Uganda is expected to earn about $23m from export contracts from the regional market in three years.
Uganda is expected to earn about $23m from export contracts from the regional market
This has been achieved through the MarketLinked Programme, a business market networking process that connects buyers to industrialists.
Florence Kata, the executive director of the Uganda Export Promotions Board said 62 companies have been involved in the marketing strategy and half of them are currently exporting, while others are working on internal modifications to suit the fast expanding market to ensure they deliver on their orders.
“The first group to benefit from this was the food and beverages sector for the reason that Uganda is the regional food basket and the benefits of marketing the sector pour out to farmers and traders,” explained Kata.
“Entrepreneurs received immediate orders valued at $625,638 while in the space of 12 months there were orders valued at $5,167,353,” she says.
The Market Linked Programme was initiated by the UEPB and it gives business management exposure to entrepreneurs as they are able to meet buyers, compare with the competitors and get first hand criticism on their products, thus giving SMEs a bigger base of competition in the market.
Market Linked was recognised as an innovative model which is the first of its kind in sub-Saharan Africa. It is in partnership with Traidlinks, which is funded by the Irish government.
“We have implemented six missions since 2009 to this year which have yielded 705 appointments set up for Ugandan businesses to meet 355 buyers in the respective markets.
“On average, each company had 11 appointments to meet potential buyers in each mission,” says Kata.
She said they had visited four cities,; Nairobi, Kigali, Mwanza, and Bujumbura.
On this road of market success, UEPB faces a number of challenges with induststrialists. Internally, the systems of the SMEs are unprofessional and are affected by lack of proper packaging due to limited exposure and skills, shortage of flair and lack of capacity and confidence to deliver to the buyer.
The trade minister, Amelia Kyambadde, applauded the Market Linked programme for improving the market scope of the Ugandan products and advised entrepreneurs to take advantage of organs such as the Uganda Research Institute and universities that help to develop quality products.
“We need to keep quality at the forefront of our strategies as we manufacture and trade so that we can be known in the region and the world over as a source of quality products,” advised Kyambadde.
She said SMEs employ over 70% of Uganda’s workforce.
The bigger market opportunity that the Market linked Programme has unlocked will guarantee more employment for the young and skilled population.
The ministry will implement a quality infrastructure and Standards Project because of the desire to enhance competitiveness in the production process.
UEPB will work with the Uganda National Bureau of Standards (UNBS) to ensure that standards are developed for all products.
“UNBS has also established a desk specifically to facilitate standards certification of SMEs products,” Kyambadde said.
She affirmed that innovation is the key to global competitiveness and there is no resource that should be wasted producing products and services using yesterday’s methods and technologies, some of which not environmentally friendly.
Companies such as Nutreal which specialises in nutritious foods and Euroflex, a mattress company, have tested the waters and are expanding deeper in the region.
Robert Moody of Traidlinks said: “It is one thing to get connected to buyers, but the big difference is to bring people into the value chain by employing more people and making more money while paying more taxes to the Government.”
He says the next target market is western Kenya which is nearer to Uganda than Nairobi.
By Roselynn Karatsi, The New Vision
