Summary:
- Flagging off Uganda’s first formal exports to West Africa, President Museveni expressed concern over delays by some government actors in implementing critical programs that drive economic growth.
KAMPALA: President Yoweri Kaguta Museveni on Monday, December 16, 2024, commissioned the Free Zones Export Facility at Entebbe International Airport and launched Uganda’s African Continental Free Trade Area (AfCFTA) Implementation Strategy.
The strategy aims to promote trade within Africa and internationally.
The event, themed “Uganda’s Next Level Growth Driven by Regional Export Opportunity and AfCFTA,” was attended by private sector players, investors, representatives from the United Nations, and Uganda’s trade representatives in various countries.
Flagging off Uganda’s first formal exports to West Africa, President Museveni expressed concern over delays by some government actors in implementing critical programs that drive economic growth.
“I am pleased to kick off Uganda’s first formal exports under AfCFTA, which Uganda and 44 other countries signed in 2018. Even with negotiations around rules of origin, tax rates, and non-tariff barriers, it shouldn’t have taken seven years to activate this. Over 45% of our value-added goods and services are traded within the African continent, and we should have moved faster,” President Museveni said.
President Museveni called for urgency in execution, warning against further delays.
“The failure by some actors in ministries to act swiftly hinders growth and affects the private sector. Now that we have started, I don’t want to hear of any further delays,” he emphasized.
President Museveni applauded Nigerian President Bola Ahmed Tinubu and his government for facilitating the opening of Nigerian airspace to Ugandan exports under AfCFTA.
He also assured support for Uganda’s trade representative in Lagos tasked with advancing market opportunities in Nigeria.
“I am told we have a trade representative in Lagos, and I will give him all the necessary support to ensure the process is fully concluded with both the Nigerian government and the AfCFTA Secretariat,” he added.
President Museveni reiterated the NRM’s principle of Pan-Africanism, emphasizing its utility in building collective wealth and socio-economic transformation.
“When Africans wake up, as some are doing in Uganda, they realize that the internal market alone is insufficient. Without the African market, we cannot succeed. Latin America’s challenges are a clear example of this. Despite abundant resources, they lag behind because of limited intra-regional trade,” President Museveni observed.
Highlighting plans to expand export infrastructure, the President announced the establishment of similar facilities in Uganda’s four regions to ease aggregation, processing, and market access.
“This export facility, which will focus on coffee roasting, packaging, fruits, vegetables, and flowers, is the first of many. Facilities in key regions will help exporters reach markets faster,” he stated.
He recalled discussions with European investors and a Serbian trade envoy who expressed interest in setting up coffee processing plants in Uganda.
Directing the Minister of Trade, Hon. Francis Mwebesa, and the Presidential Advisory Committee on Exports and Industrial Development (PACEID) to investigate project delays, the President said, “I don’t want to hear of further delays. Report back to me after the holidays.”
President Museveni urged investors to utilize government-funded irrigation projects in areas like Doho (Butaleja), Mobuku (Kasese), and Ngenge (Kween) for high-value crop production.
“We have invested over UGX 50 billion in these projects. Farmers should focus on crops like chili peppers, French beans, snow peas, and okra, which are in high demand in Europe and the Middle East,” he said. “Eggplants alone can fetch between $7 and $9 per kilogram in Southern Europe and the Middle East.”
President Museveni expressed satisfaction that Uganda’s first exports to Nigeria under AfCFTA include dairy, coffee, fish, pharmaceuticals, and tea.
He called for further diversification into tourism and investments from the Nigerian business community.
“Tell me what you need as export-supporting institutions, and we will work together,” he assured investors.
Trade Minister Francis Mwebesa highlighted the historical significance of Free Zones, tracing their origin to ancient duty-free ports.
He underscored Uganda’s strategic location, providing access to markets in the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA), and AfCFTA with its 1.2 billion people and a GDP of $3.4 trillion.
“Free Zones attract foreign investment through tax incentives and investor-friendly regulations, generating employment and boosting logistics, manufacturing, and services,” Hon. Mwebesa noted.
The Permanent Secretary, Ministry of Trade, Ms. Lynette Bagonza, called for swift implementation of the AfCFTA strategy.
“Our focus must now shift to execution and maximizing the opportunities presented by AfCFTA,” she said.
PACEID Chairperson Mr. Odrek Rwabwogo outlined the event’s objectives, including commissioning Uganda’s first products for the Nigerian market, handing over facilities to investors, and discussing export credit funding.
However, he expressed concern over delays in implementing the export support strategy.
President Museveni concluded by urging all stakeholders to leverage Uganda’s vast resources and opportunities.
“Uganda will give you a high return if you focus on sourcing quality raw materials, minerals, tourism, and consumer goods. We are ready to cooperate,” he assured.
