During the Ambassadors Conference organized by the Ministry of Foreign Affairs (MOFA) at the Civil Service College Uganda in Jinja on Wednesday, August 28, 2024, the Chairman of the Presidential Advisory Committee on Exports and Industrial Development (PACEID) Odrek Rwabwogo encouraged the ambassadors to do more to support Ugandaâs export drive by getting more orders for Ugandan products from the countries they are deployed in.
PACEID was invited to make a presentation during a panel discussion on Ugandaâs export promotion strategies and the disruptive nature of the committeeâs work in expanding market influence at the event themed âStrengthening Governance and Performance of the Foreign Service for National Developmentâ. Ambassadors and delegates convened to delve into the crucial matters regarding Ugandaâs international trade and diplomatic initiatives.
âBring us more orders from the countries to serve. The work we do is for the growth of the country and it is supported by the President.â Rwabwogo noted after breaking down the USD1.5 billion brought into the country’s economy in the last eighteen months from the seven markets where Uganda has appointed trade representatives. Uganda has Trade Representatives in the Democratic Republic of Congo, South Africa, the UK, USA, the Balkans, China, and Nigeria.
Rwabwogo’s presentation highlighted the importance of enhancing Uganda’s export sector to drive economic growth and foster sustainable development. He emphasized the need for robust strategies that harness Uganda’s rich resources and capabilities to expand its global market presence. He also shed light on PACEIDâs strategic pillars of operation, focusing on markets, standards, infrastructure, and export financing.
The panel discussion sparked engaging dialogue among the diplomats, stimulating constructive exchange of ideas on how Uganda can leverage its foreign service to propel exports and propel national development forward.
Rwabwogo concluded his presentation with a six-step model for entry of Ugandaâs products into international markets designed to boost the country’s exports. This model encompasses strategic interventions across various stages of the export value chain including value addition, regional markets, pockets of excellence, retail expansion, storage and logistics, and leveraging technology. All three are aimed at boosting Uganda’s export sector and achieve the USD 6 billion extra revenue by 2028 and USD 100 billion by 2062.
A team from DET Imports, an American company based in Detroit, comprised of Tambouridis Angela Elaine (Product Sourcing Analyst), Karboske Joel Nathan (Director), Alebiosu Lanre (Partner), and Oluwole Johnson Oluwaseto (Director) was in Uganda late last month (from July 28, 2024, to August 2, 2024). Facilitated by the Presidential Advisory Committee on Exports and Industrial Development (PACEID), they visited over ten producers and exporters dealing in dried fruits, vanilla, Moringa, fish, macadamia nuts, coffee, and Banana flour among others to ascertain their capacity to supply the US market.
Some of the companies visited include; Amstus Farm, Discovery Group, Zahra Foods Industry, PIBID- BIRDC-makers of tooke flour, Miecca (U) Limited, Pure Grow, Masheda Mixed Farm, Amafh Farms, Raintree Farms, Fine Spinners, and JAHL Production (U) Ltd among others.
The visit led the American team to discover the quality and uniqueness of innovative Banana (tooke) products made by the Banana Industrial Research Development Centre (BIRDC) and iced expressos produced by JAHL Production (U)Ltd. This sparked off immediate interest to have these two and other Ugandan products in the American market. There is confirmed readiness by the parties involved to pursue partnerships.
PIBID Director General Rev. Prof. Florence Muranga with the DET Imports Team
At the end of their feasibility study, the DET Imports team had an opportunity to share some of their insights about Ugandan products and their commitment to expanding markets and creating new opportunities for their partners in Uganda. Below is their brief conversation with PACEIDâs Communications Officer Rowland Bon Nkahebwa.
What were some of the key factors that influenced your decision to consider Ugandan products for your imports?
We had an opportunity, an introduction to Uganda and what it has to offer and it was enticing to come and see, and once we came here, we saw the abundance of products and the opportunity.
