In a strategic move to tackle chronic cargo congestion and streamline trade, the Uganda Revenue Authority (URA) has commissioned a new bonded warehouse at the Malaba border in Tororo District.
Built by Tan Investments, the facility is set to revolutionize Uganda’s trade network by expediting clearance processes, enhancing revenue collection, and reducing delays for transporters.
With a capacity to hold 1,000 trucks, the warehouse is expected to decongest the border, allowing vehicles to proceed directly to their destinations after clearance.
This development marks a significant step in improving Uganda’s trade efficiency and competitiveness in the region.
Why This Warehouse Matters
The Malaba border is one of East Africa’s busiest trade corridors, handling a significant portion of Uganda’s imports and exports.
However, chronic congestion has long plagued the border, causing delays, increasing costs, and frustrating traders.
The new bonded warehouse addresses these challenges by:
- Consolidating cargo: Making it easier for URA officials to verify goods and ensure tax compliance.
- Reducing clearance time: Vehicles no longer need to travel to Kampala for clearance, saving time and resources.
- Boosting revenue collection: Streamlined processes mean fewer opportunities for tax evasion.
What’s Inside the Facility?
The warehouse, built by Tan Investments, is equipped with state-of-the-art infrastructure to handle large volumes of cargo. Key features include:
- Storage capacity for 1,000 trucks: Significantly reducing border congestion.
- Advanced verification systems: Ensuring accurate and efficient cargo checks.
- Dedicated clearance zones: Speeding up the process for compliant traders.
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URA’s Vision: A More Efficient Trade Network
James Maliizi, URA’s Assistant Commissioner for Risk, emphasized the transformative potential of the new facility.
“This warehouse will not only decongest the border but also enhance the efficiency of Uganda’s entire trade network,” he said.
“With such a facility in place, vehicles that previously had to travel to Kampala for clearance can now be processed here. This means they will proceed directly to their destinations, reducing congestion and improving trade flow,” Maliizi added.
A Boost for Regional Trade
The commissioning of the new warehouse comes at a critical time for Uganda’s trade sector. With two bonded warehouses now operational at Malaba, the border’s capacity to handle cargo has significantly increased. This expansion is expected to:
- Drive trade growth: Faster clearance processes will attract more traders to use the Malaba route.
- Increase revenue collection: Improved compliance and reduced delays will boost URA’s revenue.
- Enhance regional competitiveness: A more efficient border will strengthen Uganda’s position as a trade hub in East Africa.
What’s Next for Malaba?
The new bonded warehouse is just the beginning. URA plans to continue investing in infrastructure and technology to further streamline trade processes at Malaba and other key borders.
For traders, transporters, and the Ugandan economy, this development is a win-win. It promises faster clearance times, reduced costs, and a more predictable trading environment.
