In a significant milestone for Ugandan agriculture and trade, The Simons Uga Ltd, a vanilla exporting company, has successfully shipped 10 metric tons of vanilla extraction grade to the United States, valued at $400,000 (UGX 1,476,814,400). This shipment, which arrived in Chicago, USA last month (November), marks a pivotal moment for the company as it continues to expand its footprint in the lucrative North American market.
The company CEO Simon Musisi has also set up a warehouse for the product in Delaware and is now able to distribute Ugandan vanilla across the USA and Canada which he says has allowed them to negotiate for better prices. âThis choice has been equally very important for our entire value chain, starting with the farmers because theyâre now assured of reasonable prices for their vanilla. In the same regard, more foreign exchange is to be realized because of the better prices we have been able to negotiate for.â
Mr. Musisi has expressed his gratitude to the Presidential Advisory Committee on Exports and Industrial Development (PACEID) for connecting The Simons Uga Ltd with its U.S. off-taker. “Without the support and introduction from PACEID, this achievement would not have been possible. Their assistance has been invaluable in helping us navigate the complexities of international trade and establish strong relationships with buyers in the U.S.”
He adds, âPACEID has supported us since 2022 and its involvement in growing Ugandaâs exports has increased our sales in the US.â
The Simons Uga Ltd anticipates to increase the volumes of vanilla exported to the US in 2025 to over 40 MT. This ambitious goal reflects Musisi’s confidence in the growing demand for high-quality Ugandan vanilla and the company’s ability to meet that demand.
âThe Ugandan Vanilla industry is promising and if our farmers are well equipped with the right information on vanilla farming and good agricultural practices are observed, we shall take on the global market by surprise because our quality in terms of vanillin is superior. Uganda needs to increase its vanilla production to meet the global market demand.â Says Mr. Musisi.
The Simons Uga Ltd’s shipment of vanilla extraction grade to the United States marks a significant achievement for the company and the Ugandan vanilla industry.
The Presidential Advisory Committee on Exports and Industrial Development (PACEID) team led by Mr. Odrek Rwabwogo and accompanied by Ugandaâs Trade Envoy to Serbia, Mr. Bratislav Stoiljkovic, and Mr. Matthew Bagonza of the PACEID Secretariat along with Serbian officials in the coffee and trade sector, on Monday this week, met the Chairman of the External Committee on Foreign Relations for the city of St. Petersburg, north-central Russia, Mr. Evgeny Grigoriev, and Ms. Nana Gvichiya, the head of the stateâs tourism committee.
The parties discussed opening a trade hub to sell Ugandaâs agricultural products and invest in the value chain for coffee, tea, lithium, iron ore, and other products. Uganda is making an effort to raise USD 6bn in exports in the next five years. Mr. Grigoriev told his visitors, âAn African proverb which says, one who fears the sun cannot leadâ applies to the relations between Uganda and Russia and encouraged the delegation to open a coffee hub and exchange trade relations with Uganda transparently. He proposed a business center for both Uganda and Russia in both their capitals of Kampala and St. Petersburg, to promote trade.
The meeting was attended by the head of medical and life sciences and lecturer at the state chemical and pharmaceutical university of St. Peterburg, Prof. Vladmir Perelygin who asked the delegation to share knowledge with âuniversities in Uganda for research in human and animal medicinesâ. Rwabwogo and the delegation later met the Deputy Governor of the state, Mr. Boris Piotrovsky who represented Governor Alexander Beglov while he was away attending the BRICS summit in Kazan. Rwabwogo told the deputy Governor, âUganda is entering a new and decisive phase on industrial growth, manufacturing and value addition for all her agricultural and mineral products. We now require a fresh perspective on both our new and old markets in order to strike meaningful and respectful business partnerships across the worldâ.
The city of St. Petersburg is Europeâs sixth largest with some six million (6m) people and a GDP of more than Euros120bn.Tourism contributes about 2.7% of the GDP given the city is Russiaâs cultural, art, cuisine and entertainment center. The city received 21 million tourists last year and the city leadership asked for a partnership with Uganda Airlines to promote tourism with Africa. St. Petersburg has a highly diversified industrial base in oil and gas, boat building, data and technology, with more than 850 large scale manufacturing industries along with 22,000 SMEs that dominate exports in the region. The state of St. Petersburg was in the past led by President Vladmir Putin, before he became President of the Russian Federation. The country of Russia imported more than 220,000 Metric tons of coffee in 2019 and has an average drinking capacity of 1.5 cups per capita with a very growing young population of coffee enthusiasts.