PACEID Chairman Odrek Rwabwogoâs trip to Detroit influenced our decision. At first, we didnât even understand all the opportunities in Uganda. We first came here in February 2024. After that, we assembled our team to come back and we knew we wanted to work with Ugandans and import their products. We think there a real story here, and we can help from the farmer all the way to our retailers and make an impact here.
What are the key factors that differentiate Ugandan products from other potential sources and make them attractive for import to the US market?
When we visited the farms, it was educating how the products are made. Like in the USA, you might find 1000 acres from one farmer but in Uganda, it is everywhere on a small acre where they do everything from seed, there are not a lot of pesticides, and everything is real, green, and organic. The environment here, being on the equator and having a 365-day farming season. Those are some of the key factors, it is a better product than other places we have been.
Also, we want to do business with the country and be involved with a country that takes care of its people. We want to be involved with those types of businesses and suppliers as well.
(L-R): DET Imports Director Karboske Joel Nathan, Tambouridis Angela Elaine-Sourcing Analyst and Oluwole Johnson chatting with PACEID’s Rowland Bon Nkahebwa
Can you provide an overview of the type of Ugandan products that DET Imports is currently seeking to import for its warehouse in Detroit?
We are going to be starting with coffee, not just your green and roasted coffees but some different types of products from coffee that we donât want to get into right now. Also macadamia nuts, dried fruits, vanilla, banana flour, textiles, and moringa oils. Those are the ones we are focusing on right now. We are going to support the creatives as much as possible too. The basket-weaving women we visited at Nkore Designs by Masheda, Discreet, and others.
What specific unique features did you observe in the products from the exporting companies and farms you visited in Uganda?
The quality of the products, from the farm, they are natural, and the taste of their organic and sustainable farming practices. Training the community, training different farmers, you see the love that goes into it into the quality of the products.
Having some of the larger suppliers that we toured coming up with training programs and actually teaching farmers what to do, and the biggest part is buying their products. Knowing that the product is already sold takes away the worry to provide for their families and eases the process of going into the next season.
DET Imports team L-R; Tambouridis Angela Elaine, Karboske Joel Nathan, and Oluwole Johnson Oluwaseto at Tooke offices in Kampala
What are some of the challenges/obstacles you might have encountered during your visit to the different farms and suppliers in terms of sourcing products?
Some of the suppliers are smaller and they are not currently exporting up to speed on different requirements, from potentially large orders, there might be a bit little bit more time to get them up to speed. But there are good plans in place for those suppliers, a lot of them have a future vision of where they can go. You know Uganda is still new, they are not China or Mexico and we donât want them to be. So, they are not up to those volumes yet but we see the potential and see that they can handle the capacity. But it also comes down to operational capital for whoever is doing the production and we think that could be a problem because they go and buy a new machine because their interest rates are 23-33 percent in the bank and this takes away all their profits. It is harder for them to borrow money, so I think PACEID is working well with them, helping them to obtain their goal through invoice financing from UG EXIM if they have an order so they can supply it properly and on time.
What strategies do you have in place to handle potential challenges related to logistics, regulations, or quality control when importing products from Uganda?
Education. So, working with their suppliers upfront to make sure that the understanding is there. The travel that we do by coming here, reaching out to our resources to make sure that they can go and work with the suppliers. So we train them to make sure that they are equipped. Logistics-wise, we work together, we use brokers who can help with their transactions, for ourselves and suppliers, and also provide knowledge.
Every aspect of the shipping is important too, to ensure everything is on time and actually gets there without being spoiled or damaged. So, right from the farm, the product has to be refrigerated to make sure the temperatures are there, implement GPS systems and temperature controls that can be monitored from our offices and our cellphones, and just get up to speed on technology which we are in process of doing and we are working with everybody to get this accomplished.
DET Imports is interested in having gluten-free Banana flour biscuits in the US market
What specific factors or qualities are you looking for in Ugandan products to ensure they meet the standards for importing and stocking in your warehouse in Detroit?
