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.
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.
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.
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.
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.
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) 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.
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.
In an exciting development, Rev. Prof. Florence Muranga, Director General of the Presidential Initiative on Banana Industrial Development (PIBID), has secured a strategic collaboration with DET Imports, a U.S.-based import company. This partnership aims to bring the unique qualities of TOOKE Flour to households and commercial markets across the United States.
A team from DET Imports comprised of Tambouridis Angela Elaine, Karboske Joel Nathan, Alebiosu Lanre, and Oluwole Johnson Oluwaseto were in Uganda from July 28, 2024, to August 2, 2024 and visited over ten producers and exporters dealing in dried fruits, vanilla, Moringa, macadamia nuts 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, Masheda Mixed Farm, Amafh Farms, Fine Spinners and JAHL Production (U) Ltd among others.
TOOKE Flour, known for its exceptional quality and diverse applications, is on the brink of making its debut in the competitive U.S. market. DET Imports, with its extensive experience and established distribution channels, is set to play a critical role in introducing this innovative product to American consumers and businesses.
Rev. Prof. Florence Muranga emphasized the significance of this partnership which will pave the way for a flourishing relationship while introducing a product that embodies quality and versatility.
The discussions and arrangements leading to this collaboration have been fruitful, with the teams from PACEID and DET Imports working diligently to ensure a seamless integration of TOOKE Flour into the existing marketplace. The final stages of negotiation focus on distribution logistics, marketing strategies, and the introduction plan that aligns effectively with consumer trends.
With its unique nutritional profile and adaptability in various culinary applications, TOOKE Flour is poised to meet the growing demand for quality food products in the U.S. market. From baking to cooking, this flour is designed to cater to both home cooks and professional chefs, offering a superior alternative to conventional flour products.
Tambouridis Angela Elaine, the DET Imports Chief Supply Chain Officer is optimistic that TOOKE Flour will not only enhance the culinary options available to consumers but also contribute to the diversification of food imports in the U.S.
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.
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 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.
Odrek Rwabwogo, the chairman of the Presidential Advisory Committee on Exports and Industrial Development (PACEID), on Tuesday, June 4th, 2024, visited and toured Masheda Holdings, a mixed-agricultural farm that doubles as an agro-tourism hub located in Buyala along Mityana Road. Spanning over 25 acres, the Masheda facility houses a diverse ecosystem of operations, including the Masheda Palm Resort, Masheda Mixed Farm for catfish, Masheda Foods, and Nkore Designs by Masheda.
During his tour, Rwabwogo was deeply impressed by the holistic, integrated approach taken by the Masheda Holdings management team. “This is an exemplary facility that showcases the potential of building a comprehensive value chain ecosystem, especially in the catfish industry,” he noted.
The catfish operations at Masheda Palms encompass the entire production cycle, from fingerling rearing to processing, packaging, and even exporting of both smoked and fresh fillets. Rwabwogo applauded the facility’s efficiency and the management’s focus on maximizing the value of each stage of the process.
Marvin Lwasa, Masheda Holdings Executive Director explained that their catfish is farm-raised in an eco-friendly well established fish farm per International standards for farmed fish. âWe sustainably produce premium and organic catfish products while prioritizing environmental stewardship, aquaculture welfare, and customer satisfaction,â Marvin states.
One aspect that particularly caught Rwabwogo’s attention was the Nkore Designs by Masheda, a workshop where single mothers create beautiful and high-quality crafts from reeds. “It is heartening to see the empowerment of these women, who are using their skills to produce such exquisite products,” he remarked.
Sherinah Nabakooza Ainembabazi, the CEO Finance, says that the Nkore Designs weaving project was born out of the trials faced by many during the COVID-19 country-wide lockdown. âAs many lost their jobs and incomes, the single mothers in and around the Buyala community needed to find a source of income to support themselves and their familiesâ.
âNkore Designs supports women by equipping them with a new skill set (weaving) that would also provide them with an income. Through NKORÃ Designs, we desire to create a sustainable livelihood and a sense of purpose for our surrounding community. Our mission for this business, especially through our impact arm, is to transform the women in our communities into empowered, informed and dignified women. A woman that is elevated and empowered enhances the quality of her own life, the life of her family, and her wider community.â
Rwabwogo expressed his appreciation for the Masheda Holdings team’s vision and execution, stating that the facility serves as a model for integrated agro-tourism hubs that can drive economic development and create sustainable livelihoods.
“This is the kind of forward-thinking, value-adding approach that we need to replicate and scale across the country,” Rwabwogo concluded. “Masheda Holdings is a shining example of what can be achieved when entrepreneurial spirit, technological innovation, and a focus on social impact come together.”
“On behalf of everyone at Masheda Holdings, we would like to extend our thanks to Mr. Odrek Rwabwogo & the PACEID team for taking the time to visit our facilities. Your presence was a great source of inspiration for our team. We deeply appreciate your unwavering commitment to the export promotion of Uganda’s products. Your tireless efforts in this regard are paving the way for producers and exporters like ourselves, and it is such a vision that encourages us to reach new heights. Thank you for your dedication and support, which not only enhances the visibility of Ugandan products on the global stage but also fosters a thriving environment for businesses like ours to grow and succeed.” says Marvin Lwasa, who also doubles as the Managing Director, Masheda Foods.
