Uganda has signed an agreement with the airport of Nis, some 200 kilometers south of Belgrade the capital of Serbia, to handle cargo from Uganda into the Balkans and Eastern Europe. The airport named after the third century Roman emperor Constantine the Great who was born in the region of Nis, receives 150 large size cargo trucks daily with transit goods to Greece, Albania, Macedonia and other Balkan nations of south-Central Europe. The airport also handles large volumes of tourism passengers in the region during summer in Western Europe.

Nis Constantine the Great Airport is the second largest and second busiest airport in Serbia, after Belgrade Nikola Tesla Airport.

The agreement was brokered by Uganda’s Trade Representative in the region, Mr. Bratislav Stoiljkovic. Bratislav believes that securing this space is a step closer to getting Uganda’s value-added products into Serbia and the entire Balkan region through a fully integrated logistics value-chain. H.E President Yoweri Museveni opened a trade hub (Uganda Connect) in Belgrade the capital of Serbia in July this year. The hub has generated demand for visits to Uganda and orders to source products from Uganda. Uganda Connect is a facility promoting Ugandan exports in Serbia and the European market.

Serbian investors including Kafica Moja, one of the largest coffee sellers in hotels and supermarkets in Serbia, Croatia and Montenegro, will be processing and exporting roasted coffee from Uganda to the Balkan region. The company was invited by President Museveni when he visited Serbia to open a trade summit in July 2023.

The agreement signed on Saturday 4, October 2023, at the airport with the Managing director of the Nis Constantine the Great Airport Facility Mr. Mihaldjo Zdravkovic, gives Uganda exporters more than 750 square meters of storage and shipment space for the shipment to the onward seaports of the neighbouring Thessaloniki in Greece, Duress in Albania and Varna in Bulgaria, all in a sailing range of less than 300kms from southern Serbia. The port of Nis receives and clears all cargo from Asia and Africa into the Balkans. A number of Serbian companies in July confirmed orders for Ugandan vanilla, coffee, banana flour, cocoa, flowers, nuts and dried fruits amounting to USD200m.

The agreement signing on Saturday was witnessed by Odrek Rwabwogo, Chairman of the Presidential Advisory Committee on Exports and Industrial Development (PACEID).

Rwabwogo was in Belgrade, Serbia to meet the trade minister, Mr. Tomislav Momirovic to press for tax free entry of Ugandan products and services into Serbia as agreed between Presidents Museveni and Aleksandar Vucic of Serbia in July 2023. He was also in Belgrade to check on the preparations for the visit of President Vucic to Uganda in January 2024.

“This storage and shipment base for Uganda gives us much better access to a GDP market of over USD100bn of the Balkans. It will lessen storage and shipment costs once we connect it to Entebbe and Mombasa or by air out of Entebbe. Ugandan companies can now use this as testing ground for holding and conveying cargo in the region and beyond”. Rwabwogo said at the signing ceremony.

Ugandan exporters have applauded the move and expressed their gratitude to Bratislav and Rwabwogo for their dedication to promoting Uganda’s exports through new markets, infrastructure development, adherence to international standards, and improved export financing which are vital for unlocking the country’s export potential.

Dr. James Kanyijje, Managing Director KK Foods Limited has welcomed this achievement saying it’s a key requirement in order to trade in international markets. “It means a lot, it’s part of all requirements for better business after capital. Now, with cold storage, it is possible to increase our exports in the Balkans. President Museveni promised to support local exporting companies, now is the time.”

The Simons Uga Limited CEO Simon Musisi says, “With this opportunity of accessing free storage space at Nis Airport, our Ugandan vanilla exports into the Balkans (a region of over 200M people) shall greatly increase and a positive effect on returns on exports is to be registered. This will grow our sales throughout Eastern Europe and our farmers will be able to receive fair prices on their vanilla. We Thank PACEID under the leadership of Chairman Odrek Rwabwogo for this great achievement”.