We kind of live in the US and have worked in the retail business for fifteen years, we just kind of feel we know the needs of the American market. We can bring in better products from Uganda that the Americans will consume. So, we know we can recognize the trends and what is missing from our American market, not just fresh foods because a lot of these we already have there but different products we donât have access to like the Moringas, real natural products that provide benefits, the Matooke (banana) flour. There are a lot of gluten allergies or digestive issues that we are facing in the US, so that is one product to add to the market and fill a void of gluten-free products.
So we are really looking at a lot of those products and in addition to others and what Americans are missing and what we can take there. One thing we have done is teach the Americans and show them what they need and put in their face. That is why we created a green room in our warehouse where we are going to be shooting content and showing people what banana flour can do, bringing local cooks and chefs and cook with Ugandan products, and doing presentations in different restaurants. Lanre, our business partner is in the fashion industry, he does a segment on TV every month regarding whatâs new in Detroit, and whatâs new in the US. So we want to take the products to the US and show them what it can do for them. This right here will create a need in the US market for banana flour.
Could you elaborate on the potential economic and social impact of importing Ugandan products to your warehouse in Detroit?
Long-term, if Ugandaâs exports go up, there is obviously a higher demand, and with that comes the need to automate their facilities and have machinery that can handle large volumes. This reduces the manual labor and bumps up the skill level of the employees to now have to know how to operate and fix machines. That is one area that could be impacted.
How has your collaboration with the Presidential Advisory Committee on Exports and Industrial Development impacted your visit to Uganda and the selection of Ugandan products for import?
We probably wouldnât be here in Uganda if it wasnât for PACEID. They have been very instrumental, not only in coordinating meetings with suppliers and government agencies but helping us understand Uganda and how things work and getting us to the right people. This would have taken us ten times as long to get to where we are right now, so expediting our business development tremendously would be a good way to summarize it in a few words.
PACEID has helped us widen our outreach by streamlining the process to help us get to where we need to be.
DET Imports Sourcing Analyst Tambouridis Angela Elaine (C) with PACEID Chairman Odrek Rwabwogo (R) and PACEID Markets Director Brenda Opus Katarikawe
Lastly, a lot has been said about Uganda out there, what is your assessment of Uganda compared to before you visited?
Uganda is a beautiful country, people are happy, and we feel well-received here. We enjoy Uganda and are looking forward to more productive trips. Due to time, we did not get the chance to visit some of the amazing tourist destinations, but next time we shall make sure to do so.
The Presidential Advisory Committee on Exports and Industrial Development (PACEID), together with the National Strategic Communication Committee, has successfully facilitated an interview between China Global Television Network (CGTN) and President Yoweri Kaguta Museveni to discuss the growing trade relations between Uganda and China. This interview, that will air on the Leaders Talk segment, is part of a larger plan to have President Museveni engage in four interviews before this year ends with international media in different export markets to promote Ugandan products and attract foreign investment.
CGTN’s Wang Guan interviewing President Museveni
CGTN is one of three branches of the state-run China Media Group and the international division of China Central Television (CCTV). As of February 5, 2024, CCTV was the leading television station in China with media platforms hosting over 115 million active users and watched by up to 1.5 billion people worldwide.
CGTN Leaders Talk Anchor Wang Guan conducted the interview assisted by the crew; Zhang Yajing, Liu Yuhao and Zheng Hao.
The decision to start with China is strategic, as the country is preparing to set up a Uganda Trade Hub in China, and has appointed a Trade Representative to assist Ugandan exporters with market surveys and information on market trends. This move has already shown promising results, with orders for 2000MT of Ugandan sim-sim and cassava flour from China worth billions of dollars which President Museveni has applauded.