The Africa Global Chamber of Commerce in Chicago in the state of Illinois in partnership with the Uganda Exports Advisory Committee (PACEID) on Friday hosted over 40 African American businesses in a drive to find buyers of Uganda’s agricultural and mineral products and attract investment in Ugandaâs food value chains. The meeting which was attended by bankers, investment and finance, pharmaceutical firms, hospitality companies, leaders of the city of Chicago, representatives of the Illinois House of Representatives, faith leaders in the black community, and business people from the state of Detroit, was organized by Dr. Olivier Kamanzi, Ugandaâs trade representative in the USA. Ugandan diaspora led by the former President of the Uganda North American Association (UNAA) Ms. Henrietta Wamala Nairuba attended the meeting along with other Ugandans.
Speaking at the event on Friday evening, the chairman of PACEID, Odrek Rwabwogo gave the history of the relationship between the USA and Uganda in trade, said âEvery business or country can compete on multiple fronts based on its resources and products but Uganda has a deeper point of difference it offers the worldâ. This he said, âis the uniqueness of her centrality on the African market in both geography and free enterprise, market openness, skilled human resource easy to train for high-value production and the availability of raw materials to drive high growth industries such as semi-conductor chip making, electric vehicles and the emerging USD200bn health foods industry in the USAâ.
Rwabwogo added, âWe have had good leadership very much underestimated yet highly effective like your own Abraham Lincoln who saved your country from the curse of slavery and kept your union in 1864. Ugandaâs current leadership has been so pivotal in shaping a stable and growing society in our region yet often misunderstoodâ. He gave an account of Ugandaâs history praising President Yoweri Museveni and calling him âthe Abraham Lincoln of Uganda who helped our country restore a sense of dignity and stability that we never had since 1962â.
President Yoweri Museveni attended the first trade and investment summit of the USA and Uganda in December 2022 in Chicago. Ugandaâs coffee, vanilla, leather, fruits and banana flour companies exhibited at the event and took orders for supplies to the retail outlets in the Chicago area. PACEID with a target of USD6bn in fresh revenues in exports has been opening markets, setting food safety standards, and working on infrastructure along with efforts to provide low-cost funding for exporting firms. PACEID plans to open a trade hub with the Ugandan diaspora in the city of Chicago.
Dr. Kamanzi told the gathering, âI grew up in Switzerland and I had never been to Uganda till a year ago and I was blown off by the immense opportunity, the green of the country, its freshness and tastiness of the fruits, its game parks and how welcoming the people are. I think American companies can use Uganda as a base not just to process and export good agricultural products but also get higher returns in investment more than any parts of the worldâ.
Dr. Kamanzi, who is organizing the first Pan African trade, exports, culture and investment summit in Kampala in June this year, invited African American entrepreneurs like Mr. Robert Blackwell who is a manufacturer of table tennis equipment, Ms. Patricia Hanes of the Chicago Supplier Development Council, Mr. Larry Ivory, President of the Illinois Black Chamber of Commerce, Mr. Ousman Conteh, Vice President of the Chicago Hotels Association, Mr. Rifet Durmick Vice President of the BMO Bank and many others to plan their journey to Kampala and âsee for yourselves the opportunity in Ugandaâ.
Mr. Blackwell, a leading African American entrepreneur in Chicago and a friend of former President Barack Obama, later held a private meeting with Odrek Rwabwogo and called for greater connection between Africa and African Americans. He said, âAfrica has not taken seriously the bonds of friendship and relations between the continent and their kin in the USA as partners in enterprise development and economic growthâ. He added that âcorporations in India and China have done a good job connecting their people to the diaspora in the USA and Africa needs to take a cueâ
The Commissioner of the Board of Cook County, one of the largest counties in the USA with a budget of over USD6.9bn, Ms. Donna Miller, spoke of the need for a stronger trade and cultural relationship between Uganda and the state of Illinois. The Mayor of the City of Chicago who was represented by Aldermans William Hall and David Moore called for an education exchange program between Uganda and the city of Chicago.
The meeting was also attended by Cody Lorance, one of Ugandaâs trade representatives in the USA who spoke about the Endiro Coffee experience trading in the USA in specialty coffees at a consumer level. Endiro has a coffee outlet in the city of Aurora, an hourâs drive north of Chicago city. The PACEID team drove to the city of Aurora on Saturday to gain a better understanding of the coffee and other products retailing needs. The PACEID team will be in Washington DC this week to follow through on trade commitments between Uganda and the USA and hold a conference at the national press club.
In a strategic move to promote sustainable agriculture and reduce import reliance, the Ugandan government has signed a Joint Development Agreement with Industrial Promotion Services (Kenya) Limited (IPS) for a green hydrogen-based fertilizer plant.
