Steel Processors Demand Ban on Scrap Exports

Tag : Non-ferrous Metal

Mr Muhumuza said scrap processors welcome the ban, which he saidwas good since it encourages value addition within the country andthe region in general.
He said the local supply of inputs will ensure affordable usage forUgandans because prices of products will be lower as opposed towhen the materials are scarce and imported.
"There shouldn't be flexibility in the scrap ban, which wouldencourage export of scrap," he said. "As scrap processors, werequest for effective monitoring and implementation of the policywhich has always been a challenge in the past," Mr Muhumaza said inan interview.
He said steel processing industries employ more than 1000 people,meaning that many people will be affected if exports are notrestricted.
"If export of scrap is not restricted, there will be low supply inthe industries, something that will directly and indirectly affectoutput and reduce employment," he said.
Since the ban, Mr Muhumuza said, there is a slight improvement inthe supply of scrap, but said it was still early to fully judge theimpact.
Kenya, Uganda and Tanzania energy ministers unanimously agreedduring a regional energy council meeting in Arusha in June toindefinitely ban export of scrap.
Energy Minister Daudi Migereko said the government suspended exportof scrap metal to guard against vandalism of electrical, railwayand water equipment, which was rampant in the region.
But the minister said dealers in scrap metal will continue tradinginternally provided they don't engage in illegal activities,allaying fears and complaints raised by sections of dealers thatthe ban threatens their means of livelihood.
"The ban was effected and we hope it holds," Mr Migereko said.
The Chairman of Uganda Manufacturer's Association, Mr JamesKalibbala, also said the ban was a move to boost local industries.
He said metal scrap is an important raw material for many steelmanufacturers, hence a need to have it banned. "It is somethingthat can be processed locally to produce important products," MrKalibbala said.
Theft of metal materials in the region is partly blamed for theconstant power and water interruptions. The suspension according toMr Migereko, aims at enabling close monitoring and surveillance ofmetal scrap dealers.
But the ban has raised outcry from a number of stakeholdersespecially members of Uganda Scrap Metal Dealers and ExportersAssociation, with their chairman, Mr James Kato, saying more thantwo million jobs were at risk if the ban is held.
Most metal scrap in Uganda is exported to Kenya. The Associationdrafted a petition to the East African Community Secretariat inArusha protesting the ban.
Mr Kato said the dealers want to negotiate with the government tolift the ban. "We want the ministers to come out specifically onthe type of scrap they have banned," Mr Kato said, adding thatbrass, lead, and radiators, which were also banned, are not used inmaking electrical wires.