Trade Representatives are charged with supporting the country to handle the four key pillars in their markets. These are dealing with critical compliance measures such as food safety standards that impede Ugandan exports in the regional and international markets, finding new ways and means to approach both old and new markets that take Ugandaâs products, coordinating the use and management of exit/border infrastructure such as warehousing, laboratories, cold rooms and bring them into conformity with the needs of the exporters and to lead the process for creation of an export credit fund that will de-risk entry of Ugandan products in foreign markets.
During the interview conducted at State House, Nakasero, on Thursday, July 8, 20204, President Museveni highlighted the importance of the growing partnership between Uganda and China, emphasizing the potential for increased trade and investment between the two countries. The President’s engagement with international media is part of a larger effort by PACEID to promote Ugandan products, increase the country’s presence in key export markets, and ultimately grow the countryâs foreign earnings.
CGTN’s Wang Guan hands a gift to President Museveni after the interview
The Presidential Advisory Committee on Exports and Industrial Development (PACEID) has reached out to local leaders starting with Acholi Sub-Region for collaborative efforts to enhance the region’s agricultural sector and meet international market demands. Led by Chairman Odrek Rwabwogo, on Wednesday, August 7, 2024, they delivered an informative presentation at the Bomah Hotel in Gulu City, focusing on the production and sourcing of agricultural export products to key stakeholders in the Acholi Sub-Region. In the session, Rwabwogo emphasized the importance of implementing responsible agricultural practices to maximize export potential and promote sustainable growth.
PACEID Chairman Odrek Rwabwogo making a presentation to local leaders of Acholi Sub-Region
During the presentation, Rwabwogo highlighted the significance of adopting upstream and midstream models in agricultural production and sourcing. âBy incorporating these models, stakeholders can streamline processes, enhance efficiency, and mitigate the risk of engaging in unethical practices.â
Rwabwogo urged the audience, which included local leaders; Resident District Commissioners (RDCs) from Regional District Commissioners (RDCs), Assistant RDCs, Resident City Commissioners (RCCs), District Internal Security Officers (DISOs), and Mayors to prioritize transparency, accountability, and compliance with standards to avoid misconduct and ensure the success of agricultural exports.
This activity took place on the sidelines of the district local leadersâ week-long retreat organized by the Office of the President about mindset change and empowerment to perform better at the district level. The local leaders had gathered to engage, remind themselves of their core mandate, equip themselves with more appropriate tools for service delivery, effectively represent the central government, and prioritize government projects to achieve the countryâs ultimate goal of socio-economic transformation.
PACEIDâs presentation served as a platform for dialogue and collaboration among key players in the agricultural sector, creating a shared understanding of the opportunities and challenges in exporting agricultural products.
Brenda Opus Katarikawe, PACEID Markets Team Lead appealed to the local leaders for support regarding three key aspects;
-Agricultural production data collection by identifying credible farmers, exporters, and aggregators.
-Identifying credible suppliers of agricultural products for export given that PACEID is talking to credible buyers.
-Support in terms of standards enforcement and drive to be able to do it continuously and sustainably.
âLet us work together to enforce post-handling standards to ensure quality production. Quality products minimize rates of interceptions which are costly but most importantly create a bad reputation for Uganda on the international market.â Katarikawe noted.
She reiterated PACEIDâs efforts to create food safety laws that will improve the standards of agricultural products to meet regional and international levels. This is being worked on in partnership with relevant government institutions and the private sector.
The Presidential Advisory Committee on Exports and Industrial Development (PACEID) has signed a Memorandum of Understanding (MoU) with Masheda Foods Limited, a Uganda-Democratic Republic of Congo (DRC) enterprise to partner on opening the first Trade Hub in Kinshasa and other parts of Central and Southern Africa.
The pact will also see more trade hubs in other parts of Central and Southern Africa.
