Export sector seeks to boost quality, global reach to raise profits

Uganda’s export sector is steadily evolving, with efforts to improve both domestic consumption and international competitiveness gaining momentum, according to Mr Odrek Rwabwogo, chairman of the Private Agribusiness and Commerce Initiative for Export Development (PACEID).

Addressing stakeholders in the agribusiness sector in Kampala on Friday, Mr Rwabwogo highlighted a key challenge: domestic consumption of high-quality coffee remains low, largely due to prohibitive equipment costs and taxation.

“To make good espressos or cappuccinos, 60 percent of a coffee machine’s price, which ranges between Shs20 to Shs30 million, is tax,” he said.

“When you consider that there are roughly 1,700 restaurants in Mukono, Entebbe, and Kampala, the high costs limit the local market’s growth.”

He emphasized the need for a holistic ecosystem to boost consumption.

“If restaurants had easier access to machines and could buy locally roasted coffee, the market would expand. This is not just about machines; it is about education, awareness, and creating demand for refined Ugandan coffee,” Mr Rwabwogo explained.

PACEID’s strategy focuses on both international and domestic markets.

“We are taking single-origin coffee from Uganda to retail outlets and restaurants abroad. The more people know our coffee, the more they know about the country, and the more they want a refined product, not just green coffee,” he noted.

Ms Brenda Katarikawe, PACEID’s director of markets, elaborated on the upcoming International Buyers Week.

“This event is designed to bring together international buyers in one space in Uganda, to understand us deeper, our products, our culture, and our facilities. It is an opportunity to showcase Uganda beyond the raw materials,” she said.

Preparation for the event includes training local producers to meet international standards and providing access to finance through programs like Uganda Exim Ltd, which supports small and medium-sized exporters.

“We are trying to ensure that 1,000 SMEs can participate, even if they have existing debts or collateral locked elsewhere, as long as they possess export-ready products,” Mr Rwabwogo explained.

Standardization remains a priority.

PACEID has collaborated with the Directorate of Industrial Training (DIT) and other agencies to train local producers on 13 key products, ranging from cassava to tea.

“The learning curve is steep, but by breaking the country into zones and equipping producers with the knowledge, we are transforming their capacity to export,” Mr Rwabwogo said.

He also underscored the importance of integrating marketing, sales, and customer feedback at a national level.

“A country functions like a company. Trade, foreign affairs, and other institutions must operate as a cohesive sales and marketing unit to support our exporters. We are building a trade house to streamline this process and improve aggregation, ensuring that buyers know exactly what is available in Uganda, in what quantity, and under what terms,” he explained.

Mr Rwabwogo and Ms Katarikawe remain optimistic about Uganda’s export sector.

“The country is growing, and our businesses are competing. We just need to continue improving execution, integrating technology, and maintaining momentum,” Mr Rwabwogo said.

“International Buyers Week is a platform to show that Uganda is ready to meet demand and that our products are not just commodities, they represent our people, our culture, and our capability to deliver quality,” Ms Katarikawe added.

PACEID plans to scale trade hubs, enhance market awareness, and expand international engagements, particularly across Europe and West Africa.

“We are building for our children and grandchildren. If Uganda can sell what it produces in the way the market wants it, we can ensure sustainable growth and employment for the next generation,” Mr Rwabwogo concluded.

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