The PACEID delegation later visited the national war museum in St. Petersburg, which hosts more than 10,000 square meters of exhibits of the second world war and the role of Russia, formerly Soviet Union (USSR) in defeating NAZI Germany. Rwabwogo who gave glowing tribute to the Soviet war hero, Gen. George Zhukov, defender of the city of St. Petersburg (in 1941 called Leningrad till 1991) for more than 900 days of disease and starvation, along with the leaders of Soviet Union who carried the heavy load of the war and defeated the evil forces of NAZI Germany. He said, âWe must all remember war is a terrible thing and all who understand our world, should learn to negotiate and do what it takes to never engage in warsâ. He added that Russia continues to present the world with one of the best examples of resilience during that great patriotic warâ. He praised the USSRâs innovation in tank warfare at a time when Soviet Union was thought weak and less industrialized by both friend and foe. âIt gives us in Africa an example of humility and focus on both the unity of our continent and our economy as a way of ensuring a stabler futureâ Rwabwogo told the museum directors who conducted the delegation the afternoon of Monday.
On Tuesday, October 29, 2024, PACEID leadership then flew to Moscow, Europeâs largest city at 12 million people and Mr. Rwabwogo gave a lecture on Africa detailing the last 100 years of Africaâs relationship with Russia and the developed world on matters of trade, diplomacy and governance. Rwabwogo was welcomed to the Financial University of Moscow, formerly the institute of Economics and Finance. The university is considered one of the top five universities in Russia and was founded in 1919. He was welcomed to the lecture by Ms. Anna Suchilina, Deputy Dean of Academic Affairs of the faculty of Social Sciences, Mr. Denis Deninov, lecturer at the peace and conflict resolution department and Ms. Daria Osinina, Deputy Dean of International Cooperation. The universityâs alma matter includes President Lula Da Silva of Brazil, the Cuban Argentine born Ernesto Che Guevara and the current minister of Finance of the Russian Federation.
âAfrica lost more than 300 years of growth when Europe and much of the west was rapidly scaling through the industrial revolution. We have now largely stabilized under some good leaders, a number of them young and; we are catching upâ. He added that it is important for young people in Russia to study far âbeyond your borders, build relations with Africa so that you can serve your world betterâ. Rwabwogo encouraged the students to teach Russian language, classics, poetry, science and culture to the world saying, much of what Russia does, doesnât seem to be very much known to the English-speaking world. âIt is your challenge to explain Russia to the world as a young and educated generationâ. He took the university students and lecturers through a detailed opportunities list in cooperation on enterprise building, science and innovation, patents in medicine and foods that Africa presents to the next generation of world entrepreneursâ calling on Russian universities and academia to develop relations with African universities to help âboth our worlds to know each other and build harmonyâ. The students who included science, mass communications and political and social sciences and arts, were curious to know how Russia should work with Africa given the lack of limited interaction in business between Africa and Russia.
The PACEID delegation later visited several locations near the Kremlin in the heart of Moscow, near the 1903 landmark hotel of Nationale, to find where Uganda can locate a trade hub for coffee and other products.
In a landmark move, the government of Uganda and the government of the Republic of Serbia have today, Thursday, October 25, 2024, held the first session of the Joint Commission for Trade Cooperation in the City of Nis, Serbia. During the session at City Hall in the City of Nis, both states agreed to revive the trade agreement that was signed between the government of the Socialist Federal Republic of Yugoslavia and Uganda seeking to enhance and develop economic cooperation and bilateral relations.
H. E. Mr. Tomislav MomiroviÄ, Minister for Internal and Foreign Trade of the Republic of Serbia, and Gen. Wilson Mbasu Mbadi, State Minister for Trade at the Ministry of Trade Industry and Cooperatives signed on behalf of their countries respectively. The two have expressed their satisfaction with the historic steps taken and agreed to intensify future cooperation.
Gen. Mbadi is leading the Ugandan delegation in Serbia composed of officials from the Ministry of Trade, Industry and Cooperatives, Ministry of Foreign Affairs, Ministry of Agriculture, Animal Industry and Fisheries, Ministry of Works and Transport, Uganda Civil Aviation Authority, Uganda Airlines, State House Diaspora Affairs Unit, and the Presidential Advisory Committee on Exports and Industrial Development (PACEID) under the leadership of Odrek Rwabwogo.
