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Uganda To Become An Export Powerhouse

by Rhyman Agaba
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Uganda’s renewed push towards industrialisation and global trade competitiveness has received a major boost following the launch of the Uganda Free Zones and Export Promotions Authority (UFZEPA).

According to trade minister Francis Mwebesa, the new authority will be at the forefront of transforming Uganda into an export-driven economy capable of competing in regional and international markets.

“UFZEPA is expected to play a crucial role in implementing Uganda’s trade strategy, focusing on diversifying export products, reducing the trade deficit and improving the competitiveness of Ugandan goods in the global market,” Mwebesa said on Friday, while addressing stakeholders at the authority’s head offices at communications House in Kampala.

The authority was established through the Free Zones (Amendment) Act No. 30 of 2024 as a result of the merger between the former Uganda Free Zones Authority (UFZA) and the Uganda Export Promotion Board (UEPB).

Mwebesa noted that Uganda’s current trade dynamics — characterised by a reliance on raw material exports and a widening trade deficit — are unsustainable.

He emphasised that the Government is keen on shifting the country’s export portfolio towards value-added goods.

“For years, Uganda has exported raw coffee, tea, minerals and agricultural produce. UFZEPA marks the start of a paradigm shift where we aim to export branded, packaged, processed and certified products that fetch premium value in international markets,” Mwebesa stated.

UFZEPA is not only a regulator, but a strategic enabler of growth.

Under its expanded mandate, the authority is charged with establishing, maintaining and promoting Special Economic Zones (SEZs), export aggregation centres, pack houses, and customs-controlled production facilities that meet international standards.

“Our focus is on tailored industrial infrastructure to support large-scale and small exporters alike,” said Hez Kimoomi Alinda, the executive director of UFZEPA.

“We will implement reforms to simplify export trade procedures, eliminate bottlenecks and provide technical support to help Small and Medium Enterprises (SMEs) access global markets.”

Uganda’s export sector remains one of the most promising avenues for sustainable economic growth. Monthly export earnings hit a record $1.1b (sh4.07 trillion) in April this year, marking a 72.1% year-on-year increase, largely fuelled by robust performances in coffee, gold, electricity and other key commodities, according to the finance ministry economic performance report.

The economy recorded a remarkable surge in merchandise exports, with revenues increasing from $644.90m (sh2.39 trillion) in April last year to $1.1b (sh4.11 trillion) in April this year.

The 72.1% year-on-year growth reflects rising global demand and strategic positioning in high-value sectors, such as coffee, electricity and gold alongside cocoa beans, sugar and base metals.

Mwebesa called on investors, producers, developers, exporters, and all value chain actors to partner with UFZEPA in building the future of Uganda’s economy.

Exporter speaks out

Esther Nekambi, the executive director of the Uganda Flower Exporters Association (UFEA), said: “Having worked with both former entities in developing Free Zones for floriculture and promoting Uganda’s flower exports through the national flower catalogue and QR-code marketing, I remain optimistic about the merger. It lays a strong foundation for a more integrated and strategic approach to promoting export-oriented investments,” she said.

Nekambi emphasised the need for UFZEPA to prioritise capacity-building among SMEs, particularly in post-harvest handling, compliance with phytosanitary standards and digital marketing of Ugandan products.

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