Exporters poised for growth as merger streamlines trade, industrial support
The new authority, created under the Free Zones (Amendment) Act 30 of 2024, exporters say, is a game-changer for the country’s trade and industrial landscape.
Hez Kimoomi Alinda, the Executive Director of Uganda Free Zones and Export Promotions Authority at the recently concluded Uganda-Japan Trade and Investment Forum in Osaka, Japan. (Courtesy photos)
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Ugandan exporters are set to benefit from a new wave of reforms and incentives following the merger of the Uganda Free Zones Authority (UFZA) and the Uganda Export Promotions Board (UEPB).
The merger, which came after Parliament's recommendation and was approved by President Yoweri Museveni, led to the establishment of the Uganda Free Zones and Export Promotions Authority (UFZEPA). It is hoped that the move will save the Government shillings 6.516 billion.
The new authority, created under the Free Zones (Amendment) Act 30 of 2024, exporters say, is a game-changer for the country’s trade and industrial landscape.
By combining regulatory oversight for Free Zones with strategic export promotion functions, UFZEPA is providing a one-stop platform simplifying export procedures, enhancing competitiveness and delivering tangible support to businesses targeting international markets.
For Uganda’s exporters, especially in agriculture, floriculture, minerals, and services, the merger comes as a welcome development that is expected to unlock greater opportunities and reduce the red tape that has traditionally hindered growth.
“UFZEPA is removing export bottlenecks that have long frustrated small and medium-scale exporters,” Hez Kimoomi Alinda, the executive director of UFZEPA, says.
“Our goal is to simplify trade processes, support producers to meet international standards, and attract both domestic and foreign investment into value-added sectors.”
Alinda made these remarks on Friday at UFZEPA’s head offices at Communications House in Kampala city during a media briefing.
Entebbe International Airport Free Zone, the first Public Free Zone in Uganda under construction by government of Uganda.
Uganda Flower Exporters Association (UFEA) executive director Esther Nekambi described the authority’s formation as “a strategic breakthrough” for the floriculture industry.
“We previously worked with UFZA on seven Free Zones for floriculture and collaborated with UEPB on export catalogues and marketing initiatives. With the merger, we now have a more integrated partner that understands both infrastructure and market access needs,” Nekambi said.
The entity says it plans to focus on empowering Uganda’s producers to move up the value chain, from exporting raw commodities to selling premium, branded finished products on the global stage.
The Authority is investing in export aggregation centres, customs-controlled industrial infrastructure, cold storage facilities and robust branding and packaging solutions.
Exporters in agroprocessing stand to gain. With Uganda’s fertile soils and a favourable climate, the country enjoys a competitive edge in producing crops like coffee, cocoa, vanilla, bananas and fresh vegetables. The challenge, however, has always been turning these raw goods into high-quality products with greater export value.
UFZEPA plans to close that gap, according to its head. By linking producers to international markets, providing trade intelligence, and supporting them with certifications, branding, and logistics, the Authority hopes to transform Uganda into an export powerhouse.
Trade minister Francis Mwebesa said UFZEPA will be central to achieving Uganda’s Vision 2040 and National Development Plan IV, which emphasise industrialisation, job creation, and increased export earnings.
“Exporters are the engine of our economic transformation,” Mwebesa said.
“Through UFZEPA, we will diversify our export base, reduce our trade deficit, and make Uganda a more competitive player in the global economy.”
The authority says it is prioritising SMEs, which make up the bulk of Uganda’s producers and processors. Through capacity-building initiatives, technical support and easier access to market information.
With a strategic location in the heart of Africa, a youthful population, political stability, and abundant natural resources, Uganda is well-positioned to become a manufacturing and export hub. The introduction of UFZEPA adds a crucial layer of support to help exporters take advantage of this potential.
As the Authority begins full-scale operations, it is calling on exporters, developers, operators, and development partners to collaborate in building a competitive, inclusive, and export-driven economy.
“We envision a Uganda where value-added exports drive national growth,” Alinda added. “Every exporter we support is part of that story.”
Impact on the economy
According to finance minister Matia Kasaija, the creation of the authority is expected to:
- Increase export competitiveness and foreign exchange earnings
- Promote value-added exports through targeted interventions and support programmes
- Create jobs and generate income
- Stimulate economic growth
- Enhance global reputation through the export of high quality goods.