Export board needs sh3b to hit target
Apr 09, 2009
With barely two months to the 2009/2010 budget announcements, export promoters are urging the government to boost their budget allocations to allow Uganda enjoy the real benefits of export trade.
By David Mugabe
With barely two months to the 2009/2010 budget announcements, export promoters are urging the government to boost their budget allocations to allow Uganda enjoy the real benefits of export trade.
Ben Naturinda, the deputy executive director, Uganda Exports Promotion Board (UEPB), says because budget support levels are still low, the exports promotion authority is finding it tough to push for robust exports initiatives.
But finance minister, Syda Bbumba, told Business Vision that the 2009/10 budget allocations are over. “I think that debate is over. we met the ministries and their minister (tourism trade and industry) made presentations. We finished with the allocations,†she said.
In the last financial year, the board got an additional sh1b budget top up for its activities. Previously, the sole authority tasked with promoting Uganda’s exports operated on a paltry sh460m annually.
The sh1b strengthened the board’s institutional resources. Officials say there are 40 well-trained export experts to guide Ugandans in the export business.
To Naturinda, an additional sh2b would be sufficient to spur Uganda’s exports to desired targets. “The sh1b is a fairly big improvement but does not sufficiently support the well documented initiatives,†said Naturinda.
According to the Uganda Bureau of Statistics (2008), provisional figures show that Uganda’s formal exports rose by 29% from $1.33b in 2007 to $1.7b in 2008.
Broken down, traditional exports fetched $530m, while the non-traditional exports fetched $1.2b. Traditional exports include coffee, cotton, and fish while the non-traditional exports include eggs, flowers, vanilla, fruits, and honey.
Eng. Nelson Gagawala Wambuzi, the State Minister for Tourism, Trade and Industry, said some more money had been added to the exports body.
“Of course funding is small and trade is not a key thing this year but funding is being improved. The Uganda Industrial Research Centre has been boosted. We are moving but not at the pace we would want,†said Wambuzi.
Wambuzi is, however, happy with the partnering initiatives undertaken by UEPB.
“Right now, UEPB is entering an agreement with China to build a China-East Africa trade promotion centre which is a good initiative,†said Wambuzi.
With the launch of the National Exports Strategy (NES) in October 2007, UEPB targets exports contribution to GDP to hit 16% by 2012. It is currently at 14% having risen from 11% due to a renewed promotions drive since the launch of NES.
According to Naturinda, UEPB has an office in China, which is a massive outlet for the country in terms of churning the much-needed trade information. The Chinese government has allowed more than 500 Ugandan products free access to the Asian giant’s market.
“But we have to ensure that local exporters are supported to access this market, especially when they are called to showcase their products in international markets. It requires resources,†said Naturinda.
Before last year’s budget supplement, UEPB’s bulk of expenditure went into financing trade shows, shipping exhibitors’ products, paying stalls and subscribing to international markets, restocking equipment and connectivity.
Naturinda believes that if the Government increased UEPB’s budget, UEPB would be able to take in-market support and external exports marketing to another level.
“We would also undertake product development, better branding, packaging, greater national mobilisation for exports development all over Uganda, more visibility of Uganda’s products in different markets and more in-market support centers,†said Naturinda.
But Maria Odida, the chairperson of The Uganda National Apiculture Development Organisation (TUNADO), the umbrella body of honey producers, cautions against budget boosts that are channeled into building institutions instead of key strategic investments.
Odida says if the government gave the exports promotion board money and this money was channeled into UEPB instead, “it would be a waste of money.†“We cannot be talking of non-traditional exports because our production levels are still low. We should stratergise on the production methods so that we have capacity to produce for export.â€
“Look at the fishing sector. We have depleted the stock yet we could have invested in sustaining the fish,†said Odida. Odida’s point of contention is that while there is always fairly sufficient market for Uganda’s exports, many times the country has fallen short in consistently meeting its supply quota, a situation which calls for a re-examination of strategic production lines.
The need to support indigenous exporters stems from the often stringent documentation and technical procedures associated with export trade in the west.
Although the global economic mess is expected to hit the exports market, officials say there is need to prepare for the future such that when the economic turmoil cools down, Uganda is ready to shoot to these markets.
