South Sudan overtakes Kenya as Uganda’s main export market

Kenya has been Uganda’s top export destination for the past decade. This story changed in 2022. According to Bank of Uganda statistics, export earnings to South Sudan reached $606m compared to Kenya’s $594m in the same year. Uganda’s exports to Rwanda are at $76m.

This is a remarkable feat and strategic direction so the country does not put all its eggs in one basket. Market diversification is required in trade and geopolitics, considering all the Non-Tariff barriers (NTB) that Kenya has slapped on Uganda over the years.

Two that stick out the most are impromptu product requirements and inspection. Milk powder, poultry products and maize have faced the wrath of our next-door neighbour. These trade restrictions are an intentional selfish tactic to give Kenya’s domestic producers an upper hand in business. Never mind that Uganda does not retaliate in the same currency, otherwise a tit-for-tat oftentimes cuts through bureaucracy and administrative delays.

South Sudan remains a key market for Uganda. It demands agricultural products all year round.

The country’s main export is oil and high dollar earnings mean they have cash on hand to spend on food.

With the nation yet to stabilise from internal civil strife and insecurity concerns, there is a wide gap for food commodities of all variety. Maize is an important staple. However, recently, South Sudan blocked the importation of maize from Uganda, claiming aflatoxins presence in the grains.

The Private Sector Foundation Uganda (PSFU) quickly dispatched a team in collaboration with the Uganda National Bureau of Standards (UNBS) to rectify the issue with trucks stuck at the border. We hope this issue has been resolved.

The bigger lesson here is to export processed value-added maize and retain the bran for animal and poultry feeds. When we export the entire cob, we are earning a quick buck, but ‘donating’ away a lot of value that would create another product. Maize bran fed to poultry will increase broiler and egg production, creating other export opportunities.

Uganda’s landlocked location is an asset in terms of proximity to strategic markets. In 2022, Uganda exported goods worth $431m to DR Congo, Burundi ($87m), and Tanzania ($145m). South Sudan and the DR Congo thus remain viable markets for the country.

Exports will skyrocket once peace and stability prevail in DR Congo and South Sudan. The Government’s foresight in the construction of roads in DR Congo will increase the pace of trade between the two countries. The mining communities in eastern DRC are more involved in this extractive industry and prefer buying food that has been produced elsewhere.

Specialisation opens up opportunities for the private sector. This proves the East African Community (EAC) is at work.

The ministries of foreign affairs and of trade, industry, and cooperatives must work more closely to assist the business community.

The private sector understands how to make money and does not fancy long-winded bureaucratic meetings. The technocrats in Government hold an important key to preparing the ground for the business community to target lucrative markets like South Sudan, DR Congo, and the rest of the EAC without trade barriers.

Uganda assisted South Sudan in its quest for independence and this brotherly relationship should translate into tangible opportunities.

Going forward, value addition should be top of the agenda for better export revenue. Appropriate market research should be undertaken in foreign markets to understand the needs of consumers. Meeting market entry standards is important.

The writer is an export trade specialist