Present to witness this historic agreement was Ugandaâs Ambassador to Rome, Elizabeth Paula Napeyok who announced the appointment of Mr. Bratislav Stoiljkovic as Ugandaâs Trade Envoy to Serbia.
Important to note is that the advancement of these relations was after H.E. Yoweri Kaguta Museveni visited his Serbian Counterpart President Aleksander Vucic in July 2023.
Gen. Mbadi has underlined the importance of the Presidentâs visit and emphasized that this, along with bilateral meetings, highly contributes to the promotion and development of the overall relations between the two countries.
âOn behalf of my delegation, we bring you heartfelt greetings from H.E. the President, and the People of the Republic of Uganda. I would like to register our appreciation for the warm, welcome you have accorded to us and the wonderful facilities you have placed at our disposal since we arrived in this beautiful Country. Uganda and Serbia enjoy historical ties based on mutual respect dating back at the time of H.E Josip Broz Tito. This Joint Session is a follow-up of the State Visit by H.E President Yoweri Museveni in 2023 when he met with His Counterpart H.E Aleksandar VuÄiÄ President of the Republic of Serbia in July 2023. I therefore, commend our Trade Representative in the Republic of Serbia, Mr Bratislav, and the Chairperson of the Presidential Advisory Committee on Exports and Industrial Development (PACEID) Mr Odrek Rwabwogo, for working tirelessly to ensure that the efforts of our two Presidents are taken forward. We can cooperate in other sectors besides trade such as Science Technology and Innovation, Tourism, Education, Culture and others agreed upon between the two nations.â
Hon. Tomislav expressed optimism about building on the already-established political relations to enhance trade. He further noted that President Museveniâs visit to Serbia last year was a game-changer in the relations between the two nations. âOur relations with Uganda are deep-rooted. As the successor of Yugoslavia, we would like to continue cooperation with not only Uganda but all of Africa. We always like to work jointly with our allies with respect for mutual benefit instead of taking their resources as raw materials. We can do much more to boost our economies with this agreement and my government is committed to ensuring that what has happened here today is just the beginning of better things to come in the future. We look forward to the next engagement in Uganda.â
PACEID chairman Rwabwogo has thanked Hon. Tomislav and his government for the kind of work done between Serbia and Africa to revitalize what was lost over time. He expressed his admiration for the city of Nis and its rich history considering it is the birthplace of Constantine the Great. âBeing in the City of Nis to sign this agreement, a city where you defended your country and made it the capital during World War One, gives me pleasure. The museums, the beautiful people, and the rich culture of Nis are a testament to how much you have resisted. I want to also thank President Vucic for welcoming President Museveni. These two think alike. They think differently and independently and they are a blessing to the people of Serbia and the people of Uganda.â
Rwabwogo explained the âSix Step Modelâ that Uganda is adopting not just for coffee but other products to be exported to Serbia and other Balkan states. The model involves; 1. Processing at home to leave some value at home, 2. Distribution at retail level, 3. Assembling of machines at home using Serbian technology, 4. Opening cultural exchange and trade (both in Uganda & Serbia), 5. Renewing bilateral agreements to make them work for both Ugandans and Serbians and 6. Using these bilateral agreements to reduce or completely remove tax to support each otherâs prosperity.
Rwabwogo added that Uganda is working towards advancing to data and analytics ecosystems, strengthening negotiation capacities between the European Union and other countries, building more capacity and authority to serve Serbian companies better, and setting up industrial parks to ensure sustainable supply of Ugandan products to Serbia, which he referred to as âSERBIA 2.0â.
Newly appointed trade envoy, Bratislav, hailed President Museveni for creating an environment that has enabled businesses and investors to operate seamlessly, especially peace and stability in the region. âThis is a special occasion to be with my brothers and sisters from Uganda in the City of Nis, my birthplace. We want Ugandan products not only in Serbia but the entire Balkan region and beyond.â
The Ministry of Works and Transport and its Serbian equivalent also signed the Bilateral Air Services Agreement (BASA) to facilitate code sharing and direct flights between Uganda Airlines and Air Serbia, enhancing connectivity and trade between the two countries and other African destinations. Tumusiime Aggrey, Senior Air Transport Officer in charge of Regulation represented the transport ministry while Ms. Mirjana Cizmarov, Director General, Civil Aviation Directorate, represented Serbia during the signing.
