Export Trade Training Programme for Exporters, Central Uganda, Kampala

THE REPUBLIC OF UGANDA

MINISTRY OF TRADE, INDUSTRY AND COOPERATIVES

TRAINING OF THE BUSINESS COMMUNITY ON TRADING IN THE COMMON MARKET FOR EASTERN AND SOUTHERN AFRICA (COMESA) UNDER THE FREE TRADE AREA

Date: 8-9th April 2013 – Agricultural exporters

Venue: Hotel Triangle, Buganda Road – Kampala

Uganda Export Promotion Board

1.0Background

On the 23rd of November 2012, Uganda officially became a Member of the COMESA Free Trade Area in a summit held in Kampala, Uganda. The decision effectively makes Uganda the 15th COMESA FTA member and opens up the opportunity for increased trade competitiveness mainly through increased export earnings.

The COMESA market has on average provided a market for 57% of the value of Uganda's exports annually and FTA ratification is projected to boost Uganda’s exports by 50% annual growth. Joining a Free Trade Area means that Uganda’s exports to all FTA member countries will be exempted from tariffs (0%) compared to the 2% originally levied before joining the FTA.

COMESA market with a population of 467 million people and a combined GDP of $799 billion by 2010 is one of the biggest trade blocs therefore offers Uganda enormous trade opportunities but also poses challenges to Uganda’s exports at the same time. The opportunities are in increased market access for Ugandan products and the main challenge is competition. Ugandan exports will have to compete with the region’s giant suppliers such as Egypt, Libya and Kenya. The implication here is that Uganda has to address issues of competitiveness both at micro and macro level.

At micro level building the capacity of exporting firms is imminent to equip SMEs with the right knowledge and skills in managing export production, marketing and as well as understanding the rules of trading within Free Trade Area Arrangement. The way of doing business will have to also improve to embrace market led production and deviate from the past tendencies where many entrepreneurs have tended to equate export marketing with domestic trading where one sells what he/she has rather than what the market wants.

The lack of quality consciousness, disrespect for timely delivery, inappropriate packaging are some of the shortcomings that Ugandan exporters have to work on to be able to compete in the region. It’s therefore important that the business community is aware that the regional/international nature of the export business makes it more exacting, requiring that the rules governing it must be thoroughly learnt and properly and expertly applied.

In addition to the above challenges, its been identified that most exporting SMEs’ lack of knowledge, strategies and personnel with the requisite training and skills to plan and implement export market programmes and operations among others has left many playing a catch-up position in the regional markets. Export competitiveness is therefore a critical component of Uganda’s export promotion drive especially in the current era of regionalization.

This training therefore attempts to bridge the above knowledge and skills gaps Ugandan exporters are facing in order to exploit business opportunities presented within the COMESA and beyond.

2.0Objectives of the Training

• To help the business community understand the opportunities, Challenges and the rules of trading within COMESA Free Trade Area.

• To provide export-related skills training to target groups and entities at the enterprise level in the private sector with the aim of equipping them to enhance their export performance and competitiveness regionally.

• To recommend specific strategies aimed at enhancing firm competitiveness

• To give SMEs and producers a broad overview and understanding of export quality management concepts.

3.0SELECTION CRITERIA FOR WORKSHOP PARTICIPANTS ON “COMESA REGIONAL COMPETITIVENESS”

UEPB has provided a list of 166 companies/firms that export to COMESA. There are 66 firms that export agriculture products and 99 that export non-agriculture products. The proposed approach is to give all a chance by inviting them to two training workshops which have a focus on the COMESA FTA. Since these firms are already in the business of exporting, they are likely to make better use and take advantage of knowledge and information that the training will provide.

We have approached this by dividing the list into two and categorizing these firms so that they fall into either group A (firms exporting agriculture products) and B (firms exporting non-agriculture products).

4.0Training duration and dates

The training will be done over two days as follows:

Training for Group A firms: 8 and 9 April

Training for Group B firms: 10 and 11 April.

5.0Proposed Content and Training Programme

DAY ONE

DAY TWO

Annex1: Uganda’s exports to COMESA in 2011

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