Uganda anticipates a reduction in tax revenue losses as commodity prices are expected to decline. These remarks were made by Ramathan Ggoobi, Permanent Secretary and Secretary to the Treasury at the launch of the Marine Insurance Portal in Kampala. Ggoobi emphasized that the new platform will offer more favorable insurance premiums for importers and exporters. “With this system, traders can manage their taxes and insurance expenses more effectively. This will lead to an increase in tax revenue,” he explained, highlighting the economic benefits of expanding the number of insured shippers within Uganda.
As a landlocked nation, Uganda depends on port access in neighboring countries, such as Kenya and Tanzania, to connect to global markets. While Uganda’s marine insurance sector has historically lagged behind other East African countries, it is now experiencing steady growth.
The Marine Insurance Portal is a key part of broader modernization efforts within Uganda’s trade infrastructure. It enables importers to purchase insurance directly from licensed Ugandan providers. This streamlines compliance and reduces the risks associated with international trade.
Alhaj Kaddunabbi, CEO of the Insurance Regulatory Authority, highlighted that “the platform will facilitate prompt and efficient claims processing because importers will have direct access to local insurers. This eliminates the complexities of dealing with foreign entities and ensures that businesses can recover swiftly and continue operations. It will also reduce disruption if cargo is lost or damaged.”
Marine cargo insurance offers protection for goods transported internationally, covering losses or damages that might occur while goods are in transit from seller to buyer. This coverage ensures that traders can receive compensation if their shipments are compromised.
Ggoobi and the Finance Minister Hon. Matia Kasaija praised the initiative, recognizing the efforts of the Insurance Regulatory Authority (IRA), the Uganda Revenue Authority (URA), and the insurance industry as a whole. He noted that this development would help curb capital flight and reduce revenue losses. This was previously common when import insurance was managed by foreign providers.
Officials at the URA believe that this digital innovation will enhance transparency and improve compliance among importers, addressing the persistent issue of under-declared goods in trade.
With strengthened regulatory oversight and ongoing trade growth, Uganda’s marine insurance sector is positioned for expansion. The industry’s growth is expected to fortify Uganda’s economic resilience, providing a stable foundation for future fiscal health.
