Ugandan food exporters are struggling to compete in global markets due to the country’s landlocked status, with entrepreneurs citing high transportation costs and logistics delays as major barriers to international trade. Mr Elie Nsabimana, the chief executive officer (CEO) and founder of MIECA Uganda Limited, says while demand for Ugandan organic foods such as matooke, cassava, and sweet potatoes is growing in North America, Europe, and the Middle East, the cost of getting those goods out of the country is undermining profits and slowing scale-up.
‘We are exporting over 100 containers of food every year, but we cannot satisfy the market because transport from Uganda to the port of Mombasa is very expensive,’ Mr Nsabimana tells Monitor during a visit to MIECA’s new 20-acre food processing facility in Buwama, Mpigi District. Mr Nsabimana, whose company employs more than 500 workers and sells over 70 value-added food products globally, says Uganda’s inland location increases the final price of goods.
This makes them less competitive compared to products from West African countries like Ghana, Nigeria, and Cameroon that have direct access to the Atlantic Ocean. ‘Our competitors in West Africa are close to the sea. They move goods directly from the factory to the ship. For us in Uganda, we must first go through Kenya, via Mombasa to access the Ocean. That journey eats into our margins,’ he says.
Road transport
Uganda depends on road transport through Kenya to access the Port of Mombasa, which is its primary gateway for international trade. According to data from the Uganda Freight Forwarders Association (UFFA), this route adds between 25 percent and 40 percent to the logistics cost of an export container, depending on the weight, perishability, and mode of transport.
MIECA, which stands for Mugisha Import and Export Company, started operations in 2018 with a focus on adding value to traditional Ugandan foods. Its flagship product is matooke (green bananas), which the company dehydrates, grinds, or vacuum-seals for long shelf-life export. Mr Nsabimana claims that Uganda’s matooke is in high demand abroad because it is still organic and chemical-free.
‘Our land is virgin. We don’t use chemical fertilisers, so when our matooke reaches the international market, people love it. But the problem is not demand; it is getting the goods there affordably and consistently,’ he added. The company exports to Canada (with stores in Vancouver, Calgary, Edmonton, and Montreal), the United States, France, Belgium, Oman, the United Arab Emirates, and Australia. However, despite this global presence, Mr Nsabimana says MIECA remains constrained by limited access to affordable shipping, high fuel costs, delays at the border, and lack of access to financing. Mr Nsabimana warns that the lack of investment in export infrastructure is limiting Uganda’s competitiveness in agro-processing.