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OPINION

By Duncan Abigaba

Recently, the Presidential Advisory Committee on Exports and Industrial Development (PACEID) released its annual report for 2023/2024.

It was their second issue, since the President inaugurated the committee chaired by Odrek Rwabwogo, in 2021.

PACEID is a multi-sectoral committee liaising the government ministries and agencies (MDAs) in charge of production and trade with the private sector, guiding Ugandan businesses/exporters into ready foreign markets and advising on the market entry mode.

The committee’s objective is to add $6b to the country’s export receipts by 2027, thus increasing Uganda’s total exports to over $12b. It has identified 13 highly demanded products globally to raise the $6b. These are coffee, sugar, grains, fruits and vegetables, poultry, beef and dairy. The others are fish, banana flour, flowers, cement, steel and tourism. Uganda possesses both comparative and competitive advantages in the production of these products.

In its report, the committee outlines the stratagem the country has adopted — to enter into new foreign markets, penetrate the existing ones and outcompete the already established global brands.

Firstly, PACEID is emphasising market research and representation. Before making entry into markets, PACEID is helping exporters to carry out market research and appoint trade representatives that are familiar with the markets. There is no more blind entry into foreign markets.

A classic case of market research and trade representation is the Uganda Connect Trade Hub in Belgarade, Serbia. The Balkan and Russian markets have shown interest in Uganda Waragi, Tooke flour produced by the banana processing factory in Bushenyi, vanilla and Kakira sugar.

The performance of the hub has prompted a Serbian private company to open a second hub for Ugandan products in Belgrade.

The committee has also opened two hubs at Entebbe International Airport; in the arrivals and departures area. Twenty-five hubs are planned across the world by 2035. The committee appointed trade representatives in the markets of the Democratic Republic of Congo, United Kingdom, United States and South Africa. The representatives have since organised trade visits to Uganda by various businesses. The representative in the United Kingdom alone has provided a database of 2,000 buyers ready to buy Ugandan products. Since the creation of PACEID, Uganda’s trade with DRC has increased from $339m to $426m, US (from $55m to $80m), UK (from $8.5m to $17m), South Africa (from $9m to $21m).

The new markets are augmenting Uganda’s traditional foreign markets of Kenya and South Sudan.

In 2021, Uganda’s exports to Kenya stood at $526m, and to South Sudan at $484m (UN trade data).

PACEID also carried out trade missions to Lagos, Nigeria; to Algeria, including a business summit attended by both presidents of Uganda and Algeria; and organised the Uganda-South Africa trade and investment summit.

The second strategy is improving compliance with international standards for the Ugandan exports. Foreign markets particularly the European Union has been restricting the entry of Ugandan products, including hot pepper, chillies and flowers due to sanitary and phytosanitary (SPS) measures. PACEID is working with the responsible government agencies, exporters and the farmers to improve conformity to international product and service standards.

The committee is establishing a centralised quality management system (CQMS) — to ensure compliance of products with international standards — through a centralised handling packhouse system and building houses near the airport/exit points.

Thirdly, PACEID is building better export infrastructure to lower the cost of exports. Following a presidential directive, the upgrading of aerodromes in Kisoro, Kasese, Arua and Kidepo Valley National Park to boost tourism and the transportation of goods is ongoing and at different stages of progress.

The committee continues to explore various options to improve transportation on air, land and water.

In the period under report, Uganda Airlines opened two routes; one to Lagos, Nigeria and the other to India. The committee continues to lobby for funds for the development of the Standard Gauge Railway (SGR), vessels on our lakes especially Victoria to lower the cost of transportation per tonne and revitalisation of our spaces at the ports of Mombasa and Dar-es-Salaam.

Lastly, PACEID is working towards establishing an export financing facility to provide cheap credit to the exporters.

Benchmarking on countries like Nigeria that have fully established Export-Import (EXIM) banks, the facility will help the Ugandan exporters to access cheap and fast credit to underwrite their orders.

In 2024, an export credit fund with the support of the Government and private sector will be commissioned.

Following the above interventions, Uganda’s exports have increased by $2.7b from $4.2b in 2022, to $6.9b in 2023. PACEID remains committed to raising $6b in exports by 2027. This would take our export revenue past the $12b mark.

The write is a graduate student of International Business at the Higher School of Economics (HSE) – Saint Petersburg, Russia