative.
"We've conducted training sessions for our members and disseminated information to traders through groups such as KACITA, with whom we have a memorandum of understanding," he said.
He also emphasized ongoing collaboration with implementers like the Uganda Revenue Authority (URA) and clearing agents, expressing optimism that the process would flow seamlessly once fully implemented.
Karugaba also addressed the challenges posed by foreign marine insurance. He noted that such policies often excluded the final importer from direct participation, creating issues of accountability and transparency.
He pointed to the online Uganda Insurance Association (UIA) portal as a game-changer, allowing consolidators to apply for marine insurance for individual traders within a container.
"This system ensures visibility of premiums paid and allows traders to independently follow up on claims in the event of a loss," he said.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Encouraging importers to embrace this initiative, Karugaba emphasized that localized marine insurance brings traders closer to insurance service providers while fostering collaboration with credit financiers. This, he believes, will ensure business sustainability and growth.
The implementation of local marine insurance is poised to significantly reduce costs and enhance efficiency for Ugandan traders, marking a critical step toward bolstering the country's trade and logistics sector.
"This service should be supported by all stakeholders," Karugaba said.
