Uganda moves to tap into Nigerian market

In a bid to widen its market base on the African continent, Uganda is moving to tap into the Nigerian market. Nigeria is one of the largest economies in Africa with a $1.2 trillion GDP and a population of over 200 million people.

Uganda’s exports to Nigeria stood at $3.46 million in 2020, according to the United Nations COMTRADE database on international trade. Whereas Uganda’s imports from Nigeria stood at just $678,000. Uganda’s most exported products include; agricultural products such as tobacco; aluminium, fruits, hides and skins and sundry.

Speaking during the Nigeria-Uganda Business and Investment Forum in Kampala last week, Ambassador Akinremi A. Bolaji, the director of economic affairs, trade and investment at the Nigerian ministry of Foreign Affairs who led the Nigerian delegation said investment remains a critical tool for poverty reduction and sustainable development.

He said in the major industrial revolution, there is a 10-year plan designed to accelerate the buildup of industrial capacity in Nigeria. We developed business incentives to encourage investment in technology, industry and other sectors. Nigeria has embraced technology to ensure the seamless conduct of business in Nigeria.

“We recognize that the economic benefits and potentials of trade and investment relations with Uganda and other partners are huge. In order to encourage private capital flow, we have developed fiscal investment in sectors to encourage investment,” he said.

Francis Mwebesa, minister of Trade Industry and Cooperatives said trade between Uganda and Nigeria is very low and therefore there is a need to promote the intra-Africa trade agenda. The two countries were active during the negotiation of the African Continental Free Trade Area (AfCFTA).

He said the introduction of an electronic single window system and the establishment of one-stop border points, automation of customs procedures, improvement of transit flow through the elimination of existing non-tariff barriers, and expansion of market access opportunities through the East African Community have stimulated trade within the region.

Uganda is committed to improving the business environment while taking strategic directions to embrace the liberal trade policy and continue to drive the economy in different spheres quick licensing and registry.

“I urge traders and investors to partner with the Ugandan business community to invest in agro-business focusing on value addition, storage facilities through the construction of warehouses and silos; fish farming and establishment of fish processing factories, renewable energy, mining, oil and gas services and others,” Mwebesa said.

Export trade growth coupled with prudent microeconomic policy and structural transformation of the economy, Uganda has committed the promotion of trade, and tourism investment between the two countries.

Nelson Ocheger, the Uganda High Commissioner to Nigeria said to address the challenge of transport and connectivity, Uganda Airlines has secured a license to operate passenger and cargo flights from Entebbe to Lagos and Abuja. In the past, for one transport good from Nigeria to Uganda, the goods would first go to Europe, Dubai and then Mombasa before reaching their destination due to lack of direct flight.

He said the direct flights will go a long way to facilitate trade, tourism and investment between the two countries by reducing the time of travel and the cost of doing business between the two countries.

“Trade between Uganda and Nigeria stood at $4 million. This means the export of agricultural products, machinery and chemical products. Nigeria on the other hand has exported textiles and other products worth $2 million. The figures can expeditiously increase. Over the last three years, Uganda has been open to partnerships to promote trade between the two countries,” he said.