The signing was done by Matthew Bagonza, Head of Secretariat at PACEID, and Ms. Sherina Nabakooza Ainembabazi, the Chief Operating Officer of Masheda Foods Limited, and it was witnessed by Odrek Rwabwogo, the Chairman of the Presidential Advisory Committee on Exports and Industrial Development and Brenda K. Opus, Head of Markets-PACEID.
PACEID’s Matthew Bagonza and Masheda Foods Limited’s Sherina Nabakooza Ainembabzi after signing the MoU
The MoU will allow Masheda Foods Limited, a Congolese-registered entity, to partner with PACEID on the export of fish and fish products, beef, dairy products, grains, and many other food and industrial products. It will also allow the two to work together on the price of cargo to reduce charges for Ugandan exporters into Kinshasa, manage publicity for Ugandan products, and ensure return cargo where possible for Congolese entrepreneurs to trade in Uganda.
Rwabwogo expressed optimism about the partnership saying, âI am happy that the efforts that we began in May 2022 to open trading relations at a company level are beginning to bear fruit and I thank our Trade Representative, Mr. Justin Katoto, who has worked on several issues including non-tariff trade barriers for Ugandan businesses to sell in DRC and exchange information and products with Congolese companies.â
In June, Uganda’s head of mission in Kinshasa, Ambassador Alhaji Farid Mansoor Kallisa, said Uganda has a trade surplus with DR Congo amounting to USD 53.07 million (Shs208.9 billion). Goods from DRC to Uganda include pal oils and paints while Uganda exports fish, mattresses, salt and cereals among others to DRC.
The Uganda-Algeria Trade and Investment Forum & Exhibition took place last week from 30th September to 2nd October at Hotel Africana in Kampala following a directive by Presidents; Yoweri Kaguta Museveni of the Republic of Uganda and Abdelmadjid Tebboune of the Peopleâs Republic of Algeria in March 2023 where a delegation of 150 business people and entrepreneurs from Uganda attended a business forum in Algiers.
The Business delegation was led by Hon. Francis Mwebesa, Minister of trade, industry and cooperatives of the republic of Uganda and Hon Tayeb Zitouni Minister of trade for export promotion of the peopleâs Democratic republic of Algeria to participate in the Uganda Algeria Trade and investment forum and exhibition. They held Bi- lateral discussions and officially opened the first ever Uganda Algeria business forum witnessing the MOU between the two chambers of commerce and later the establishment of the Uganda Algeria Business council that will spearhead and over sea trade between the two countries.
The forum was attended by Hon Francis Mwebesa, minister of trade and industry, Hon Frank Tumwebaze, Minister of Agriculture, Ps Geraldine Ssali, Permanent secretary (MTIC), Odrek Rwabwogo, Chairman Presidential Advisory Committee on exports and Industrial Development, Hon. John Mulimba, Minister of state for Foreign affairs, on Harriet Ntabazi, minister of state for trade, MS. Olive kigongo, president of Uganda national chamber of commerce and industry, among others.
Hon Teyeb Zitouni leader of the Algerian delegation was accompanied by Mr Kamel Moula, president of the Algerian economic renewal council employers foundation, Mr zaoui Hoicine, Director General Algerian Chamber of commerce and industry and Ms Ahlem Rahmani, deputy director in the Algerian Ministry of trade and export promotion among others.
The forum was also attended by Ugandaâs ambassador to Algeria H.E Alintuma Nsambu, Algeriaâs ambassador to Uganda HE Cherif Oualid, senior Government officials and captains of industries and private sector from both countries.
The ministers re stated the commitment of their respective countries in resolving challenges to businesses in Uganda and Algeria, among these are;
Strengthening corporate relations between private sector and governments
Strengthening trade business linkages for favorable balance of trade between Uganda and Algeria
Removal of all trade barriers and enhancement of free movement of goods,services, capital and labour.
Operationalizing of the Algerian Ugandan joint business council established to handle challenges of existing business communities.
Revenue authorities of both countries to hold regular meeting with the private sector to address challenges.
