Freedom on Second Hand Goods Trade in Uganda

To promote locally manufactured textiles and protect domestic industries, the government of Uganda raised the import duty on textile fabrics from 25% to 35% in October 2020 and charged USD 5 per kilogram (KACITA, 2021). This policy was aimed at strengthening Uganda’s cotton value chain and encouraging investment in local garment production to create employment opportunities. However, imposing high taxes on imports without first addressing the underlying weaknesses in local production, such as high electricity costs, low industrial financing, and inefficient supply chains, makes local textiles more expensive and less competitive. As a result, consumers and retailers often continue to prefer cheaper imported or second-hand goods, and the local industry remains stagnant despite protectionist policies.