Uganda National Bureau of Standards (UNBS) has been advised to work closely with manufacturers in order for the private sector to penetrate the African Continental Free Trade Area (AfCFTA) market.

According to Joseph Muvawala, the Executive Director of the National Planning Authority (NPA), the private sector will be the driver for Uganda’s businesses to penetrate through the continental free trade to tap into the 1.3b people with a combined GDP of $3.4 trillion.

“To benefit, we should target the private sector, our strategy should be private sector driven, but there is still a challenge for the government machinery to ensure that we work for the private sector. That is the area we have to crack,” he said.

He said this at the 1st AfCFTA Presidential CEO Private Sector Forum which was under the theme 'Positioning the Private Sector for New Opportunities and Markets for Sustainability and Thriving Economies through the AfCFTA' held at Serena Hotel on Thursday.

Muvawala highlighted that UNBS must change its ways to come and work within the factories on issues of standards to allow smooth trading in the continent without issues of standards arising.“The structure of business has been changing and the majority of services are in the trade. Trade must come to the front of our priorities and the government must prepare projects for UNBS,” he added.

Speaking at the forum, Deo Kayemba, the Chairman of the Uganda Manufacturer Association (UMA), said that traders are ready for continental free trade, but they are waiting for the government to harmonize standards.

“We have taken planning beyond regional blocs; we are waiting for a few things from the government to move very fast on harmonization of standards such that we are at the same level. We do not yet have ratified rules of origin, we need to be clear, please move very fast,” he pleaded.

He raised issues of tariff barriers and transport infrastructure and asked the government to raise standards and tariff offers.

UMA has over 1500 members with over 500 directly involved in trade within the region.

“Our countries should work together to have a common rail line, airports, and cargo planes. We can start with interconnecting roads,” he said.

Olive Kigongo, the chief executive officer of the Uganda National Chamber of Commerce and Industry, said that Uganda has not yet adopted a policy on AfCFTA, yet some other countries have stated trade in the continental free trade.

“As Uganda, we still don’t have a policy on AfCFTA, we don’t have information on progress yet some countries have already been allowed to trade having fulfilled the obligation,” she said.

Francis Mwebesa, the Minister of Trade, Industry and Cooperatives, said that government is in advanced stages of signing the agreement and promised traders to organize themselves.

“We are currently at the advanced stages of signing an agreement. The AfCFTA is built on the strength of the existing regional blocs. I advise the private sector and CEOs here to take this opportunity, Uganda is committed,” he said.

Private Sector Foundation Uganda (PSFU) with over 300 business associations, says that the biggest challenge they are facing now is infrastructure and Uganda is yet to utilize the opportunities within the region.

Stephen Asiimwe, the Executive Director of PSFU said that there is a need to fix the issue of infrastructure in the region.

“The biggest challenge we are facing is the need to fix the infrastructure and we need to support our neighbours. Congo has just joined the EAC with 100 million people," he said. 

He said that trade allows Uganda to extend frontiers and he called upon the government to work with the private sector.

The keynote speaker H.E Wamkele Mene, the Secretary of AfCFTA there is an infrastructure deficit and the secretariat has an adjustment fund of $1.2b as a facility for vulnerable countries.

“It is not going to be for the budget but things like acquiring capital machinery, capacity training among others,” he said.

He said that SMEs create 450 million jobs in Africa & account for 60% of Africa’s GDP but without adequate infrastructure, countries will not be able to benefit from AfCFTA and called upon investors and the private sector to utilize the opportunity. 

He added that the deficit is an opportunity and investors must identify specific areas in the value chain.

However, Wamkelesaid that a few countries have started to implement AfCFTA with Uganda, Kenya, and Rwanda being able to carry out free trade in countries like Zambia among other countries.