Ugandan businesses should look beyond traditional overseas markets and first build their export strength within East Africa and the wider African continent, business leaders have said.
The call comes as the East African Community (EAC) expands into one of Africa’s most significant trading blocs, with a population of more than 331 million people and a combined economy estimated at about $357 billion.
EABC boss Kamukama said Uganda has a major opportunity to use the regional market as a launchpad for industrial growth, job creation and stronger local value chains.
“Let’s not first export outside, let’s export inside,” he said.
Kamukama argued that success for Ugandan manufacturers should not be measured primarily by how much they sell to Europe, Asia or other distant markets. Instead, companies should first establish a strong presence in neighbouring countries before scaling up to the rest of Africa and global markets.
From East Africa to the continent
The opportunity extends beyond the EAC through the African Continental Free Trade Area (AfCFTA), which brings together a continental market of roughly 1.4 billion people and a combined GDP of about $3.4 trillion.
For Uganda, increased access to these markets could provide a bigger customer base for locally manufactured goods, agricultural products and processed commodities while encouraging firms to invest in production at a larger scale.
Kamukama said Uganda’s industrial strategy should therefore focus on building competitive products for East Africa first, expanding across Africa and pursuing international markets at the same time.
The approach, he stressed, should not be interpreted as turning away from Europe or other global destinations, but as making better use of markets that are geographically closer and potentially easier for Ugandan businesses to access.
Trade barriers remain a challenge
Despite the size of the opportunity, businesses across the region continue to face obstacles that can make cross-border trade expensive and unpredictable.
Among the concerns are non-tariff barriers, differing regulations between countries, high transport and logistics costs, and delays at border crossings.
Cargo trucks routinely spend significant time undergoing clearance at some border points, adding costs for traders and manufacturers and potentially raising the final price of goods.
The EAC has set an ambition of increasing intra-regional trade to 50 per cent by 2030, highlighting the substantial room for growth in trade among member states.
For Uganda, achieving that ambition could mean moving beyond the export of raw commodities towards greater processing and manufacturing, allowing more value to be retained within the country.
The push for stronger regional trade comes at a time when Uganda is seeking to expand its industrial base, increase exports and create more employment opportunities for its growing population.
A larger regional market could give Ugandan firms the scale needed to invest in machinery, improve product standards and develop supply chains capable of competing internationally.
Kamukama said the opportunity for Uganda is already within reach and urged businesses to take advantage of it.
“The opportunity is now,” he said.
Wandegeya LC1 leaders sworn in, pledge inclusive development and peace
Newly elected Local Council (LC1) and LC2 leaders in Wandegeya Parish, Kawempe Division, Kampala, have pledged to promote inclusive development,...
