KAMPALA, Uganda — Trade associations and insurance providers are urging Ugandan importers to adopt marine insurance to significantly lower the cost of transporting goods into the country.
The Uganda Cargo Consolidators Association and Liberty General Insurance Uganda announced a partnership during a meeting at Hotel Africana aimed at reducing the financial burden on the logistics sector through increased awareness.
Peter Makhanu, managing director of Liberty General Insurance, said many traders currently incur a 1.5% surcharge on cargo because they fail to secure insurance in a timely manner.
Too many traders are currently incurring a 1.5% surcharge simply because insurance is arranged late, Makhanu said. This is a cost that can be avoided.
He said Liberty’s marine insurance solution is available at approximately 0.4% of the cargo value, which offers a more affordable alternative to the penalties faced by many importers.
Ugandan trade is heavily dependent on the transport corridors from the ports of Mombasa and Dar es Salaam. UCCA Chairman Kenneth Ayebare said the collaboration is necessary because many members remain unaware of the financial penalties associated with delayed insurance.
Engagements like this are critical in helping our members make informed decisions, reduce unnecessary costs and protect their cargo, Ayebare said.
Steven Kaddu, representing the Insurance Regulatory Authority of Uganda, said marine insurance is a vital risk management tool rather than just a regulatory hurdle. He noted that the authority is focused on ensuring fair pricing and compliance within the sector.
Geoffrey Okaka of the Uganda Revenue Authority said the tax body has introduced interventions at ports to reduce clearance delays. He added that a new digital system now allows importers to track their cargo through the entire value chain.
The partnership is expected to improve trade competitiveness and reduce avoidable costs for Ugandan businesses operating in the regional market.