Tumusiime acknowledged the Presidents of both countries for initiating a commercial diplomatic relationship in July 2023 noting that the BASA would improve connectivity, trade, and social-cultural relations between Uganda and Serbia. âUgandan airspace is safe and secure for commercial aviation after following the International Civil Aviation Organization (ICAO) and security audits where we passed above the global level. On behalf of my Minister, I congratulate both Serbian and Uganda representatives for delivering the aspiration of the Heads of State.â
Government representatives from both parties presented the current economic situations in their respective countries and considered the trends in bilateral trade and economic relations, including the data on investment incentives and protection of investment.
Dr. Paul Mwambu, Commissioner Crop Inspection and Certification at the Ministry of Agriculture, Animal Industry and Fisheries, and Cleopas Ndorere, Commissioner for External Trade and the Ministry of Trade, Industry and Cooperatives made the case for Uganda.
It was agreed that the second Session of the Joint Trade Commission between the Republic of Serbia and the Republic of Uganda will be held in Kampala, in February 2025, the exact date will be agreed upon through diplomatic channels.
At the Pan African Congress Business Forum (PACBF) organized by the Presidential Advisory Committee on Exports and Industrial Development (PACEID) in partnership with the Africa Global Chamber of Commerce (AGCC) at Munyonyo, 7th & 8th October, JAHL Production (U) Ltd signed a contract with DET Imports from Detroit, USA for first 3 x 20â container of the new ICED Espresso ready-to-drink liquid Coffee product. This followed three months of negotiation on a distribution agreement, test marketing, innovation in packaging, and USA import approval. The initial contract is worth 1 billion Ugx and is expected to lead to sales of 3-5 billion in the first year to the US market.
JAHL was established in Uganda in 2024. It is a partnership with Farm Mountain Global, Randers, Aarhus, Denmark who developed a patented technology of producing a liquid Espresso coffee product using only fresh roasted coffee from Uganda. In less than 8 months, JAHL has established its first production line in Kampala and will be producing ICED Espresso for the global market.
DET Imports is a Michigan-based based dedicated to importing and distributing Ugandan products in the US market. With a major distribution center in Detroit, Michigan, they will work with Ugandan companies to get them market-ready and distribute the products into US markets. ICED Espresso coffee will be the first product followed by Macadamia Nuts from Amafh Farm Ltd. and Tooke banana flour produced by the Presidential Initiative on Banana Industrial Development (PIBID) in Bushenyi district.
ICED Espresso coffee is a unique product, ready-to-drink liquid coffee. Packed in a 40ml sachet, it has the following unique features:-
Shot of Espresso. Definition of Espresso: âA type of strong black coffee made by forcing steam through ground coffee beans”.
Versatile: Suitable for Hot & Cold coffee drinks
Taste: 100% Authentic Espresso/Artisanal Brewed Espresso/No Additives/Not a Concentrate
Product variations From Original Espresso Taste/Flavoured Coffee options/Health Boost Options/Energy Boost Options /Alcohol Mix Option
New Innovation: Uses traditional espresso brewing techniques with new packaging innovation.
Convenience: Coffee on the Go/Anytime Anywhere/Quick
Single Serve Portion: No wastage/cost control/low unit price
Recyclable & Sustainable: Fully recyclable plastic packaging/use of espresso grounds as soil nutrition or bioproduct for products such as coffee body scrubs, candles, etc.
Shelf life: over 18 months/ambient travel & storage.
Unlike roasted coffee which deteriorates as soon as produced, the ICED Espresso product has an 18-month shelf life without refrigeration. This means Uganda can exported to the global market and be supplied into the retail supply chain.
JAHL, by producing a retail product in Uganda with Ugandan coffee is delivering real added value to our coffee. JAHL can achieve 5 times the export price of Green Bean Coffee.
Uganda has a major competitive advantage in the world coffee market. Producing both Arabica and Robusta coffee JAHL can blend and roast Uganda coffee for any taste profile in the world market. JAHL has received inquiries from Europe, the Middle East, Canada, India, and Asia and expects to expand to meet these demands.
