The Future of Smallholder Farming in Eastern Africa - Uganda ...

Table 2.25: Access to credit brokerage
Formal sources Informal sources
Number % Number %
Yes 4 6.0 24 35.8
No 63 94.0 43 64.2
Total 67 100.00 67 100.00
Source: Survey, 2002.
2.4. Regulatory framework and contract enforcement
2.4.1. Licensing
About 72 and 42 percent of the sampled brokers have licenses for grain trade from the Trade
and Industry Bureau and the Municipality of Addis Ababa, respectively. The average cost of
obtaining and renewing a license was birr 563 and birr 241, respectively. About 28 percent of
the brokers operate without a license. There is practically no benefit, incentive, or legal
pressure to hold a license (Annex Table 2.25). Licensed brokers complained that government
services in the area of transport facilities, access to parking, security services, and support of
the traders’ association have not shown any improvement; despite the fees they are paying
(Table 2.27). It is only in the telecommunications sector that some improvements had been
observed over the preceding couple of years. The implication is that brokers see no benefit in
paying taxes or incurring the cost of a license.
Table: 2.26: License from government offices
Yes No Total
Bureau of Trade and
Industry
Number 48 19 67
% (71.6%) (28.4%) (100.0%)
Municipality
Number 28 39 67
% (41.8%) (58.2%) (100.0%)
Source: Survey, 2002.