Accelerating processes of mutual recognition of standards and compliances for goods and services.( A draft agreement was drafted and was submitted by the Uganda National Bureau of standards to IANOR in this regard)
The following are the commitments welcomed by the forum
Bilateral cooperation in the field of education as one of the strategies of consolidating Ugandaâs human resource development efforts with an addition of 500 scholarships.
Further discussions to implement visa free entry between Uganda and Algeria in partial realization of the African continental free trade area (AFCTA)
Direct air linkage between Uganda and Algeria to facilitate trade through conclusion of a bi lateral Air services agreement (BASA). The ministers agreed that the two countries can start by using the existing infrastructure of Ethiopian airlines which has direct flights from Addis Ababa to both Entebbe and Algeria.
Rectification of the concluded agreements and memorandum of understanding in the fields of trade , energy, agriculture, animal health tourism, higher education and scientific research
Uganda asked for duty free access for milk powder worth USD 700m, coffee, beef, fruits, and tea in line with quality and standard requirements of the Algerian market.
Adhering to the guided trade initiative (GTI) of the African continental free trade area (AFCTA), a frame work for adopting reciprocal tariff offers on the agreed upon products originating and traded between Uganda and Algeria
Through the PACEID frame work, during the B2b sessions business deals and partnerships were welcomed;
A poultry factory in Uganda that also produces and packaging materials for poultry products, all eggs produced from this factory to be exported to Algeria in a period of 1 month.
An irrigation and water reservoirs demonstration facility in western Uganda effective immediately.
Collaborations in production and exportation of Shea butter from Uganda to Algeria.
Power distribution and street lighting in northern Uganda
In addition , investment projects in Uganda agreed for further discussions through the joint business council wee proposed in the production of pipes, cement production,poultry,steel and iron, oil and gas ,cosmetics, assemble of cranes and machinery, manufacture of irrigation systems, shoe manufacturing and manufacture of equipment for sewage
Furthermore the two delegations applauded the commitment by 14 Ugandan companies to export to Algeria as well to 17 Algerian companies who agreed to export products to Uganda, the Algerian delegation appreciated the government of Uganda on its progress and its promotion of the and exploitation of the oil and gas industry during a tour of the kabalega industrial park located in Albertine Graben in western Uganda.
The Algerian delegation commended the government of Uganda for convening the Uganda Algeria trade and investment forum and exhibition, and expressed gratitude for the warm reception and hospitality accorded to them, the delegation also appreciated Ugandaâs cultural diversity displayed during the welcome working dinner hosted by the Presidential Advisory Committee on exports and Industrial Development (PACEID) on 30th September 2023 at the Sheraton hotel, Kampala.
The sponsors of the forum were, PACEID, Housing Finance Bank, African export import bank, Pearl diary Uganda coffee development authority and other stake holders were applauded by the 2 delegations for their role in the making of the forum possible and further noted that this kind of partnership between the government and the private sector is critical in growing business between the two countries.
Benton Technologies Company, one of Shenzhenâs leading manufacturers of laptop computers, tablets, desktops, and makers of educational software will be investing USD30m in an assembly and production plant of one million laptops and tablets for Ugandaâs primary and secondary schools. The company officials led by Mr. Li Kaifu and Mr. Victor Zhang on Saturday conducted the Presidential Advisory Committee on Exports and Industrial Development (PACEID) delegation in their high-level 20,000 square meter manufacturing facility on the outskirts of Shenzhen city of Guangdong province. The facility employs 300 people and produces 2000 units per day.
PACEIDâs nine-person trade and export delegation comprising of government and private sector officials, was led by Chairman Odrek Rwabwogo. The team was in China to conduct buyer-seller sessions for Ugandan agro-industrial products for the China market and attract investments in food and mineral processing in Uganda. Shenzhen town, which is close to Hong Kong, is one of Chinaâs fastest-growing electronics and export centers in the world. PACEID hopes to attract Chinese wholesale and distribution companies for Ugandaâs food products. Uganda has a target of new USD6bn in five years from coffee, grains, dairy, beef, bananas, poultry, fruits and vegetables, tourism, cement, steel, and some others from the thirteen key products the government is focusing on. PACEID has set a target of USD100bn work of exports by 2062 when Uganda makes a century as an independent country.