The visiting business delegations of sisters and brothers from the USA
Uganda Trade Representatives
Ladies and Gentlemen who came to participate in the Pan African Congress Business Summit
It was in the middle of winter, December 2022 when Uganda first hosted three back-to-back business summits in one week – in the cities of London, Washington DC, and Chicago. At that time, we were figuring out how to deal with the twin issues of post covid economic recovery and crafting a new message for the country on how to deal with trade and exports as the oxygen that would underpin this recovery. As some of you might know, Asian countries recovered faster on manufacturing than Africa given what many thought would be a difficult return to the old manufacturing and distribution chains the pandemic had disrupted. There was an estimate that up to USD4.9trillion (McKinsey, August 2021) worth of manufacturing, food, pharmaceuticals and transportation, would shift from China to regional centers, East Africa among them. This shift didnât happen because China had done some good industrial capacity preparatory work and we all returned to them for industrial inputs and consumer goods, instead of taking advantage of this crisis.
We wasted a good crisis; a very important inflection point at which Africaâs regional manufacturing capacity would have been strengthened to endure further shocks and give us better industrial capabilities. Even for America, there was a survey of about 346 firms on whether they would be willing to leave China and return to their home ground even with incentives and subsidies at home. The survey turned up 79% of the companies saying they werenât prepared to leave China! It shows that economies are planned like raising a child. What you put in early, it will show up later in good or bad ways. Africa hadnât prepared and we missed an opportunity in this crisis.
Anyhow, after these marathon business summits in December of 2022; we kept up much pressure on the US market. We held several mini events in Washington DC; we tried to work with some airlines for a possibility to land in Chicago, New York or Atlanta at a future date, reduction of cargo charges to flights in parts of middle east and Africa; we kept up media engagements (Mark Pursey and BTP Advisors are in the room) including meetings with several US based thinktanks, business groups, the House of Congress, State department and many others. This was in order to consistently make a case for our country to be restored to the AGOA opportunity; to deliberately create more understanding with our allies as well as those who tend to misunderstand Uganda and Africa. We have been in Chicago a number of times to find African America allies and work with them, Detroit, Michigan to find off takers of coffee, dried fruits nuts, and banana flour.
I am happy today that we gather in Kampala to begin this annual event (we hope to do this every July) and work under the Pan African umbrella, given the last time we held the Pan African congress was April 1994. We feel strongly that a home is built by both those who travel and learn (the diaspora) and the citizens who (remain and produce). There couldnât have been a better time to visit Uganda than when we celebrate 62 years of independence and the return of our sisters and brothersâ home!
Why do we do all this and more? Because in a massive global trade of more than USD32 trillion, Africaâs share remains only 3% and even in many areas, productivity of firms and exports has fallen, yet we are surrounded by a rising young population and immense natural resources.
The market of the US for which we are gathered here to build bridges with, is USD18 trillion worth of consumption.
It imports over USD3 trillion in products and services. For a developing country like Uganda to succeed, we got to have presence on this market. To ignore it or simply connect with it only on politics, diplomacy and other areas of partnership, is to miss a good place to begin mindset change on enterprise building. Our SMEs can learn much by having elemental interactions with US firms; our youth and their growing creative and business acumen could be built to an international level and give us future companies with scale. This is why we donât give up on this market even if politics often interferes. There is no time in life when all is clear; Instead, life teaches us to keep pushing on for what we believe is good for the country and for our enterprises. If you take a look at Uganda and its USD200m worth of trade or the EAC at USD1bn, this is small for the US market. Even all our annual trade as EAC block with the world standing at USD62bn, (equivalent to three financial year budgets for Uganda), all of us are punching below our weight. We can do more and better. This is why we bring our allies this week to have a mature and informed discussion on the possibilities of working together for a better positioning for Africa starting here in Uganda.
I should tell you Africa hasnât been the same; we have been evolving and for better. It is good that we remain optimistic about the direction even if we might have questions about the pace of progress.
Letâs take a look at these maps:
Map one: Africa has no agency, no decision making and it is a society of Four classes:
-Sons of chiefs and priests who would be instrumental in strengthening the colonial state,
-Illiterate soldiers commanded by colonial officers who carried out coups and caused instability
-Few Afro-Asiatic and Lebanese entrepreneurs on the coasts and in some pockets in the hinterland
-Massive numbers of peasants, in Uganda more than 96% when I was born in 1969.
Map Two: An Africa beginning to understand where the drivers of prosperity come from â The Market and reducing trade barriers, removing suspicion and letting the private sector speak directly to each other on the market.
