Uganda: Government Suspends Enforcement of Trade Order Amid Stakeholder Concerns

The government has temporarily suspended the enforcement of the recently introduced trade order to allow for wider consultations with stakeholders affected by the directive, Minister of State for Trade, Industry and Cooperatives David Bahati has announced.

The decision, communicated during a plenary sitting of Parliament, takes immediate effect and will remain in place until government concludes engagements with traders, manufacturers, and other key players in the business community.

Bahati said the move follows growing concerns raised across the country regarding the implementation of the order, particularly from small and medium-sized enterprises.

"We have listened to the concerns raised by various stakeholders," he told Parliament. "The government has therefore decided to halt the enforcement of the trade order to provide room for further consultations and ensure that all views are adequately considered."

The trade order had been introduced as part of government efforts to streamline commercial activities, enforce standards, promote local production, and reorganize urban trading systems. Its provisions included measures on imports, product quality regulation, and market operations.

However, sections of the business community argued that the directive was rolled out without sufficient consultation, warning it could disrupt supply chains, raise operating costs, and negatively affect livelihoods, particularly among small traders.

In several urban centres, traders had begun adjusting operations in anticipation of stricter enforcement, while business associations and civil society groups called for a more inclusive policy process and clearer guidance on compliance requirements.

The suspension is expected to ease immediate pressure within the trading community, although uncertainty remains over the future structure of the policy. Government has indicated that the upcoming consultations will include formal and informal sector representatives, given their significant role in Uganda's economy.

Officials say the engagement process is intended to ensure that the final framework balances regulation, economic stability, and business continuity.

Government is expected to issue further communication once the consultations are concluded and any revisions to the trade order are agreed upon.

Read the original article on Nile Post.