Benton Technologies, said Mr. Li Kaifu, âintegrates design, research, and development and is a producer of high-quality products in the computing industry for schools and institutionsâ He said, âIt is a great opportunity to partner with Uganda and fulfill the vision of President Yoweri Museveni to add value to your mineral products by assembling some of our products in Ugandaâ. He added, âUganda has provided good incentives to us and if we keep to the schedule, we should be able to bring in some inputs and assemble as soon as practicableâ.
The company which sells its products to Amazon, AT&T, Rakuten, and Target Retail, some of the largest retailers and telecommunications providers in the USA, visited Uganda in January this year and met President Museveni who requested them to fulfill the vision of a growing computing industry to support manufacturing in Uganda. The company produces seven- and fourteen-inch children’s tablets for schools, mini personal computers, Point of sales (POS) machines, and conference projection equipment.
Benton Technologies supplies 30 percent of its products to the US market,15 percent to Africa and the rest to the EU and South America market. It has 31 international customers including the governments of Malaysia, Myanmar (Burma), Kenya and Tanzania. The computing chip sets the company uses are made in partnership with USAâs Qualcomm and South Koreaâs Samsung. Odrek Rwabwogo told the Benton Technologies team, âUganda needs to graduate from the importation of PCs and tablets which cost us more than USD160m annually, and begin assembly and eventual manufacturing of these items in the country.
âThe cables, circuit boards, plastic coverings, packaging material, can all be produced in Uganda if we are disciplined and enforce standards and stop taking manufacturing with a sense of casualnessâ. He added, âI am impressed that the village of Shenzhen of forty years ago, where Deng Xiaoping passed in 1992 before retiring and said China will never be poor again, now receives orders of high-level products from all over the world and it is an excellent city to work and live. I believe that our country too can do this very soon if we keep focusedâ
Rwabwogo urged Benton Technologies to think through a full value proposition to Uganda incorporating energy solutions for the laptops to village schools, and internet accessibility to facilitate studies for studies and repairs and maintenance online. He also asked to think through a good distribution network that ensures products reach students and schools on time and are kept in good working condition for at least six years.
On Sunday, the PACEID traveled to the region of Xiamen to meet coffee processors and other commodity off-takers.
While on a five-day tour of China last week, the Presidential Advisory Committee on Exports and Industrial Development (PACEID) trade and export delegation met the countryâs largest importer of coffee into China, C&D Commodities Company, and made a case for Uganda coffee to be stocked in the companyâs 20,000 stores across China. Many international coffee companies have signed up for distribution of their coffees largely sourced from Africa and South America in China. C&D owns a subsidiary called Luckin Coffee, the largest in the country owned by the Government. The company imports green beans and currently roasts in the city of Shanghai.
In a session held on Sunday, April 28, 2024, in Chinaâs tourism city of Xiamen, central west China, the team presented Ugandaâs strategy for increasing roasted coffee sales into China to Mr. Bryant Du, Manager of Commodities for C&D company. The meeting was also attended by Mr. Huan Hu and other leaders for the companyâs global coffee purchases.
The PACEID nine-person delegation led by their chairman, Odrek Rwabwogo who is also Senior Presidential Advisor on Special Duties, is composed of Ms. Brenda Opus, Head of Markets, Allan Mugisha, support officer on infrastructure, and other officers in the Information and technology sector. Rwabwogo told his hosts that, âUganda is open to work with C&D right from starting a large-scale farm if they so wish to set up roasting facilities in the country co-owned with Government where possible, and to support all export orders with crop finance. This will ensure the company buying coffee does not have to frontload funds till they have made sales and got awareness of the Uganda taste with Chinese consumersâ. The company raised issues of quality control, shipping and logistics, and payment systems which PACEID offered to resolve urgently to get the company in the country.
