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

Table 4.7: Means of settling disputes with clients
Means Yes No
Keble courts 0 (0%) 13 (100%)
Arbitration through 1 (7.7%) 12 (92.3%)
association
Community mediation 2 (15.4%) 11 (84.6%)
Friends and peers 8 (61.5%) 5 (38.5%)
Religious elders 2 (15.4%) 11 (84.6%)
Personal effort (e.g., 5 (38.5%) 8 (61.5%)
repeated visit)
No effort of any kind 11 (84.6%) 2 (15.4%)
Source: Survey, 2002.
Regional traders have identified the main limiting factors as problems with communication,
checkpoints on the roads, too many unlicensed operators, high tax rates, crime, theft, and lack
of trust (Table 4.8). Regional trade is also severely constrained by lack of telecommunication
services. High tax rate and poor methods of tax assessment have been reported as the main
problems by brokers, retailers, regional traders, transporters, flour factories, and trading
companies alike.
Table 4.8: Mean score of major marketing problems for regional traders
Description
Extent of obstacle
Lack of telecommunications 2.53
Lack of electricity 2.16
Shortage of storage in Addis Ababa 2.38
Lack of vehicles and trucks 2.19
Stoppage time at different kellas 2.56
Poor access to operating place 2.53
High tax rates 3.38
Poor tax administration 3.13
Lack of standards 1.53
Unlicensed operators 2.58
Weak legal system for contract enforcement 1.69
Congestion at marketplace 2.66
Expensive stall rent 3.12
Long procedures for license and registration 1.63
Limited access to credit 2.38
Crime, theft, disorder, and lack of trust 2.75
Anticompetitive practices 2.22
Weak access to market information 2.03
Source: Own computation.
The system of grain trading does not involve organized large-scale wholesalers who buy from
regional traders, except in limited cases. Regional traders would face less difficulty finding
buyers if there were wholesalers who could buy grain from them at an agreed or negotiated
price. Transport costs would have been lower because trucks would not have to wait until a