The plant will be strategically located at Karuma, Kiryandongo District, within the Bunyoro sub- region, to leverage its proximity to the 600 MW Karuma Hydropower Plant.
The Ministry of Energy and Mineral Development (MEMD), representing the Government of Uganda, has committed a minimum 100 MW supply from Karuma HPP to develop this innovative project. Energy Minister Dr Ruth Nankabirwa Ssentamu signed on behalf of the government.
âUganda is embracing green technology to transform its agricultural sector and become a regional sustainability leader,” said Dr Nankabirwa. âThis project will not only reduce dependency on imported fertilizers and empower farmers but also catalyse Uganda’s green hydrogen economy, fostering innovation in mobility, power generation, oxygen production, and other key sectors.â
The project, facilitated by the Presidential Advisory Committee on Exports and Industrial Development (PACEID), aims to boost domestic fertilizer production, improve food security, and create economic opportunities for farmers.
IPS, part of the Aga Khan Fund for Economic Development (AKFED), will lead the project alongside Westgass Internasjol AS, a Norwegian green energy specialist, and Maire Tecnimont S.p.A, an Italian multinational renowned for fertilizer plant engineering.
This venture enjoys the vital support of the British and Norwegian governments, global champions of green initiatives. Financial backing is anticipated from British International Investment (BII) and Norfund, Norway’s development finance institution.
“IPS is dedicated to climate-positive development,â said Galeb Gulam, CEO of IPS. âThis project is a game-changer for Ugandan agriculture, demonstrating our commitment to low- carbon economic solutions.”
Odrek Rwabwogo, PACEID chairman, emphasized the project’s support of Uganda’s export goals. âThis initiative will harness resources and technology to make a decisive impact on our agricultural sector and national export ambitions,” he said.
This collaborative effort envisions a future of resilient, sustainable agriculture with lasting benefits for Ugandan farmers and the economy. It demonstrates the Ugandan government’s strong commitment to import substitution and enhanced food security.
âOur sustainable approach will create jobs, decrease fertilizer imports, and address national food and income security. This partnership exemplifies Uganda’s focus on ecological responsibility and economic success,â added Kinar Kent, CEO of Westgass.
Westgas is the international project development arm of Westgass Hydrogen, a green energy company focused on accelerating the transition from fossil fuels in Europe and emerging markets. The Company enables customers to run carbon-neutral businesses by 2030, supplying affordable and secure green hydrogen and green ammonia, leveraging on its experience, expertise and network in the energy sector.
Westgass is collaborating on this project with Norfund, the Norwegian Investment Fund for developing countries. Norfundâs committed portfolio totals 3.1 billion USD in Sub-Saharan Africa, South-East Asia, and Central America. Norfund has four investment areas: Renewable Energy, Financial Inclusion, Scalable Enterprises and Green Infrastructure.
Africa in 2019 just before COVID-19 induced lockdowns exported USD421bn and received USD31b in development assistance and USD40bn in FDI. Uganda lies somewhere small in these figures and it shows you how much exports dwarf aid only if we can focus. This export level is still so small for a group of human beings (Africans) who constitute 17% of the world population. Even worse the concentration of these exports is just simply commodities – minerals, oil and agricultural products that are unprocessed. This is why we keep awake driving export growth for Uganda and we will go anywhere, meet every criticism and work with joy; for we are called in our time to fix some things not to lament.
This is why I thank the partnership we have developed with Serbia and the Balkans to ensure that processing of coffee, handling of fresh fruits and vegetables and other products is done at the entebbe free zones area and make it easier to ship in bulk. The Hon. Ivica Dacic, foreign minister for Serbia and its former PM, came to the free zones to inaugurate the start of the hub at entebbe and called on the free zones authority. I thank Bratislav Stoiljkovic, our trade representative who is opening a third Uganda connect trade hub to make our products known and accessible from Uganda. Mr. Mark Pursey, our Trade Representative in UK will too be opening a hub in London this year as we prepare for the Africa- UK summit.
These efforts make our country come out of woodworks on trade and export matters. We are way behind in how nations compete and are instead locked in shallow peripheral political conflicts instead of focusing on what builds us as a country. PACIED target is 25 trade hubs across the world in the next ten years. This will attract technology and skills, capital investments and develop better supply chains for our products.
In the last decade exports of agricultural products that are of high value have grown only one percentage points yet the continent grows at 3% of GDP and her population at 2.5%! If this doesnât shock people into reality, what will in terms of what needs to be done to keep Africa stable and growing?
So yesterday we articulated Ugandaâs trade policy to the Serbian government delegation as: 1) We will offer tax and infrastructure incentives in return for removal of taxes on Ugandan products into Serbia and the Balkans. 2) We will insist on assembly and manufacturing of agricultural equipment such as coffee machines and processing of juices instead of export raw products to them. 3) We will help with the logistics and supply chain improvements, packaging and packing materials in return for them to process portions of the products here. 4) We will appoint an Honorary consul who will drive trade and not the ones who drink champagne and sell hardware to our country. We will be intentional on growing this trade relationship by signing a new bilateral agreement this year to capture these elements.