Export promoters are, however, happy with the recent additional budget allocations for infrastructure, specifically roads, a development that will foster movement of products. But poor railway and high freight costs remain a challenge, according to Naturinda.
With barely two months to the 2009/2010 budget announcements, export promoters are urging the government to boost their budget allocations to allow Uganda enjoy the real benefits of export trade.
Ben Naturinda, the deputy executive director, Uganda Exports Promotion Board (UEPB), says because budget support levels are still low, the exports promotion authority is finding it tough to push for robust exports initiatives.
But finance minister, Syda Bbumba, told Business Vision that the 2009/10 budget allocations are over. “I think that debate is over. we met the ministries and their minister (tourism trade and industry) made presentations. We finished with the allocations,†she said.
In the last financial year, the board got an additional sh1b budget top up for its activities. Previously, the sole authority tasked with promoting Uganda’s exports operated on a paltry sh460m annually.
The sh1b strengthened the board’s institutional resources. Officials say there are 40 well-trained export experts to guide Ugandans in the export business.
To Naturinda, an additional sh2b would be sufficient to spur Uganda’s exports to desired targets. “The sh1b is a fairly big improvement but does not sufficiently support the well documented initiatives,†said Naturinda.
According to the Uganda Bureau of Statistics (2008), provisional figures show that Uganda’s formal exports rose by 29% from $1.33b in 2007 to $1.7b in 2008.
Broken down, traditional exports fetched $530m, while the non-traditional exports fetched $1.2b. Traditional exports include coffee, cotton, and fish while the non-traditional exports include eggs, flowers, vanilla, fruits, and honey.
Eng. Nelson Gagawala Wambuzi, the State Minister for Tourism, Trade and Industry, said some more money had been added to the exports body.
“Of course funding is small and trade is not a key thing this year but funding is being improved. The Uganda Industrial Research Centre has been boosted. We are moving but not at the pace we would want,†said Wambuzi.
Wambuzi is, however, happy with the partnering initiatives undertaken by UEPB.
“Right now, UEPB is entering an agreement with China to build a China-East Africa trade promotion centre which is a good initiative,†said Wambuzi.
With the launch of the National Exports Strategy (NES) in October 2007, UEPB targets exports contribution to GDP to hit 16% by 2012. It is currently at 14% having risen from 11% due to a renewed promotions drive since the launch of NES.
According to Naturinda, UEPB has an office in China, which is a massive outlet for the country in terms of churning the much-needed trade information. The Chinese government has allowed more than 500 Ugandan products free access to the Asian giant’s market.
“But we have to ensure that local exporters are supported to access this market, especially when they are called to showcase their products in international markets. It requires resources,†said Naturinda.
Before last year’s budget supplement, UEPB’s bulk of expenditure went into financing trade shows, shipping exhibitors’ products, paying stalls and subscribing to international markets, restocking equipment and connectivity.
Naturinda believes that if the Government increased UEPB’s budget, UEPB would be able to take in-market support and external exports marketing to another level.
“We would also undertake product development, better branding, packaging, greater national mobilisation for exports development all over Uganda, more visibility of Uganda’s products in different markets and more in-market support centers,†said Naturinda.
But Maria Odida, the chairperson of The Uganda National Apiculture Development Organisation (TUNADO), the umbrella body of honey producers, cautions against budget boosts that are channeled into building institutions instead of key strategic investments.
Odida says if the government gave the exports promotion board money and this money was channeled into UEPB instead, “it would be a waste of money.†“We cannot be talking of non-traditional exports because our production levels are still low. We should stratergise on the production methods so that we have capacity to produce for export.â€
“Look at the fishing sector. We have depleted the stock yet we could have invested in sustaining the fish,†said Odida. Odida’s point of contention is that while there is always fairly sufficient market for Uganda’s exports, many times the country has fallen short in consistently meeting its supply quota, a situation which calls for a re-examination of strategic production lines.
The need to support indigenous exporters stems from the often stringent documentation and technical procedures associated with export trade in the west.
Although the global economic mess is expected to hit the exports market, officials say there is need to prepare for the future such that when the economic turmoil cools down, Uganda is ready to shoot to these markets.
Export promoters are, however, happy with the recent additional budget allocations for infrastructure, specifically roads, a development that will foster movement of products. But poor railway and high freight costs remain a challenge, according to Naturinda.