82 Ugandan companies enter EAC market

Nov 25, 2014

Eighty-two new small to medium Ugandan companies have managed to break into the East African market since 2009, according to the Uganda Exports Promotions Board (UEPB).


By David Mugabe

Eighty-two new small to medium Ugandan companies have managed to break into the East African market since 2009, according to the Uganda Exports Promotions Board (UEPB).

Of these, 35 went to Kenya, 21 to Rwanda, 17 to Burundi and nine to Tanzania.

The countries have exported over $15m (sh40b) worth of goods. These join the traditional big Ugandan firms, which have been exporting to the region for long, according to the board.

The entry into the regional market of these small companies that had previously been unable to is a boost to Uganda’s regional trade.

Trade minister Amelia Kyambadde recently conferred certificates to the emerging group of exporters and urged them to pay attention to the quality and safety of products as they penetrate previously tough markets such as Kenya.

Kyambadde stressed the need for innovation as key to the product’s global; competitiveness.

“We can no longer afford to continue producing products and services using yesterday’s methods and technologies, some of which are not environmentally friendly,” Kyambadde said over the weekend.

The new manufacturers are beneficiaries of a partnership between Uganda and Ireland under a programme called Traidlinks.

Since 2009, 82 companies have done trade missions to the region with Robert Moodie, the deputy country director of Traidlinks.

He described the results as tremendous. In 2014, $4.6m worth of goods were sold.

“It has changed the mindset of Ugandans, they were afraid of venturing out there, especially to Kenya because they did not realise how good their products are, yet buyers wondered whether these products are from Uganda,” noted Moodie.

One of the products is the different alcoholic gins made by Victoria Dry Gin company that is distributing and selling across the region.

Some of the brands like Legitimate whisky are sold in Rwanda, Burundi and northern Tanzania. The other products are the Ugandan made brown and white chocolates branded “Uganda”.

Moodie noted that while this may appear small for now, it has opened up opportunity for growth.

“What is important is not what is ordered the first time, but over time, say 10 years. The business grows from time to time,” said Moodie.

The regional market accounts for 70% of Uganda’s exports. The biggest chunk goes to South Sudan although this has been interrupted by the civil war.

Uganda has been Kenya’s biggest trading partner for decades with many of Kenya’s products finding their way onto the shelves of Ugandan supermarkets.

But more and more Ugandan producers are penetrating the Kenyan market, according to the Uganda Export Promotion Board (UEPB).

Under the programme, 376 buyers have been identified in Kenya, Rwanda, north Tanzania and Burundi.

About 50% of all companies that have taken part in this programme are currently exporting, while others are working on internal readjustments aimed at rapidly expanding their capacity and compliance issues to ensure delivery on their orders.

According to UEPB, the small and medium enterprises (SMEs) now have a better appreciation and collaboration with business support institutions like the Uganda National Bureau of Standards (UNBS), Uganda Revenue Authority (URA) and various trade support institutions in the target country.

One of the key considerations for the product supported is that it should be manufactured in Uganda and if agricultural, must bear a value-addition component.

Presently, there is a specific sales mission to Rwanda in Nov/Dec 2014 that will apprentice companies’ access these markets more rapidly.

Traidlinks sought to work with private sector companies by building their capabilities and help them move to bigger markets.

“We were also helping with improving financial systems like calculating prices, bookkeeping. Its unique attribute has been taking people to buyers,” says Moodie.

SME’s play an essential role in driving economic growth of Uganda and are estimated to contribute over 30% of GDP, 70% of employment and 80% of manufactured goods output.

(adsbygoogle = window.adsbygoogle || []).push({});