Map Three: An Africa optimistic, aiming at USD30 trillion worth of GDP by 2050. Uganda aims at USD100bn worth of exports by this time as we approach a century as a country.
Yes, we still have very high transaction costs on account of:
Land borders â 107 that require 57,000 kilometers of roads, bridges and highways to connect 54 countries. Only 60% is complete in various shapes and forms and 40% including power lines, interest cables, all needs funding of up to USD100bn for some years to come in order to make this a competitive infrastructure compared to Asia, EU and USA. This too is an opportunity in infrastructure funding on pay per user basis.
Rail of 75,000kms for a land surface of more than 30 million square kilometers translating to 2.5km per 1000sqkm of population density of population. Asia is 23km for every 1000 square kilometers of population. There is work to be done but as more clarity becomes available to many of our leaders these days, we will get there.
These numbers are rapidly changing for better. You can tell this from the trade numbers with some of our partners worldwide by the end of 2019:
China -USD259bn
UAE -USD159bn â ports and infrastructure even more
EU -USD150bn
Intra Africa -USD100bn-USD150bn
USA -USD70bn
Therefore, our allies and our diaspora would like to hear and see more work done on trade integration in Africa, productive capacity integration (joint border processing zones), infrastructural integration (work between Uganda and eastern DRC for 100kms inside stopping insecurity and pulling in USD600m in sales) and free movement of the people of Africa (labour and travel without limits and visas) and their trade allies. This should be a rallying cry for all of us â the private sector, civil servants and our mutual friends from the US who hope to invest in Africa. The US FDI into Africa stands at only 13% largely because of these weaknesses.
This is why in Uganda under our teams who we call combat commanders given this mental, philosophical and cultural battles for unity around trade in Africa, are making interventions at three levels we hope to drive this change:
At the market level, we insist on research where we donât have data, better preparation, trade representation, trade hubs, on customer level engagement, retail level engagement etc. The Serbia and Balkans model as you will hear later today (thank Trade Representative Bratislav Stoiljkovic represented by Boris and Bragan), has processing at home of some 6000MTs of our coffee as part of the 40,000MTs we import as replacement, retail outlets, including restaurant level distribution, storage level, technology for tracking products and transactions and assembly of equipment. We combine this with Bilateral negotiations on rates and air travel. This is to help our firms and products get to regional and international value chains in a sequenced manner so we can learn what to do. Markets can also get the taste of our products and in the end invest at source in Uganda. There is no way to do this differently because we would need more than USD2bn to invest in global promotion, money we donât yet have.
At Firm level, we meet companies as they are not often what we expected them to be. We are a young country and continent with few large size businesses. We got to be conscious of the fact that large size businesses that we compete against were initially supported by their governments in foreign markets. We too are building a model to support these SMEs through export orders, working capital and some grants. We have partnered with a fund called Uganda Exim Ltd and I hope the team is here to speak later about this. The fund is in its early stages and has given one grant so far but hope by end of October, more loans and grants at very low rates will be given. The Fund now has more than 46 applicants and it is building capacity to serve export businesses better. In the month of November, we have two grants for DET imports in Detroit Michigan and in Chicago once they demonstrate orders have been picked and warehousing and distribution set. They can also apply for low fee loans at Ug Exim.
At Government level, we work on a Standards and compliance authority for our food safety (Food & Agriculture Authority) to match what FDA and other international protocols require, all under one roof. Our people are here to speak more on this later. We continue to work on infrastructure support on land, air and at sea to get better competitive rates for exporting firms. We also continue to make inroads for bilateral trade negotiations with a number of countries. This October, we will be in the southern Balkans and in DRC for these negotiations on off take of products and launch more facilities. The US/Uganda firms here can supply these markets too. This is why my brother Anni Bassey (Nigeria Trade Representative is here) and Justin Katoto (DRC Trade Representative is here too). Please reach out to them on this. Let us see what we can do together!
Our target for the US partners is twofold:
First, at industrial level, for investment in the various fields, education, cultural exchange and tourism. We think we can reduce the cost of industrial inputs and service skilling from outside if we work with the US firms. Industrial inputs or intermediate goods into Africa stand at:
Europe â 26%
China 15%
USA 7% (small)
Sadi Arabia 4%
India 3%
Africa 16%
Africa remains small in sourcing industrial intermediate goods amongst each other yet 45% of all our value-added goods are sold within Africa! This can be grown to 70% and Africa will industrialize and learn to work together as regional blocs and continent.
