Museveni launches AfCFTA implementation strategy for Uganda, commissions free zones export facility in Entebbe
ENTEBBE, December 20, 2024 – President Yoweri Museveni early this week, 2024 commissioned the free zones export facility at Entebbe International Airport and also launched the African Continental Free Trade Area [AfCFTA] implementation strategy for Uganda that aims at promoting and fostering trade within African countries and internationally.
The event ran under the theme: “Uganda’s next level growth driven by Regional Export Opportunity and AfCFTA”, and was attended by private sector players, investors, and representatives from the United Nations as well as trade representatives of Uganda in different countries.
Museveni who flagged off the first formal exports of products to West Africa, raised his concern about the delays by some actors in government to implement these important programmes that are critical for the economic growth of the country and the African continent.
“I am pleased to kick off the journey for the first formal exports of products to West Africa under AfCFTA which Uganda and 44 other countries signed in 2018. Even with negotiations on the the rules of origin, tax rates, and non-tariff barriers, it shouldn’t take this long seven years to activate this work. It should have been done much earlier because I’m aware that more than 45 percent of all our value-added goods and services are traded within the region and the African continent,” he said.
“The lack of essence of urgency and the failure by some of our actors in the ministries to act quickly on important issues of our economic growth hinders the rate of our growth and affects the performance of the private sector. But now that we have started I don’t want any further delays,” the President said.
He lauded his counterpart, His Excellency Bola Ahmed Tinubu of Nigeria whom he interacted with a week earlier on the matter of the market along with his government, for allowing Uganda to work together with the Nigerian government on opening Nigerian air space for flights into each other’s territories and making room for Ugandan products under AfCFTA.
“I am told we have a trade representative based in Lagos to support the opening of this market and I will give him all the necessary support needed for the process to be fully concluded with both the Federal Republic of Nigeria government and the AfCFTA Secretary General in Accra,” he said.
On the other hand, Museveni was glad to see that the first exports to the Nigerian market under AfCFTA from Uganda include dairy, coffee, fish, pharmaceuticals and tea, noting that it will help to add other support to the larger commodities that are now produced in Uganda and find market for crops like tea that have suffered lately.
“But I didn’t know that there is more Uganda can do including tourism and attracting investments from the Nigerian business Community. I want this to open up,” he said.
“Tell me what you need as export supporting institutions and we will work this out with you,” he further assured the investors.
President Museveni additionally tasked the investors going to run the facility in Entebbe to ensure that the centre is a place of exemplary performance, certification assembly roasting and will serve both the AfCFTA market and the Balkans region.
Museveni also asked investors to take interest in locations where the government has injected a lot of money for irrigation projects such as Doho in Butaleja, Mobuku in Kasese, Ngenge and Atar in Kween district whose occupants are planting low value crops.
“This is unacceptable for projects where we have spent more than Shs 50 billion in such one of these locations. I need high value crops there and I am told that both Ngenge in Kween and Mobuku can produce high value chili peppers, French beans, snow peas, sugar snaps, eggplants, okra and onions that are all in very high demand in Europe in winter and the Middle East,” Museveni observed.
He said eggplants alone can fetch between US$ 7 to US$ 9 a kilogramme in Southern Europe and the Middle East.
The President further said the same products are also consumed in the Central and West African markets especially in large cities of Kinshasa and Lagos.
“I’m therefore asking you to organize with my exports advisory team and my political assistants who know those locations well as well as agriculture and water people to meet the households in these locations, train them and offer seeds and buy in bulk from them and export these products from here. I will support these efforts,” President Museveni said.
Museveni expressed his gratitude to all stakeholders for working hard to improve Uganda market standing.
“Uganda will give you a high return if you focus on sourcing good raw material that we have in plenty. It is the same with minerals, tourism, hospitality and the manufacturing for consumer goods. We are ready to cooperate with you,” President Museveni assured the investors.
The Minister of Trade, Industry and Cooperatives, Francis Mwebesa shared the history of free zones, stating that the concept dates back to centuries originating as duty free ports where merchants could trade goods without a burden of taxes and tariffs.
“Historically, ancient trading hubs such as Venice and Singapore played a similar role of fostering commerce and prosperity by eliminating trade barriers in the modern era,” he said.
The minister expounded that free zones hold an immense potential for Uganda that is located at the heart of Africa. He said Uganda offers access to regional markets such as East African Community [EAC] and the Common Market of Eastern and Southern Africa [COMESA] with a combined market of 600 million people as well as the African Continental Free Trade Area with 1.2 billion people with a GDP of US$ 3.4 trillion.
Mwebesa further explained that Free Zones unlock investment opportunities in attracting Foreign Investment by offering tax incentives and investor-friendly regulations, therefore attracting global business to establish operations in Uganda.
He added that free zones are also known for generating employment and manufacturing logistics and services, providing opportunities for the growing workforce.
The Permanent Secretary Ministry of Trade, Industry and Cooperatives, Lynette Bagonza appreciated the participation of government ministries, departments and agencies and the private sector in negotiating and developing the national implementation strategy.
“However, these were merely preparatory phases, the real work begins now. Our focus must shift to maximizing the opportunities presented by AfCFTA through the guidance provided by the strategy,” she said.
“With the strategy now in place let us move to execution and address any outstanding formalities,” she urged.
The chairperson of the Presidential Advisory Committee on Exports and Industrial Development [PACEID], Odrek Rwabwogo outlined the aims of the event which involved the commissioning of the first products going to the market of Nigeria, handing over the facilities to the investors and export credit funding.
He however voiced his concern over the delays in implementing the export support strategy.
The event was also attended by the Minister of State for Trade, Wilson Mbasu Mbadi.
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