Uganda is known for its rich agricultural landscape, producing some of the finest coffee, tea, and cocoa beans on the continent. What many people aren’t aware of, however, is that Uganda is also a leading exporter of vanilla.

Uganda is currently exporting over 400MT of vanilla a year which is more than 50% production increment in a period of 5years.

According to Uganda Export Promotion Board (UEPB), Uganda exported 89.038 Tons of cured vanilla worth USD 8.33 million (30.5 billion shillings) by March, 2023.

Ugandan vanilla is a unique and highly sought-after product, simmering with natural flavors and fragrance that is exclusive from other vanilla products in the world. It’s been described as “exquisite,” “delicious,” and “distinctive” by those who have had the pleasure of tasting it. It is for this matter that Ugandan vanilla exporters signed huge deals to export the product to Serbia during the opening of the Uganda Connect trade hub in Belgrade in July this year.

Simon Musisi, Chief Executive Officer of The Simons Uga Limited dealing in premium quality vanilla is one of those who signed deals. He is a processor and exporter of vanilla beans, powder and vanilla pure extracts. “Vanilla processing requires a production team of persons who are trained and experts in that field in order to achieve a higher vanillin and good quality vanilla that can match the global standards of the international food industry.” he says. His major export market is USA and Europe.

The major markets for Uganda’s Vanilla include; USA, Indonesia, Canada, France, Germany, Australia, Belgium, South Africa, New Zealand, Japan, Israel, Mauritius, United Arab Emirates, Italy, Denmark, Check Republic, Switzerland and Republic of Korea.

One of the unique qualities of Ugandan vanilla is its hand-picked, thanks to farmers harvesting plants only when they reach maturity, using traditional and time-honored techniques to guarantee the quality of their crops. This dedication to quality ensures that the product is of high value to consumers who seek natural and unique products, which gives Uganda a competitive edge in the global market.

Uganda, the second-largest exporter of vanilla in Africa behind Madagascar, has various suitable growing conditions for vanilla, making it possible to produce a substantial and consistent quantity of vanilla beans every year. The country has two vanilla seasons, the June-July harvest and December-January harvest. The districts of Kayunga, Mukono, Mpigi, Jinja, Kmauli, Bundibugyo, Luwero and Kasese are the biggest vanilla growing regions in Uganda. Vanilla production of vanilla in Uganda is picking up, and farmers are working tirelessly to meet the growing demand for this natural and delectable ingredient.

Vanilla is a significant source of income for many small-scale farmers in Uganda. It provides a valuable opportunity for economic growth and stability in communities across the country. Musisi provides employment to thousands of people during the two seasons of vanilla harvesting. “We directly work with more than 2000 farmers and over 10,000 farmers through general suppliers.”

Vanilla production is an ideal business for farmers in Uganda because it requires a relatively small amount of land and can be grown alongside other crops. This makes it an affordable crop for small-scale farmers who may not have access to a lot of land.

When it comes standards, Musisi says he does not compromise on quality as he always exports the best that meets regional and international standards. “Vanilla is a raw material for the food industry, quality is a major requirement. Therefore, global food standards are mandatory. This is a major challenge that we have tackled through training our farmers and general suppliers to consider good agricultural practices. For example, farmers should not use pesticides on their vanilla farms or intercropping their vanilla gardens with crops that require pesticides, the farmers must harvest their vanilla after maturity and on proper harvest dates,” he emphasizes.

It is because of practices like these that Ugandan vanilla offers unique and exceptional taste and is highly valued in the global market. Uganda’s vanilla industry has transformed into a profitable export, driving economic growth and providing opportunities for local farmers. However, stakeholders must address challenges related to sustainability and market volatility to ensure the long-term growth and success of the industry.

Vanilla is one of the thirteen priority sectors the Presidential Advisory Committee on Exports and Industrial Development (PACEID) under the leadership of its Chairman, Odrek Rwabwogo, is working with to grow Uganda’s exports revenue to USD6B and beyond by 2028.