The Second need is Value addition to both food and minerals, refrigeration, transportation and firmsâ partnerships. Just think of one sector of animal feeds. To produce 1m tons of fish as Uganda target, we require 800,000MTs of maize and 600,000MTs of soya. These will in the process, give us 100,000MTs of cooking oil we are importing at more than USD80m annually. Who can we get on land, investment, technology and we give supply connection to the two firms that are producing 100,000MTs of fish feeds beginning 2025?
This is the same for fertilizer production for maize. The current 2.3 million acres we use for maize production across the country gives us 1.5tonnes or less, an acre. Simply applying some basic NPK (and there is a firm here for example trying to separate hydrogen from Oxygen using an electrolyzer and add ammonia and even others using animal manure) we could raise to 3.9 tons per acre and earn USD1.7bn a year from maize alone. These projects need skill and capital and this is partly why we look to friends in the US to keep this conversation going. Yes, we need to move our country to the computing age and take advantage of the Generative AI tools and data, but we still have huge competitive advantage on production of food for the world that we arenât using well. I need some support in this area.
Therefore, given Africa and Uganda is industrializing at a time when global value chains are highly fragmented post covid 19, there is increased protectionism in each country that wasnât the case in the 1980 and 1990s when nations in the Far east were rising, there is rapid digitalization affecting low value commodities Africa is in, increased levels of sea costs on account of terrorism, threats of war, etc., I would like us to act with wisdom and haste when we have friends in the room who want to buy our products. This is because we face a vastly changed world that asks us for glass jars for fruits into Europe yet we havenât even started making tins, it puts barriers in the way of our youth scaling their businesses when they give subsidies to the farmers in the west to keep our organic foods out of the market, the US allies become key in the battle for export knowledge and business growth.
Our team and our government will keep up with the following in order to support this work:
Build a pocket of excellence on the matter of trade and exports. We want to strengthen the work done so far and build a Uganda Trade and Exports negotiations center. This will give us a bridge between public sector and the actions you are taking to help us achieve targets on the US and other markets.
Keep directing attention to the layers of complexity of trade and exports with the world. This is so we can create cultural change, a mind shift of sorts to improve our societyâs understanding of the exports and manufacturing as a driver to ending poverty. This knowledge once it tips over, it will be a way of life for the next generation just like we see in many Far eastern countries. This is how we can increase production, keep time and build trust and confidence on the markets you are giving us.
The Presidential Advisory Committee on Exports and Industrial Development (PACEID) has today, at the Kampala Serena Hotel, announced the first Pan African Congress Business Forum and Expo (PACBFE) is set to take place from October 8-12, 2024 at Speke Resort Munyonyo in Kampala. The event is organized by PACEID in partnership with the Africa Global chamber of Commerce (AGCC), the private sector in Uganda and the United States, the event aims to enhance Uganda’s exports to the United States.
AGCC is led by Uganda’s Trade Representative in the United States.
Organized under the theme, âA Diaspora Homecoming: Navigating the Next 100 Yearsâ, the event borrows from the historical Pan-African congresses to make a business case for Africaâs diaspora as the most pivotal economic growth agents over the next century. It further aims to leverage cross-Atlantic regulatory frameworks to strengthen engagements with multinational corporations and deepen partnerships with the African-American diaspora. On July 1, 2007, President Yoweri Kaguta Museveni said, âThere is tremendous potential in Africa. Africa is a continent of the future. Just like India and China have become superpowers, in the next 25 years a lot of changes will have taken place.â
The event will be attended by business and government leaders from the East African region, plus the leading multinational agencies, financial institutions, experts in manufacturing, tourism, exports and trade from the rest of Africa. This will provide a platform for networking, collaboration, and knowledge sharing. The event will focus on identifying products and services in demand across US markets and exploring opportunities for sales and distribution.
PACEID Chairman Odrek Rwabwogo has reiterated the significance of accessing the US market for Uganda, citing it as the largest consumer market globally with a staggering $18 trillion economy. He emphasized the need to strengthen Uganda’s trade relations with the US, which in turn would help elevate Africa’s trade ties with the United States.
“This event will not only showcase the potential of Uganda’s exports to the United States but also facilitate discussions on how to further strengthen trade relations between the two countries. This is a platform where political, civil, and aid society leaders will converge to explore collaborative opportunities. Further, it will serve as a pivotal moment for Uganda’s global positioning, aimed at showcasing the countryâs potential and capabilities to the world,” notes PACEID Chairman Odrek Rwabwogo.