C&D Commodities is a USD150bn turnover company owned by the Chinese government since 1980. It is engaged in commodity trading, pharmaceuticals, cosmetics manufacturing and sales under license, textile production, infrastructure, and real estate. Its coffee subsidiary, Luckin Coffee Company, is one of the fastest-growing companies in China as coffee consumption expands with the increasing Chinese middle class. The country consumes more than 300,000 Metric tons, a third of this produced in China, and has over USD40bn in consumption expenditure.
Rwabwogo who made a presentation on tourism, industry, mining, and key agricultural projects in Uganda, said, âOur country and Africa know pretty well that prosperity is a shared risk as well as a gain. We no longer accept the stripping of the value of our commodities sourced from Uganda and the continent and little returns in jobs, technology, skills, and systems retained at home. This is why we share the risk in value addition of all our products. We will do whatever it takes to make sourcing, logistics, standards, and funding easier for you so that you can give us a portion of what you spend in South America and Vietnamâ.
Quoting Deng Xiaoping, the late leader of China who began the economic transformation of the country in the 1980s, Rwabwogo said, âPresident Xiaoping taught us to try experiments in special economic zones as he did here in Xiamen and Shenzhen. He told us âdevelopment must be taken carefully like a man crossing the river and groping for stones not to sink and to get to the other side of the riverâ. We too want to progressively end the dark stain of supplying raw commodities that we suffered for the last 100 years. We want to try out processing experiments in Uganda for all our commodities and if these work, the world is happy that one nation has overcome povertyâ.
The PACEID team also visited some of the largest cotton processing facilities in Guangdong province.
The Presidential Advisory Committee on Exports and Industrial Development (PACEID) led by Chairman Odrek Rwabwogo, on Tuesday, July 23, 2024, met a team from Bulemezi Heritage Coffee Cooperative Union, a farmers-owned cooperative Union in Ugandaâs Greater Luwero, to discuss various important issues.
One of the main topics of discussion during the meeting was market access. Bukenya Paul Michael, the Chairman of the cooperative union expressed interest in partnering with Uganda’s Balkan region trade representative Bratislav Stoiljkovic to explore new market opportunities for their coffee. By tapping into new markets, the cooperative hopes to increase its sales and revenue, ultimately boosting Uganda’s foreign earnings.
Another important issue raised was access to working capital. The cooperative union highlighted the challenges they face in securing financing for their operations and expressed their interest in working with UG EXIM to access the necessary funds. With adequate working capital, the cooperative can invest in its operations, improve its infrastructure, and ultimately increase its productivity and profitability. The âCoffee Cultureâ continues to date in over 60% of the households in Luwero. Partnering with this cooperative union contributes to improving the livelihood of families and the entire community. The solution lies in leveraging community numbers to drive quality and access better markets for Ugandaâs coffee.
Additionally, Bukenya and team proposed a visit by the PACEID Chairman to the cooperative’s bulking center in Luwube-Luwero for a training session with farmers. The training session will focus on the importance of mindset shift towards cooperative farming, emphasizing the benefits of working together as a collective rather than operating as individuals. The cooperative, a first-of-its-kind start-up boasts of over 1300 farmers with the potential to make 4000 members.
Richard Omagoro, the cooperativeâs Secretary expressed gratitude to Rwabwogo and his team during the meeting stating that PACEIDâs initiatives align with Bulemezi Heritage Coffee Cooperatives Unionâs goal. âWe are excited and working towards making this partnership a reality.â
By working together and implementing these strategies, the cooperative union can contribute to the growth of Uganda’s coffee industry and increase the country’s foreign earnings through exports.
