Uganda Appoints Trade Representative to Nigeria, Marks First Official Shipment of Goods

In a significant move to bolster intra-African trade, Nigeria and Uganda have strengthened their trade relations following the appointment of Ugandan Trade Representative Ani Bassey-Eyo to Nigeria. This development marks a crucial step in implementing the African Continental Free Trade Area (AfCFTA) agreement, which aims to create a single continental market for goods and services, facilitating the free movement of businesspersons and investments.

The appointment of Bassey-Eyo preceded the signing of commitment export orders, paving the way for Uganda’s first official shipment of goods to Nigeria. This milestone event, held in December 2024, coincided with the commissioning of the Free Zones Export facility at Entebbe International Airport and the launch of Uganda’s AfCFTA Implementation Strategy.

Uganda’s President Museveni Highlights Importance of Regional Trade

Uganda’s President Yoweri Museveni, who witnessed the signing of the export orders, described regional trade as a catalyst for economic transformation. “I am pleased to kick off the journey for the first formal exports of Ugandan products to West Africa under AfCFTA,” Museveni stated. He emphasized that as Africa awakens to its economic potential, it becomes evident that domestic markets alone are not sufficient. “Expanding trade across the continent is essential for sustainable growth,” he added.

The first shipment of Ugandan goods to Nigeria, expected in the first quarter of 2025, will include coffee, black and green tea, milk, fish, and pharmaceuticals. This pilot consignment aims to assess market demand in Nigeria and lay the groundwork for further trade expansion between the two nations.

Nigeria’s President Tinubu Supports Trade Initiative

President Museveni commended Nigeria’s President Bola Tinubu for his support in facilitating the entry of Ugandan products into the Nigerian market. He urged other African nations to strengthen commercial ties and harness the continent’s vast economic potential. The collaboration between Nigeria and Uganda is seen as a model for other African countries to follow in their efforts to boost intra-African trade under the AfCFTA framework.

Uganda’s Strategic Push into Nigeria’s Market

Uganda’s push into Nigeria’s market aligns with its broader ambition to position itself as a regional trade hub. The country has been actively working to diversify its export markets and reduce its reliance on traditional trading partners. By leveraging the AfCFTA agreement, Uganda aims to expand its exports to other member states, improve trade corridors, and enhance infrastructure to facilitate smoother trade flows.

Role of Free Zones in Attracting Investment

Uganda’s Minister of Trade, Industry, and Cooperatives, Francis Mwebesa, highlighted the role of free zones in attracting investment and creating jobs. The commissioning of the Free Zones Export facility at Entebbe International Airport is expected to boost Uganda’s export capacity by providing a streamlined process for businesses to access international markets. The facility will also serve as a hub for value addition, enabling Ugandan products to meet international standards and compete effectively in global markets.

Collaborative Efforts in Shaping Uganda’s Trade Strategy

Permanent Secretary Lynette Bagonza praised the collaborative efforts of government ministries and the private sector in shaping Uganda’s trade strategy. She emphasized the importance of public-private partnerships in driving economic growth and ensuring the successful implementation of the AfCFTA agreement. Bagonza noted that the government’s commitment to creating an enabling environment for businesses has been instrumental in attracting both local and foreign investments.

Uganda’s Plans for Expanding Exports Across Africa

Beyond Nigeria, Uganda has outlined plans to expand its exports to other AfCFTA member states. The country aims to leverage existing trade corridors and improve infrastructure to facilitate the movement of goods across borders. By doing so, Uganda hopes to tap into the vast market potential of the African continent, which boasts a population of over 1.3 billion people and a combined GDP of over $3 trillion.

The Significance of the AfCFTA Agreement

The AfCFTA agreement, which came into force in January 2021, is one of the largest free trade areas in the world by the number of participating countries. It aims to create a single continental market for goods and services, with free movement of businesspersons and investments. By reducing trade barriers and harmonizing trade policies, the AfCFTA seeks to boost intra-African trade, which currently accounts for only about 15% of Africa’s total trade.

The agreement is expected to increase Africa’s income by $450 billion by 2035 and lift 30 million people out of extreme poverty. It also aims to promote industrialization, diversify economies, and create jobs across the continent. The successful implementation of the AfCFTA will require significant investments in infrastructure, trade facilitation measures, and capacity building.

Challenges and Opportunities

While the AfCFTA presents immense opportunities for African countries, it also comes with its share of challenges. These include the need to address non-tariff barriers, improve trade infrastructure, and harmonize regulatory frameworks. Additionally, there is a need for capacity building to enable businesses, particularly small and medium-sized enterprises (SMEs), to take advantage of the opportunities presented by the agreement.

For Uganda, the successful implementation of the AfCFTA will require continued efforts to improve the business environment, enhance productivity, and ensure that its products meet international standards. The country’s focus on value addition and diversification of its export base will be critical in maximizing the benefits of the agreement.

Conclusion

The strengthening of trade relations between Nigeria and Uganda under the AfCFTA agreement marks a significant step towards realizing the vision of a united and prosperous Africa. By working together to boost intra-African trade, both countries are setting an example for other African nations to follow. The successful implementation of the AfCFTA will not only enhance economic growth and development but also contribute to the continent’s integration and unity. As Uganda prepares to make its first official shipment of goods to Nigeria, the future of African trade looks promising, with endless possibilities for collaboration and mutual benefit.