Besides being a crucial step in strengthening Uganda’s ties across various sectors and supporting its efforts to re-enter the African Growth and Opportunity Act (AGOA) program, the event presents a unique opportunity for Ugandan businesses to discover connection points with the African diaspora in America and African Americans to develop commercial and strategic export partnerships.
The forum and expo will feature panel discussions, workshops, and networking sessions, providing participants with valuable insights and opportunities to connect with key stakeholders in the industry. Attendees can expect to gain a deeper understanding of market trends, consumer preferences, and regulatory requirements in the US market.
On the sidelines of the business forum, American participants will also visit what Uganda has to offer in terms of tourism, trade, and investment; UNESCO sites like Kasubi Tombs and the Namugongo Martyrs Shrine, Mweya Safari Lodge, Murchison Falls National Park, Kira Motors factory, Queen Elizabeth National Park, Lake Mburo National Park, Bujjagali falls and the Source of River Nile among others.
Present during the announcement were stakeholders from both the government and the private sector who expressed excitement in participating in this monumental business forum. Key among others were officials from the Ministry of Trade, Ministry of Agriculture, Animal Industry and Fisheries, Uganda Tourism Board, Uganda National Cultural Centre, Uganda Exim Limited, United Nations Development Program, East African Business Council, Adventure Consults Limited, Government Citizen Interaction Centre and the Presidential Initiative on Banana Industrial Development among others.
For more information about the Pan African Congress Business Forum and Expo, including registration details and sponsorship opportunities, please visit www.paceid.org/pacbf.
PACEID was established to tackle the strategic and operational challenges that hinder Uganda’s capacity to maximize its industrial and export potential. By facilitating coordination among Ugandan exporters, producers, government institutions, and international stakeholders, PACEID strives to accelerate the nation’s export growth and industrial advancement.
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.
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.
While addressing a group of entrepreneurs and local leaders in Kirinya Bweyogerere, Wakiso District on Saturday, July 20, 2024, Odrek Rwabwogo, Chairman of the Presidential Advisory Committee on Exports and Industrial Development (PACEID), emphasized the importance of leadership in shaping the countryâs production. âStrong leadership is essential for creating a conducive environment for businesses to thrive and for promoting economic growthâ.
Rwabwogo also highlighted the role of security in ensuring political stability, which in turn leads to an increase in production, stressing a secure and stable environment for businesses to operate in builds confidence among investors, and encourages growth and development.
He briefly spoke about the history of Uganda and how President Yoweri Kaguta Museveni has shaped the economy from an enclave to what it is today. He preached patriotism urging guests to shun shallow politics and adopt a national collective ethic.
During his speech, Rwabwogo also explained the work of PACEID about the four pillars of markets, standards and compliance, infrastructure, and export credit funding. He outlined how PACEID works to support Ugandan exporting businesses in these areas, helping them to navigate challenges and take advantage of opportunities for growth and expansion.
âBy providing guidance and support to local industries, PACEID facilitates the development of export-oriented sectors, including agriculture, manufacturing, tourism, and services that are enabling Uganda to establish itself as a competitive player in the international market. We work closely with various stakeholders, including government agencies, businesses, and development partners, to identify export opportunities, address barriers, and develop policies that promote trade and industrial growth.
Following Rwabwogo’s presentation, the group expressed a need for a vocational training institute in the area to advance skills development. They noted that the area currently has only one government secondary school, which is overly populated and unable to meet the demand for all school-going individuals, hence the need for a vocational institute to enhance vocational training. The entrepreneurs emphasized the importance of investing in skills development to empower the local workforce and drive economic growth in the region.
Coordinated by Francis Kagonyera of Training, Production, and Outreach at PACEID, the event was hosted in Kirinya-Bukasa at the premises of Mr. Kiyengo Richard, a former Mayor of Kira Municipality and an entrepreneur.
Others present were; Mzee Seggane Erukana, former Mayor of Kira Municipality and a businessman, religious leaders from all faiths, NRM Chairman Kira Municipality, Bweyogerere LC3 Chairman Isaac Ssenkubuge, Namigadde Harriet, Nanyonjo Faith, Lameck Kawooya and other local leaders from neighboring sub-counties.